Company: RAIN
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001213900-25-035587
Chunk: 40

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-25
Form: 424B3
Chunk 40
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’s audited consolidated financial statements including in the
prospectus filed with the SEC on December 12, 2024, RWT 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.

As a result of such material weakness, the restatement and other matters
raised or that may in the future be raised by the SEC, RWT incurred additional costs, including increased accounting and legal fees, and
RWT faces (and RWT 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
RWT’s internal control over financial reporting and the preparation of RWT’s consolidated financial statements. As of the
date of this prospectus, RWT has no knowledge of any such litigation or dispute. However, RWT can provide no assurance that such litigation
or dispute will not arise in the future. Any such litigation or dispute, whether successful or not, could have a material adverse effect
on the business of Holdco and its results of operations and financial condition.

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RWT can provide no assurance of the effectiveness and success of ionization rainfall generation technology in increasing precipitation.

Commercial applications of ionization rainfall generation technology
are still at the initial stages of development, and further development and extensive testing will be required to determine its technical
feasibility and commercial viability. The scientific community continues to debate whether rainfall generation technology has been able
to produce statistically significant results in augmenting rainfall or other types of precipitation, with some authors suggesting that
it remains a “pseudo-science”, whereas other authors have found statistically meaningful results. At this point in time, given
the complexities of attributing increased precipitation to weather modification technologies, scientists have neither conclusively proven
nor disproven that ionization rainfall generation technologies and/or other types of weather modification technologies augment and optimize
precipitation.

RWT’s success will depend on its ability to prove and demonstrate,
to potential clients and the broader community, scientific and technological advances and to translate such advances into commercially
competitive products. Failure can occur at any stage of the process. If the development of this technology is not successful or the market
is not convinced that ionization rainfall generation technologies lead to demonstrable results, RWT may invest substantial amounts of
time and money without