Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 206

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 206
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752 shares of Class B Common Stock outstanding,
5,000,000 shares of Class A Common Stock issuable upon the exercise of outstanding Warrants, and 2,150,838 shares of Class A Common Stock
issuable upon the exercise of outstanding Options. Class B Common Stock is exclusively held by the RWT Founders, which moderately increases
their voting control. See “Risk Factors — The RWT Founders have substantial control over Holdco, which
could limit other shareholders’ ability to influence corporate matters and could delay or prevent a change in corporate control.”

Further, Holdco has the ability to issue additional shares of Class
B Common Stock without your consent. If additional shares of Class B Common Stock are issued in a financing or other transaction, whether
to the RWT Founders or to third parties, such shares would give the holder increased voting power as compared to shares of Class A Common
Stock.

31

The requirements of being a public company may strain Holdco’s
resources and distract management and we will incur substantial costs as a result of being a public company.

Holdco is subject to the reporting requirements of the Exchange
Act, the Sarbanes-Oxley Act, and the Securities Act. These rules, regulations and requirements are extensive. We will incur
significant costs associated with our public company corporate governance and reporting requirements. The Exchange Act requires,
among other things, that we file annual, quarterly and current reports with respect to our business and operating results. The Sarbanes-Oxley
Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial
reporting. In order to maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting
to meet this standard, significant resources and management oversight may be required. As a result, management’s attention may be
diverted from other business concerns, which could adversely affect our business and operating results. We may need to hire more corporate
employees to comply with these requirements or engage outside consultants, which would increase our costs and expenses. This may divert
management’s attention from other business concerns, which could have a material adverse effect on our business, financial condition
and results of operations. These applicable rules and regulations may make it more difficult and more expensive for us to obtain director
and officer liability insurance and it may be required to accept reduced policy limits and coverage or incur substantially higher costs
to obtain