Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 99

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 99
---
 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 with
the note payable to related parties of approximately $47,000. The Company experienced higher expenses compared to previous years due
to the merger completed on December 31, 2024.

For the three months ended March 31, 2024, we
had net loss of approximately $31,000, which consisted of general and administrative expenses of approximately $21,000, amortization
expenses of approximately $3,000 and interest expense in connection with the note payable to related parties of approximately $7,000.

Cash Flows 

For the three months ended March 31, 2025, net
cash used in operating activities was approximately $1.0 million, net cash used in investing account was approximately $139,000, and
net cash provided by financing activities was approximately $1.4 million. Net loss of approximately $1.5 million was partially offset
by changes in operating assets and liabilities of approximately $368,000 and non-cash activities, including amortization expense of approximately
$3,000, minimal expenses paid by related parties on behalf of RWT, and change in fair value of warrant liability of $90,000,