Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 180

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 180
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 which may include, among
others, claims invoking the federal and state securities laws, or other claims arising from the restatement and material weaknesses in
RWT’s internal control over financial reporting and the preparation of RWT’s consolidated financial statements. As of the
date of Annual Report, we have no knowledge of any such litigation or dispute. However, we can provide no assurance that such litigation
or dispute will not arise in the future. Any such litigation or dispute, whether successful or not, could have a material adverse effect
on the business of Holdco and its results of operations and financial condition.

15

RWT can provide no assurance of the effectiveness and success
of ionization rainfall generation technology in increasing precipitation.

Commercial applications of ionization rainfall generation technology
are still at the initial stages of development, and further development and extensive testing will be required to determine its technical
feasibility and commercial viability. The scientific community continues to debate whether rainfall generation technology has been able
to produce statistically significant results in augmenting rainfall or other types of precipitation, with some authors suggesting that
it remains a “pseudo-science”, whereas other authors have found statistically meaningful results. At this point in time, given
the complexities of attributing increased precipitation to weather modification technologies, scientists have neither conclusively proven
nor disproven that ionization rainfall generation technologies and/or other types of weather modification technologies augment and optimize
precipitation.

RWT’s success will depend on its ability to prove and demonstrate,
to potential clients and the broader community, scientific and technological advances and to translate such advances into commercially
competitive products. Failure can occur at any stage of the process. If the development of this technology is not successful or the market
is not convinced that ionization rainfall generation technologies lead to demonstrable results, RWT may invest substantial amounts of
time and money without developing revenue-producing products. As RWT eventually enters into more robust development and trials of the
technology, the data and results generated may not be as compelling as earlier results in previous trials done by third parties.

In light of the unproven technology involved and the other factors
described elsewhere in this Annual Report, there can be no assurance that RWT will be able to successfully complete the development, commercialization
or marketing of any new technology or products which could materially harm its business, results of operations and prospects.

RWT has not demonstrated it can develop rainfall generation technology
and faces barriers in replicating meaningful rainfall generation. If RWT cannot successfully overcome those barriers, its