Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1997

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 16
Chunk 1997
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3, respectively, and included that in the accompanying consolidated statement
of operations. The intangible assets were tested for impairment whenever events or changes in circumstances indicate the carrying amount
may not be recoverable. These conditions may include a change in the extent or manner in which the asset is being used or a change in
future operations. For the years ended December 31, 2024 and 2023, there were no impairment charges associated with the Company’s intangible
assets.

F-16

Note 5 — Related Party
Transactions

Note Payable and Line of Credit from Related
Parties

On February 2, 2023, RWT issued a promissory
note (the “Note”) to its former CEO and Mr. You and Mr. de Masi for an aggregate amount of $600,000. The Note has an
annual interest rate of 5% and is currently due on demand.

On December 30, 2024, Holdco entered into a loan
agreement (the “Loan Agreement”) with RHY, an affiliate of Harry You, pursuant to which RHY agreed to issue an LOC to Holdco
for up to $7 million, in addition to the Rollover amount described below. The Loan has an interest rate of 5%, and interest will be due
and payable in arrears quarterly. 

Prior to Closing, the outstanding amount that Coliseum and RWT owed
to Mr. You and his affiliates are: (i) approximately $1.7 million and approximately $333,000 of advances to Coliseum and RWT, respectively,
(ii) convertible note balance of $667,500 to Coliseum, and a portion under the Note discussed above of approximately $216,000 to RWT (which
amount includes $200,000 in principal and approximately $16,000 in accrued interest), and (iii) an outstanding balance of $180,000 in
accrued administrative fees to Coliseum, for a total of approximately $3.1 million. All of these outstanding amounts (the “Rollover”)
were assigned to and assumed by Holdco and are treated for all purposes as loans outstanding under the Loan Agreement. The Loan has an
interest rate of 5%, and interest will be due and payable in arrears quarterly. The Rollover amount does not reduce the $7 million funding
available to the Company under the LOC. As of December 31, 202