Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 501

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1C
Chunk 501
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 amount of these
foreign currency payments was translated into U.S. dollars.

Equipment

The Company capitalizes its cost to build its
rainfall ionization equipment (the “Equipment”), including materials and allocated labor costs. In July 2023, the Company
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, 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 December 31, 2024, no Equipment has been placed in service.

F-10

Equipment as of December 31, 2024 and 2023 was
composed of the following:

    December 31, 

    2024  
    2023 
  
    Equipment: 

    Rainfall ionization equipment and systems 
    $414,034  
    $368,206 
  
    Total 
    $414,034  
    $368,206 

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 the extent or manner in which