Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 192

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 192
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 significant financial inputs from insufficient rain increases hindered by the weather.

Clients and others may hold RWT accountable for changing environmental
and/or weather conditions, including challenges resulting from excessive rain.

Changes in rainfall patterns may lead to extreme
weather conditions and unintended consequences, including, but not limited to, excessive rains, increased hail, natural disasters like
mudslides, flooding, changes in rainfall patterns, increased or decreased temperatures, and increased storm frequency and tendency. While
RWT does not believe that its product could lead to such extreme environmental conditions as RWT expects to be able to control when the
rain enhancement machines are turned off and on, changes in environmental conditions in the areas in which it operates could have a material
adverse effect on its reputation, which may adversely affect its operations. The RWT technology has a large target area coverage which
has the potential to generate excess rainfall outside or in extension to desired locations. Timing of targeted rainfall generation is
also highly variable, meaning that additional rain may occur at inopportune times, for example during the day in tourism-focused areas.

Clients and others dependent on RWT’s services may hold
RWT accountable for any failures to fulfill increased rainfall expectations.

RWT’s future rainfall generation technology may fail to meet
RWT’s projections for increased rainfall for a variety of reasons, including, but not limited to, technological malfunctioning,
regulatory impediments, and operational or financial conditions. Clients whose projects depend on increased rainfall may hold RWT accountable
for any failures to increase rainfall and the subsequent effect on their respective businesses, such as, a negative return on investments
in agricultural projects dependent on increased rainfall. RWT may suffer or be exposed to liability or costly litigation from its clients
or others whose dependency on increased rainfall is affected. In addition, RWT’s reputation may be adversely affected, which may
adversely affect RWT’s operations and financial condition.

23

ESG issues, including those related to climate change and sustainability,
may have an adverse effect on RWT’s business, financial condition and results of operations and damage our reputation.

There is an increasing focus from certain investors, customers, consumers,
employees and other stakeholders concerning environmental, social, and governance matters (“ESG”). Additionally, public interest
and legislative pressure related to public companies’ ESG practices continue to grow, particularly as the SEC considers new rulemaking
related to ESG disclosure. If RWT’s ESG practices fail to meet regulatory requirements or investor, customer, consumer, employee