Company: RAIN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076727
Chunk: 23

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 of the Company vesting one year from the date of grant. As of June 30, 2025, the stock has not been
granted.

Note 6 — Warrants

As of June 30, 2025 and December 31, 2024, the
Company has 5,000,000 warrants to purchase Holdco Class A Common Stock (“Warrants”) outstanding, which was the rollover of
the 5,000,000 Coliseum Public Warrants upon closing of the Business Combination. The Warrants may only be exercised for a whole
number of shares. No fractional shares will be issued upon exercise of the Warrants. The Warrants became exercisable on January 31, 2025
and will expire on December 31, 2029 at 5:00 p.m., New York City time, or earlier upon liquidation. Each Warrant entitles the holder
thereof to purchase one share of Class A Common Stock at an initial exercise price of $11.50 per share and exercisable on a cashless basis
under certain circumstances specified in the warrant agreement.

The Warrants are derivative warrant liabilities
in accordance with ASC 815. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the instruments
to fair value at each reporting period. 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 7 for additional information on the fair value measurements of these warrants.

14

RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

JUNE 30, 2025

Note 7 — Fair Value Measurements

Financial liabilities measured at fair value during
the periods on a recurring basis consisted of the following as of June 30, 2025 and December 31, 2024:

June 30, 2025

    Fair Value Hierarchy  

    Level 1  
    Level 2