Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 330

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1B
Chunk 330
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, federal and non-U.S. governments. In addition, we aim to leverage our offerings and enhance our
potential market position by exploring ways to expand our future water generation products through licensing and acting as a channel partner
for additional water generation technologies.

Since the beginning of 2025 we have created new marketing and sales
programs, identified and contacted potential customers in core market segments, expanded our contacts with rain enhancement experts who
could endorse our technology and introduce us into existing projects looking to address lack of rainfall, and organized our production
of systems to serve expected demand.

We have a limited operating history and have not yet generated any
revenue, and our ability to generate revenue sufficient to achieve profitability will depend on our ability to successfully build and
commercialize rainfall generation technology and successfully execute our sales strategy.

Business Combination

On the Closing Date, Coliseum, RWT, Holdco, Merger
Sub 1, and Merger Sub 2 consummated the Business Combination pursuant to the terms of the Business Combination Agreement.

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Pursuant to the Business Combination Agreement,
on the Closing Date, the Mergers occurred, and, after giving effect to such Mergers, the Closing occurred. Following the Closing, Holdco
holds all of the equity interests of RWT and Merger Sub 1.

The Business Combination was treated as a reverse
recapitalization in accordance with U.S. GAAP. Under this method of accounting, Coliseum was treated as the “acquired” company
for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of RWT
issuing stock for the net assets of Coliseum, accompanied by a recapitalization. The net assets of Coliseum were stated at historical
cost, with no goodwill or other intangible assets recorded.

Our common stock and warrants commenced trading
on the Nasdaq Stock Market LLC under the symbols “RAIN” and “RAINW”, respectively, on January 2, 2025.

PIPE Subscriptions

In connection with the Closing, Holdco entered
into the PIPE Subscription Agreements with the PIPE Investors and related parties to sell an aggregate of $1.35 million of shares of Holdco
Class A Common Stock at $11.39 per share, of which Holdco received $700,000 of the PIPE Investment and recorded a subscription receivable
of $650,000 on the consolidated balance sheet as of December 31, 2024. Such receivable was fully paid