Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 80

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 into
another land lease agreement for a parcel of land in Utah (“Utah Lease”). The lease commencement date is the date selected
by the Company within 30 days following the applicable government hearing granting permission for use. The lease has an initial term of
one year and includes four options to extend the term, each for an additional one-year period. The Company has not obtained its permit.
The Utah Lease has a monthly base rate of $200, which will automatically increase for each extension term at the rate of 5%.

13

RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

SEPTEMBER 30, 2025

Note 6 — Related Party
Transactions

Note Payable and Line of Credit from Related
Parties

On February 2, 2023, RWT issued a promissory
note (the “Note”) to its former CEO, Mr. You and Mr. de Masi for an aggregate amount of $600,000. The Note has an annual
interest rate of 5% and is currently due on demand.

On December 30, 2024, Holdco entered into a loan
agreement (the “Loan Agreement”) with RHY Management LLC (“RHY”), an affiliate of Harry You, Holdco’s Chairman,
pursuant to which RHY agreed to issue a line of credit (the “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 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. All of these outstanding
amounts (