Company: RAIN
Filing Date: 2025-08-14
Form Type: 424B3
Source: 0001213900-25-076764
Chunk: 38

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 424B3
Chunk 38
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.1 million paid by related parties on behalf of RWT, and change in fair value of warrant
liability of $162,500, resulted in approximately $1.4 million of net cash used in operating activities. Cash used in investing activities
consisted solely of payment for building Equipment of approximately $613,000. 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 $1.3 million.

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For the six months ended June 30, 2024, net cash
provided by operating activities was approximately $46,000, net cash used in investing activities was approximately $45,000, and net cash
provided by financing activities was $415,000. Net loss of approximately $356,000 was partially offset by amortization expense of approximately
$6,000, expenses paid by related parties on behalf of RWT of approximately $228,000, and changes in operating assets and liabilities of
approximately $76,000, resulted in net cash used in operating activities of approximately $46,000. Cash used in investing activities consisted
solely of payment for building Equipment of approximately $45,000. Cash provided by financing activities resulted solely from proceeds
from subscription payable 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 $252,000 in exchange for the consultant assuming additional role and responsibilities. The agreement also provides
for success fees payable upon the achievement of specified sales and development