Company: RAIN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076727
Chunk: 13

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 Upon the completion of building
the Equipment, the Company transferred its capitalized cost from Construction in-process to Equipment. In July 2024, the Company completed
its building process for its two initial units and transferred those into Equipment. As soon as the Equipment is placed in service upon
agreement with the customers, the Company 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 June 30, 2025, no Equipment has been placed in service.

Equipment as of June 30, 2025 and December 31,
2024 was comprised of the following:

    June 30,
2025  
    December 31, 
2024 
  
    Equipment: 

    Rainfall ionization equipment and systems, in-process 
    $612,708  
    $- 
  
    Rainfall ionization equipment and systems, completed 
     414,034  
     414,034 
  
    Total 
    $1,026,742  
    $414,034 

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 intangible assets with finite
lives is recognized in the statements of operations and in the expense category that is consistent with the function of the intangible
assets.

Intangible assets with finite lives are tested
for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. These conditions may include
a change in