Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 1043

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 7
Chunk 1043
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264,000, and net cash
provided by financing activities was approximately $440,000. Net loss of approximately $437,000 was affected by stock based compensation
expense of approximately $3,800, amortization expense of $12,000, expenses paid by related parties on behalf of RWT of approximately
$11,000, and changes in operating assets and liabilities used approximately $171,000 of cash for operating activities. Cash used in investing
activities consisted solely of payment for building Equipment of approximately $264,000. Cash provided by financing activities resulted
from issuance of common stock and Series A preferred stock of $1,998 and $8,000, respectively, and from the remaining proceeds of approximately
$447,000 pursuant to the Note, partially offset by repayment off advances to certain officer approximately $17,000.

Patent and Consulting Agreements

Patent License

On November 21, 2022, RWT entered into a
license agreement with Dr. Theodore Anderson, a plasma physicist, whereby RWT was granted an exclusive, worldwide license under
certain of Dr. Anderson’s patents. The consideration paid for the license of $33,000, which was fully paid in November 2022,
was recorded as a finite-lived intangible asset.

Consulting Agreement for Rainfall Ionization
Equipment 

In November 2022, RWT entered into a consulting agreement, which was
later amended on December 8, 2022, to engage with its senior technology advisor (“Technical Advisor”). RWT agreed to pay the
Technical Advisor a one-time fee upon execution of the agreement (“First-time fee”) and a consulting fee of AUD 250,000 per
year (equivalent to approximately $170,000 as of the effective date), which was later revised to $186,000 in February 2025, as well as
certain bonuses that will be paid upon reaching certain milestones. In May 2023, the Technical Advisor met a significant milestone in
improving the design and a bonus of AUD 25,000 was paid in June 2023 (or approximately $13,000).

In connection with the consulting agreement, we also agreed to obtain
from the Technical Advisor an irrevocable, perpetual, non-exclusive license under certain engineering designs in connection with rainfall
ionization equipment and systems. We fully paid this amount of $83,750 in June 2023.

Related Party Transactions

Note Payable and Line of Credit from