Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1100

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 7
Chunk 1100
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currency are remeasured at each reporting date into the foreign currency at the exchange rate on that date. Exchange rate differences,
other than those accounted for as hedging transactions, are recognized as foreign currency transaction gain or loss included in the Company’s
statements of operations within the general and administrative expenses.

During the years ended December 31, 2024 and 2023, the only foreign
currency transaction the Company incurred was the amount paid to its Senior Technology Advisor in Australian Dollars. The amount of these
foreign currency payments was translated into U.S. dollars.

Equipment

The Company capitalizes its cost to build its
rainfall ionization equipment (the “Equipment”), including materials and allocated labor costs. In July 2023, the Company
finished building the Equipment and transferred its capitalized cost from Construction in-process to Equipment. As soon as the Equipment
is placed in service upon agreement with the customers, the Company will begin to depreciate those assets on a straight- line basis over
the estimated useful lives of the assets, generally 10 to 15 years. At the time of retirement or other disposition of the Equipment,
the cost and accumulated depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in
operations. As of December 31, 2024, no Equipment has been placed in service.

F-10

Equipment as of December 31, 2024 and 2023 was
composed of the following:

    December 31, 

    2024  
    2023 
  
    Equipment: 

    Rainfall ionization equipment and systems 
    $414,034  
    $368,206 
  
    Total 
    $414,034  
    $368,206 

Intangible Assets

Recognized intangible assets have finite lives
and include acquired licenses for market-ready technology and designs of weather modification and rainfall ionization equipment. Intangible
assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried
at cost less any accumulated amortization and accumulated impairment losses.

Intangible assets with finite lives are amortized
using the straight-line method over the estimated useful economic life. The amortization period and the amortization method for an intangible
asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the
expected pattern of consumption of future economic benefits embodied in the asset are considered