Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 39

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 39
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, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected
on a timely basis. As a result of this material weakness, RET’s management concluded that RET’s internal controls over financial
reporting was not effective as of December 31, 2023 or September 30, 2024.

Holdco intends to take steps to remediate this material
weakness, including plans to hire or engage a specialist to assist in the preparation of the income tax provision and disclosures. The
elements of Holdco’s remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will
ultimately have the intended effects. For a discussion of RET’s management’s consideration of the material weakness identified
related to its accounting for the extinguishment of contingent obligations, see “Note 2” to RET’s audited financial
statements included in this prospectus.

Efforts to remediate this
material weakness may not be effective or prevent any future material weakness or significant deficiency in Holdco’s internal control
over financial reporting. If Holdco’s efforts are not successful or other material weaknesses or control deficiencies occur in the
future, Holdco may be unable to report its financial results accurately on a timely basis, which could cause Holdco’s reported financial
results to be materially misstated and result in the loss of investor confidence and cause the market price of the Class A Common
Stock to decline. Ineffective internal controls could also cause investors to lose confidence in Holdco’s reported financial information,
which could have a negative effect on the trading price of its stock. Failure to implement and maintain effective internal controls over
financial reporting could also subject Holdco to potential delisting from Nasdaq or any other stock exchange on which its stock is listed
or to other regulatory investigations and civil or criminal sanctions.

We can give no assurance that the measures that Holdco plans to take
in the future will remediate the material weakness identified or that any additional material weaknesses or restatements of financial
results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or
circumvention of these controls. Holdco is required, pursuant to Section 404 of the Sarbanes-Oxley Act, to annually furnish a report
by management on, among other things, the effectiveness of its internal control over financial reporting. This assessment needs to include
disclosure of any