Company: RAIN
Filing Date: 2025-05-16
Form Type: 424B3
Source: 0001213900-25-044498
Chunk: 40

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-16
Form: 424B3
Chunk 40
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 with
the note payable to related parties of approximately $47,000. The Company experienced higher expenses compared to previous years due
to the merger completed on December 31, 2024.

For the three months ended March 31, 2024, we
had net loss of approximately $31,000, which consisted of general and administrative expenses of approximately $21,000, amortization
expenses of approximately $3,000 and interest expense in connection with the note payable to related parties of approximately $7,000.

Cash Flows

For the three months ended March 31, 2025, net
cash used in operating activities was approximately $1.0 million, net cash used in investing account was approximately $139,000, and
net cash provided by financing activities was approximately $1.4 million. Net loss of approximately $1.5 million was partially offset
by changes in operating assets and liabilities of approximately $368,000 and non-cash activities, including amortization expense of approximately
$3,000, minimal expenses paid by related parties on behalf of RWT, and change in fair value of warrant liability of $90,000, resulted
in approximately $1.0 million of cash used in operating activities. Cash used in investing activities consisted solely of payment for
building Equipment of approximately $139,000. Cash provided by financing activities resulted from proceeds from payment of subscription
receivable of $650,000 and proceeds from drawdown under the LOC of approximately $737,000.

For the three months ended March 31, 2024, net
cash provided by operating activities was approximately $13,000, net cash used in investing account was approximately $41,000. Net loss
of approximately $31,000 plus changes in operating assets and liabilities of approximately $128,000 was affected by amortization expense
of approximately $3,000 and expenses paid by related parties on behalf of RWT of approximately $169,000, resulted in cash provided by
operating activities of approximately $13,000. Cash used in investing activities consisted solely of payment for building Equipment of
approximately $41,000.

Patent and Consulting Agreements

Patent License

On November 21, 2022, RWT entered into a
license agreement with Dr. Theodore Anderson, a plasma physicist, whereby RWT was granted an exclusive, worldwide license under
certain of Dr. Anderson’s patents. The consideration paid for the license of $33,000, which was fully