Group 1 - ReAlpha Tech completed its acquisition of Naamche, Inc. and Naamche, Inc. Pvt. Ltd., enhancing its artificial intelligence capabilities with 43 experienced AI engineers and machine learning expertise [1] - The acquisition was financed through a combination of cash and equity, and the two companies had previously collaborated on the development of the Claire AI platform [1] - CEO Giri Devanur emphasized that this transaction is a significant step in their strategy to create and deliver AI-powered real estate solutions, integrating Naamche's team into their workforce [1] Group 2 - Following the acquisition news, AIRE stock experienced a surge, with over 4 million shares traded, significantly exceeding the average daily volume of approximately 2.8 million shares [2] - AIRE stock rose by 50.6% on Tuesday morning, recovering from a year-to-date decline of 55.9% as of the previous market close [2]

ReAlpha Tech (NASDAQ:AIRE) stock continues to rally on Thursday following the launch of its first artificial intelligence (AI) real estate Smart Buyer’s Agent.Claire is the name of this new service and it comes with zero commission. The AI service from the company guides buyers through the home buying process without the need for a real estate agent.Claire is currently limited in its scope with it only being available to buyers in Palm Beach, Miami-Dade and Broward Counties in Florida. The company hopes to ...

[Overview and Business Highlights](index=1&type=section&id=Overview%20and%20Business%20Highlights) [Management Commentary and Strategic Focus](index=1&type=section&id=Management%20Commentary%20and%20Strategic%20Focus) reAlpha launched its AI-powered platform GENA in Q1 2024, focusing on commercializing AI technologies and pursuing proptech growth - The company announced the commercial launch of its AI-powered platform, GENA, during the first quarter of 2024[2](index=2&type=chunk) - reAlpha's strategy is focused on commercializing its AI technologies and pursuing growth in the proptech space, which it views as ripe for innovation[2](index=2&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) [Q1 2024 Financial Results Summary](index=1&type=section&id=Financial%20Results) Q1 2024 revenue dropped to **$20,426** due to property disposals, widening net loss to **$1.42 million** from higher expenses Key Financial Metrics (Q1 2024 vs. Q1 2023) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenues | $20,426 | $111,451 | | Net Loss | $(1,419,045) | $(864,913) | | Adjusted EBITDA | $(1,336,790) | $(775,098) | - The decrease in revenue was attributed to lower rental income following the disposal of rental properties and lower platform services revenue from the sale of myAlphie, reflecting a strategic shift to focus on AI technology commercialization[3](index=3&type=chunk) - The increase in net loss was mainly due to higher wages, professional and legal fees, and amortization of a commitment fee[4](index=4&type=chunk) Cash Position | Date | Cash and Cash Equivalents | | :--- | :--- | | March 31, 2024 | $4.84 million | | December 31, 2023 | $6.46 million | [Financial Statements](index=3&type=section&id=Financial%20Statements) Q1 2024 consolidated financial statements show reduced assets, liabilities, revenue, and a wider net loss, reflecting business transition [Condensed Consolidated Balance Sheet](index=3&type=section&id=REALPHA%20TECH%20CORP.%20Condensed%20Consolidated%20Balance%20Sheet) As of March 31, 2024, total assets decreased to **$25.37 million** and liabilities to **$2.08 million**, primarily due to lower cash Balance Sheet Summary (as of March 31, 2024 vs. December 31, 2023) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$25,372,103** | **$27,424,869** | | Cash | $4,838,146 | $6,456,370 | | Goodwill | $17,337,739 | $17,337,739 | | **Total Liabilities** | **$2,082,363** | **$2,716,084** | | **Total Stockholders' Equity** | **$23,289,740** | **$24,708,785** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=REALPHA%20TECH%20CORP.%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 revenues sharply fell to **$20,426**, operating expenses rose to **$1.31 million**, resulting in a **$1.42 million** net loss Statement of Operations Summary (For the Three Months Ended March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $20,426 | $111,451 | | Gross Profit | $2,177 | $40,676 | | Total Operating Expenses | $1,309,675 | $834,568 | | Operating Loss | $(1,307,498) | $(793,892) | | Net Loss | $(1,419,045) | $(864,913) | | Net Loss Per Share (basic & diluted) | $(0.03) | $(0.02) | - The increase in operating expenses was mainly driven by a rise in "Wages, benefits and payroll taxes" to **$418,902** from **$204,196** and "Professional & legal fees" to **$468,725** from **$325,161**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=REALPHA%20TECH%20CORP.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 net cash used in operations was **$1.53 million**, decreasing total cash by **$1.62 million** to **$4.84 million** Cash Flow Summary (For the Three Months Ended March 31) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,527,238) | $(1,585,918) | | Net cash used in investing activities | $(19,700) | $(138,973) | | Net cash (used in) provided by financing activities | $(71,286) | $282,577 | | **Net decrease in cash** | **$(1,618,224)** | **$(1,442,314)** | | **Cash - End of Period** | **$4,838,146** | **$1,547,468** | [Non-GAAP Financial Measures](index=1&type=section&id=Non-GAAP%20Financial%20Measures) [Adjusted EBITDA Reconciliation](index=1&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, a non-GAAP measure, showed a Q1 2024 loss of **$1,336,790**, an increase from **$775,098** in Q1 2023 - The company uses Adjusted EBITDA to evaluate ongoing operations and for internal planning, believing it provides consistency and comparability with past financial performance[6](index=6&type=chunk) Reconciliation of Net Loss to Adjusted EBITDA | Line Item | For the three Months Ended March 31, 2024 | For the three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net loss | $(1,419,045) | $(864,913) | | Depreciation and amortization | $71,453 | $48,003 | | Interest expense | $10,802 | $41,812 | | **Adjusted EBITDA** | **$(1,336,790)** | **$(775,098)** |

PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2024 financials show decreased revenue, increased net loss, reduced assets and liabilities, reflecting a strategic shift to AI technology [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$25.4 million** by March 31, 2024, primarily from reduced cash, while liabilities and stockholders' equity also declined Condensed Consolidated Balance Sheet Summary (in USD) | Balance Sheet Item | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $5,739,903 | $7,400,294 | | **Total Assets** | $25,372,103 | $27,424,869 | | **Total Current Liabilities** | $1,082,363 | $1,469,084 | | **Total Liabilities** | $2,082,363 | $2,716,084 | | **Total Stockholders' Equity** | $23,289,740 | $24,708,785 | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 saw revenue drop to **$20,426**, operating expenses rise to **$1.31 million**, and net loss widen to **$1.42 million** or **($0.03) per share** Statement of Operations Summary (in USD) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenues** | $20,426 | $111,451 | | **Gross Profit** | $2,177 | $40,676 | | **Total Operating Expenses** | $1,309,675 | $834,568 | | **Operating Loss** | ($1,307,498) | ($793,892) | | **Net Loss** | ($1,419,045) | ($864,913) | | **Net Loss Per Share (basic & diluted)** | ($0.03) | ($0.02) | [Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Total stockholders' equity decreased to **$23.29 million** by March 31, 2024, primarily due to the **$1.42 million net loss** incurred during the quarter - The **net loss of $1,418,980** was the primary driver for the decrease in **stockholders' equity** during the first quarter of 2024[14](index=14&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2024 saw **$1.53 million** net cash used in operations, minimal investing outflow, and **$71,286** from financing, resulting in a **$1.62 million** cash decrease Cash Flow Summary (in USD) | Cash Flow Activity | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | ($1,527,238) | ($1,585,918) | | **Net cash provided by (used in) investing activities** | ($19,700) | ($138,973) | | **Net cash provided by (used in) financing activities** | ($71,286) | $282,577 | | **Net decrease in cash** | ($1,618,224) | ($1,442,314) | | **Cash - End of Period** | $4,838,146 | $1,547,468 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a strategic shift to AI, confirm sufficient cash for going concern, outline two segments (rental paused), and discuss unlikely GEM Warrants exercise - The company has suspended its real estate acquisition operations due to macroeconomic challenges like higher interest rates and has shifted its focus to advancing and refining its AI technologies for commercial applications[19](index=19&type=chunk) - Despite ongoing **operating losses**, management believes the company has sufficient **liquid capital** (**$4.8 million** in **cash** as of March 31, 2024) to fund operations for the next 12 months, supporting its ability to continue as a going concern[51](index=51&type=chunk)[52](index=52&type=chunk) - The company reports two segments: Rental business and Platform service business. The Rental business segment is expected to be paused until the first quarter of 2025 due to market conditions[67](index=67&type=chunk) - The company has **1,700,884 GEM Warrants** outstanding with an **exercise price** of **$371.90 per share**, making their exercise unlikely given the current stock price[74](index=74&type=chunk)[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic pivot to AI, Q1 2024 revenue decline and wider net loss, and confirms sufficient liquidity for the next 12 months [Business Overview](index=24&type=section&id=Business%20Overview) The company halted real estate acquisitions due to macroeconomic conditions, now focusing on commercializing AI technologies, with the rental business segment paused - Due to escalating interest rates, inflation, and high property prices, the company has halted its real estate acquisition operations[84](index=84&type=chunk) - The current focus is on enhancing and refining AI technologies for commercial use to generate technology-derived **revenue**, including the recent launch of GENA, an AI-powered tool for creating property listing descriptions[84](index=84&type=chunk)[97](index=97&type=chunk) - The company operates two reportable segments: platform services (offering AI-based products) and rental business (currently on hold)[86](index=86&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q1 2024 revenues fell to **$20,426** due to property disposals, operating expenses increased, leading to a **$1.42 million net loss**, with varied segment performance Q1 2024 vs. Q1 2023 Financial Comparison (in USD) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Revenues** | $20,426 | $111,451 | | **Gross Profit** | $2,177 | $40,676 | | **Operating Loss** | ($1,307,498) | ($793,892) | | **Net Loss** | ($1,419,045) | ($864,913) | - The decrease in **revenues** is mainly attributed to lower rental income from property disposals and reduced platform services **revenue** following the sale of myAlphie[111](index=111&type=chunk) - The increase in **net loss** is primarily due to higher wages, professional and legal fees, and amortization of a commitment fee related to an equity facility[120](index=120&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company held **$4.8 million** in cash, deemed sufficient for 12 months, supported by prior financing and an undrawn **$100 million** equity facility - The company held **cash** and **cash** equivalents of approximately **$4.8 million** as of March 31, 2024, and believes it has sufficient working capital for the next 12 months[136](index=136&type=chunk) - In November 2023, a best-efforts **financing** raised aggregate gross and net proceeds of **$8.0 million** and **$7.6 million**, respectively[137](index=137&type=chunk) - The company has access to a **$100 million** share purchase agreement with GEM but does not intend to draw down on it at this time[138](index=138&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing quantitative and qualitative market risk disclosures - The company is not required to provide quantitative and qualitative disclosures about market risk because it qualifies as a smaller reporting company[150](index=150&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2024, disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2024, the company's **disclosure controls and procedures** were effective at the reasonable assurance level[152](index=152&type=chunk) - No changes in **internal control over financial reporting** occurred during the quarter ended March 31, 2024, that have materially affected, or are reasonably likely to materially affect, internal controls[153](index=153&type=chunk) PART II [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) This section reports no legal proceedings, though Note 10 details a malpractice lawsuit and a legal proceeding in India involving the CEO - The report states there are no legal proceedings to disclose under this item[157](index=157&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the prior Transition Report on Form 10-KT - No material changes in risk factors from those disclosed in the prior Transition Report on Form 10-KT[158](index=158&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales or changes in use of proceeds occurred that were not previously reported in a Form 8-K - There are no transactions that have not been previously included in a Current Report on Form 8-K[159](index=159&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, modified, or terminated Rule 10b-5 or non-Rule 10b-5 trading arrangements during Q1 2024 - No directors or officers adopted, modified, or terminated a Rule 10b-5 trading arrangement during the quarter[162](index=162&type=chunk) [Item 6. Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including officer certifications and Inline XBRL documents

