Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 31

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 31
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, and failure to do so may affect its
commercial success. Currently, there is limited research and no historical basis for RWT’s ability to develop, manufacture, and
deliver this technology, as well as on its ability to implement this technology regardless of location. RWT may also experience increased
costs relating to obtaining, analyzing, and reviewing data that demonstrates statistical significance of this technology in increasing
rainfall.

RWT may not be able to accurately estimate the future supply
and demand for its rainfall generation technology, which could result in a variety of inefficiencies in its business and hinder its ability
to generate revenue. If RWT fails to accurately predict how clients will adopt its platform, it could incur additional costs or experience
delays.

It is difficult to predict RWT’s future revenues and appropriately
budget for its expenses, and RWT may have limited insight into trends that may emerge and affect its business. RWT anticipates being required
to provide forecasts of its demand to its current and future suppliers prior to the scheduled delivery of products and technology to potential
clients. Currently, there is limited research and no historical basis for making judgments on the demand for rainfall generation technology
or its ability to develop, manufacture, and deliver this technology, or RWT’s profitability, if any, in the future. If RWT overestimates
client adoption of its platform, its suppliers may have excess inventory, which indirectly would increase RWT’s costs. If RWT underestimates
its requirements, its suppliers may have inadequate inventory, which could interrupt manufacturing of its products and result in delays
in shipments and revenues. In addition, lead times for materials and components that RWT’s suppliers order may vary significantly
and depend on factors such as the specific supplier, contract terms and demand for each component at a given time. If RWT fails to accurately
qualify client adoption curves of its platform in the near- and medium-term period, which may cause failure to order sufficient quantities
of product components in a timely manner, the delivery of its technology to its potential clients could be delayed, which would harm RWT’s
business, financial condition and operating results.

19

RWT may fail to accurately estimate the size and growth of client
demands.

There is no assurance that RWT will be able to ramp its business to
meet client demands about rainfall timing and predictability. Potential clients may require rapid increases in production on short notice.
RWT may not be able to purchase sufficient supplies or allocate sufficient manufacturing capacity to