Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 40

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 40
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 material weaknesses identified by Holdco’s management in its internal control over financial reporting. Holdco
is required to disclose changes made in its internal control and procedures on a quarterly basis. To comply with the requirements of being
a public company, Holdco may need to undertake various actions, such as implementing new internal controls and procedures and hiring accounting
or internal audit staff. If Holdco is unable to hire the additional accounting and internal audit staff necessary to comply with these
requirements, Holdco may need to retain additional outside consultants. If Holdco is unable to conclude that its internal controls over
financial reporting are effective, investors may lose confidence in Holdco’s financial reporting, which could negatively impact
the price of Holdco’s securities.

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RET and Holdco may face litigation and other risks as a result of the restatement of RET’s audited financial statements and the material weakness in RET’s internal control over financial reporting.

RET’s management and its board of directors
concluded that it was appropriate to restate RET’s previously issued and audited financial statements as of and for the year ended
December 31, 2023 and as of December 31, 2022 and for the period from November 10, 2022 (inception) through December 31, 2022.
As discussed elsewhere in this prospectus, RET identified a material weakness in its internal controls over financial reporting regarding
the calculation of deferred tax assets and disclosure of income taxes in accordance with FASB ASC 740-10-50.

As a result of such material weakness, the restatement
of RET’s financial statements as of and for the year ended December 31, 2023 and as of December 31, 2022 and for the period
from November 10, 2022 (inception) through December 31, 2022, and other matters raised or that may in the future be raised by the
SEC, RET incurred additional costs, including increased accounting and legal fees, and RET faces (and RET and Holdco following the Business
Combination face) potential for litigation or other disputes which may include, among others, claims invoking the federal and state securities
laws, or other claims arising from the restatement and material weaknesses in RET’s internal control over financial reporting and
the preparation of RET’s financial statements. As of the date of prospectus, RET has no knowledge of any such litigation or dispute.
However, RET can provide no assurance that such litigation