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reAlpha Tech Corp. Announces Financial Results for the Year Ended December 31, 2024

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reAlpha Tech Corp. (AIRE) reported its financial results for FY2024, showing a 270% revenue increase to $948,420, up from $256,436 in 2023. However, the company recorded a significant net loss of $26.02 million, largely due to a $17.34 million goodwill impairment from Rhove.

Key 2024 developments include launching a commission-free homebuying platform powered by AI agent Claire, acquiring controlling interest in Hyperfast Title (operating in 3 states), and obtaining an 85% stake in AiChat. The company also introduced the reAlpha Super App and acquired Be My Neighbor, expanding mortgage brokerage services to 28 U.S. states.

The company's cash position decreased to $3.12 million from $6.46 million in 2023. Due to challenging macroeconomic conditions, reAlpha halted its short-term rental operations and plans to completely discontinue this business segment in Q1 2025. Adjusted EBITDA improved to -$5.57 million from -$7.39 million in 2023.

reAlpha Tech Corp. (AIRE) ha riportato i suoi risultati finanziari per l'anno fiscale 2024, mostrando un aumento del fatturato del 270% a $948.420, rispetto ai $256.436 del 2023. Tuttavia, l'azienda ha registrato una significativa perdita netta di $26,02 milioni, principalmente a causa di un impairment di goodwill di $17,34 milioni da Rhove.

Tra gli sviluppi chiave del 2024 ci sono il lancio di una piattaforma per l'acquisto di case senza commissioni, alimentata dall'agente AI Claire, l'acquisizione di una partecipazione di controllo in Hyperfast Title (operante in 3 stati) e l'ottenimento di una quota dell'85% in AiChat. L'azienda ha anche introdotto la reAlpha Super App e acquisito Be My Neighbor, espandendo i servizi di intermediazione ipotecaria a 28 stati degli Stati Uniti.

La posizione di cassa dell'azienda è diminuita a $3,12 milioni rispetto ai $6,46 milioni del 2023. A causa di condizioni macroeconomiche difficili, reAlpha ha sospeso le sue operazioni di affitti a breve termine e prevede di interrompere completamente questo segmento di business nel primo trimestre del 2025. L'EBITDA rettificato è migliorato a -$5,57 milioni rispetto a -$7,39 milioni del 2023.

reAlpha Tech Corp. (AIRE) reportó sus resultados financieros para el año fiscal 2024, mostrando un aumento del 270% en los ingresos a $948,420, desde $256,436 en 2023. Sin embargo, la compañía registró una pérdida neta significativa de $26.02 millones, principalmente debido a una reducción de $17.34 millones en el goodwill de Rhove.

Los desarrollos clave de 2024 incluyen el lanzamiento de una plataforma de compra de viviendas sin comisiones, impulsada por el agente de IA Claire, la adquisición de una participación de control en Hyperfast Title (operando en 3 estados) y la obtención de una participación del 85% en AiChat. La empresa también presentó la reAlpha Super App y adquirió Be My Neighbor, expandiendo los servicios de corretaje hipotecario a 28 estados de EE. UU.

La posición de efectivo de la empresa disminuyó a $3.12 millones desde $6.46 millones en 2023. Debido a las difíciles condiciones macroeconómicas, reAlpha detuvo sus operaciones de alquiler a corto plazo y planea descontinuar completamente este segmento comercial en el primer trimestre de 2025. El EBITDA ajustado mejoró a -$5.57 millones desde -$7.39 millones en 2023.

reAlpha Tech Corp. (AIRE)는 2024 회계연도 재무 결과를 보고하며 매출이 270% 증가하여 $948,420에 달하며, 이는 2023년의 $256,436에서 증가한 수치입니다. 그러나 회사는 Rhove의 $17.34 백만의 goodwill 손상으로 인해 $26.02 백만의 상당한 순손실을 기록했습니다.

