Company: RAIN
Filing Date: 2025-04-16
Form Type: 10-K
Source: 0001213900-25-032239
Chunk: 32

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-04-16
Form: 10-K
Item: Item 1
Chunk 32
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 meet such increases in demand. Rapid
client ramp-up in the future and significant increases in demand may strain RWT’s resources or negatively affect its margins. Inability
to satisfy client demand in a timely manner may harm its reputation, reduce its other opportunities, damage its relationships with clients,
reduce revenue growth, and/or cause it to incur contractual penalties. Failure to grow at rates similar to that of other competitors in
the industry may adversely affect RWT’s operating results and ability to effectively compete within the industry.

RWT may fail to find adequate sites to operate its platform and
machinery.

RWT’s ability to meet its financial and operating objectives
depends on its ability to find adequate sites to operate its machines and platform, which can be difficult and expensive. The process
to find adequate sites (including leases) requires compliance with numerous zoning, environmental, and governmental requirements. Further,
the cost of operation, including leases, may become economically unfeasible causing RWT to abandon or cease operations at said site. RWT’s
ability to find such sites could hinder our financial operating objectives and adversely affect operating results.

RWT may be affected by failures of its clients, both private
and public, to meet their payment obligations.

A failure of RWT’s future clients to meet their payment obligations
may affect its ability to receive payments under its contracts. In addition to RWT’s potential contracts with private parties, RWT
intends to derive a portion of its revenues directly or indirectly from contracts with federal, state and city agencies, and other governmental
authorities of various countries, in areas relating to, among others, water resiliency, decarbonization, forest fire mitigation, agricultural
and other water infrastructure projects. The funding of these programs could be reduced or eliminated due to numerous factors beyond RWT’s
control, including lack of funding or budgetary constraints due to current political party views, geopolitical events, sovereign default,
and other macro- or micro-economic conditions. A reduction or elimination of government spending under RWT’s contracts could cause
a material adverse effect on its business, financial condition, results of operations and cash flow.

RWT’s clients may refuse to pay for rainfall generation
services that directly or indirectly benefit other nearby parties.

RWT expects its offerings to have an expansive
operating range, with rainfall occurring anywhere within an approximately 50-mile radius. Accordingly, there may be situations where a
party who has not paid for RWT’s technology could still benefit from nearby rain enhancement, particularly since the