Core Viewpoint - reAlpha Tech Corp. has successfully closed a public offering of 13,333,334 shares of common stock at a price of $0.15 per share, along with associated warrants, raising approximately $2 million in gross proceeds for working capital and corporate purposes [1][3]. Group 1: Offering Details - The public offering included Series A-1 and Series A-2 warrants, each with an exercise price of $0.15 per share [1]. - The Series A-1 warrants will expire five years from stockholder approval, while the Series A-2 warrants will expire twenty-four months from stockholder approval [1]. - H.C. Wainwright & Co. served as the exclusive placement agent for the offering [2]. Group 2: Use of Proceeds - The net proceeds from the offering are intended for working capital and general corporate purposes, which may include debt repayment, future acquisitions, capital expenditures, and cryptocurrency purchases [3]. Group 3: Company Overview - reAlpha Tech Corp. is an AI-powered real estate technology company focused on transforming the U.S. real estate services market through an integrated platform that streamlines real estate transactions [6]. - The company employs a strategic, acquisition-driven growth model and proprietary AI infrastructure to create a vertically integrated ecosystem aimed at simplifying homeownership [6].

Core Viewpoint - reAlpha Tech Corp. has announced a public offering of 13,333,334 shares of common stock at a price of $0.15 per share, along with warrants, aiming to raise approximately $2 million for working capital and corporate purposes [1][3]. Group 1: Offering Details - The public offering includes Series A-1 and Series A-2 warrants, each allowing the purchase of up to 13,333,334 shares at an exercise price of $0.15 [1]. - The Series A-1 warrants will expire five years from stockholder approval, while the Series A-2 warrants will expire in twenty-four months [1]. - The closing of the offering is expected around July 18, 2025, pending customary closing conditions [1]. Group 2: Financial Use of Proceeds - The gross proceeds from the offering are anticipated to be approximately $2 million before deducting fees and expenses [3]. - The net proceeds will be used for working capital, debt repayment, future acquisitions, capital expenditures, and cryptocurrency purchases [3]. Group 3: Company Overview - reAlpha Tech Corp. is an AI-powered real estate technology company focused on transforming the U.S. real estate services market [6]. - The company is developing an integrated platform for real estate transactions, including brokerage, mortgage, and title services [6]. - reAlpha aims to create a vertically integrated ecosystem to simplify and enhance the homeownership process [6].

Core Insights - reAlpha Tech Corp. has launched an AI-powered Internal Loan Officer Assistant aimed at improving operational efficiency and loan processing accuracy within its mortgage division [1][2] - The introduction of this AI tool is part of a broader strategy to enhance mortgage operations, following recent acquisitions that expanded the company's services across 30 U.S. states [2][4] - The AI assistant is designed to automate time-consuming tasks, allowing mortgage professionals to focus on customer service and support more clients [3] Company Developments - Early operational results indicate that the AI Loan Officer Assistant can reduce manual document preparation and reconciliation time by approximately 60% during loan processing [3] - The tool automates one-third of the loan intake process, enabling loan teams to process up to 40 additional loans per month per officer, thus supporting increased loan volumes while maintaining service quality [3] - reAlpha's technology roadmap includes plans to evolve the AI assistant to handle more complex mortgage scenarios and improve processing speed, accuracy, and scalability [4] Industry Trends - The launch aligns with a growing trend in the financial sector where institutions are increasingly adopting AI to lower operational costs and enhance service delivery [4] - Industry data suggests that AI integration in mortgage lending can boost loan origination volumes by up to 50%, cut underwriting cycle times by 50%, and reduce operational costs by 30-50% [4]

Core Insights - reAlpha Tech Corp. is expanding its platform into Texas, launching real estate brokerage services through its REALTOR® affiliate, marking its first step outside Florida [1][3] - Texas, being the second-most populous state, had over 323,000 home sales in 2024 with a median sale price of $347,000, representing more than $112 billion in residential transaction value [2] - The expansion aims to reach millions of prospective homebuyers in high-volume markets like Dallas-Fort Worth, San Antonio, Houston, and Austin [2][3] Company Strategy - The CEO of reAlpha highlighted that Texas is a high-volume, high-potential market that aligns with the company's integrated business model, aiming to provide value through technology-driven convenience and cost savings [3] - reAlpha has an established presence in Texas through its acquisition of Be My Neighbor, a licensed mortgage subsidiary, which has been operational since 2018 across 30 states [3] - The company plans to launch in additional states in the coming months as it continues to modernize real estate through AI and integrated experiences [4] Market Position - reAlpha is positioned to transform the multi-trillion-dollar U.S. real estate services market with its end-to-end platform that integrates brokerage, mortgage, and title services [5] - The company employs a strategic, acquisition-driven growth model and proprietary AI infrastructure to create a vertically integrated ecosystem for homeownership [5] - The reAlpha platform is currently available in 212 out of 254 counties in Texas, indicating significant market penetration [8]

