Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1436

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 9A
Chunk 1436
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 The Loan has an
interest rate of 5%, and interest will be due and payable in arrears quarterly. The Rollover amount does not reduce the $7 million funding
available to the Company under the LOC. As of December 31, 2024, the Company had not borrowed any of the $7 million available funding
under the LOC. Subsequent to December 31, 2024, the Company borrowed approximately $839,000 under the LOC.

Employment Agreement

On December 31, 2024, Holdco entered into a binding offer letter (the “Offer Letter”) with its new CEO, Mr. Seidl effective
January 2, 2025, pursuant to which Holdco agreed to pay to the CEO (i) an annual salary of $500,000, (ii) a contingent bonus payment
of $5.0 million that will be issued under a form of an unsecured note payable (the “Officer Note”) on the earlier of (x)
four-year anniversary of the Officer Note, subject to the CEO’s continued service with Holdco through such date, and (y) the date
of termination, if Holdco terminates the CEO’s employment without cause. As of the date of this filing, the Officer Note has not
been issued.

Note 6 — Warrants

On the Closing Date, all of Coliseum 3,225,000 private placement warrants
were converted into 806,250 shares of Holdco Class A Common Stock.

The remaining 5,000,000 Coliseum public warrants
were exchanged for 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.

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