2024년의 주요 개발 사항으로는 AI 에이전트 Claire가 지원하는 수수료 없는 주택 구매 플랫폼 출시, 3개 주에서 운영되는 Hyperfast Title의 지배 지분 인수, AiChat의 85% 지분 확보가 포함됩니다. 또한 회사는 reAlpha Super App을 도입하고 Be My Neighbor를 인수하여 28개 미국 주로 모기지 중개 서비스를 확장했습니다.

회사의 현금 보유액은 2023년의 $6.46 백만에서 $3.12 백만으로 감소했습니다. 어려운 거시 경제적 조건으로 인해 reAlpha는 단기 임대 운영을 중단했으며 2025년 1분기에는 이 사업 부문을 완전히 중단할 계획입니다. 조정된 EBITDA는 2023년의 -$7.39 백만에서 -$5.57 백만으로 개선되었습니다.

reAlpha Tech Corp. (AIRE) a publié ses résultats financiers pour l'exercice 2024, montrant une augmentation de 270% des revenus à 948 420 $, contre 256 436 $ en 2023. Cependant, la société a enregistré une perte nette significative de 26,02 millions de dollars, principalement en raison d'une dépréciation de goodwill de 17,34 millions de dollars de Rhove.

Les développements clés de 2024 incluent le lancement d'une plateforme d'achat de maisons sans commission, alimentée par l'agent IA Claire, l'acquisition d'une participation de contrôle dans Hyperfast Title (opérant dans 3 États) et l'obtention d'une participation de 85% dans AiChat. L'entreprise a également introduit l'application reAlpha Super et acquis Be My Neighbor, élargissant les services de courtage hypothécaire à 28 États américains.

La position de trésorerie de l'entreprise a diminué à 3,12 millions de dollars, contre 6,46 millions de dollars en 2023. En raison de conditions macroéconomiques difficiles, reAlpha a suspendu ses opérations de location à court terme et prévoit de cesser complètement ce segment d'activité au premier trimestre 2025. L'EBITDA ajusté s'est amélioré à -5,57 millions de dollars, contre -7,39 millions de dollars en 2023.

reAlpha Tech Corp. (AIRE) hat seine finanziellen Ergebnisse für das Geschäftsjahr 2024 veröffentlicht und zeigt einen Umsatzanstieg von 270% auf $948.420, verglichen mit $256.436 im Jahr 2023. Das Unternehmen verzeichnete jedoch einen erheblichen Nettoverlust von $26,02 Millionen, hauptsächlich aufgrund einer Goodwill-Abwertung von $17,34 Millionen von Rhove.

Zu den wichtigsten Entwicklungen im Jahr 2024 gehören die Einführung einer provisionsfreien Immobilienkaufplattform, die von der KI-Agentin Claire betrieben wird, die Übernahme einer Mehrheitsbeteiligung an Hyperfast Title (in 3 Bundesstaaten tätig) und der Erwerb eines 85%-Anteils an AiChat. Das Unternehmen hat auch die reAlpha Super App eingeführt und Be My Neighbor erworben, wodurch die Hypothekenvermittlungsdienste auf 28 US-Bundesstaaten ausgeweitet wurden.

Die Liquiditätsposition des Unternehmens sank auf $3,12 Millionen von $6,46 Millionen im Jahr 2023. Aufgrund schwieriger makroökonomischer Bedingungen hat reAlpha seine kurzfristigen Mietaktivitäten eingestellt und plant, dieses Geschäftsfeld im ersten Quartal 2025 vollständig einzustellen. Das bereinigte EBITDA verbesserte sich auf -$5,57 Millionen von -$7,39 Millionen im Jahr 2023.

Positive
  • 270% revenue growth to $948,420
  • Improved Adjusted EBITDA to -$5.57M from -$7.39M
  • Strategic expansion through three key acquisitions
  • Launched AI-powered commission-free homebuying platform
  • Expanded mortgage brokerage services to 28 states
Negative
  • Net loss increased to $26.02M from $2.46M in 2023
  • $17.34M goodwill impairment from Rhove
  • Cash position declined by 52% to $3.12M
  • Discontinuation of entire short-term rental business segment
  • Loss from continuing operations increased to $7.68M from $2.14M

Insights

reAlpha's financial results reveal a concerning financial picture despite operational progress. The company reported $948,420 in revenue for 2024, a 270% increase year-over-year, yet posted a substantial net loss of $26.02 million compared to $2.46 million in 2023.

