Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 13

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 13
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&D), Innovation and Technology”,
“- Development and Enhancement of Proprietary Technology”, and “- Plan of Operations”. 

Integrating the latest
weather forecast techniques and data, along with automated control systems and water gauge measurements will enable continual improvement
of any existing generation of hardware in the field.

RWT management estimates
that each equipment site is expected to break even on approximately $1 million of annual revenue on a cash flow basis (with hardware costs
factored in year one), plus operating costs. Multi-year contracts will be sought to make it difficult for new entrants to win market share.
RWT’s business model will be focused on achieving long term client lock-in through SaaS-like, multi-annual contracts.

8

Moreover, there are several
approaches to rainfall generation besides RWT’s approach. There are companies developing and commercializing chemical-based cloudseeding
technologies. These companies utilize traditional cloudseeding technology, which involves the use of chemicals such as silver iodide,
potassium iodide and dry ice that are dispensed from aircrafts at precise moments of raincloud formation creating potential risks and
unintended consequences. Compared to the traditional chemical cloudseeding approach, RWT’s ionization rainfall generation approach
does not use chemicals in the rain enhancement process. Moreover, we think that RWT’s ionization rainfall generation could enjoy
lower operating costs than traditional chemical cloudseeding. Lastly, the difference between RWT and these companies lies in the expertise
in operations and leading team of water entrepreneurs that provides RWT with a competitive advantage.

Proceeds of the Business
Combination

As described in more
detail elsewhere in this Annual Report, the Business Combination between Holdco, RWT, Coliseum, and Merger Sub closed on December 31,
2024. The gross funds available upon the Closing was approximately $9.0 million. The parties to the Business Combination incurred an aggregate
of approximately $11.6 million of transaction expenses. At the Closing, the Company paid an aggregate of approximately $8.9 million of
transaction expenses, and deferred the remaining $2.7 million. Following the payment of transaction expenses, the net cash available to
the Company from the Business Combination was approximately $0.1 million.

In connection with the
Closing, the Company also recorded a subscription receivable of $650,000 from two PIPE Investors for the purchase of 57,083 shares of
Class A Common Stock. On January 29, 202