Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 39

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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1.5 million paid by related parties on behalf of RWT, stock-based compensation expenses
of approximately $349,000, and change in fair value of warrant liability of $475,000, resulted in approximately $1.6 million of net cash
used in operating activities. Cash used in investing activities consisted solely of payment for building Equipment of approximately $858,000.
Cash provided by financing activities resulted from proceeds from payment of subscription receivable of $650,000 and proceeds from drawdowns
under the LOC of approximately $2.0 million.

22

For the nine months ended September 30, 2024,
net cash provided by operating activities was approximately $167,000, net cash used in investing activities was approximately $46,000,
and net cash provided by financing activities was $415,000. Net loss of approximately $3.4 million was partially offset by amortization
expense of approximately $9,000, expenses paid by related parties on behalf of RWT of approximately $2.8 million, stock-based compensation
expenses of approximately $196,000, and changes in operating assets and liabilities of approximately $215,000, resulted in net cash used
in operating activities of approximately $167,000. Cash used in investing activities consisted solely of payment for building Equipment
of approximately $46,000. Cash provided by financing activities resulted solely from proceeds from subscription agreements for RET’s
Class A and Class B common stock of $415,000.

Patent and Consulting Agreements

Patent License

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 $