Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 25

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 25
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co 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 material weaknesses identified by Holdco’s management in its internal control over financial reporting. Holdco
is required to disclose changes made in its internal control and procedures on a quarterly basis. To comply with the requirements of being
a public company, Holdco may need to undertake various actions, such as implementing new internal controls and procedures and hiring accounting
or internal audit staff. If Holdco is unable to hire the additional accounting and internal audit staff necessary to comply with these
requirements, Holdco may need to retain additional outside consultants. If Holdco is unable to conclude that its internal controls over
financial reporting are effective, investors may lose confidence in Holdco’s financial reporting, which could negatively impact
the price of Holdco’s securities. 

We may face litigation and other risks
as a result of the restatement of RWT’s pre-merger audited consolidated financial statements and the material weakness in
RWT’s internal control over financial reporting.

RWT’s management and its board of directors concluded that it
was appropriate to restate RWT’s pre-merger previously issued and audited consolidated financial statements as of and for the year
ended December 31, 2023. As discussed in “Note 2” of RWT’s audited consolidated financial statements including in the
prospectus filed with the SEC on December 12, 2024, RWT identified a material weakness in its internal controls over financial reporting
regarding the calculation of deferred tax assets and disclosure of income taxes in accordance with FASB ASC 740.

As a result of such material weakness, the restatement and other matters
raised or that may in the future be raised by the SEC, RWT incurred additional costs, including increased accounting and legal fees, and
RWT faces (and RWT and Holdco following the Business Combination face) potential for litigation or other disputes which may include, among
others, claims invoking the federal and state securities laws, or other claims arising from the restatement and material weaknesses in
RWT’s internal control over financial reporting and the preparation of RWT’s consolidated financial statements. As of the
date of Annual Report, we have no knowledge of any such litigation or dispute. However, we can provide no