Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1276

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 8
Chunk 1276
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 Coliseum private placement warrants into 806,250 Holdco Class A Common Stock,
for an aggregate of 5,279,664 shares of Holdco Class A Common Stock.

Also, in connection with the Business Combination,
Holdco also converted an aggregate of 1,232 shares of RWT legacy preferred stock and 250 shares of RWT legacy Class A common stock into
2,125,539 shares of Holdco Class A Common Stock based on an exchange ratio equal to approximately 1,434.

F-18

In addition, at Closing, the Company issued 5,000
shares of Holdco Class A Common Stock to a third-party consulting firm. Holdco estimated that the fair value of such shares was approximately
$57,000, based on the redemption price of approximately $11.41 at Closing.

As of December 31, 2024 and 2023, the Company
had an aggregate of 7,528,761 and 1,766,554 shares of Class A Common Stock issued and outstanding, as retroactively restated to reflect
the Business Combination, respectively.

Holdco Class B Common Stock

As of December 31, 2024 and 2023, the Company
had an aggregate of 57,752 and 0 shares of Class B Common Stock issued and outstanding, as retroactively restated to reflect the Business
Combination, respectively.

Stock Options

On August 23, 2024, the Company granted
1,433,892 and 716,946 options, as retroactively restated to reflect the Business Combination, to purchase RWT’s Class A common
stock to Harry You and Niccolo de Masi, respectively. The options expire in ten years from the date of grant, had an exercise price
of $2.06 and were fully vested upon the grant date.

The Company recognized approximately $2.8 million
for stock-based compensation expenses upon issuance of such options in August 2024 within general and administrative expenses in
the accompanying consolidated statements of operations during the year ended December 31, 2024. The fair value of the operations was measured
on the date of grant using a hybrid method of probability weighted expected return (“PWERM”), where the equity value was allocated
in one or more of the scenarios using a Black-Scholes option pricing model.

The assumptions used in the Company’s model
represent management’s best estimates. These estimates are complex, involve a number of variables, uncertainties and assumptions