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Investor Relations Contact: Adele Carey, VP of Investor Relationsinvestorrelations@realpha.com Media Contact: Cristol Rippe, Chief Marketing Officermedia@realpha.com reAlpha Tech Corp.and SubsidiariesCondensed Consolidated Balance SheetMarch 31, 2025 (Unaudited) and December 31, 2024 March 31,2025 December 31,2024 ASSETS (unaudited) Current Assets Cash $1,204,400 $3,123,530 Accounts receivable, net 164,693 182,425 Receivable from related parties 7,408 12,873 Prepaid expenses 5,183,968 180,158 Current assets of discontinued operations 56,931 56,931 Other current assets 278,422 487,181 Total current assets 6,895,822 4,043,098 Property and equipment, net 101,407 102,638 Other Assets Investments 214,128 215,000 Other long term assets 954,000 31,250 Intangible assets, net 3,256,713 3,285,406 Goodwill 7,010,689 4,211,166 Capitalized software development - work in progress 105,900 105,900 TOTAL ASSETS $18,538,659 $11,994,458 LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) Current Liabilities Accounts payable $940,896 $655,765 Related party payables 9,380 9,287 Short term loans - related parties -current portion 245,292 261,986 Short term loans - unrelated parties -current portion 449,622 519,153 Note payable, current-net of discount 5,010,627 - Accrued expenses 994,728 1,164,813 Deferred liabilities, current portion 4,191,060 1,534,433 Total current liabilities 11,841,605 4,145,437 Long-Term Liabilities Embedded Derivate Liability 4,327,930 - Preferred stock liability 957,177 Other long term loans - related parties - net of current portion 27,131 45,052 Other long term loans - unrelated parties - net of current portion 217,036 241,121 Note payable, net of discount - 4,909,376 Other long term liabilities 2,133,000 1,086,000 Total liabilities 19,503,879 10,426,986 Stockholders’ Equity (Deficit) Series A Convertible Preferred Stock ($0.001 par value; 5,000,000 shares authorized) 1,000,000 shares designated; 264,063 and 0 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively - - Common stock ($0.001 par value; 200,000,000 shares authorized, 46,230,934 shares outstanding as of March 31, 2025; 200,000,000 shares authorized, 45,864,503 shares outstanding as of December 31, 2024) 46,230 45,865 Additional paid-in capital 40,099,285 39,770,060 Accumulated deficit (41,110,855) (38,260,913)Accumulated other comprehensive income (6,920) 5,011 Total stockholders’ (deficit) equity of reAlpha Tech Corp. (972,260) 1,560,023 Non-controlling interests in consolidated entities 7,040 7,449 Total stockholders’ (deficit) equity (965,220) 1,567,472 TOTAL LIABILITIES AND STOCKOLDERS’ (DEFICIT) EQUITY $18,538,659 $11,994,458 reAlpha Tech Corp.and SubsidiariesCondensed Consolidated Statements of Operations and Comprehensive LossFor the Three Ended March 31, 2025 and 2024 (unaudited) For the ThreeMonths Ended For the ThreeMonths Ended March 31,2025 March 31,2024 Revenues$925,635 $20,426 Cost of revenues 406,968 18,249 Gross Profit 518,667 2,177 Operating Expenses Wages, benefits and payroll taxes 1,060,104 418,902 Repairs and maintenance 854 749 Utilities 5,213 1,663 Travel 60,991 46,964 Dues and subscriptions 52,232 12,113 Marketing and advertising 518,939 76,784 Professional and legal fees 742,159 468,725 Depreciation and amortization 179,149 71,453 Other operating expenses 321,284 211,482 Total operating expenses 2,940,925 1,308,835 Operating Loss (2,422,258) (1,306,658) Other Expense (income) Changes in fair value of contingent consideration 93,000 - Interest expense, net 205,247 10,445 Other expense, net 129,846 101,103 Total other expense 428,093 111,548 Net Loss from continuing operations before income taxes (2,850,531) (1,418,206) Net Loss from continuing operations (2,850,351) (1,418,206) Discontinued operations (Roost and Rhove) Loss from operations of discontinued Operations - (839)Loss on discontinued operations - (839) Net Loss$(2,850,351) $(1,419,045) Less: