Company: RAIN
Filing Date: 2025-04-18
Form Type: POS AM
Source: 0001213900-25-033116
Chunk: 87

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-18
Form: POS AM
Chunk 87
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 RWT breaks even on the costs of a single hardware system, operating leverage of any upfront hardware costs means that incremental clients using the same system are expected to rapidly expand gross margin on each hardware system installed. Clients will be able to pay for prioritized use of the system, allowing RWT to grow and scale to serve the needs of both small and large clients. The considerable projected range of RWT’s ionization systems means that clients could potentially be found within an approximately 50-mile radius as a result of naturally occurring updrafts (i.e., small-scale currents of rising air) for each single installed system. As such, rollouts across a county could be efficient and cost effective, particularly because installed systems will be monitored remotely. The useful life of RWT’s hardware systems is expected to be 10 to 15 years in the field, with opportunities to replace components to extend lifetimes potentially indefinitely, which will allow RWT to serve a number of clients with just one operating system over a period of many years. In addition, natural weather conditions may contribute to RWT’s one-to-many business model by allowing it to leverage certain geographies’ unique environmental features to promote enhanced rainfall production in specific areas and to serve more diverse sets of clients in various locations. Examples of these include strong wind updrafts, humidity and optimal orographic conditions. RWT believes that the one-to-many business model will allow it to systematically adjust different ionization systems which it has installed based on weather patterns at specific locations, which will permit it to better direct location and timing of the rainfall generation technology. |

| ● | Developing and Enhancing RWT’s Proprietary Position. RWT is working to drive innovation in ionization rainfall generation technology and seeks intellectual property protection where appropriate to enhance its technology position. |

| ● | Expanding RWT’s Water Generation Technologies and Ancillary Services. RWT plans to develop and commercialize other rainfall and water generation ancillary services in addition to ionization rainfall generation. RWT also intends to license and act as a channel partner for additional water generation technologies, including desalination, water purification, mineral extraction and/or cloudseeding, among others. |

| ● | Developing RWT’s Ionization Rainfall Generation Technology Ecosystem. RWT seeks to partner with leaders throughout diverse segments to develop, demonstrate, optimize and commercialize its technology and water generation services. |

Industry Background: Ionization Rainfall Generation History and Development of Core Technology RWT’s ionization rainfall generation platform will capitalize on approximately 70