Company: RAIN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001213900-25-044438
Chunk: 141

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 141
---
 accordance with FASB ASC 740. Upon the completion of the Business Combination, RWT became a wholly-owned subsidiary of the Company.
In connection with the preparation and audit of the Company’s consolidated financial statements as of and for the year ended
December 31, 2024, management determined that such material weakness had not been remediated as of March 31, 2025.

While we have processes to identify and appropriately
apply applicable accounting requirements, we intend to take steps to remediate this material weakness, including plans to hire or engage
a specialist to assist in the preparation of the income tax provision and disclosures. The elements of our remediation plan can only be
accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.

Changes in Internal Control Over Financial
Reporting

Management has implemented steps to remediate
the material weakness identified. Specifically, we expanded and improved our review process for income taxes calculation and disclosures,
and hired third-party professionals with whom to consult for such issues.

During the most recently completed fiscal quarter,
there has been no other changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the
Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

29

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

There is no material litigation, arbitration
or governmental proceeding currently pending against us or any members of our management team.

ITEM 1A. RISK FACTORS

Factors that could cause our actual results to
differ materially from those in this Report are any of the risks described in our Annual Report on Form 10-K for the year ended December
31, 2023, filed with the SEC on April 5, 2024 (the “Annual Report”). Any of these factors could result in a significant or
material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that
we currently deem immaterial may also impair our business or results of operations. As of the date of this Report, except as set forth
below, there have been no material changes to the risk factors disclosed in the Annual Report. We may disclose changes to such risk factors
or disclose additional risk factors from time to time in our future filings with the SEC.

We are currently in a period of economic
uncertainty and capital