Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 85

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 of the date of the event that causes the reclassification. Refer
to Note 7 for additional information on the fair value measurements of these warrants.

Note 7 — Fair Value Measurements

Financial liabilities measured at fair value
during the year on a recurring basis consisted of the following as of March 31, 2025 and December 31, 2024:

March 31, 2025

    Fair Value Hierarchy  

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Warrant liability – Public Warrants 
    $-  
    $440,000  
    $-  
    $440,000 
  
    Shortfall payment liability 
     -  
     -  
     20,636  
     20,636 
  
    Total financial liabilities 
    $              -  
    $440,000  
    $20,636  
    $460,636 

December 31, 2024

    Fair Value Hierarchy  

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Financial liabilities: 

    Warrant liability – Public Warrants 
    $-  
    $350,000  
    $-  
    $350,000 
  
    Shortfall payment liability 
     -  
     -  
     20,636  
     20,636 
  
    Total financial liabilities 
    $               -  
    $350,000  
    $20,636  
    $370,636 

The Warrants are listed on Nasdaq Stock Market
LLC under the ticker “RAINW”. As of March 31, 2025 and December 31, 2024, the fair value measurements for the Warrants were
classified as Level 2 due to low trading volume.

During the three months ended March 31, 2025,
there were no transfers between levels of the fair value hierarchy.

16

RAIN ENHANCEMENT TECHNOLOGIES
HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 8 — Stockholders’
Deficit

According to the Company’s Am