Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 243

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 243
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 of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted
and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the
amount by which the carrying amount exceeds the fair value of the asset. Fair value of these assets may be determined by a variety of
methodologies, including discounted cash flow models. As of December 31, 2024 and 2023, we did not have any intangible assets with indefinite
useful lives.

Stock Compensation

Our policy is to account for stock-based compensation
expense in accordance with FASB ASC Topic 718, “Compensation-Stock 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 November 2023, the FASB issued Accounting Standards Update (“ASU”)
2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”. The amendments in this ASU expand
public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the
Chief Operating Decision Maker and included within each reported measure of segment profit or loss, an amount and description of its composition
for other segment items, and interim disclosures of a reportable segment’s profit or loss and assets. We adopted ASU 2023-07, which
did not have a material impact on the consolidated financial statements.

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. We are currently evaluating the impact this ASU will have on our consolidated financial
statements and related disclosures.

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Emerging Growth Company Status 

Holdco is an emerging growth company, as defined
in