Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1765

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 12
Chunk 1765
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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later rescinded.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
of Holdco exercisable for shares of Class A Common Stock at an exercise price of $2.06 per share. The Options are fully vested and are
exercisable at any time for cash or on a cashless basis and expire 10 years after grant. The terms of the options are governed by the
terms of the 2024 Incentive Plan.

PIPE Subscription Agreements

In connection with the Business Combination, on December 20, 2024 and
December 23, 2024, Holdco entered into the PIPE Subscription Ag