Company: RAIN
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001213900-25-035587
Chunk: 119

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-25
Form: 424B3
Chunk 119
---
 the chief operating decision maker, or CODM, reviews financial information on an aggregate basis for
allocating resources and evaluating financial performance.

Off-Balance Sheet Arrangements

We did not have off-balance sheet arrangements
as of December 31, 2024, and do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated
entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were
established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

<div align='center'>62</div>

Critical Accounting Estimates

The consolidated financial statements have been
prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC.

Preparation of the consolidated financial statements
requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent
assets and liabilities. We also make estimates and assumptions on revenue generated and reported expenses incurred during the reporting
periods. Our estimates are based on our historical experience and on various other factors that it believes are reasonable under the circumstances.
The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates.

While our significant accounting policies are
described in the notes to our consolidated financial statements included elsewhere in this prospectus, our management believes there was
no critical accounting estimates identified during the years ended December 31, 2024 and 2023.

Derivative Financial Instruments

We do not use derivative instruments to 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