The dramatic loss expansion stems primarily from a $17.34 million goodwill impairment related to Rhove, acquired for their now-discontinued rental business. This impairment signals a significant miscalculation in acquisition value. Even excluding discontinued operations, losses from continuing operations more than tripled to $7.68 million.

Cash reserves declined by 52% to $3.12 million, indicating a worrying burn rate that could necessitate additional funding within 1-2 years at current levels. While Adjusted EBITDA showed modest improvement at $(5.57) million versus $(7.39) million in 2023, the company remains far from profitability.

The company's strategic acquisitions (Hyperfast Title, AiChat, Be My Neighbor) and product launches (reAlpha platform, Super App) demonstrate a pivot toward AI-driven real estate technology services across the transaction chain. However, with absolute revenue still under $1 million annually against a $51.8 million market cap, reAlpha faces significant challenges in justifying its valuation and achieving sustainable growth.

DUBLIN, Ohio, April 02, 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 provides a business update and reports financial results for the fiscal year ended December 31, 2024.

“We have made great strides in 2024 in advancing reAlpha’s goal to become a leader in the real estate technology industry through strategic innovation and impactful acquisitions,” commented Piyush Phadke, Chief Financial Officer of reAlpha. “Our continued investment in AI-driven technologies and strategic acquisitions has translated into meaningful revenue growth, and we believe we are well-positioned to drive further expansion of our business and deliver value to our stockholders.”

Business Highlights

Strategic and operational highlights during the period ended December 31, 2024, include:

  • Launched the reAlpha platform, an end-to-end, commission-free homebuying platform, in April 2024, which was designed to reshape the homebuying experience by eliminating traditional commission fees. The reAlpha platform is powered by Claire, reAlpha’s AI-real estate agent, which is available 24/7.
  • Acquired a controlling interest in Hyperfast Title, LLC, in July 2024, which enabled us to offer title services in 3 U.S. states.
  • Acquired an 85% stake in AiChat Pte. Ltd. (“AiChat”) in July 2024, which enhanced reAlpha’s AI capabilities in conversational customer engagement and expanded its presence in the Asia-Pacific region.
  • Introduced the reAlpha Super App in August 2024, which provided homebuyers with the ability to use the reAlpha platform and its AI-driven homebuying services directly in their mobile devices.
  • Completed the acquisition of Debt Does Deals, LLC (“Be My Neighbor”), which allowed us to offer mortgage brokerage services in 27 U.S. states. Later in the year, Be My Neighbor became licensed in an additional state, for a total of 28 U.S. states.

Financial Results and Operational Update

In the beginning of 2024, reAlpha halted its short-term rental operations under its rental business segment due to macroeconomic conditions, such as high interest rates and inflationary pressures. As a result, in the twelve months ended December 31, 2024, reAlpha recognized a goodwill impairment of Roost Enterprises, Inc. (“Rhove”) of $17,337,739, which reAlpha acquired to operate under its rental business segment. As such, reAlpha’s financial statements and related financial notes thereto for the twelve months ended December 31, 2024, reflect the Rhove goodwill impairment as discontinued operations. Because macroeconomic conditions persisted during 2024, and in connection with Rhove’s goodwill impairment, the board of directors of reAlpha approved to discontinue its short-term rental business operations entirely in the first quarter of 2025.

Revenue for the twelve months ended December 31, 2024 was $948,420, an increase of 270%, compared to $256,436 for the twelve months ended December 31, 2023. reAlpha’s revenues consist of technology services income that it receives from its technologies and services provided by its subsidiaries. This increase in revenues is mainly attributed to the revenue derived from strategic acquisitions that reAlpha completed during 2024, such as AiChat and Be My Neighbor.

