Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1319

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 9
Chunk 1319
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of advances to Coliseum and RWT, respectively, (ii) convertible note balance of $667,500 to Coliseum, and a portion under the Note discussed
above of approximately $216,000 to RWT, and (iii) an outstanding balance of $180,000 in accrued administrative fees to Coliseum, for a
total of approximately $3.1 million. The Rollover amounts were assigned to and assumed by Holdco and are treated for all purposes as loans
outstanding under the Loan Agreement. The loan has an interest rate of 5%, and interest will be due and payable in arrears quarterly.
The Rollover amount does not reduce the $7 million funding available to the Company under the LOC. As of December 31, 2024, the Company
had not borrowed any of the $7 million available funding under the LOC. Subsequent to December 31, 2024, the Company borrowed approximately
$839,000 under the LOC for working capital needs.

Subscription Agreements

RWT entered into subscription agreements on June 20, 2024, which were
later rescinded. On August 23, 2024, RWT entered into new subscription agreements with Rainwater LLC and affiliates of Harry You and Niccolo
de Masi, to sell an aggregate of 250 shares of RWT Class A Common Stock at a purchase price of approximately $2,955.78 per share, which
the Company determined to be the then-current fair market value based in part on a valuation from an independent third party valuation
firm, and 40 shares of RWT Class B Common Stock at a purchase price of approximately $3,103.57 per share, which the Company determined
to be the then-current fair market value based in part on a valuation from an independent third party valuation firm, for an aggregate
subscription amount of $865,000.

Issuance of Options

On August 23, 2024, RWT granted options to purchase up to 1,000 shares
of RWT Class A Common Stock to Harry You and options to purchase up to 500 shares of RWT Class A Common Stock to Niccolo de Masi, in consideration
for services provided to RWT. Each option has an exercise price of $2,955.78 per share, which the Company determined to be the then-current
fair market value, based in part on a valuation from an independent third party valuation firm.

Upon the Closing, such options became Options