Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 41

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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.0 million of cash used in operating activities. Cash used in investing activities consisted solely of payment for
building Equipment of approximately $139,000. Cash provided by financing activities resulted from proceeds from payment of subscription
receivable of $650,000 and proceeds from drawdown under the LOC of approximately $737,000.

For the three months ended March 31, 2024, net
cash provided by operating activities was approximately $13,000, net cash used in investing account was approximately $41,000. Net loss
of approximately $31,000 plus changes in operating assets and liabilities of approximately $128,000 was affected by amortization expense
of approximately $3,000 and expenses paid by related parties on behalf of RWT of approximately $169,000, resulted in cash provided by
operating activities of approximately $13,000. Cash used in investing activities consisted solely of payment for building Equipment of
approximately $41,000.

Patent and Consulting Agreements

Patent License

On November 21, 2022, RWT entered into a
license agreement with Dr. Theodore Anderson, a plasma physicist, whereby RWT was granted an exclusive, worldwide license under
certain of Dr. Anderson’s patents. The consideration paid for the license of $33,000, which was fully paid in November 2022,
was recorded as a finite-lived intangible asset.

25

Consulting Agreement for Rainfall Ionization
Equipment 

In November 2022, RWT entered into a consulting
agreement, which was later amended on December 8, 2022, to engage with its senior technology advisor (“Technical Advisor”).
RWT agreed to pay the Technical Advisor a one-time fee upon execution of the agreement (“First-time fee”) and a consulting
fee of AUD 250,000 per year (equivalent to approximately $170,000 as of the effective date), which was later amended to $186,000 in February
2025, as well as certain bonuses that will be paid upon reaching certain milestones.

In connection with the consulting agreement,
we also agreed to obtain from the Technical Advisor an irrevocable, perpetual, non-exclusive license under certain engineering designs
in connection with rainfall ionization equipment and systems. We fully paid this amount of $83,750 in June 2023.

Related Party Transactions

Note Payable and Line of Credit from Related
Parties

On February 2, 2023, RWT issued a promiss