Cash and cash equivalents were $3,123,530 as of December 31, 2024 and $ 6,456,370 as of December 31, 2023.

Net loss was approximately $26.02 million for the twelve months ended December 31, 2024, compared to a net loss of approximately $2.46 million for the twelve months ended December 31, 2023. This increase in net loss is predominantly due to the goodwill impairment of Rhove during the twelve months ended December 31, 2024, and the one-time gain of $5,502,774 from the sale of myAlphie, a technology platform reAlpha previously developed and sold, that was recognized in the comparable 2023 period, which was not present in 2024. Loss from discontinued operations was approximately $18.3 million for the twelve months ended December 31, 2024, compared to $0.31 million for the comparable 2023 period, which is mainly due to Rhove’s goodwill impairment and intangibles being presented as discontinued operations. Net loss from continuing operations was $7.68 million for the twelve months ended December 31, 2024, compared to $2.14 million for the comparable 2023 period. The increase in net loss from continuing operations was primarily due to the one-time gain from the sale of myAlphie that was not present in 2024.

Adjusted EBITDA was $(5,572,214) for the twelve months ended December 31, 2024, compared to $(7,387,223) for the twelve months ended December 31, 2023.

About reAlpha Tech Corp.

reAlpha Tech Corp. (Nasdaq: AIRE) is a real estate technology company developing an end-to-end commission-free homebuying platform. Utilizing the power of AI and an acquisition-led growth strategy, reAlpha’s goal is to offer a more affordable, streamlined experience for those on the journey to homeownership. For more information, visit www.realpha.com.

Investor Relations Contact:

Adele Carey, VP of Investor Relations
investorrelations@realpha.com

Media Contact:

Fatema Bhabrawala, Director of Public Relations
fbhabrawala@allianceadvisors.com

Forward-Looking Statements

The information in this press release includes “forward-looking statements.” Any statements other than statements of historical fact contained herein, including statements as to planned acquisitions, business strategy and plans, objectives of management for future operations of reAlpha, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha’s ability to pay contractual obligations; reAlpha’s liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha’s limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha’s technology and products will be accepted and adopted by its customers and intended users; reAlpha’s ability to commercialize its developing AI-based technologies; reAlpha’s ability to successfully enter new geographic markets; reAlpha’s ability to integrate the business of its acquired companies into its existing business and the anticipated demand for such acquired companies’ services; reAlpha’s ability to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees of reAlpha and of its subsidiaries; the outcome of certain outstanding legal proceedings against reAlpha; reAlpha’s ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or its subsidiaries, operate in, or intend to operate in; reAlpha’s ability to successfully identify and acquire companies that are complementary to its business model; reAlpha’s ability to commercialize its developing AI-based technologies; the inability to maintain and strengthen reAlpha’s brand and reputation; any accidents or incidents involving cybersecurity breaches and incidents; the inability to accurately forecast demand for short-term rentals and AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha’s growth; the inability of reAlpha’s customers to pay for reAlpha’s services; the inability of reAlpha to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against reAlpha; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha’s U.S. Securities and Exchange Commission (“SEC”) filings. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha’s future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha’s filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

  
reAlpha Tech Corp. and Subsidiaries 
Consolidated Balance Sheet 
December 31, 2024 and December 31, 2023 
  
  December 31,
2024
  December 31,
2023
 
ASSETS      
        
Current Assets      
Cash $3,123,530  $6,456,370 
Accounts receivable  182,425   30,630 
Receivable from related parties  12,873    
Prepaid expenses  180,158   242,795 
Current assets of Discontinued operations  56,931   88,036 
Other current assets  487,181   582,463 
Total current assets $4,043,098  $7,400,294 
         
Property and Equipment, at cost        
Property and equipment, net $102,638  $328,539 
         
