Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 100

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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. Pursuant to the terms of the Director Agreements, we agreed to pay to each Board member (i) subject to approval by the Board
and compensation committee of the Board (the “Compensation Committee”), a cash payment of $12,500 promptly following
attendance at each quarterly Board meeting, for a total annual cash compensation of $50,000; and (ii) subject to approval by the Board
and the Compensation Committee, a grant of restricted stock, with the number of shares and terms to be determined by the Board. We recognized
an aggregate of $100,000 in connection with such agreement during the three and nine months ended September 30, 2025 within general and
administrative expenses in the accompanying unaudited condensed statements of operations. As of September 30, 2025, there has been no
grants of restricted stock.

Termination Letter

As discussed above, pursuant to the Termination
Letter, in lieu of all other compensation and payments of any kind due and payable to Mr. Riley, we agreed to pay Mr. Riley an aggregate
of $124,500, payable in 18 monthly installments beginning in February 2025 in consideration for his past services. As of September 30,
2025, we had an aggregate of approximately $69,000 in outstanding amount in connection with such agreement that was included in accrued
expenses in the accompanying unaudited condensed balance sheet. Additionally, conditioned on approval by the Compensation Committee of
the Board, the Termination Letter provides that Mr. Riley will be granted 10,000 shares of Class A Common Stock vesting one year from
the date of grant. As of September 30, 2025, the stock has not been granted.

Segments

We operate and manage the business as one reportable
and operating segment, which is the business of developing, manufacturing and commercializing ionization rainfall generation technology.
Our chief executive officer, who is the chief operating decision maker, or CODM, reviews financial information on an aggregate basis for
allocating resources and evaluating financial performance.

24

Off-Balance Sheet Arrangements 

We did not have off-balance sheet arrangements
as of September 30, 2025, and do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated
entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were
established for the purpose of facilitating off