$AIRE

reAlpha Tech Corp.

CIK:0001859199|SEC Filings

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenues	$ 1,110,343	$ 1,252,381	$ 1,951,406	$ 2,178,016
Cost of revenues	377,396	630,916	666,193	1,037,884
Gross Profit	732,947	621,465	1,285,213	1,140,132
Operating Expenses
Wages, benefits and payroll taxes	2,030,269	1,576,421	4,157,988	2,636,525
Marketing and advertising	178,076	1,483,672	1,440,059	2,002,611
Professional and legal fees	650,294	1,003,732	1,380,923	1,745,891
Depreciation and amortization	170,680	131,045	332,739	310,194
Impairment of capitalized software		105,900		105,900
Other operating expenses	598,702	409,825	1,149,680	850,400
Total operating expenses	3,628,021	4,710,595	8,461,389	7,651,521
Operating Loss	(2,895,074)	(4,089,130)	(7,176,176)	(6,511,389)
Other Expense (income)
Changes in fair value of contingent consideration	(21,677)	(174,000)	(40,027)	(81,000)
Interest expense, net	16,790	242,639	41,465	447,702
Change in fair value of derivative liability	157,532	417,705	185,032	417,705
Other expense, net	1,546	242,260	25,166	372,106
Total other expense	154,191	728,604	211,636	1,156,513
Net Loss from operations before income taxes	(3,049,265)	(4,817,734)	(7,387,812)	(7,667,902)
Income tax (expense) benefit
Net Loss	(3,049,265)	(4,817,734)	(7,387,812)	(7,667,902)
Less: Net (Loss) income Attributable to Non-Controlling Interests	(51)	2,038	(46)	1,629
Net Loss Attributable to Controlling Interests	(3,049,214)	(4,819,772)	(7,387,766)	(7,669,531)
Preferred stock dividend	38,633	49,365	75,756	49,549
Net Loss Attributable to Common Stockholders	(3,087,847)	(4,869,137)	(7,463,522)	(7,719,080)
Other comprehensive income
Foreign currency translation adjustments	2,939	(106,436)	7,290	(98,511)
Total other comprehensive (Loss) income	2,939	(106,436)	7,290	(98,511)
Comprehensive Loss Attributable to Common Stockholders	$ (3,084,908)	$ (4,975,573)	$ (7,456,232)	$ (7,817,591)
Basic loss per share
Net Loss per share — basic (in Dollars per share)	$ (0.57)	$ (2.37)	$ (1.4)	$ (3.98)
Diluted loss per share
Net Loss per share — diluted (in Dollars per share)	$ (0.57)	$ (2.37)	$ (1.4)	$ (3.98)
Weighted-average outstanding shares — basic (in Shares)	5,371,313	2,051,589	5,333,592	1,939,651
Weighted-average outstanding shares — diluted (in Shares)	5,371,313	2,051,589	5,333,592	1,939,651