Other Assets        
Investments  215,000   115,000 
Other long term assets  31,250   406,250 
Intangible assets, net  3,285,406    
Long term assets of discontinued operations     18,335,701 
Goodwill  4,211,166    
Capitalized software development – work in progress  105,900   839,085 
         
TOTAL ASSETS $11,994,458  $27,424,869 
         
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)        
Current Liabilities        
Accounts payable $655,765  $431,700 
Related party payables  9,287    
Short term loans – related parties – current portion  115,086    
Short term loans – unrelated parties – current portion  666,053   190,095 
Accrued expenses  1,164,813   799,624 
Current liabilities of Discontinued operations     47,665 
Deferred liabilities, current portion  1,534,433   593,750 
Total current liabilities $4,145,437  $2,062,834 
         
Long-Term Liabilities        
Deferred liabilities, net of current portion     406,250 
Mortgage and other long term loans – related parties – net of current portion  45,052    
Mortgage and other long term loans – unrelated parties – net of current portion  241,121   247,000 
Note payable, net of discount  4,909,376    
Other long term liabilities  1,086,000    
Total liabilities $10,426,986  $2,716,084 
         
Stockholders’ Equity (Deficit)        
Preferred stock, $0.001 par value; 5,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2024 and December 31, 2023      
Common stock ($0.001 par value; 200,000,000 shares authorized, 45,864,503 shares outstanding as of December 31, 2024; 200,000,000 shares authorized, 44,122,091 shares outstanding as of December 31, 2023)  45,865   44,123 
Additional paid-in capital  39,770,060   36,899,497 
Accumulated deficit  (38,260,913)  (12,237,885)
Accumulated other comprehensive income  5,011    
Total stockholders’ equity (deficit) of reAlpha Tech Corp.  1,560,023   24,705,735 
         
Non-controlling interests in consolidated entities  7,449   3,050 
Total stockholders’ equity (deficit)  1,567,472   24,708,785 
         
TOTAL LIABILITIES AND STOCKOLDERS’ EQUITY $11,994,458  $27,424,869 


reAlpha Tech Corp. and Subsidiaries 
Consolidated Statements of Operations and Comprehensive Loss 
For the Year Ended December 31, 2024 and Eight Months Ended December 31, 2023 and Year Ended April 30, 2023 
  
  For the
Year Ended
  For the
Eight
Months
Ended
  For the
Year Ended
 
  December 31,
2024
  December 31,
2023
  April 30,
2023
 
          
Revenues $948,420  $121,690  $419,412 
Cost of revenues  302,084   94,665   293,204 
Gross Profit  646,336   27,025   126,208 
             
Operating Expenses            
Wages, benefits and payroll taxes  2,841,591   710,737   1,114,403 
Repairs & maintenance  3,216   51,436   24,794 
Utilities  11,545   12,321   32,456 
Travel  259,661   46,476    
Dues & subscriptions  118,656   24,426   98,000 
Marketing & advertising  793,004   193,612   2,002,884 
Professional & legal fees  2,124,946   4,572,026   1,470,306 
Depreciation & amortization  282,095   30,029   157,802 
Impairment of intangible assets  202,968       
Other operating expenses  911,268   418,697   159,166 
Total operating expenses  7,548,950   6,059,760   5,059,811 
             
Operating Loss  (6,902,614)  (6,032,735)  (4,933,603)
             
Other Income (Expense)            
Gain on sale of myAlphie     5,502,774    
Interest expense, net  (333,759)  (70,119)  (169,776)
Other expense, net  (500,601)  (144,764)  (334,228)
Total other (expense) income  (834,360)  5,287,891   (504,004)
             
Net Loss from continuing operations before income taxes  (7,736,974)  (744,844)  (5,437,607)
Income tax (expense) benefit  54,260   (204,286)   
             
Net Loss from continuing operations  (7,682,714)  (949,130)  (5,437,607)
             
Discontinued operations (Roost and Rhove)            
Loss from operations of discontinued Operations  (261,242)  (302,129)  (14,776)
Loss on abandonment of discontinued Operations  (18,078,393)      
Income tax benefit           
Loss on discontinued operations $(18,339,635) $(302,129) $(14,776)
             
