Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 48

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 below. As a result, we performed additional analysis as deemed
necessary to ensure that our consolidated financial statements were prepared in accordance with U.S. GAAP. Accordingly, management believes
that the consolidated financial statements included in this Report present fairly in all material respects our financial position, results
of operations and cash flows for the periods presented.

As previously disclosed, in connection with the
restatement of RWT’s audited financial statements as of and for the year ended December 31, 2023 and as of December 31, 2022 and
for the period from November 10, 2022 (inception) through December 31, 2022, RWT’s management identified a material weakness in
RWT’s internal controls over financial reporting regarding the calculation of deferred tax assets and disclosure of income taxes
in accordance with FASB ASC 740. Upon the completion of the Business Combination, RWT became a wholly-owned subsidiary of the Company.
In connection with the preparation and audit of the Company’s consolidated financial statements as of and for the year ended December
31, 2024, management determined that such material weakness had not been remediated as of September 30, 2025.

While we have processes to identify and appropriately
apply applicable accounting requirements, 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.

Changes in Internal Control Over Financial
Reporting

Management has implemented steps to remediate
the material weakness identified. Specifically, we expanded and improved our review process for income taxes calculation and disclosures,
and hired third-party professionals with whom to consult for such issues.

During the most recently completed fiscal quarter,
there has been no other changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

27

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There is no material litigation, arbitration or
governmental proceeding currently pending against us or any members of our management team.

ITEM 1A. RISK FACTORS

Factors that could cause our actual results to
differ materially