Company: RAIN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076727
Chunk: 91

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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On November 21, 2022, RWT entered into a
license agreement with Dr. Theodore Anderson, a plasma physicist, whereby RWT was granted an exclusive, worldwide license under certain
of Dr. Anderson’s patents. The consideration paid for the license of $33,000, which was fully paid in November 2022, was
recorded as a finite-lived intangible asset.

Consulting Agreement for Rainfall Ionization
Equipment 

We entered into a consulting agreement to engage
our senior technology advisor (“Technical Advisor”) in 2022, pursuant to which we agreed to pay the Technical Advisor a one-time
fee upon execution of the agreement and a consulting fee of AUD 250,000 per year (equivalent to approximately $170,000 as
of the effective date). In February, the agreement was amended to increase the annual consulting fee to $186,000, and in June 2025, it
was further increased to $252,000 in exchange for the consultant assuming additional role and responsibilities. The agreement also provides
for success fees payable upon the achievement of specified sales and development milestones, which remain unchanged.

In connection with the consulting agreement, we
also agreed to obtain from the Technical Advisor an irrevocable, perpetual, non-exclusive license under certain engineering designs in
connection with rainfall ionization equipment and systems. We fully paid this amount of $83,750 in June 2023.

Related Party Transactions

Note Payable and Line of Credit from Related
Parties

On February 2, 2023, RWT issued a promissory
note (the “Note”) to its former CEO, Mr. You and Mr. de Masi for an aggregate amount of $600,000. The Note has an annual
interest rate of 5% and is currently due on demand.

On December 30, 2024, Holdco entered into a loan
agreement (the “Loan Agreement”) with RHY Management LLC (“RHY”), an affiliate of Harry You, our Chairman, pursuant
to which RHY agreed to issue an LOC to Holdco for up to $7 million, in addition to the Rollover amount described below (such amounts borrowed
under the LOC, together with the Rollover, the “Loan”). The Loan bears interest at the greater of 5% per annum or the applicable
IRS short-term rate in the month of each drawdown (“Interest Rate”), payable quarterly in arre