reAlpha Tech (AIRE) - 2025 Q4 - Annual Report

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]