Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 906

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 5
Chunk 906
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, 2024 and 2023, the Company did not have any
intangible assets with indefinite useful lives.

Stock Compensation

The Company’s 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.

Leases

The Company complies with FASB ASC Topic 842,
“Leases”. The Company may enter into leases for facilities and office equipment. The lease liabilities will be recognized
as the present value of the future minimum lease payments over the lease term. The lease payments may consist of fixed and in-substance
fixed amounts attributable to the use of the underlying asset over the lease term. Variable lease payments that do not depend on an index
rate or are not in-substance fixed payments are excluded in the measurement of right-of-use assets and lease liabilities and are expensed
in the period incurred. Some of the lease agreements may include options to extend the lease term or terminate the lease. These options
would be accounted for in our right-of-use assets and lease liabilities when it is reasonably certain that the Company will extend the
lease term or terminate the lease. As of December 31, 2024 and 2023, there were no lease agreements in place.

F-11

Income Taxes

The Company follows the asset and liability method of accounting for
income taxes under FASB ASC 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities are recognized
for the estimated future tax consequences attributable to differences between the consolidated financial statements carrying amounts of
existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances
are established, when necessary, to reduce deferred tax assets to the amount expected to