Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 174

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 4
Chunk 174
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 result international trade disputes
and ongoing military disputes and related geopolitical uncertainty. International trade disputes, including threatened or implemented
tariffs by the Trump administration and threatened or implemented tariffs by foreign countries in retaliation, could adversely impact
our business. Trade disputes could also adversely impact supply chains which could now or in the future increase costs for us or delay
delivery of key inventories and supplies. Trade disputes can also be highly disruptive to global financial markets. The length and impact
of the ongoing trade disputes and military conflicts are highly unpredictable. We are continuing to monitor the trade disputes, inflation,
interest rates and the military conflicts and the impacts to global capital markets and to our business.

RWT’s future success depends in part on
recruiting and retaining key personnel and failure to do so may make it more difficult for us to execute the business strategy.

RWT is dependent upon the continued services of key
personnel, including members of its executive management team. The loss of any one of these individuals could disrupt our operations or
its strategic plans. Additionally, RWT’s future success will depend on, among other things, its ability to hire and retain the necessary
qualified sales, marketing and managerial personnel, for whom it competes with numerous other companies, academic institutions and organizations.
Restraints on the flow of technical and professional talent, including as a result of changes to U.S. immigration policies or laws, may
inhibit our ability to adequately staff our engineering, research and development efforts. If RWT loses key employees, if it is unable
to retain other qualified personnel, or if its management team is not able to effectively manage it through these events, RWT’s
business, financial condition, and results of operations may be adversely affected.

ITEM 2. UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS

On December 31, 2024, in connection with the
Closing, the former RWT shareholders received an aggregate of 2,125,540 shares of Holdco Class A Common Stock and 57,572 shares of Holdco
Class B Common Stock pursuant to the terms of the Business Combination Agreement.

On December 31, 2024, in connection with the
Closing, Holdco issued 61,474 shares of Holdco Class A Common Stock to the PIPE Investors pursuant to the PIPE Subscription Agreements,
for aggregate proceeds of approximately $700,000 and also recorded a subscription receivable of $650,000 from two PIPE Investors for
the purchase