Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 174

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1A
Chunk 174
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 be achieved as quickly as hoped, or even at all.

RWT expects to incur significant expenses and losses for the
foreseeable future.

RWT believes that it will incur operating and net losses until it is
able to grow its one-to-many business model at scale, deliver a robust, sustainable pipeline of clients and acquire long-term, multi-annual
contracts. Among other things, RWT will incur ongoing expenses in connection with the design, development and manufacturing of its technology,
conduct and expansion of its research and development activities, increases in its sales and marketing activities, development of its
distribution infrastructure, and increases in its general and administrative functions to support its growing operations.

RWT may find that these efforts are more expensive than it currently
anticipates or that these efforts may not result in revenues, which would further increase RWT’s losses. If RWT is unable to achieve
and/or sustain profitability, or if RWT is unable to achieve the growth that it expects, it could have a material effect on RWT’s
business, financial condition or results of operations. RWT’s business model is unproven and may never allow it to cover its costs.

RWT’s estimates of market opportunity and growth forecasts
may prove to be inaccurate.

Market opportunity estimates and growth forecasts, including those
RWT has generated itself, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate.
RWT’s business plan assumes a strong sales pipeline of actionable client targets that can be converted to revenue-generating clients
beginning in 2025. However, RWT does not currently have clients, and the variables that go into the calculation of RWT’s client
acquisition forecasts are subject to change over time. There is no guarantee that any particular number or percentage of clients or companies
covered by its estimates will purchase its products at all or generate any particular level of revenue for RWT. Any growth of RWT’s
business depends on a number of factors, including the cost, performance, and perceived value associated with its technology.

12

RWT’s success will also depend upon its ability to expand, scale
its operations, and increase its sales capability. RWT’s business model allows for affordable installation and manufacturing costs,
expected to initially be approximately $280,000 per system, which price point will allow clients to be “laddered up” with
a “land and expand” sales strategy, which will also involve continued involvement with RWT as it expects to be