Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 131

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 131
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RHY”), an affiliate of Harry You, our Chairman, pursuant
to which RHY agreed to issue an LOC to Holdco for up to $7 million, in addition to the Rollover amount described below (such amounts borrowed
under the LOC, together with the Rollover, the “Loan”). The Loan bears interest at the greater of 5% per annum or the applicable
IRS short-term rate in the month of each drawdown (“Interest Rate”), payable quarterly in arrears. If a quarterly payment
is missed, the loan balance increases by an amount equal to the principal multiplied by the 2% Default Rate (as defined below). If an
event of default has occurred and is continuing, then upon written notice by RHY to Holdco, the outstanding principal balance and any
unpaid accrued interest will accrue interest at 2% above the Interest Rate (the “Default Rate”).

Prior to closing of the Business Combination,
the outstanding amount that Coliseum and RWT owed to Mr. You and his affiliates was approximately $3.1 million. The Rollover amounts were
assigned to and assumed by Holdco and are treated for all purposes as Loans outstanding under the Loan Agreement. The Rollover amount
does not reduce the $7 million funding available to the Company under the LOC. As a result, as of December 31, 2024, we had approximately
$3.1 million outstanding under the LOC, comprised solely of the Rollover amount.

As of September 30, 2025, we had drawn approximately $3.5 million under
the LOC, bringing the total outstanding balance under the Loan Agreement to approximately $6.6 million (including the $3.1 million
Rollover). Subsequent to September 30, 2025, we drew an additional amount of approximately $310,000 under the LOC.

As of September 30, 2025 and December 31, 2024, we had an outstanding
accrued interest balance in connection with both the Note and the LOC of approximately $362,000 and $38,000, respectively.

23

Employment Agreement

Effective January 2, 2025, we entered into a binding
offer letter (the “Offer Letter”), which was later amended on June 27, 2025, with our new CEO, Mr. Seidl. Pursuant to the
amended Offer Letter, we agreed to pay to the CEO (i)