Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1274

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 8
Chunk 1274
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 The warrant liabilities are subject to re-measurement at each balance sheet date. With each such re-measurement,
the warrant liabilities are adjusted to current fair value, with the change in fair value recognized in the Company’s statements
of operations. The Company will reassess the classification at each balance sheet date. If the classification changes as a result of events
during the period, the warrants will be reclassified as of the date of the event that causes the reclassification. Refer to Note 8 for
additional information on the fair value measurements of these warrants.

Note 7 — Fair Value Measurements

Financial liabilities measured at fair value
during the year on a recurring basis consisted of the following as of December 31, 2024:

    Fair Value Hierarchy  

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Warrant liability 
    $-  
    $350,000  
    $-  
    $350,000 
  
    Total financial liabilities 
    $-  
    $350,000  
    $-  
    $350,000 

F-17

The Warrants are listed on Nasdaq Stock Market LLC under the ticker
“RAINW”. As of December 31, 2024, the fair value measurements for the Warrants were classified as Level 2 due to low trading
volume.

During the fiscal year ended December 31, 2024, there were no transfers
between levels of the fair value hierarchy. During the fiscal year ended December 31, 2023 there were no liabilities measured at fair
value.

Note 8 — Stockholders’
Deficit

According to the Company’s Amended Articles
of Organization, as of December 31, 2024, the Company is authorized to issue 30,000,000 shares of Class A common stock, par value
$0.0001 (“Class A Common Stock”), 1,000,000 shares of Class B common stock, par value $0.0001, and 1,000,000 shares of
preferred stock, par value $0.0001.

Holdco Class A Common Stock entitles the holders
thereof to one vote per share on all matters on which the shares of Holdco Class A Common Stock is entitled to vote, and Holdco Class
B Common Stock entitles the holders thereof to