Rain Enhancement Technologies Holdco, Inc. Fair Value Disclosure
Note 9 — Fair Value Measurements
Financial liabilities measured at fair value during the periods on a recurring basis consisted of the following as of December 31, 2025 and 2024:
December 31, 2025
| Fair Value Hierarchy | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Financial liabilities: | ||||||||||||||||
| Warrant liabilities – Public Warrants | $ | $ | 1,250,000 | $ | $ | 1,250,000 | ||||||||||
| Shortfall payment liability | 20,636 | 20,636 | ||||||||||||||
| Total financial liabilities | $ | $ | 1,250,000 | $ | 20,636 | $ | 1,270,636 | |||||||||
December 31, 2024
| Fair Value Hierarchy | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Financial liabilities: | ||||||||||||||||
| Warrant liabilities – 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 the Nasdaq under the ticker “RAINW”. As of December 31, 2025 and 2024, the fair value measurements for the Warrants were classified as Level 2 due to low trading volume.
During the years ended December 31, 2025 and 2024, there were no transfers between levels of the fair value hierarchy.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Apr 16, 2025 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.