Leadership Transition - reAlpha Tech Corp. announced a leadership transition with Mike Logozzo appointed as Chief Executive Officer and Giri Devanur transitioning to Executive Chairman of the Board effective June 3, 2025 [1] - This change aims to support the company's next phase of growth and operational excellence [3] Executive Background - Mike Logozzo has been instrumental in reAlpha's growth, previously serving as Chief Financial Officer and later as President and Chief Operating Officer [2] - Under his leadership, reAlpha has expanded its national presence and launched the proprietary AI platform Claire, enhancing its capabilities in real estate, mortgage, and title services [2] Strategic Vision - Giri Devanur emphasized the importance of evolving leadership at this stage, highlighting the strong foundation and clear vision established at reAlpha [3] - Logozzo expressed commitment to transforming the homebuying journey through technology and integrated services, aiming to expand the company's national footprint and deliver long-term results [3] Company Overview - reAlpha Tech Corp. is an AI-powered real estate technology company focused on transforming the U.S. real estate services market, developing an end-to-end platform for homebuying [4] - The company employs a strategic, acquisition-driven growth model and a proprietary AI infrastructure to create a vertically integrated ecosystem for affordable homeownership [4]

Revenue and Profitability - Revenue increased 4,432% to $925,635 in Q1 2025, compared to $20,426 in Q1 2024[5] - Net loss was approximately $2.85 million in Q1 2025, compared to a net loss of approximately $1.41 million in Q1 2024, with the net profit margin improving from approximately (6,947)% to (309)% year-over-year[5] - Adjusted EBITDA was approximately $(1.96) million in Q1 2025, compared to approximately $(1.34) million in Q1 2024[5] - Net loss for Q1 2025 was $2,850,351, compared to a net loss of $1,419,045 in Q1 2024, representing an increase of 101% in losses year-over-year[18] - Adjusted EBITDA for Q1 2025 was $(1,960,997), compared to $(1,337,147) in Q1 2024, indicating a decline of 47% in operational performance[21] Cash and Liquidity - Cash was approximately $1.2 million as of Q1 2025, down from $3.1 million in Q1 2024[5] - Cash and cash equivalents at the end of Q1 2025 were $1,204,400, down from $4,838,146 at the end of Q1 2024, reflecting a decrease of 75%[18] - Cash used in operating activities for Q1 2025 was $(2,267,103), an increase of 48% compared to $(1,527,238) in Q1 2024[18] - Total adjustments to reconcile net loss to net cash used in operating activities were $583,248 in Q1 2025, compared to $(108,193) in Q1 2024[18] - Cash used for additions to capitalized software was $(91,310) in Q1 2025, slightly lower than $(97,700) in Q1 2024[18] - Proceeds from issuance of common stock in Q1 2025 amounted to $231,235, with no such proceeds reported in Q1 2024[18] - Net cash provided by investing activities was $244,554 in Q1 2025, compared to $(19,700) in Q1 2024, indicating a significant improvement[18] Operating Performance - Operating expenses increased to $2.94 million in Q1 2025, compared to $1.31 million in Q1 2024[15] - The company incurred $205,247 in interest expense in Q1 2025, compared to $10,445 in Q1 2024, marking a substantial increase[21] Assets and Investments - Total assets increased to $18.54 million as of March 31, 2025, compared to $11.99 million as of December 31, 2024[12] - The acquisition of GTG Financial contributed to originating 36 mortgages for a total loan volume of approximately $22.4 million since its acquisition in Q1 2025[6] Corporate Developments - The company secured a $5 million media-for-equity investment from Mercurius Media Capital LP on March 10, 2025[7] - The company launched several tools to enhance operational efficiency, including a new public-facing website for Be My Neighbor[6] - The company appointed Piyush Phadke as Chief Financial Officer and Vijay Rathna as Chief Crypto Officer[6] Gains and Losses - The company reported a gain on the sale of properties of $0 in Q1 2025, compared to a gain of $(31,378) in Q1 2024[18]

Core Insights - reAlpha Tech Corp. reported a significant revenue increase of 4,432% to $925,635 in Q1 2025 compared to $20,426 in Q1 2024, indicating strong growth momentum [7] - The company is focused on integrating AI technologies with strategic acquisitions in the real estate sector to enhance revenue growth and operational efficiency [3][5] - Despite a net loss of approximately $2.85 million in Q1 2025, the net profit margin improved from approximately (6,947)% to (309)% year-over-year, reflecting better operational efficiency [7] Financial Highlights - Revenue for Q1 2025 was $925,635, a substantial increase from $20,426 in Q1 2024 [7] - Cash reserves decreased to approximately $1.2 million in Q1 2025 from $3.1 million in Q1 2024 [7] - Adjusted EBITDA was approximately $(1.96) million in Q1 2025, compared to approximately $(1.34) million in Q1 2024 [7] Business Developments - The company launched several tools to improve operational efficiency, including a lead tracking system and a new public-facing website for its subsidiary, Be My Neighbor [8] - reAlpha acquired GTG Financial, a mortgage brokerage, which has originated 36 mortgages totaling approximately $22.4 million since the acquisition [8] - A $5 million media-for-equity investment was secured from Mercurius Media Capital LP, enhancing marketing exposure while conserving cash [8] Operational Insights - The company is developing an end-to-end platform aimed at streamlining the homebuying process, which includes real estate brokerage, mortgage, and title services [5] - The strategic acquisition-driven growth model is designed to create a vertically integrated ecosystem for affordable homeownership [5]

