Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 46

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 46
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 and failure to do so may affect
its commercial success. Currently, there is limited research and no historical basis for RET’s ability to develop, manufacture,
and deliver this technology, as well as on its ability to implement this technology regardless of location. RET may also experience increased
costs relating to obtaining, analyzing, and reviewing data that demonstrates statistical significance of this technology in increasing
rainfall.

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RET may not be able to accurately estimate the future supply and demand for its rainfall generation technology, which could result in a variety of inefficiencies in its business and hinder its ability to generate revenue. If RET fails to accurately predict how clients will adopt its platform, it could incur additional costs or experience delays.

It is difficult to predict RET’s future revenues
and appropriately budget for its expenses, and RET may have limited insight into trends that may emerge and affect its business. RET anticipates
being required to provide forecasts of its demand to its current and future suppliers prior to the scheduled delivery of products and
technology to potential clients. Currently, there is limited research and no historical basis for making judgments on the demand for rainfall
generation technology or its ability to develop, manufacture, and deliver this technology, or RET’s profitability, if any, in the
future. If RET overestimates client adoption of its platform, its suppliers may have excess inventory, which indirectly would increase
RET’s costs. If RET underestimates its requirements, its suppliers may have inadequate inventory, which could interrupt manufacturing
of its products and result in delays in shipments and revenues. In addition, lead times for materials and components that RET’s
suppliers order may vary significantly and depend on factors such as the specific supplier, contract terms and demand for each component
at a given time. If RET fails to accurately qualify client adoption curves of its platform in the near- and medium-term period, which
may cause failure to order sufficient quantities of product components in a timely manner, the delivery of its technology to its potential
clients could be delayed, which would harm RET’s business, financial condition and operating results.

RET may fail to accurately estimate the size and growth of client demands.

There is no assurance that RET will be able to ramp
its business to meet client demands about rainfall timing and predictability. Potential clients may require rapid increases in production
on short notice. RET may not be able to purchase sufficient supplies or allocate sufficient manufacturing capacity to meet such increases
in demand. Rapid client ramp-up in the future and significant increases