Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1747

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 11
Chunk 1747
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 become deductible. Management considers the scheduled reversal of deferred tax
assets, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information
available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has
therefore established a full valuation allowance for the years ended December 31, 2024 and 2023.

F-20

A reconciliation of the statutory federal income
tax rate (benefit) to the Company’s effective tax rate (benefit) is as follows:

    December 31, 

    2024  
    2023 
  
    Statutory federal income tax rate 
     21.0% 
     21.0%
  
    M&A/ Deal cost 
     -6.0% 
     0.0%
  
    Meals and entertainment 
     0.0% 
     -0.1%
  
    Financing costs and stock based compensation expenses 
     -0.3% 
     -0.2%
  
    Start-up/Organization costs 
     0.0% 
     0.0%
  
    Change in valuation allowance 
     -14.7% 
     -20.7%
  
    Income tax expense 
     0.0% 
     0.0%

There were no unrecognized tax benefits or accruals
for interest and penalties as of December 31, 2024 and 2023. The Company is currently not aware of any issues under review that could
result in significant payments, accruals or material deviation from its position. The Company has been subject to income tax examinations
by major taxing authorities since inception. The Company’s management does not expect that the total amount of unrecognized tax
benefits will materially change over the next twelve months.

Note 10—Segment Information

ASC Topic 280, “Segment Reporting,”
establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic
areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is
available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources
and assess performance.

The Company operates and manages the business
as one reportable and operating segment, which is the business of developing, manufacturing and commercializing ionization rainfall generation
technology. The Company’s Chief Executive Officer