Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 28

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 28
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The markets for rainfall generation-related products are in nascent
stages, and RWT may have limited opportunities to license our technologies or sell its products.

The rainfall generation industry is in the early stage of commercializing
rainfall generation technology. Skepticism around the efficacy of the technology’s ability to enhance rainfall has hindered previous
adoption.

RWT’s success will depend upon its ability to expand, scale its
operations, and increase its sales capability, which may take longer or be more expensive than expected. Unforeseen issues associated
with scaling up and constructing RWT’s technology at commercially viable levels could negatively impact RWT’s business, financial
condition and results of operations. RWT’s growth is dependent upon its ability to successfully market and sell rainfall generation
technology. RWT does not have experience with the mass distribution and sale of rainfall generation technology. Its growth and long-term
success will depend upon the development of its sales and delivery capabilities.

RWT may be harmed by competing technologies.

The markets in which RWT operates are rapidly evolving to address increasing
global need for reliable access to water, creating additional investment in competition. There has been significant improvement in water
generation technologies such as desalination and chemical-based cloudseeding. As these markets continue to mature and new technologies
and competitors enter such markets, RWT expects competition to intensify. RWT could lose market share and its revenues could decline,
thereby affecting its earnings and potential for growth. In particular, although RWT does not plan to use chemicals in its manufacturing
and production process, chemical-based cloudseeding companies may provide additional competition due to the maturity of chemical-based
technology, more established historical operational data, stronger research groups, demonstrated effects in specific use cases, market
acceptance and funding by recognized institutions.

In the future, RWT’s technologies may also compete with other
emerging technologies. These technologies may be less expensive and provide higher or additional performance. Companies with these competing
technologies may also have greater resources. Technological change could render its technologies obsolete, and new, competitive technologies
could emerge that achieve broad adoption and adversely affect the use of its technologies and intellectual property.

RWT will be dependent on its suppliers and manufacturers, and
supply chain issues could delay the introduction of RWT’s product and negatively impact its business and operating results.

RWT has not yet entered into relationships with potential suppliers
and manufacturers. However, when RWT enters into relationships with suppliers and manufacturers, it may face delays in the