Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 83

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 as Co-Chief Executive Officer effective as of January 2, 2025 as discussed above. Following the resignation of Mr. Riley, Mr.
Seidl is the Company’s sole Chief Executive Officer.

Pursuant to the Termination Letter, in lieu of
all other compensation and payments of any kind due and payable to Mr. Riley, the Company agreed to pay Mr. Riley an aggregate of $124,500,
payable in 18 monthly installments beginning in February 2025 in consideration for his past services. As of September 30, 2025, the Company
had an aggregate of approximately $69,000 in outstanding amount in connection with such agreement that was included in accrued expenses
in the accompanying unaudited condensed balance sheet. Additionally, conditioned on approval by the Compensation Committee of the Board,
the Termination Letter provides that Mr. Riley will be granted 10,000 shares of Class A Common Stock of the Company vesting one year from
the date of grant. As of September 30, 2025, the stock has not been granted.

Note 7 — Warrants

As of September 30, 2025 and December 31, 2024,
the Company has 5,000,000 warrants to purchase Holdco Class A Common Stock (“Warrants”) outstanding, which was the
rollover of the 5,000,000 Coliseum Public Warrants upon closing of the Business Combination. 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. Each Warrant entitles
the holder thereof to purchase one share of Class A Common Stock at an initial exercise price of $11.50 per share and exercisable
on a cashless basis under certain circumstances specified in the warrant agreement.

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