Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 11

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---
flows for the periods presented have been included. Operating results for the three months ended March 31, 2025 are not necessarily indicative
of the results that may be expected for the year ending December 31, 2025 or any future period.

The accompanying unaudited condensed consolidated
financial statements should be read in conjunction with the Company’s Annual Report Form 10-K as of December 31,
2024, as filed with the SEC on April 16, 2025, which contains the Company’s audited consolidated financial statements and notes
thereto.

Use of Estimates

The preparation of the unaudited condensed consolidated
financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect
the reported amounts of assets, liabilities and expenses and disclosure of contingent assets and liabilities at the date of the unaudited
condensed consolidated financial statements. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments
with original maturities at the date of purchase of three months or less to be cash equivalents. Cash and cash equivalents are stated
at fair value and may include money market funds, U.S. Treasury and U.S. government-sponsored agency securities, corporate debt, commercial
paper, and certificates of deposit. The Company had no cash equivalents as of March 31, 2025 and December 31, 2024.

Financial Instruments

The fair value of the Company’s assets
and liabilities, which qualify as financial instruments under the FASB ASC Topic 820, “Fair Value Measurements and Disclosures,”
approximates the carrying amounts represented in the accompanying consolidated balance sheets, either because of the short-term nature
of the instruments or because the instrument is recognized at fair value.

Fair Value Measurements

Fair value is defined as the price that would
be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement
date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●Level
                                            1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments
                                            in active markets;

●Level
                                            2, defined as