Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 440

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1C
Chunk 440
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31, 2024, the Company has not withdrawn any amount under the $7 million available funding
under the LOC and has approximately $3.1 million in Rollover amount outstanding. Subsequent to December 31, 2024, the Company borrowed
approximately $839,000 under the LOC.

Our management estimates approximately $6.3 million
and approximately $62 million in expenses for our one-year and five-year business plan. These funds are expected to be used for producing
units, integrating and rolling out software for the rain enhancement platform, expanding water services through the ‘land and expand’
client acquisition model, and potentially acquiring other weather technologies. Since the base technology and products are developed and
proven, the need for additional capital will primarily be driven by growth in customer acquisition and projects. Our management believes
that the budget can be scaled in line with the funds actually received, enabling RWT to expand its client base, deliver equipment and
technology to newly acquired clients, and develop new products for the RWT platform.

We expect to fund our future development and exploration activities
using the available funding under the LOC and future operating cash flow. The timing of most capital expenditures is largely discretionary.
We have a significant degree of flexibility to adjust the level of our capital expenditures as circumstances warrant. If our plans or
assumptions change, we may seek additional funding through debt or other equity financing arrangements, implement incremental expense
reduction measures or a combination thereof to continue financing our operations. Although our management continues to pursue these plans,
there is no assurance that we will be successful in obtaining sufficient funding on terms acceptable to us to fund continuing operations,
if at all.

In connection with the Company’s
assessment of going concern considerations in accordance with FASB ASC Subtopic 205-40, “Going Concern,” our management
has determined that although we do not have sufficient liquidity to meet our anticipated obligations over the next year from the
date of issuance of these consolidated financial statements, we have access to funds under the LOC. Additionally, an existing
shareholder has pledged financial support as necessary and has the financial ability to provide such funds, that are sufficient to
fund our working capital needs over the next twelve months from the date of issuance of these consolidated financial statements.

Results of Operations 

For the year ended December 31, 2024, we had net loss of approximately
$4.5 million, which consisted mainly of general and administrative expenses of approximately $4.5 million and interest expense in