Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 444

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1C
Chunk 444
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. 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 December 31, 2024,
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 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 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 consolidated financial statements included elsewhere in this Annual Report, our management believes there
was no critical accounting estimates identified during the years ended December 31, 2024 and 2023.

Derivative Financial Instruments

We do not use derivative instruments to hedge exposures to cash flow,
market, or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain
features that qualify as embedded derivatives, pursuant to FASB ASC Topic 480 “Distinguishing Liabilities from Equity” (“ASC
480”) and ASC 815. The classification of derivative instruments, including whether such instruments should be recorded as liabilities
or as equity, is re-assessed at the end of each reporting period. The assessment considers whether the financial instruments are freestanding
financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the financial instruments
meet all of the requirements for equity classification under ASC 815, including whether the financial instruments are indexed to our own
ordinary shares, among other conditions for equity classification.

Equipment

We capitalize