Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 14

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 useful life or the
expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or
method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite
lives is recognized in the statements of operations and in the expense category that is consistent with the function of the intangible
assets.

9

RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Intangible assets with finite lives are tested
for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. These conditions may
include a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the
recoverability of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future
cash flows (undiscounted and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment
loss recognized is the amount by which the carrying amount exceeds the fair value of the asset. Fair value of these assets may be determined
by a variety of methodologies, including discounted cash flow models. As of March 31, 2025 and December 31, 2024, the Company did not
have any intangible assets with indefinite useful lives.

Stock Compensation

The Company’s policy is to account for
stock-based compensation expense in accordance with FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”).
Under ASC 718, stock-based compensation associated with equity awards is measured at fair value upon the grant date and recognized over
the requisite service period. To the extent a stock-based award is subject to performance conditions, the amount of expense recorded
in a given period, if any, reflects an assessment of the probability of achieving such performance condition, with compensation recognized
once the event is deemed probable to occur. Forfeitures are recognized as incurred.

Income Taxes

The Company follows the asset and liability method
of accounting for income taxes under FASB ASC 740, “Income Taxes” (“ASC 740”). Deferred tax assets and liabilities
are recognized for the estimated future tax consequences attributable to differences between the unaudited condensed consolidated financial
statements carrying amounts of existing assets and liabilities and their respective tax basis