Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 27

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 27
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 volumes. Some of the development challenges that could prevent
the introduction of RWT’s technology include, but are not limited to, failure to: find scalable ways to secure real estate to set
up and operate trials, secure paying client engagements, hire key team members with relevant water expertise, address any and all permitting
requirements, establish prototyping scalability and bespoke supply chains, find adequate construction partners, and grow, create and train
a productive sales force. Additionally, RWT may fail to achieve a high degree of repeat success in rainfall generation, which could lead
to a failure to ensure client retention. RWT may also fail to realize the potential of rainfall generation technology.

RWT has not demonstrated it can market and sell its rainfall
generation technology and faces market barriers to entry that it may not be able to overcome.

RWT’s rain enhancement ionization technology is not widely adopted
or accepted in the market. RWT may face difficulties overcoming skepticism about its ability to create rain, or creating too much rain,
or taking rain away from areas where it could naturally fall. RWT may need to educate the market to develop a broader understanding and
acceptance of the science underlying the technology, as well as convince clients that the benefits justify the investment and costs of
implementing its technology. RWT faces further challenges to streamline its go-to-market strategy, integrate its technology with other
products and services, build its brand and engender loyalty while improving the core technology offering.

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RWT may not be able to manufacture its technology at the pace,
scale and volume needed to generate and meet market demand.

RWT will need to develop the manufacturing process necessary to make
rainfall generation technology in high volume. RWT has not yet devised or validated a manufacturing process or acquired the tools or processes
that may be necessary to produce rainfall generation technology that meets all commercial requirements. If RWT is not able to overcome
these manufacturing hurdles in building its technology, RWT’s business is likely to fail.

Even if RWT completes development and achieves volume production of
its platform, if the cost, performance characteristics or other specifications of the rainfall generation technology fall short of RWT’s
projections, RWT’s business, financial condition and results of operations would be adversely affected.

Additionally, developing manufacturing techniques to produce the volume
required to achieve forecasted production could hinder profitability in the future. If RWT’s technology fails to achieve a broad
advantage in generating rainfall, its business, financial condition and future prospects may be harmed.