Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 135

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 135
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 issued, with a retention bonus agreement to better reflect
the nature of the commitment (“Retention Bonus”). As of March 31, 2025, the Retention Bonus has not been issued.

Board Agreement

On April 1, 2025, the Board increased the size
of the Board from five to seven directors and appointed Mr. Marcus Peperzak and Mr. Robert Reardon to the Board to fill the resulting
vacancies.

In connection with their appointments to the
Board, Mr. Reardon and Mr. Peperzak each entered into the Director Agreements which are the form of agreement adopted by the Board in
April 2025 to govern the terms of service and compensation of our company’s non-employee directors. Additionally, effective as
of April 4, 2025, we entered into Director Agreements with Lyman Dickerson, Alexandra Steele, and Christopher Riley, each non-employee
members of the Board. Pursuant to the terms of the Director Agreements, we agreed to pay to each board member (i) subject to approval
by the Board and compensation committee of the Board (the “Compensation Committee”), a cash payment of $12,500 promptly
following attendance at each quarterly Board meeting, for a total annual cash compensation of $50,000; and (ii) subject to approval by
the Board and the Compensation Committee, a grant of restricted stock, with the number of shares and terms to be determined by the Board.

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Segments

We operate and manage the business as one reportable
and operating segment, which is the business of developing, manufacturing and commercializing ionization rainfall generation technology.
Our chief executive officer, who is the chief operating decision maker, or CODM, reviews financial information on an aggregate basis
for allocating resources and evaluating financial performance.

Off-Balance Sheet Arrangements 

We did not have off-balance sheet arrangements
as of March 31, 2025, and do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated
entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that
were established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Estimates 

The unaudited condensed consolidated financial
statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC.

Preparation of the unaudited condensed consolidated