Company: RAIN
Filing Date: 2025-08-14
Form Type: 424B3
Source: 0001213900-25-076764
Chunk: 15

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 424B3
Chunk 15
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 Fair value of these assets may be determined by a variety of
methodologies, including discounted cash flow models. As of June 30, 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. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled.

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RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2025</div>

The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established,
when necessary, to reduce deferred tax assets to the amount expected to be realized. As of June 30, 2025 and December 31, 2024, the Company
had approximately $1.3 million and $824,000, respectively, in deferred tax assets.

ASC 740 prescribes a recognition threshold
and a measurement attribute for the unaudited condensed consolidated financial statements recognition and measurement of tax positions
taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be
sustained upon examination by taxing authorities. There were no unrecognized tax