Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 84

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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, subject to the CEO’s
continued service with Holdco through such date, (y) the date of a change in control of Holdco, and (z) the date of termination, if Holdco
terminates the CEO’s employment without cause (the earlier date of (x), (y) and (z) is referred to as the “Bonus Entitlement
Date”). Holdco and Mr. Seidl agreed to replace the Officer Note, which was not issued, with a retention bonus agreement to better
reflect the nature of the commitment (“Retention Bonus”). The Retention Bonus shall pay Mr. Seidl $5.0 million contingent
on his remaining with the Company through the Bonus Entitlement Date. As of March 31, 2025, the Retention Bonus had not been issued.

15

RAIN ENHANCEMENT TECHNOLOGIES
HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

Note 6 — Warrants

On the Closing Date, all of the outstanding 3,225,000 Coliseum
Private Placement Warrants were converted into 806,250 shares of Holdco Class A Common Stock.

The remaining 5,000,000 Coliseum Public
Warrants became warrants to purchase Holdco Class A Common Stock (“Warrants”). The Warrants may only be exercised for a whole
number of shares. No fractional shares will be issued upon exercise of the Warrants. The Warrants became exercisable on January 31, 2025
and will expire on December 31, 2029 at 5:00 p.m., New York City time, or earlier upon liquidation. As of March 31, 2025, there
were 5,000,000 Warrants outstanding.

The Warrants are derivative warrant liabilities
in accordance with ASC 815. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the instruments
to fair value at each reporting period. The warrant liabilities are subject to re-measurement at each balance sheet date. With each such
re-measurement, the warrant liabilities are adjusted to current fair value, with the change in fair value recognized in the Company’s
statements of operations. The Company will reassess the classification at each balance sheet date. If the classification changes as a
result of events during the period, the warrants will be reclassified as