Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 37

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 Additionally, we plan
to enhance our operations process to include a complete set of drawings necessary for permitting, as well as incorporating all feedback
received from the site of our initial installation.

We expect to begin operationalizing the manufacturing,
testing, and warehousing of devices for the installation pipeline in 2026. At that point, we anticipate having well-developed documentation
that we can follow to ensure a steady stream of successful system installations.

As we continue to refine our manufacturing process
for rain technology devices, we will also seek research partnerships with universities. Our goal for these partnerships is to launch a
multi-year case study that evaluates the impact of our devices and related technology on rainfall enhancement in the initial U.S. locations
where our systems have been installed.

Going Concern Consideration

In connection with our management’s assessment
of going concern considerations in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards
Classification (“ASC”) Subtopic 205-40, “Presentation of Financial Statements - Going Concern,” we evaluate whether
there are conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern within one
year after the date that the financial statements are issued. This assessment considers our current cash position, projected cash requirements,
and its ability to obtain additional funding.

21

As of September 30, 2025, we had approximately
$237,000 in cash and had a working capital deficit of approximately $10.1 million. We expect to continue incurring expenses as we
scale our operations and begin to generate revenue. While we intend to fund future operations using available capacity under our line
of credit (“LOC”) and projected cash flows from operations, the absence of revenue to date raises substantial doubt about
its ability to continue as a going concern.

Our management’s plans to address this uncertainty
include reducing expenditures and seeking additional financing through debt, equity, or a combination of both. However, there is no assurance
that such funding will be available on acceptable terms, or at all.

Accordingly, our management has determined that
we do not have sufficient liquidity to meet our anticipated obligations over the next year from the date of issuance of these unaudited
condensed consolidated financial statements. The unaudited condensed consolidated financial statements included in this Report do not
include any adjustments that might result from the outcome of this uncertainty.

Results of Operations 

For the three months ended September 30, 2025,
we had net loss of approximately $2.2