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.
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 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
| |||||||||||