Company: RAIN
Filing Date: 2025-02-12
Form Type: 424B3
Source: 0001213900-25-012904
Chunk: 130

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-02-12
Form: 424B3
Chunk 130
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 management has determined that the liquidity condition raises substantial doubt about RET’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities. Management plans to consummate a merger with Coliseum and expects to receive financing to meet its obligations through one year from the date of this prospectus; however, no financing is currently committed. The unaudited condensed consolidated financial statements do not include any adjustments that might be necessary if RET is unable to continue as a going concern.

Cash Flows

For the nine months ended September 30, 2024, net cash used in operating activities was approximately $167,000, net cash used in investing account was approximately $46,000, and net cash provided by financing activities was approximately $415,000. Net loss of approximately $2.5 million was partially offset by non-cash activities, including stock based compensation expense of approximately $1.9 million, amortization expense of $9,000, and expenses paid by related parties on behalf of RET of approximately $196,000, and also changes in operating assets and liabilities used approximately $216,000 of cash for operating activities. Cash used in investing activities consisted solely of payment for building Equipment of approximately $46,000. Cash provided by financing activities resulted from issuance of Class A and Class B common stock of $340,000 and $75,000, respectively.

For the nine months ended September 30, 2023, net cash used in operating activities was approximately $212,000, net cash used in investing account was approximately $223,000, and net cash provided by financing activities was approximately $440,000. Net loss of approximately $387,000 was partially offset by non-cash activities, including stock based compensation expense of approximately $4,000, amortization expense of $9,000, and expenses paid by related parties on behalf of RET of approximately $9,000, and also changes in operating assets and liabilities used approximately $153,000 of cash for operating activities. Cash used in investing activities consisted solely of payment for building Equipment of approximately $223,000. Cash provided by financing activities resulted from issuance of common stock and Series A preferred stock of $1,998 and $8,000, respectively, and from the remaining proceeds of approximately $447,000 pursuant to the Note, partially offset by repayment off advances to certain officer approximately $17,000.

For the year ended December 31, 2023, net cash used in operating activities was approximately $238