Company: RAIN
Filing Date: 2025-05-16
Form Type: 424B3
Source: 0001213900-25-044498
Chunk: 43

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-16
Form: 424B3
Chunk 43
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, and Christopher Riley, each non-employee
members of the Board. Pursuant to the terms of the Director Agreements, we agreed to pay to each board member (i) subject to approval
by the Board and compensation committee of the Board (the “Compensation Committee”), a cash payment of $12,500 promptly
following attendance at each quarterly Board meeting, for a total annual cash compensation of $50,000; and (ii) subject to approval by
the Board and the Compensation Committee, a grant of restricted stock, with the number of shares and terms to be determined by the Board.

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Segments

We operate and manage the business as one reportable
and operating segment, which is the business of developing, manufacturing and commercializing ionization rainfall generation technology.
Our chief executive officer, who is the chief operating decision maker, or CODM, reviews financial information on an aggregate basis
for allocating resources and evaluating financial performance.

Off-Balance Sheet Arrangements

We did not have off-balance sheet arrangements
as of March 31, 2025, and do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated
entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that
were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Estimates

The unaudited condensed consolidated financial
statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC.

Preparation of the unaudited condensed consolidated
financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities. We also make estimates and assumptions on revenue generated and reported expenses incurred
during the reporting periods. Our estimates are based on our historical experience and on various other factors that it believes are
reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying value of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

While our significant accounting policies are
described in the notes to our unaudited condensed consolidated financial statements included elsewhere in this Annual Report, our management
believes there was no critical accounting estimates identified during the three months ended March 31, 2025 and 2024.

Derivative Financial Instruments

We do not use derivative instruments to