Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 81

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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the “Rollover”) were assigned to and assumed by Holdco and are treated for all purposes as Loans outstanding under
the Loan Agreement. The Rollover amount does not reduce the $7 million funding available to the Company under the LOC. As a result,
as of December 31, 2024, the Company had approximately $3.1 million outstanding under the LOC, comprised solely of the Rollover amount.

As of September 30, 2025, the Company had drawn approximately $3.5 million under
the LOC, bringing the total outstanding balance under the Loan Agreement to approximately $6.6 million (including the $3.1 million
Rollover). Subsequent to September 30, 2025, the Company drew an additional amount of approximately $310,000 under the LOC.

As of September 30, 2025 and December 31, 2024, the Company had an
outstanding accrued interest balance in connection with both the Note and the LOC of approximately $362,000 and $38,000, respectively.

Employment Agreement

Effective January 2, 2025, RWT entered into a
binding offer letter (the “Offer Letter”), which was later amended on June 27, 2025, with its new CEO, Mr. Seidl. Pursuant
the amended Offer Letter, Holdco agreed to pay to the CEO (i) an annual salary of $500,000, (ii) an annual incentive bonus up to 200%
of his base salary, subject to Board approval and (iii) a cash bonus of $5.82 million (the “Retention Bonus”) payable
on the earlier of (x) December 31, 2028, (y) the date on which the Company terminates the CEO’s employment without cause, or (z)
the date on which a change of control is consummated. The Company accrues the Retention Bonus over the period of service. As of September
30, 2025, the Company accrued approximately $416,000 of Retention Bonus in accrued expenses to related party in the accompanying unaudited
condensed consolidated balance sheet.

In addition, subject to approval by the Board
and the Compensation Committee, Mr. Seidl is also entitled to equity awards under the Company’s equity incentive plan. On September
5, 2025, the Company granted 602,320 RSAs to Mr. Seidl, 50%