Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 185

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 185
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 the margins we have experienced historically or originally anticipated.

RWT may fail to obtain statistically significant results that
demonstrate its ability to enhance rainfall.

RWT intends to create standardized measurement approaches and collect
climatological data in order to demonstrate statistically significant results indicating its ability to successfully achieve rainfall
generation. Its ability to achieve replicable statistically significant results is not yet proven, and failure to do so may affect its
commercial success. Currently, there is limited research and no historical basis for RWT’s ability to develop, manufacture, and
deliver this technology, as well as on its ability to implement this technology regardless of location. RWT may also experience increased
costs relating to obtaining, analyzing, and reviewing data that demonstrates statistical significance of this technology in increasing
rainfall.

RWT 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 RWT fails to accurately predict how clients will adopt its platform, it could incur additional costs or experience
delays.

It is difficult to predict RWT’s future revenues and appropriately
budget for its expenses, and RWT may have limited insight into trends that may emerge and affect its business. RWT 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 RWT’s profitability, if any, in the future. If RWT overestimates
client adoption of its platform, its suppliers may have excess inventory, which indirectly would increase RWT’s costs. If RWT 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 RWT’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 RWT 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 RWT’s
business, financial condition and operating