Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 179

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 179
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 and civil or criminal sanctions.

We can give no assurance that the measures that Holdco plans to take
in the future will remediate the material weakness identified or that any additional material weaknesses or restatements of financial
results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or
circumvention of these controls. Holdco is required, pursuant to Section 404 of the Sarbanes-Oxley Act, to annually furnish a report
by management on, among other things, the effectiveness of its internal control over financial reporting. This assessment needs to include
disclosure of any material weaknesses identified by Holdco’s management in its internal control over financial reporting. Holdco
is required to disclose changes made in its internal control and procedures on a quarterly basis. To comply with the requirements of being
a public company, Holdco may need to undertake various actions, such as implementing new internal controls and procedures and hiring accounting
or internal audit staff. If Holdco is unable to hire the additional accounting and internal audit staff necessary to comply with these
requirements, Holdco may need to retain additional outside consultants. If Holdco is unable to conclude that its internal controls over
financial reporting are effective, investors may lose confidence in Holdco’s financial reporting, which could negatively impact
the price of Holdco’s securities. 

We may face litigation and other risks
as a result of the restatement of RWT’s pre-merger audited consolidated financial statements and the material weakness in
RWT’s internal control over financial reporting.

RWT’s management and its board of directors concluded that it
was appropriate to restate RWT’s pre-merger previously issued and audited consolidated financial statements as of and for the year
ended December 31, 2023. As discussed in “Note 2” of RWT’s audited consolidated financial statements including in the
prospectus filed with the SEC on December 12, 2024, RWT identified a material weakness in its internal controls over financial reporting
regarding the calculation of deferred tax assets and disclosure of income taxes in accordance with FASB ASC 740.

As a result of such material weakness, the restatement and other matters
raised or that may in the future be raised by the SEC, RWT incurred additional costs, including increased accounting and legal fees, and
RWT faces (and RWT and Holdco following the Business Combination face) potential for litigation or other disputes