Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 105

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 Compensation” (“ASC 718”). Under ASC 718,
stock-based compensation associated with equity awards is measured at fair value upon the grant date and recognized over the requisite
service period. To the extent a stock-based award is subject to a performance condition, the amount of expense recorded in a given period,
if any, reflects an assessment of the probability of achieving such performance condition, with compensation recognized once the event
is deemed probable to occur. Forfeitures are recognized as incurred.

Recent Accounting Pronouncements 

In December 2023, the FASB issued ASU No. 2023-09
(Topic 740), Improvements to Income Tax Disclosures. The ASU requires disaggregated information about a reporting entity’s
effective tax rate reconciliation as well as an expansion of other income tax disclosures. The ASU is effective on a prospective basis
for annual reporting periods beginning after December 15, 2024. The Company is currently evaluating the impact this ASU will have
on its consolidated financial statements and related disclosures.

Issued in November 2024, ASU 2024-03, Disaggregation
of income Statement Expenses (Subtopic 220-40), requires the disaggregated disclosure of specific expense categories, including purchases
of inventory, employee compensation, depreciation, and amortization, within relevant income statement captions. This ASU also requires
disclosure of the total amount of selling expenses along with the definition of selling expenses. The ASU is effective for annual periods
beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Adoption of this ASU can
either be applied prospectively to consolidated financial statements issued for reporting periods after the effective date of this ASU
or retrospectively to any or all prior periods presented in the consolidated financial statements. While early adoption is permitted,
the Company does not plan to adopt this standard early. This ASU will likely result in additional disclosures being included in the Company’s
consolidated financial statements once adopted. The Company is currently evaluating the provisions of this ASU.

Emerging Growth Company Status 

Holdco is an emerging growth company, as defined
in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial