Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 37

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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daq listing standards.

Departure of Co-Chief Executive Officer

On January 29, 2025, Holdco, RWT and Christopher
Riley entered into a letter agreement whereby Mr. Riley resigned as Co-Chief Executive Officer of our company and RWT effective as of
January 30, 2025 (the “Termination Letter”). Pursuant to the Termination Letter, in lieu of all other compensation and payments
of any kind due and payable to Mr. Riley, Mr. Riley will be paid for services rendered in an amount of $124,500, payable in 18 monthly
installments beginning in February 2025. Additionally, conditioned on approval by the Compensation Committee of our board of directors,
the Termination Letter provides that Mr. Riley will be granted 10,000 shares of Class A Common Stock of the Company vesting one year
from the date of grant.

Mr. Riley’s decision to resign as Chief
Executive Officer was not the result of any disagreement with our company or our board of directors, including any matters relating to
our operations, polices, accounting practices or financial reporting. Mr. Riley will remain as a member of our board of directors.

As previously announced, we appointed Randall
Seidl to serve as Co-Chief Executive Officer effective as of January 2, 2025. Following the resignation of Mr. Riley, Mr. Seidl is our
sole Chief Executive Officer.

Plan of Operations

12-Month Plan

RWT currently is warehousing two fully built rain
generation systems in Sydney, Australia. The systems were built by a leading ionization rainfall generation engineer, and have undergone
rigorous evaluation, testing, and documentation. These units are expected to arrive in the U.S. by August 2025 and expect to execute our
first client contract and begin the installation process in the third quarter of 2025. Concurrently, we plan to identify, recruit, and
hire a CTO, CFO and other go to market resources.

In March 2025, we began planning the development
of ten additional rain generation systems for deployment in new locations. While we have begun documenting the sourcing, manufacturing,
and building processes, we will collaborate with highly skilled technical advisors to develop a step-by-step training manual that can
be scaled as our system volume increases. While systematically documenting the process, we will also explore ways to enhance efficiency
and scalability, such as reviewing the bill of materials to domesticate component sourcing and initiating the request-for-proposal