Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 118

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 118
---
 employees,
officers, directors, and consultants of Holdco or its subsidiaries. As of December 31, 2024, we have granted 0 shares under this plan.

64

Item 13. Certain Relationships and Related
Transactions, and Director Independence.

Due to Related
Parties

On February 2, 2023, RWT issued the Note to its
former CEO and Harry You and Niccolo de Masi for an aggregate amount of $600,000. The Note has an annual interest rate of 5% and is currently
due on demand. In connection with the Business Combination Closing, Mr. You’s portion of the outstanding principal and interest
under the Note ($200,000 of principal and approximately $16,000 of accrued interest) was rolled over into the Loan Agreement, as discussed
below.

Prior to the Business Combination Closing, the
outstanding amount that Coliseum and RWT owed to Mr. You and his affiliates were: (i) approximately $1.7 million and approximately $333,000
of advances to Coliseum and RWT, respectively, (ii) convertible note balance of $667,500 to Coliseum, and a portion under the Note discussed
above of approximately $216,000 to RWT, and (iii) an outstanding balance of $180,000 in accrued administrative fees to Coliseum, for a
total of approximately $3.1 million. The Rollover amounts were assigned to and assumed by Holdco and are treated for all purposes as loans
outstanding under the Loan Agreement. The loan has an interest rate of 5%, and interest will be due and payable in arrears quarterly.
The Rollover amount does not reduce the $7 million funding available to the Company under the LOC. As of December 31, 2024, the Company
had not borrowed any of the $7 million available funding under the LOC. Subsequent to December 31, 2024, the Company borrowed approximately
$839,000 under the LOC for working capital needs.

Subscription Agreements

RWT entered into subscription agreements on June 20, 2024, which were
later rescinded. On August 23, 2024, RWT entered into new subscription agreements with Rainwater LLC and affiliates of Harry You and Niccolo
de Masi, to sell an aggregate of 250 shares of RWT Class A Common Stock at a purchase price of approximately $2,955.78 per share, which
the Company