Company: RAIN
Filing Date: 2025-02-12
Form Type: 424B3
Source: 0001213900-25-012904
Chunk: 121

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-02-12
Form: 424B3
Chunk 121
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 other areas of the U.S. as well as countries and regions where there are water scarcity issues to address. As we invest in new markets and create new offerings, we may increase our marketing and sales strategies in a manner that could extend our marketing payback target in order to accelerate growth in each new market.

Effect of Climate Change

The water supply and demand balance is worsening across the globe. Energy production is also threatened by water scarcity. In the U.S., states including California, Arizona, Texas, Colorado, and Nevada have passed water restrictions limiting use and cutbacks to water supply. Population growth is threatening potable water supplies worldwide. RET believes rationing water is not a long-term solution to the ongoing water crisis, and that it is uniquely positioned to develop and scale its products to support climate change adaption.

Seasonality

RET anticipates that it will experience seasonality in its services, given that the rain generation systems may be impacted by seasonal weather conditions in the areas in which its systems are installed.

RET may experience lower demand or use of its services during rainy seasons in the specific geographies where the technology is expected to be used, offset by higher demand or use of the technology during dryer periods.

Plan of Operations

12-Month Plan

RET currently is warehousing 2 fully built rain generation systems in Sydney, Australia. The systems were built by Scott Morris, a leading ionization rainfall generation engineer, and have gone through rigorous evaluation, testing and documentation. In March 2025, we plan to execute our first US client contract and to initiate the installation process in the second quarter of 2025. Targets for initial installation are Lake Tahoe, CA or Austin, TX. We will concurrently identify, recruit, and hire a CTO and CFO.

In April 2025, RET intends to develop two additional rain generation systems to deploy in an additional location. While we have begun documenting the sourcing, manufacturing, and building process, our CTO will work with highly-skilled technical advisors to create a step-by-step training manual that can be scaled as our system volume increases. While also systematically documenting the process, we will examine other ways to make the process more efficient and scalable, such as examining the bill of materials to domesticate sourcing of components and beginning the request for proposal process with candidate US based manufacturers.

RET will be engaged actively in the hiring process for U.S.-based software, electrical, and mechanical engineers and weather experts and will hire at least two employees to support either sales, operations or climate scientist functions by March 202