Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 23

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 23
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 and uncertainties that may affect RWT’s
operations, performance, development and results. Many of these risks are beyond RWT’s control. The following is a description of
the important risk factors that may affect RWT’s business and industry. If any of these risks were to actually occur, RWT’s
business, financial condition or results of operations could be materially adversely affected. Additional risks and uncertainties not
currently known to RWT or that RWT currently considers to be immaterial may also materially adversely affect its business, financial condition
or results of operations.

We have identified a material weakness
in our internal control over financial reporting as of and for the year ended December 31, 2023 and determined that it had not been
remediated as of December 31, 2024. If we are unable to develop and maintain an effective system of internal control over financial reporting,
we may not be able to accurately report our financial results in a timely manner, which may adversely affect investor confidence in us
and materially and adversely affect our business and operating results.

Our management is responsible for establishing and maintaining adequate
internal control over financial reporting designed to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of consolidated financial statements for external purposes in accordance with accounting principles generally accepted
in the United States of America (“U.S. GAAP”). Our management is likewise required, on a quarterly basis, to evaluate the
effectiveness of our internal controls and to disclose any changes and material weaknesses identified through such evaluation in those
internal controls. 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 on a timely basis.

We have identified a material weakness in our internal control over
financial reporting as of and for the year ended December 31, 2023 regarding the calculation of deferred tax assets and disclosure of
income taxes in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Classification (“ASC”)
Topic 740, “Income Taxes.”. This misstatement led to a change in accounting for the correction of the error in calculating
the gross deferred tax asset and the offsetting valuation allowance, as well as the omission of certain income tax disclosures. However,
it did not impact RWT’s liquidity, cash flows, or operating costs during the period covered by RWT’s audited consolidated
financial statements. RWT’s management