Company: RAIN
Filing Date: 2025-01-31
Form Type: S-1
Source: 0001213900-25-008536
Chunk: 126

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-01-31
Form: S-1
Chunk 126
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 Shares but before the payment of transaction expenses. Because the Company received $9 million in gross proceeds from the Business
Combination before the payment of transaction expenses, the Company has adjusted production ramp-up in order to align the associated cash
requirements, especially for working capital, with actual timing and/or realized proceeds of the Business Combination. Adjustments have
been made by reducing or shifting planned operational costs and R&D investments, on a short-term basis, until additional funding is
obtained. RET management has determined that the RET system’s design is complete, requiring no additional R&D in the near-term,
and that the main cash requirement for operations in the next 12 months will be staffing and operations. On January 29, 2025, the Company closed an additional $500,000 of investment pursuant to the PIPE Subscription Agreements and issued an aggregate of 43,910 shares of Class A Common Stock to the PIPE Investors. The Company expects to close on the remaining $150,000 of investment irrevocably committed pursuant to the PIPE Subscription Agreements in the near term. Additionally, the Company has $7 million available which
may be borrowed under a line of credit from an affiliate of Harry You.

RET will need additional
capital to pursue its business objectives. RET’s business and its future plans for expansion are capital-intensive and the specific
timing of cash inflows and outflows may fluctuate substantially from period to period. However, we cannot assure you that the Company
will be able to obtain additional capital for its five-year business plan. See “Risk Factors - RET will need additional capital to pursue its business objectives and respond to business opportunities, challenges or unforeseen circumstances, and it cannot be sure that additional financing will be available.”

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A capital efficient approach
to product development and go-to-market will be an essential catalyst to organic growth of RET’s platform. One of the key aspects
of RET’s financial profile is that the technology is proven and does not require further development costs. All R&D expenses
will be dedicated to building new products to enhance RET’s comprehensive rain enhancement platform. RET has assumed a conservative
case around key components of operating burn until RET is expected to become profitable in 2028.

Risks and Uncertainties

United States and global markets are experiencing volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict and the Israel-Hamas conflict. In response to the ongoing Russia-Ukraine conflict, the North Atlantic Treaty Organization (“N