Revenue Performance - Revenue for Q3 2024 was approximately $339,000, representing a 440% increase from Q2 2024 and a 475% increase year-over-year[1][2] - Revenue exceeded the high end of the guidance by 274%[2] - Revenues for the three months ended September 30, 2024, were $339,227, compared to $59,022 for the same period in 2023, representing a growth of 474%[18] - For Q4 2024, revenue is expected to grow by 130% to 190% from Q3 2024[3] Financial Position - Cash and cash equivalents were approximately $7.07 million as of September 30, 2024[2] - Total assets as of September 30, 2024, were approximately $34.19 million, up from $27.42 million as of December 31, 2023[17] - Cash at the end of the period on September 30, 2024, was $7,076,877, compared to $669,880 at the end of the same period in 2023[21] - Proceeds from the issuance of debt for the nine months ended September 30, 2024, amounted to $5,000,000[21] Loss and Expenses - Net loss for Q3 2024 was approximately $(2.10) million, with adjusted EBITDA at approximately $(1.36) million, a decrease of 19% from Q2 2024 and an 86% decrease year-over-year[2] - Operating loss for the three months ended September 30, 2024, was $(1,689,620), compared to $(728,839) for the same period in 2023, reflecting a deterioration of 132%[18] - Net loss for the nine months ended September 30, 2024, was $(4,995,931), compared to a net income of $3,011,936 for the same period in 2023[21] - Total cash used in operating activities for the nine months ended September 30, 2024, was $(3,806,090), compared to $(2,825,315) for the same period in 2023[21] - The company reported a significant increase in marketing and advertising expenses, totaling $451,103 for the nine months ended September 30, 2024, compared to $177,645 for the same period in 2023[18] Adjusted EBITDA and Net Income - Adjusted EBITDA is used by the company to evaluate ongoing operations, although it is a non-GAAP financial measure[23] - Adjusted EBITDA for the three months ended September 2024 was $(1,253,907), an increase in loss from $(731,700) in the prior year[25] - Net income per share, diluted, for the nine months ended September 2024 was $(0.09), compared to $(0.06) in the same period of 2023[25] - The company reported a net income used to compute net income per share, diluted, of $(1,447,420) for the three months ended September 2024[26] Acquisitions and Investments - The acquisition of Be My Neighbor, a mortgage brokerage, was completed, expanding reAlpha's real estate services[5] - The acquisition of AiChat expanded reAlpha's global presence to 10 countries and enhanced user experience on the platform[8] - reAlpha AI Labs was established to invest in AI startups, with the first investment made in Xmore AI[7] - The company issued shares to settle notes payable in the myAlphie sale, totaling 150,000 shares[22] Other Financial Metrics - Share-based compensation for the three months ended September 2024 amounted to $113,037, compared to $356 in the same period of 2023[26] - Acquisition-related expenses for the three months ended September 2024 totaled $178,678, compared to $103,519 in the same period of 2023[26] - GEM commitment fee incurred was $125,000 for the three months ended September 2024[26] - Gain on previously held equity for the three months ended September 2024 was $108,382, compared to a loss of $(20,663) in the same period of 2023[26] - Depreciation and amortization for the three months ended September 2024 was $163,439, compared to $14,628 in the same period of 2023[25] Operational Performance - The company aims to provide a clearer view of ongoing operational performance by excluding certain non-cash expenses and non-operational items from GAAP financial measures[27][28]
reAlpha Tech (AIRE) - 2025 Q2 - Quarterly Results