10-Q: Rainmaker Worldwide Inc. Reports Q2 2024 Results, Highlights Miranda Acquisition and Ongoing Business Development

Rainmaker Worldwide Inc. reports its financial results for the quarter ended June 30, 2024, showcasing the acquisition of Miranda and ongoing efforts in business development despite limited revenue.

Summary

• Rainmaker Worldwide Inc. (RAKR) reported financial results for the quarter ended June 30, 2024.
• The company had no revenue for the quarters ending June 30, 2024 and June 30, 2023.
• Net losses were $(80,754) and $(312,117) for the quarters ending June 30, 2024 and 2023, respectively.
• Year-to-date losses for June 30, 2024 and 2023 were $(346,172) and $(753,992) respectively.
• Losses in 2024 were reduced by 61% compared to the same period in 2023.
• The company's accumulated deficit as of June 30, 2024, is $74,410,589.
• The company is focusing on pairing Rainmaker technologies with those of Miranda and affiliate partners.
• On January 22, 2024, RWI, a 40% subsidiary of RAKR, finalized the acquisition of Miranda.
• The first payment of one million USD together with 40 million RAKR common shares was paid to the shareholders of Miranda.
• The remaining two million USD is to be paid no later than 2 years from the closing date of January 22nd, 2024.
• As of June 30, 2024, the Company had approximately $246 in cash.
• The company recognizes the need to raise additional capital to execute its business plan.
• The company had total assets of $30,725, as of December 31, 2023.
• As of June 30, 2024, net assets were $371,265.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the lack of revenue, accumulated deficit, and going concern issues, but there are positive aspects such as reduced losses and the Miranda acquisition.

Positives

• The company's losses decreased by 61% compared to the same period in 2023.
• The acquisition of Miranda provides the company with a full suite of water production and purification systems.
• Net assets increased from $30,725 as of December 31, 2023 to $371,265 as of June 30, 2024.

Negatives

• The company had no revenue for the quarters ending June 30, 2024 and June 30, 2023.
• The company has an accumulated deficit of $74,410,589 as of June 30, 2024.
• The company had approximately $246 in cash as of June 30, 2024.
• The company's auditors report for 2023 stated that there was substantial doubt about the company's ability to continue as a going concern.

Risks

• The company has suffered recurring losses from operations and has limited resources or revenues to cover its operating costs.
• There is no assurance that additional financing will be available when needed or that the company will be able to obtain financing on terms acceptable to it.
• The company may not become profitable and generate positive operating cash flow.
• The company's disclosure controls and procedures were not effective in ensuring that information required to be disclosed by the company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission's rules and forms.
• The company did not establish a formal written policy for the approval, identification, and authorization of related party transactions.

Future Outlook

The company's ongoing focus will be to pair Rainmaker technologies with those of Miranda and affiliate partners, and future sales will be heavily driven by independent distributors and project developers.

Industry Context

The document highlights the growing awareness of the shortage of fresh water and the associated economic and social effects the problem magnifies in impoverished and underdeveloped communities, and the company's solutions are tailored to meet roughly 70% of that global level of demand.

Comparison to Industry Standards

• The document states that the company substantially outperforms peer competitors because it can deploy remotely where the water is consumed and using up to 50% less power than those same competitors.
• The company's fully amortized cost of water per liter including bottling, operating and maintenance, distribution and other costs allows it to compete profitably to generate corporate value beneficial to its shareholders.
• The document mentions that the minimum cost per liter of imported bottled water in most remote communities is US$0.30 reaching as high as US$2.00, according to the company's market research.

Related Party Transactions

• Outstanding compensation and expense reimbursements due to consultants engaged by the Company $ 764,172 (2023: $ 1,461,994 ).
• The Company (the lender) signed a loan agreement with RHBV (the borrower) on June 21, 2022.
• On November 6, 2023, the Company issued 40,000,000 shares to RWI (a related party) to finalize the Miranda acquisition.
• On January 16, 2024, the Company made an investment in Rainmaker Worldwide Inc. (Ontario) (RWI) in the amount of $ 400,000 .

Stakeholder Impact

• The company's ability to continue as a going concern is contingent upon obtaining additional financing, which could impact stakeholders.
• The company's focus on providing clean water solutions addresses the needs of communities facing water scarcity.

Next Steps

• The company will continue to focus on pairing Rainmaker technologies with those of Miranda and affiliate partners.
• Future sales will be heavily driven by independent distributors and project developers.
• The company recognizes and is addressing the need to raise additional capital in order to continue to execute its business plan in the future.

Key Dates

Keywords

Rainmaker Worldwide Inc., financial results, Miranda acquisition, water technology, revenue, net loss, convertible notes, equity investment, going concern, water purification, water production