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net Loss	$ (7,387,812)	$ (7,667,902)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	332,739	261,444
Impairment of capitalized software		105,900
Impairment of intangible assets	16,039
Bad debt expense	5,503
Amortization of loan discounts and origination fees		242,502
Stock based compensation	712,342	271,644
Change in fair value of contingent consideration	(40,027)	(81,000)
Non cash commitment fee expenses		250,000
Change in fair value of derivative liability	185,032	417,705
Non cash marketing and advertising	593,429	1,293,991
Non cash compensation - GTG Financial		106,000
Loss on extinguishment of debt		70,065
Loss on sale of properties		48,748
Loss from equity method investment	5,180	2,398
Changes in operating assets and liabilities
Accounts receivable	(102,314)	(14,733)
Receivable from related parties		10,614
Payable to related parties	(45)	(3,563)
Prepaid expenses	68,005	61,946
Other current assets	75,854	(225,920)
Accounts payable	418,224	428,013
Accrued expenses	(322,001)	(216,917)
Deferred liabilities	101,255	37,036
Deferred revenue	(139,514)
Total adjustments	1,909,701	3,065,873
Net cash used in operating activities	(5,478,111)	(4,602,029)
Cash Flows from Investing Activities:
Additions to property and equipment	(58,126)	(27,114)
Cash paid for acquisitions, net		349,529
Cash used for additions to capitalized software	(58,736)	(131,283)
Net cash used in investing activities	(116,862)	191,132
Cash Flows from Financing Activities:
Proceeds from issuance of debt- related parties		155,481
Proceeds from issuance of common stock	131,341	3,508,490
Payments of debt	(83,838)	(1,554,456)
Equity issuance expenses	(5,191)	(235,251)
Net cash provided by financing activities	42,312	1,874,264
Net decrease in cash	(5,552,661)	(2,536,633)
Effect of exchange rate changes on cash	(261)
Cash - Beginning of Period	7,783,529	3,123,944
Cash - End of Period	2,230,607	587,311
Supplemental Disclosure of Cash Flow Information
Interest paid	41,465	38,758
Noncash Investing and Financing Activities:
Series A Convertible Preferred Stock issuance - MMC		5,000,000
Series A Convertible Preferred Stock issuance - GTG Financial		281,260
Deferred cash payments - GTG Financial		1,344,750
Common stock issuance for GTG Financial acquisition		451,135
Common stock issuance to Streeterville Capital, LLC		370,065
Common stock issuance - GTG Financial		1,287,000
Deferred issuance of common stock - Prevu	617,495
Common stock issuance – Board Compensation	80,740
Paid in kind dividends	$ 122,500

Condensed Consolidated Balance Sheet - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current Assets
Cash	$ 2,230,607	$ 7,783,529
Accounts receivable, net	164,959	68,148
Prepaid expenses	299,977	961,411
Other current assets	286,439	362,293
Escrow deposit	500,000	600,000
Total current assets	3,481,982	9,775,381
Property and Equipment
Property and equipment, net	105,970	64,626
Other Assets
Investments	56,466	111,646
Intangible assets, net	4,031,464	4,306,553
Goodwill	7,459,125	7,459,125
TOTAL ASSETS	15,135,007	21,717,331
Current Liabilities
Accounts payable	724,440	306,216
Related party payables	5,609	5,654
Accrued expenses	248,459	660,577
Deferred liabilities - current portion	1,856,349	1,960,850
Deferred revenue	256,713	396,227
Contingent consideration - current portion	60,184
Total current liabilities	3,397,641	3,625,710
Long-Term Liabilities
Derivative liability	4,760,012	4,574,980
Deferred liabilities - net of current portion		561,740
Contingent consideration - net of current portion	244,666	344,877
Total liabilities	8,457,191	9,195,718
Mezzanine Equity
Preferred Stock, $0.001 par value; 5,000,000 shares authorized, of which 1,000,000 shares are designated as Series A Convertible Preferred Stock; 256,125 and 250,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively.	1,096,133	1,020,377
Stockholders’ Equity
Common stock ($0.001 par value; 200,000,000 shares authorized, 5,374,302 shares outstanding as of June 30, 2026; 200,000,000 shares authorized, 5,269,799 shares outstanding as of December 31, 2025)	5,374	5,270
Additional paid-in capital	69,129,985	67,593,364
Accumulated deficit	(63,444,056)	(55,980,534)
Accumulated other comprehensive (loss)	(120,599)	(127,889)
Total stockholders’ equity of reAlpha Tech Corp.	5,570,704	11,490,211
Non-controlling interests in consolidated entities	10,979	11,025
Total stockholders’ equity	5,581,683	11,501,236
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY	15,135,007	21,717,331
Related parties
Current Liabilities
Short term loans - related parties - current portion	60,746	86,585
Unrelated party
Current Liabilities
Short term loans - related parties - current portion	185,141	209,601
Long-Term Liabilities
Other long-term loans - unrelated parties - net of current portion	$ 54,872	$ 88,411