Net Loss after income taxes $(26,022,349) $(1,251,259) $(5,452,383)
             
Less: Net (Loss) Income Attributable to Non-Controlling Interests  679   464   726 
             
Net Loss Income Attributable to Controlling Interests $(26,023,028) $(1,251,723) $(5,453,109)
             
Other comprehensive income            
Foreign currency translation adjustments  5,011       
Total other comprehensive gain  5,011       
             
Comprehensive Loss Attributable to Controlling Interests $(26,018,017) $(1,251,723) $(5,453,109)
             
Basic and diluted loss per share            
Continuing operations $(0.17) $(0.02) $(0.13)
Discontinued operations $(0.41) $(0.01) $(0.00)
Net Loss per share – basic and diluted $(0.58) $(0.03) $(0.13)
             
Weighted-average outstanding shares – basic  44,631,577   42,688,666   40,439,190 
             
Weighted-average outstanding shares – diluted  44,631,577   42,688,666   40,439,190 


Consolidated Statements of Cash Flows 
For the Year Ended December 31, 2024 and Eight Months Ended December 31, 2023 and Year Ended April 30, 2023 
  
  For the
Year Ended
  For the
Eight
Months
Ended
  For the
Year Ended
 
  December 31,
2024
  December 31,
2023
  April 30,
2023
 
          
Cash Flows from Operating Activities:         
Net (Loss) income $(26,022,349) $(1,251,259) $(5,452,383)
Adjustments to reconcile net (loss) income to net cash used in operating activities:            
Depreciation and amortization  466,691   289,067   157,802 
Stock based compensation – employees  207,453       
Stock based compensation – services  108,730       
Legal & professional expenses     3,045,290     
Amortization of loan discounts and origination fees  181,875         
Write-off of capitalized software costs  145,746       
Impairment of goodwill and Intangible assets  18,280,947       
Commitment fee expenses  500,000       
Loss on sale of properties  301   (85,077)  (22,817)
Gain on previously held equity  (20,663)      
Gain on sale of myAlphie     (5,502,774)   
Changes in operating assets and liabilities:            
Accounts receivable  (16,437)  37,490   65,696 
Receivable from related parties  (12,873)  20,874   (20,874)
Payable to related parties  (56,241)      
Prepaid expenses  62,637   (226,889)  96,038 
Other current assets  (19,773)  (419,849)  (81,689)
Accounts payable  58,756   48,928   235,433 
Accrued expenses  (185,118)  621,815   60,741 
Deferred liabilities  278,080   593,750    
Total adjustments  19,980,111   (1,577,375)  490,330 
Net cash used in operating activities  (6,042,238)  (2,828,634)  (4,962,053)
             
Cash Flows from Investing Activities:            
Proceeds from sale of properties  293,307   731,343   1,539,997 
Additions to property, plant & equipment  (12,533)  (40,840)  19,721 
Cash paid to acquire business  (1,268,630)  (50,000)  (25,000)
Cash paid for equity method investment  (50,000)      
Cash used for additions to capitalized software development and intangibles  (516,544)  (134,400)  (452,451)
Net cash (used in) provided by investing activities  (1,554,400)  506,103   1,082,267 
             
Cash Flows from Financing Activities:            
Proceeds from issuance of debt  6,155,539   190,095   247,000 
Payments of debt  (1,164,241)     (1,071,709)
Deferred financing costs  (727,500)        
Proceeds from issuance of common stock      7,331,938   4,282,274 
Settling subscription issuance of common stock contributions         
Offering costs paid on issuance of common stock        (416,312)
Net cash provided by financing activities  4,263,798   7,522,033   3,041,253 
             
      Net Increase (decrease) in cash  (3,332,840)  5,199,502   (838,533)
             
