Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1111

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 7
Chunk 1111
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 a form of an unsecured note payable (the “Officer Note”) on the earlier of (x)
four-year anniversary of the Officer Note, subject to the CEO’s continued service with Holdco through such date, and (y) the date
of termination, if Holdco terminates the CEO’s employment without cause. As of the date of this filing, the Officer Note has not
been issued.

Note 6 — Warrants

On the Closing Date, all of Coliseum 3,225,000 private placement warrants
were converted into 806,250 shares of Holdco Class A Common Stock.

The remaining 5,000,000 Coliseum public warrants
were exchanged for warrants to purchase Holdco Class A Common Stock (“Warrants”). 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.

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 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