Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 20

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 subsequent changes in fair value recognized in the Company’s
unaudited condensed consolidated statements of operations each reporting period until the Maturity Date. As of September 30, 2025 and
December 31, 2024, the value of the shortfall payment liability at its maximum value of approximately $21,000 remained unchanged.

Note 4 — Intangible Assets

Patent License

On November 21, 2022, the Company entered
into a license agreement with Dr. Theodore Anderson, a plasma physicist, whereby the Company was granted an exclusive, worldwide
license under certain of Dr. Anderson’s patents. The consideration paid for the license of $33,000, which was fully paid in
November of 2022, was recorded as a finite-lived intangible asset.

Consulting Agreement for Rainfall Ionization
Equipment

The Company entered into a consulting agreement
to engage its senior technology advisor (“Technical Advisor”) in 2022, pursuant to which the Company agreed to pay the Technical
Advisor a one-time fee upon execution of the agreement and a consulting fee of AUD 250,000 per year (equivalent to approximately
$170,000 as of the effective date). In February, the agreement was amended to increase the annual consulting fee to $186,000, and
in June 2025, it was further increased to $252,000 in exchange for the consultant assuming additional role and responsibilities.
The agreement also provides for success fees payable upon the achievement of specified sales and development milestones, which remain
unchanged.

In connection with the consulting agreement, the
Company also obtained from the Technical Advisor an irrevocable, perpetual, non-exclusive license under certain engineering designs in
connection with rainfall ionization equipment and systems. The Company fully paid the license amount of $83,750 in June 2023.

12

RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

SEPTEMBER 30, 2025

Intangible Assets

Intangible assets as of September 30, 2025 and
December 31, 2024 are composed of licenses under certain patents and designs for weather modification and rainfall ionization equipment
to Dr. Anderson and the Technical Advisor as discussed above.

Management anticipates that equipment utilizing
certain of these patents and designs will become operational and placed in service within