Financial Performance - Revenues for Q1 2025 reached $925,635, a significant increase from $20,426 in Q1 2024, representing a growth of 4,433%[14] - Gross profit for Q1 2025 was $518,667, compared to $2,177 in Q1 2024, indicating a substantial increase[14] - The net loss for Q1 2025 was $2,850,351, compared to a net loss of $1,419,045 in Q1 2024, representing an increase in losses of 101%[14] - Operating expenses for Q1 2025 totaled $2,940,925, up from $1,308,835 in Q1 2024, indicating a rise of 125%[14] - The company reported a net loss of $2,850,351 for the three months ended March 31, 2025, compared to a net loss of $1,419,045 for the same period in 2024, representing an increase in losses of approximately 101%[18] - Adjusted EBITDA for the three months ended March 31, 2025, was $(1,960,997), compared to $(1,337,147) for the same period in 2024[201] Assets and Liabilities - Total current assets increased to $6,895,822 as of March 31, 2025, up from $4,043,098 as of December 31, 2024, reflecting a growth of 70%[11] - Total liabilities rose to $19,503,879 as of March 31, 2025, compared to $10,426,986 as of December 31, 2024, marking an increase of 87%[12] - Cash decreased to $1,204,400 as of March 31, 2025, down from $3,123,530 as of December 31, 2024, a decline of 61%[11] - The total stockholders' equity deficit was $(965,220) as of March 31, 2025, compared to $1,567,472 as of December 31, 2024, indicating a deterioration in equity position[12] Cash Flow and Financing - Cash used in operating activities was $2,267,103 for the three months ended March 31, 2025, compared to $1,527,238 in the prior year, indicating a 48% increase in cash outflow[18] - The company had a net cash decrease of $1,919,544, with cash at the end of the period amounting to $1,204,400, down from $4,838,146 at the end of the same period in 2024[18] - The company anticipates continuing operating losses for the next 12 months due to growth initiatives, while also planning to raise capital through additional debt and/or equity financings[47] - The company plans to utilize equity or debt offerings to raise funds as needed, depending on market conditions and investor demand[202] - The company may require additional financing to support operations, which could lead to unfavorable terms and dilution of stockholder ownership[206] Acquisitions and Business Strategy - The company acquired Naamche, Inc. and AiChat Pte Ltd. to enhance its AI capabilities, which is expected to strengthen its software development and engagement tools[22] - The company is transitioning to a technology-driven model with the reAlpha platform aimed at simplifying the homebuying process and generating revenue through various real estate services[21] - The company plans to continue acquiring complementary companies to enhance its service offerings and revenue potential[158] - The company has acquired several firms, including Be My Neighbor and GTG Financial, increasing its mortgage brokerage operations to 30 U.S. states[159] Stock and Equity - The Company issued 264,063 shares of Series A Preferred Stock with a stated value of $20 per share in connection with the GTG Financial acquisition[94] - The total number of shares of common stock issued and outstanding increased to 46,230,934 as of March 31, 2025, from 45,864,503 as of December 31, 2024[102] - The Company granted 550,000 Restricted Stock Units (RSUs) during the quarter ended March 31, 2025, with a weighted-average grant-date fair value of $1.84[106][107] - The Company issued 160,879 shares of common stock under its ATM program at a weighted-average price of $1.44 per share, resulting in total gross proceeds of approximately $231,235[118] Future Outlook - The company anticipates continued operating losses in the near future but expects to generate more significant revenues through commercialization of products and acquisition of complementary businesses[204] - The company estimates that its cash and cash equivalents will be sufficient to fund operating expenses and capital expenditures into the third quarter of 2025, assuming no additional capital is raised[204] - The reAlpha platform aims to expand nationwide by the end of 2026, currently available in 20 counties in Florida[157] Regulatory and Compliance - The Company is subject to SEC's "baby shelf rules," which may limit future issuances of shares under its Form S-3[120] - The Company maintains indemnification agreements with directors and officers, which may require indemnification against liabilities arising from their service[122]

DUBLIN, Ohio, April 28, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) ("reAlpha" or the "Company"), a real estate technology company developing and commercializing artificial intelligence ("AI") technologies, is pleased to announce the appointment of Cristol Rippe as Chief Marketing Officer, effective immediately. In this role, Ms. Rippe will oversee and expand all aspects of brand, marketing, and communications of the Company, reporting directly to the Company's President and Chief Operating O ...

DUBLIN, Ohio, April 09, 2025 (GLOBE NEWSWIRE) -- reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), a real estate technology company developing and commercializing artificial intelligence (“AI”) technologies, today announced the closing of its previously announced exercise of certain outstanding warrants to purchase up to an aggregate of 4,218,751 shares of common stock of the Company originally issued in November 2023, having an exercise price of $1.44 per share, at a reduced exercise price of ...