Company: RAIN
Filing Date: 2025-05-16
Form Type: 424B3
Source: 0001213900-25-044498
Chunk: 39

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-16
Form: 424B3
Chunk 39
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2025, we drew an additional amount of approximately $554,000 under the LOC.

Our management estimates approximately $6.3 million
and approximately $62 million in expenses for our one-year and five-year business plan. These funds are expected to be used for producing
units, integrating and rolling out software for the rain enhancement platform, expanding water services through the ‘land and expand’
client acquisition model, and potentially acquiring other weather technologies. Since the base technology and products are developed
and proven, the need for additional capital will primarily be driven by growth in customer acquisition and projects. Our management believes
that the budget can be scaled in line with the funds actually received, enabling RWT to expand its client base, deliver equipment and
technology to newly acquired clients, and develop new products for the RWT platform.

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We expect to fund our future development and
exploration activities using the available funding under the LOC and future operating cash flow. The timing of most capital expenditures
is largely discretionary. We have a significant degree of flexibility to adjust the level of our capital expenditures as circumstances
warrant. If our plans or assumptions change, we may seek additional funding through debt or other equity financing arrangements, implement
incremental expense reduction measures or a combination thereof to continue financing our operations. Although our management continues
to pursue these plans, there is no assurance that we will be successful in obtaining sufficient funding on terms acceptable to us to
fund continuing operations, if at all.

In connection with the Company’s assessment
of going concern considerations in accordance with FASB ASC Subtopic 205-40, “Going Concern,” our management has determined
that although we do not have sufficient liquidity to meet our anticipated obligations over the next year from the date of issuance of
these unaudited condensed consolidated financial statements, we have access to funds under the LOC. Additionally, an existing shareholder
has pledged financial support as necessary and has the financial ability to provide such funds, that are sufficient to fund our working
capital needs over the next twelve months from the date of issuance of these unaudited condensed consolidated financial statements.

Results of Operations

For the three months ended March 31, 2025, we
had net loss of approximately $1.5 million, which consisted of general and administrative expenses of approximately $1.3 million, amortization
expenses of approximately $3,000, loss in change in fair value of warrant liability of $90,000, and interest expense in connection