Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 24

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 24
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 determined that the material weakness had not been remediated as of December 31, 2024. For
a discussion of management’s consideration of the material weakness identified related to such issues, see “Note 2”
of RWT’s audited consolidated financial statements including in the prospectus filed with the SEC on December 12, 2024.

14

A material weakness is a deficiency, or a combination of deficiencies,
in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or
interim consolidated financial statements will not be prevented, or detected and corrected on a timely basis. Effective internal controls
are necessary for us to provide reliable financial reports and prevent fraud. We continue to evaluate steps to remediate the material
weakness. These remediation measures may be time consuming and costly and there is no assurance that these initiatives will ultimately
have the intended effects.

We intend to take steps to remediate this material
weakness, including plans to hire or engage a specialist to assist in the preparation of the income tax provision and disclosures. The
elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately
have the intended effects.

Efforts to remediate this material weakness may
not be effective or prevent any future material weakness or significant deficiency in Holdco’s internal control over financial reporting.
If Holdco’s efforts are not successful or other material weaknesses or control deficiencies occur in the future, Holdco may be unable
to report its financial results accurately on a timely basis, which could cause Holdco’s reported financial results to be materially
misstated and result in the loss of investor confidence and cause the market price of the Class A Common Stock to decline. Ineffective
internal controls could also cause investors to lose confidence in Holdco’s reported financial information, which could have a negative
effect on the trading price of its stock. Failure to implement and maintain effective internal controls over financial reporting could
also subject Holdco to potential delisting from Nasdaq or any other stock exchange on which its stock is listed or to other regulatory
investigations and civil or criminal sanctions.

We can give no assurance that the measures that Holdco plans to take
in the future will remediate the material weakness identified or that any additional material weaknesses or restatements of financial
results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or
circumvention of these controls. Hold