Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 129

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 129
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 are to fund its operations as it continues to grow its business. RET will require a significant amount of cash for expenditures as it invests in ongoing research and development. Until such time as RET can generate significant revenue from sales of its rain generation systems, if ever, it expects to finance its cash needs through public or private equity or debt financings or other capital sources, including potential collaborations and other similar arrangements. However, RET may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all. To the extent that RET raises additional capital through the sale of equity or convertible debt securities, the ownership interest of its stockholders will be or could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of its common stockholders. Debt financing and equity financing, if available, may involve agreements that include covenants limiting or restricting its ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If RET raises funds through collaborations, or other similar arrangements with third parties, it may have to relinquish valuable rights to the rain generation technology on terms that may not be favorable to RET and/or may reduce the value of RET common stock. If RET is unable to raise additional funds through equity or debt financings when needed, it may be required to delay, limit, reduce or terminate its rain generation development efforts. RET’s future capital requirements and the adequacy of available funds will depend on many factors, including those set forth in the section titled “ Risk Factors.”

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In connection with RET’s assessment of going concern considerations in accordance with FASB ASC Topic 205-40, “Basis of Presentation - Going Concern,” RET’s management has determined that the liquidity condition raises substantial doubt about RET’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities. Management plans to consummate a merger with Coliseum and expects to receive financing to meet its obligations through one year from the date of this prospectus; however, no financing is currently committed. The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if RET is unable to continue as a going concern.

Cash Flows

For the nine months ended September 30, 2024, net cash used in operating activities was approximately $167,000, net cash used in investing account was approximately $46,000, and net cash provided by financing activities was