Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 35

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 35
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 the service and support staff needed in its client locations, it may
not be able to successfully launch pilot projects or support and maintain the installation and operation of projects that have been sold.
If RET experiences delays in adding such support capacity or servicing its future clients efficiently, or experiences unforeseen issues
with the reliability of its platform, it could overburden RET’s servicing and support capabilities. Similarly, increasing the number
of RET products and services would require it to rapidly increase the availability of these services. Failure to adequately support and
service its future clients may inhibit RET’s growth and ability to expand.

RET may not manage growth effectively.

RET’s failure to manage growth effectively
could harm its business, results of operations and financial condition. RET anticipates that a period of significant expansion will be
required to address potential growth. This expansion will place a significant strain on RET’s management, operational and financial
resources. Expansion will require significant cash investments and management resources and there is no guarantee that they will generate
additional sales of RET’s products or services, or that RET will be able to avoid cost overruns or be able to hire additional personnel
to support them. In addition, RET will also need to ensure its compliance with regulatory requirements in various jurisdictions applicable
to the sale, installation and servicing of its products. To manage the growth of its operations and personnel, RET must establish appropriate
and scalable operational and financial systems, procedures and controls and establish and maintain a qualified finance, administrative
and operations staff. RET may be unable to acquire the necessary capabilities and personnel required to manage growth or to identify,
manage and exploit potential strategic relationships and market opportunities.

RET will need additional capital to pursue its business objectives and respond to business opportunities, challenges or unforeseen circumstances, and it cannot be sure that additional financing will be available.

RET will need additional
capital to pursue its business objectives. RET’s business and its future plans for expansion are capital-intensive and the specific
timing of cash inflows and outflows may fluctuate substantially from period to period. RET management estimates $40 million capital requirements
for its five-year business plan. Prior to the closing of the Business Combination, RET management has determined that RET would be able
to execute on its operating plan for at least the next 12 months following the Closing if RET received at least $10 million in proceeds
from the Business Combination, after giving effect to redemptions of Public Shares but before the payment of transaction expenses. The
gross funds available upon the closing of the Business Combination was approximately