reAlpha Tech (AIRE) - 2024 Q3 - Quarterly Results

Overview and Business Highlights Management Commentary and Strategic Focus 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] - 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] Financial Performance Q1 2024 Financial Results Summary 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] - The increase in net loss was mainly due to higher wages, professional and legal fees, and amortization of a commitment fee[4] Cash Position | Date | Cash and Cash Equivalents | | :--- | :--- | | March 31, 2024 | $4.84 million | | December 31, 2023 | $6.46 million | Financial Statements Q1 2024 consolidated financial statements show reduced assets, liabilities, revenue, and a wider net loss, reflecting business transition Condensed Consolidated Balance Sheet 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 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] Condensed Consolidated Statements of Cash Flows 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 Adjusted EBITDA Reconciliation 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] 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) |