Company: RAIN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076727
Chunk: 128

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 128
---
 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 unaudited condensed consolidated 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 the asset is being used or a change in future operations. We assess the recoverability of the
carrying amount by preparing estimates 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 June 30, 2025, 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 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,