Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 42

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 42
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 in issued patents, which could be alleged to be
infringed by RWT’s offerings. Because patent applications can take years to issue and are often afforded confidentiality for some
period of time there may currently be pending applications, unknown to RWT, that later result in issued patents that could cover RWT’s
future technologies. Lawsuits can be time-consuming and expensive to resolve, and they divert management’s time and attention. RWT’s
platform may not be able to withstand any third-party claims against its use. In addition, many companies have the capability to dedicate
substantially greater resources to enforce their intellectual property rights and to defend claims that may be brought against them. In
a patent infringement claim against RWT, RWT may assert, as a defense, that we do not infringe the relevant patent claims, that the patent
is invalid or both. RWT does not have a large patent portfolio which it could use in counter-claims as part of a defense against infringement.
The strength of RWT’s defenses will depend on the patents asserted, the interpretation of these patents, and its ability to invalidate
the asserted patents. However, RWT could be unsuccessful in advancing non-infringement and/or invalidity arguments in its defense. In
the United States, issued patents enjoy a presumption of validity, and the party challenging the validity of a patent claim must present
clear and convincing evidence of invalidity, which is a high burden of proof. Conversely, the patent owner need only prove infringement
by a preponderance of the evidence, which is a lower burden of proof. If a third party is able to obtain an injunction preventing us from
accessing such third-party intellectual property rights, or if RWT cannot modify its technology to make it non-infringing, or license
or develop alternative technology for any infringing aspect of our business, it may be forced to limit or stop sales of its products or
cease business activities related to such intellectual property. RWT cannot predict the outcome of lawsuits and cannot ensure that the
results of any such actions will not have an adverse effect on its business, financial condition or results of operations. Any intellectual
property litigation to which RWT might become a party, or for which it is required to provide indemnification, regardless of the merit
of the claim or its defenses, may require RWT to do one or more of the following:

    ●
    cease selling or using technology that incorporates the intellectual property rights that allegedly infringes, mis