Company: RAIN
Filing Date: 2025-05-16
Form Type: 424B3
Source: 0001213900-25-044498
Chunk: 38

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-05-16
Form: 424B3
Chunk 38
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 on client engagement, projected returns for the company, and expected local
weather and topography. We anticipate that our supply chain will support the manufacturing and installation of additional systems within 2026, allowing RWT to scale operations rapidly as client referral effects drive increased demand.

We will continue to update and refine internal
documentation that outlines the criteria for selecting sites to install and operate the systems. This will include, but not be limited
to, factors such as weather patterns, terrain, setbacks, access, prevailing wind direction, and average humidity. Additionally, we plan
to enhance our operations process to include a complete set of drawings necessary for permitting, as well as incorporating all feedback
received from the site of our initial installation.

We expect to begin operationalizing the
manufacturing, testing, and warehousing of devices for the installation pipeline in 2026. At that point, we anticipate having
well-developed documentation that we can follow to ensure a steady stream of successful system installations.

As we continue to refine our manufacturing process
for rain technology devices, we will also seek research partnerships with universities. Our goal for these partnerships is to launch
a multi-year case study that evaluates the impact of our devices and related technology on rainfall enhancement in the initial U.S. locations
where our systems have been installed.

Liquidity and Capital Resources

As of March 31, 2025, we had approximately $273,000
in cash and had a working capital deficit of approximately $6.6 million. We expect to continue to incur expenses and begin to generate
revenues as we continue to grow and scale our business.

In connection with the Business Combination, on
December 30, 2024, RHY, an affiliate of Harry You, our Chairman, entered into the Loan Agreement and agreed to issue a LOC to Holdco for
up to $7 million. In addition, Mr. You and his affiliate also agreed to rollover all outstanding amount that Coliseum and RWT owed to
them prior to Closing under the LOC. The Rollover amount does not reduce the $7 million funding available to the Company under the LOC.
The Loan has an interest rate of 5%, and interest will be due and payable in arrears quarterly. As of March 31, 2025, we had drawn approximately
$737,000 from the LOC, bringing the total outstanding balance under the LOC to approximately $3.8 million (including the Rollover). Subsequent
to March 31,