Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 642

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 3
Chunk 642
---
humidity, and other weather conditions, each installed system is expected to generate rainfall within an approximately 50-mile radius.
Site selection will be prioritized based on client engagement, projected returns for the company, and expected local weather and topography.
We anticipate that our supply chain will support the manufacturing and installation of additional systems within 5 to 6 months, allowing
RWT to scale operations rapidly as client referral effects drive increased demand.

We will continue to update and refine internal documentation that outlines
the criteria for selecting sites to install and operate the systems. This will include, but not be limited to, factors such as weather
patterns, terrain, setbacks, access, prevailing wind direction, and average humidity. Additionally, we plan to enhance our operations
process to include a complete set of drawings necessary for permitting, as well as incorporating all feedback received from the site of
our initial installation.

By the fourth quarter of 2025, we expect to begin operationalizing
the manufacturing, testing, and warehousing of devices for the installation pipeline. At that point, we anticipate having well-developed
documentation that we can follow to ensure a steady stream of successful system installations.

As we continue to refine our manufacturing process for rain technology
devices, we will also seek research partnerships with universities. Our goal for these partnerships is to launch a multi-year case study
that evaluates the impact of our devices and related technology on rainfall enhancement in the initial U.S. locations where our systems
have been installed.

46

Liquidity and Capital Resources

As of December 31, 2024, we had approximately
$37,000 in cash and had a working capital deficit of approximately $5.4 million. We expect to continue to incur expenses and begin
to generate revenues as we continue to grow and scale our business.

In connection with the Business Combination, on
December 30, 2024, RHY Management LLC (“RHY”), an affiliate of Harry You, entered into the Loan Agreement and agreed to issue
a line of credit (the “LOC”) to Holdco for up to $7 million. In addition, Mr. You and his affiliate also agreed to rollover
all outstanding amount that Coliseum and RWT owed to them prior to Closing (the “Rollover” under the LOC (such amounts borrowed
under the LOC, together with the Rollover, the “Loan”). The Loan has an interest rate of 5%, and interest will be due and
payable in arrears quarterly