ReAlpha Tech (NASDAQ:AIRE) stock is falling on Wednesday after the real estate technology company released its latest earnings report.First off, investors will note that this report covers a period starting on May 1, 2023 and lasting through Dec. 31, 2023. This is due to the company undergoing a transition to move the end of its fiscal year to Dec. 31 instead of April 30.Results for the period were mixed with ReAlpha Tech bringing in a net loss of $1,251,259 on revenue of $121,690. The same period of the ye ...

DUBLIN, Ohio--(BUSINESS WIRE)--reAlpha Tech Corp. (“reAlpha,” “Company,” “us,” “we” or “our”) (Nasdaq: AIRE), a real estate technology company focused on developing, utilizing and commercializing real estate-focused artificial intelligence (“AI”) technologies, today provides a business update and reports financial results for the eight month period ended December 31, 2023. In accordance with a change of its fiscal year end from April 30 to December 31, effective as of December 31, 2023, the Company is repor ...

DUBLIN, Ohio--(BUSINESS WIRE)--reAlpha Tech Corp. (“reAlpha” or the “Company”) (Nasdaq: AIRE), a real estate technology company focused on developing, utilizing and commercializing real estate-focused artificial intelligence (“AI”) to drive efficiency, sustainability and growth, today announced the following leadership changes: Mike Logozzo has been appointed as the Company’s President and Chief Operating Officer; Jorge Aldecoa has been appointed to the new role of Chief Product Officer; and Michael Frenz h ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission File Number 001-41839 REALPHA TECH CORP. (Exact name of registrant as specified in its charter) (State or other ...