Company: RAIN
Filing Date: 2025-04-25
Form Type: 424B3
Source: 0001213900-25-035587
Chunk: 38

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-25
Form: 424B3
Chunk 38
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 a combination of deficiencies, in internal control over
financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial
statements will not be prevented or detected on a timely basis.

RWT has identified a material weakness in its
internal control over financial reporting as of and for the year ended December 31, 2023 regarding the calculation of deferred tax assets
and disclosure of income taxes in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Classification
(“ASC”) Topic 740, “Income Taxes.”. This misstatement led to a change in accounting for the correction of the
error in calculating the gross deferred tax asset and the offsetting valuation allowance, as well as the omission of certain income tax
disclosures. However, it did not impact RWT’s liquidity, cash flows, or operating costs during the period covered by RWT’s
audited consolidated financial statements. RWT’s management determined that the material weakness had not been remediated as of
December 31, 2024. For a discussion of management’s consideration of the material weakness identified related to such issues, see
“Note 2” of RWT’s audited consolidated financial statements including in the prospectus filed with the SEC on December 12,
2024.

A material weakness is a deficiency, or a combination
of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement
of our annual or interim consolidated financial statements will not be prevented, or detected and corrected on a timely basis. Effective
internal controls are necessary for us to provide reliable financial reports and prevent fraud. We continue to evaluate steps to remediate
the material weakness. These remediation measures may be time consuming and costly and there is no assurance that these initiatives will
ultimately have the intended effects.

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RWT 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 RWT’s remediation plan can only be accomplished over time, and RWT can offer no assurance that these initiatives will
ultimately have the intended effects.

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, Hold