Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 9

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 the “Loan”). The Loan has an interest rate of 5%, and interest
will be due and payable quarterly in arrears. As of March 31, 2025, the Company had drawn approximately $737,000 under the LOC, bringing
the total outstanding balance under the Loan Agreement to approximately $3.8 million (including the $3.1 million Rollover). Subsequent
to March 31, 2025, the Company drew an additional amount of approximately $554,000 under the LOC.

6

RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS

MARCH 31, 2025

The Company’s management expects that its
funds will be used for producing units, integrating and rolling out software for the rain enhancement platform, expanding water services
through the ‘land and expand’ client acquisition model, and potentially acquiring other weather technologies. Since the base
technology and products are developed and proven, the need for additional capital will primarily be driven by growth in customer acquisition
and projects. Management believes that the budget can be scaled in line with the funds actually received, enabling the Company to expand
its client base, deliver equipment and technology to newly acquired clients, and develop new products for the rain platform.

The Company expects to fund its future development
and exploration activities using the available funding under the LOC and future operating cash flow. The timing of most capital expenditures
is largely discretionary. The Company has a significant degree of flexibility to adjust the level of its capital expenditures as circumstances
warrant. If the Company’s plans or assumptions change, it may seek additional funding through debt or other equity financing arrangements,
implement incremental expense reduction measures or a combination thereof to continue financing its operations. Although the management
continues to pursue these plans, there is no assurance that the Company will be successful in obtaining sufficient funding on terms acceptable
to the Company to fund continuing operations, if at all.

In connection with the Company’s
assessment of going concern considerations in accordance with the Financial Accounting Standards Board’s (“FASB”)
Accounting Standards Classification (“ASC”) Subtopic 205-40, “Presentation of Financial Statements - Going
Concern,” management has determined that although the Company does not have sufficient liquidity to meet its anticipated
obligations over the next year from the date of issuance of these unaudited condensed consolidated financial statements, it has
access to funds under