Net Loss Attributable to Non-Controlling Interests (409) (65) Net Loss Attributable to Controlling Interests$(2,849,942) $(1,418,980) Other comprehensive income Foreign currency translation adjustments (11,931) - Total other comprehensive loss (11,931) - Comprehensive Loss Attributable to Controlling Interests$(2,861,873) $(1,418,980) Basic loss per share Continuing operations$(0.06) $(0.03)Discontinued operations$- $(0.00)Net Loss per share — basic$(0.06) $(0.03) Diluted loss per share Continuing operations$(0.06) $(0.03)Discontinued operations$- $(0.00)Net Loss per share — diluted$(0.06) $(0.03) Weighted-average outstanding shares — basic 45,913,591 44,122,091 Weighted-average outstanding shares — diluted 47,662,152 44,122,091 reAlpha Tech Corp.and SubsidiariesCondensed Consolidated Statements of Cash FlowsFor the Three Months Ended March 31, 2025, and 2024 (unaudited) For the ThreeMonths Ended For the ThreeMonths Ended March 31,2025 March 31,2024 Cash Flows from Operating Activities: Net Loss$(2,850,351) $(1,419,045)Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 130,399 71,453 Amortization of loan discounts 121,251 - Stock based compensation 78,355 - Change in fair value of contingent consideration 93,000 - Non cash Commitment fee expenses 125,000 125,000 Non cash Dividend payable on preferred stock 184 - Gain on sale of properties - (31,378)Loss from equity method investment 872 - Changes in operating assets and liabilities Accounts receivable 17,732 18,463 Receivable from related parties 5,465 - Payable to related parties 93 9,800 Prepaid expenses (3,810) 25,492 Other current assets (7,160) (1,788)Accounts payable 184,803 (28,263)Accrued expenses (187,813) (296,972)Deferred liabilities 24,877 - Total adjustments 583,248 (108,193)Net cash used in operating activities (2,267,103) (1,527,238) Cash Flows from Investing Activities: Additions to property and equipment (13,665) - Proceeds from sale of properties - 78,000 Net Cash paid to acquire business 349,529 - Cash used for additions to capitalized software (91,310) (97,700)Net cash provided by (used in) investing activities 244,554 (19,700) Cash Flows from Financing Activities: Proceeds from issuance of debt – related parties 155,481 - Payments of debt (283,711) (71,286)Proceeds from issuance of common stock 231,235 - Net cash provided by (used in) financing activities 103,005 (71,286) Net decrease in cash (1,919,544) (1,618,224) Cash - Beginning of Period 3,123,944 6,456,370 Cash - End of Period$1,204,400 $4,838,146 Explanatory Notes on Use of Non-GAAP Financial Measures To supplement reAlpha’s financial information presented in accordance with U.S.generally accepted accounting principles ("U.S.
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.
The following table provides a reconciliation of net income to Adjusted EBITDA for the periods presented below: For the Three Months Ended March 31, 2025 2024 Net (Loss) Income$(2,850,351) $(1,419,045)Adjusted to exclude the following Depreciation and amortization 179,149 71,453 Changes in fair value of contingent consideration 93,000 - Interest expense 205,247 10,445 Amortization of Loan Discounts and Origination Fee(1) 121,251 - GEM commitment fee (2) 125,000 - Share based compensation (3) 78,355 - Acquisition-related expenses (4) 87,352 - Adjusted EBITDA (1,960,997) (1,337,147) (1)Reflects the amortized original issue discount related to that certain secured promissory note issued to Streeterville Capital, LLC on August 14, 2024.(2)This pertains to the commitment fee of $1 million in connection with the equity facility we have in place with GEM Global Yield LLC and GEM Yield Bahamas Limited, which has been amortized over a period of 24 months.(3)Compensation provided to employees for services through share-based awards, which is recognized as a non-cash expense.(4)Expenses related to acquisitions, including professional and legal fees, which are excluded from U.S.
