Company: RAIN
Filing Date: 2025-05-16
Form Type: 424B3
Source: 0001213900-25-044498
Chunk: 44

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-16
Form: 424B3
Chunk 44
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 hedge
exposures to cash flow, market, or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments
are derivatives or contain features that qualify as embedded derivatives, pursuant to FASB ASC Topic 480 “Distinguishing Liabilities
from Equity” (“ASC 480”) and ASC 815. The classification of derivative instruments, including whether such instruments
should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The assessment considers whether
the financial instruments are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to
ASC 480, and whether the financial instruments meet all of the requirements for equity classification under ASC 815, including whether
the financial instruments are indexed to our own ordinary shares, among other conditions for equity classification.

Equipment

We capitalize our cost to build its rainfall
ionization equipment (the “Equipment”), including materials and allocated labor costs. In July 2023, we finished building
the Equipment and transferred its capitalized cost from Construction in-process to Equipment. As soon as the Equipment is placed in service
upon agreement with the customers, we will begin to depreciate those assets on a straight- line basis over the estimated useful lives
of the assets, generally 10 to 15 years. At the time of retirement or other disposition of the Equipment, the cost and accumulated
depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in operations. As of March 31,
2025, no Equipment has been placed in service.

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Intangible Assets

Recognized intangible assets have finite lives
and include acquired licenses for market-ready technology and designs of weather modification and rainfall ionization equipment. Intangible
assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried
at cost less any accumulated amortization and accumulated impairment losses.

Intangible assets with finite lives are amortized
using the straight-line method over the estimated useful economic life. The amortization period and the amortization method for an intangible
asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the
expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or
method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on int