Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 176

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 176
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 market opportunities.

RWT will need additional capital to pursue its business objectives
and respond to business opportunities, challenges or unforeseen circumstances, and it cannot be sure that additional financing will be
available.

RWT will need additional capital to pursue its
business objectives. RWT’s business and its future plans for expansion are capital-intensive and the specific timing of cash inflows
and outflows may fluctuate substantially from period to period. RWT management currently estimates approximately $6.3 million and approximately
$62 million in expenses for its one-year and five-year business plan.

13

As of December 31, 2024, after Closing, the Company
had approximately $37,000 in cash. Additionally, the Company has a $7 million line of credit from an affiliate of Harry You, of which
$839,000 has been borrowed as of the date of this Annual Report. The Company has adjusted production ramp-up in order to align with the
available funding. RWT’s management has determined that the RWT system’s design is complete, requiring no additional R&D
in the near-term, and that the main cash requirement for operations in the next 12 months will be production cost of additional units,
staffing and operations. The Company’s management determined that the Company has access to funds under the Loan Agreement,
and the affiliate of Harry You has the financial ability to provide such funds, that are sufficient to fund the working capital needs
of the Company over the next 12 months from the date of issuance of this Annual Report. However, RWT expects to require additional capital
to pursue its business objectives in the future. RWT’s business and its future plans for expansion are capital-intensive and the
specific timing of cash inflows and outflows may fluctuate substantially from period to period. However, we cannot assure you that the
Company will be able to obtain additional capital for its five-year business plan.

RWT’s operating plan may change because of factors currently
unknown, and RWT may need to seek additional funds sooner than planned, through public or private equity or debt financings or other sources,
such as strategic collaborations. Such financings may result in dilution to stockholders, issuance of securities with priority as to liquidation
and dividend and other rights more favorable than common stock, imposition of debt covenants and repayment obligations or other restrictions
that may adversely affect its business. In addition, RWT may seek additional capital due to favorable market conditions or strategic considerations
even if it believes that