Cash – Beginning of Period  6,456,370   1,256,868   2,095,401 
             
Cash – End of Period $3,123,530  $6,456,370  $1,256,868 
             
Cash $3,123,530  $6,456,370  $1,256,868 
Restricted cash         
Total cash $3,123,530  $6,456,370  $1,256,868 
             
Supplemental disclosure of cash flow information            
Interest expense $(58,897) $(70,119) $(169,776)


Explanatory Notes on Use of Non-GAAP Financial Measures

To supplement reAlpha’s financial information presented in accordance with U.S. GAAP (“GAAP”), reAlpha believes “Adjusted EBITDA,” a “non-GAAP financial measure”, as such term is defined under the rules of the SEC, is useful in evaluating reAlpha’s operating performance. reAlpha uses Adjusted EBITDA to evaluate reAlpha’s ongoing operations and for internal planning and forecasting purposes. reAlpha believes that Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance. However, Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in reAlpha’s industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of reAlpha’s non-GAAP financial measures as tools for comparison. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate reAlpha’s business.

We use Adjusted EBITDA, a non-GAAP financial measure, to evaluate our operating performance and facilitate comparisons across periods and with peer companies. We reconcile our Adjusted EBITDA to our net income (loss) adjusted to exclude interest expense, depreciation and amortization, share-based compensation, and other non-cash, non-operating, or non-recurring items that we believe are not indicative of our core business operations. We believe this measure provides useful insight into our ongoing performance; however, it should not be considered a substitute for, or superior to, net income or other financial information prepared in accordance with U.S. GAAP.

The following table provides a reconciliation of net income to Adjusted EBITDA for the periods presented below:

  2024  2023 
Net (Loss) Income $(26,022,349) $(2,462,407)
Adjusted to exclude the following        
Depreciation & amortization  282,095   346,171 
Gain on sale of myAlphie     (5,502,774)
Interest Expense  333,759   128,268 
Share-based Compensation (1)  316,183    
GEM commitment fee (2)  500,000    
Acquisition related expense (3)  517,251   103,519 
Gain on previously held equity (4)  (20,663)   
Amortization of loan discounts and origination fees (5)  181,875    
Loss from discontinued operations before tax (6)  18,339,635    
Adjusted EBITDA $(5,572,214) $(7,387,223)
 
(1) Reflects share-based compensation provided to non-executive officer employees and certain members of our board of directors for services rendered to us, which is recognized as a non-cash expense.
(2) Reflects the commitment fee incurred in connection with the equity facility we have in place with GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (collectively, “GEM”) pursuant to that certain Share Purchase Agreement, among reAlpha and GEM, dated December 1, 2022.
(3) Reflects expenses related to acquisitions, including professional and legal fees, which are excluded to provide a clearer view of ongoing operational performance.
(4) Reflects the gain from the fair value measurement of previously held equity interests, which is recognized as a non-operational item and treated as a non-GAAP measure.
(5) Reflects the amortized original issue discount related to that certain secured promissory note, dated as of August 14, 2024.
(6) Reflects the loss from the discontinuation of our rental business segment operations, which consists mainly of the goodwill impairment of Rhove operations.

FAQ

What caused reAlpha Tech Corp's (AIRE) significant net loss in 2024?

The $26.02M net loss was primarily due to a $17.34M goodwill impairment from Rhove and the absence of 2023's one-time gain of $5.5M from myAlphie's sale.

How much did AIRE's revenue grow in 2024?

Revenue grew 270% to $948,420 in 2024, up from $256,436 in 2023, mainly due to acquisitions of AiChat and Be My Neighbor.

Why is AIRE discontinuing its short-term rental business in 2025?

Due to challenging macroeconomic conditions, including high interest rates and inflationary pressures, leading to the halt of operations in 2024.

What major acquisitions did AIRE complete in 2024?

AIRE acquired Hyperfast Title (3-state operations), 85% stake in AiChat, and Be My Neighbor (mortgage brokerage in 28 states).

How much cash does AIRE have as of December 31, 2024?

Cash and cash equivalents were $3.12M, down from $6.46M at the end of 2023.
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