Company: RAIN
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001213900-25-035587
Chunk: 39

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-25
Form: 424B3
Chunk 39
---
co may be unable
to report its financial results accurately on a timely basis, which could cause Holdco’s reported financial results to be materially
misstated and result in the loss of investor confidence and cause the market price of the Class A Common Stock to decline. Ineffective
internal controls could also cause investors to lose confidence in Holdco’s reported financial information, which could have a negative
effect on the trading price of its stock. Failure to implement and maintain effective internal controls over financial reporting could
also subject Holdco to potential delisting from Nasdaq or any other stock exchange on which its stock is listed or to other regulatory
investigations and civil or criminal sanctions.

We can give no assurance that the measures that
Holdco plans to take in the future will remediate the material weakness identified or that any additional material weaknesses or restatements
of financial results will not arise in the future due to a failure to implement and maintain adequate internal control over financial
reporting or circumvention of these controls. Holdco is required, pursuant to Section 404 of the Sarbanes-Oxley Act, to annually
furnish a report by management on, among other things, the effectiveness of its internal control over financial reporting. This assessment
needs to include disclosure of any material weaknesses identified by Holdco’s management in its internal control over financial
reporting. Holdco is required to disclose changes made in its internal control and procedures on a quarterly basis. To comply with the
requirements of being a public company, Holdco may need to undertake various actions, such as implementing new internal controls and procedures
and hiring accounting or internal audit staff. If Holdco is unable to hire the additional accounting and internal audit staff necessary
to comply with these requirements, Holdco may need to retain additional outside consultants. If Holdco is unable to conclude that its
internal controls over financial reporting are effective, investors may lose confidence in Holdco’s financial reporting, which could
negatively impact the price of Holdco’s securities.

We may face litigation and other risks as a result of the restatement of RWT’s pre-merger audited consolidated financial statements and the material weakness in RWT’s internal control over financial reporting.

RWT’s management and its board of directors concluded that it
was appropriate to restate RWT’s pre-merger previously issued and audited consolidated financial statements as of and for the year
ended December 31, 2023. As discussed in “Note 2” of RWT