Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 339

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1B
Chunk 339
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 expenses of approximately $4.5 million and interest expense in connection
with the note payable to related parties of approximately $30,000. The Company experienced higher expenses compared to previous years
due to the merger completed on December 31, 2024.

For the year ended December 31, 2023, we had
net loss of approximately $437,000, which consisted mainly of general and administrative expenses of approximately $410,000 and interest
expense in connection with the note payable to related parties of approximately $27,000.

Cash Flows 

For the year ended December 31, 2024, net cash
used in operating activities was approximately $1.3 million, net cash used in investing account was approximately $46,000, and net cash
provided by financing activities was approximately $1.4 million. Net loss of approximately $4.5 million was partially offset by non-cash
activities, including stock-based compensation expense of approximately $2.8 million, amortization expense of approximately $12,000, and
expenses paid by related parties on behalf of RWT of approximately $321,000, and also changes in operating assets and liabilities used
approximately $44,000 of cash for operating activities. Cash used in investing activities consisted solely of payment for building Equipment
of approximately $46,000. Cash provided by financing activities resulted from (i) issuance of RWT Class A and RWT Class B common stock
of $740,000 and $125,000, respectively, (ii) cash proceeds from issuance of Holdco Class A common stock in connection with PIPE subscriptions
of $700,000, and (iii) proceeds from reverse recapitalization in connection with the Business Combination, partially offset by payment
of deferred financing costs of $75,000 and payment of prepaid Forward Purchase Agreement with Meteora of approximately $4.1 million.

47

For the year ended December 31, 2023, net cash
used in operating activities was approximately $238,000, net cash used in investing account was approximately $264,000, and net cash
provided by financing activities was approximately $440,000. Net loss of approximately $437,000 was affected by stock based compensation
expense of approximately $3,800, amortization expense of $12,000, expenses paid by related parties on behalf of RWT of approximately
$11,000, and changes in operating assets and liabilities used approximately $171,000 of cash for operating activities. Cash