Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 43

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 43
---
appropriates or violates the intellectual property of a third party;

    ●
    make substantial payments for legal fees, settlement payments or other costs or damages;

25

    ●
    obtain a license, which may not be available on reasonable terms or at all, to sell or use the relevant technology;

    ●
    redesign the allegedly infringing technology to avoid infringement, misappropriation or violation, which could be costly, time-consuming or impossible;

    ●
    rebrand RWT or pursue a different trademark; or

    ●
    indemnify organizations using RWT’s platform or third-party service providers.

Even if the claims do not result in litigation or are resolved in RWT’s
favor, these claims, and the time and resources necessary to resolve them, could divert the resources of its management and harm its business
and operating results. Moreover, there could be public announcements of the results of hearings, motions or other interim proceedings
or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect
on the price of RWT’s common stock. The occurrence of infringement claims may grow as the market for our products, services and
technologies grows. Accordingly, RWT’s exposure to damages resulting from infringement claims could increase and this could further
exhaust its financial and management resources.

Risks Relating to Regulatory and Legal Matters

RWT may be subject to certain federal, state and/or local environmental
and governmental regulations and laws that limit the scope of its marketplace and affect its business, results of operations and financial
condition. Additionally, failure to comply with applicable laws and regulations could subject RWT to liability and negatively affect its
business, results of operations and financial condition.

Certain jurisdictions have codified regulations around cloudseeding
technology that may subject RWT to certain licensing and permitting requirements. Furthermore, the use of certain materials for seeding
purposes may be subject to governmental regulation. RWT could be subject to the United Nations Convention on the Prohibition of Military
or Any Other Hostile Use of Environmental Modification Techniques. This Convention bans hostile weather modifications. It is yet to be
determined whether ionization rainfall generation technology is considered hostile. RWT could also face liability with respect to environmental
issues occurring at sites on which it operates as a result of indirect consequences of rainfall generation, and may face costs or liabilities
as a result of its role on sites. In addition, licensing and permitting requirements, among other potential regulatory restrictions, may
not only