Nasdaq:AIRE
reAlpha Tech Corp.
A Nasdaq-listed technology firm generating revenue through specialized digital services while navigating significant non-operating headwinds and high burn rates.
Key Metrics
Investment Thesis
Bull Case
Investors might view the substantial paid-in capital of $39.8M as a buffer allowing for future growth or strategic acquisitions without immediate dilution. The company's ability to generate positive cash flow from financing suggests active investor support and potential for recapitalization efforts.
Bear Case
The stock faces high risk due to the massive negative net income of -$26.0M and a retained earnings deficit of -$38.3M that erodes shareholder value. With total liabilities at $10.4M against only $1.6M in equity, the company carries a precarious debt-to-equity structure.
About reAlpha Tech Corp.
reAlpha Tech Corp. operates within the technology sector with a diverse revenue stream derived from software solutions and digital services. The company reports significant non-operating losses and high operating expenses relative to its current revenue base. Despite a negative net income, the firm maintains substantial paid-in capital and current assets to support its ongoing operational activities.
Analysis
Management Discussion
The company reported a net profit of -$26.0M, driven primarily by non-operating losses rather than core business operations. Cash flow from operations was negative at -$6.0M, while cash flow from financing provided $4.3M to offset these outflows. The firm continues to incur high operating expenses of $7.5M against a revenue base of only $948,420.
Industry Overview
The technology services industry is characterized by rapid innovation cycles and high competition for talent and contracts. Companies in this sector often face pressure to scale revenue quickly to cover elevated operating expenses and R&D investments.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2024 |
|---|---|
| Revenue | $948.4K |
| Cost of Revenue | $302.1K |
| Gross Profit | $646.3K |
| Operating Expenses | $7.5M |
| Operating Income | $-6.9M |
| Stock-Based Comp | $207.5K |
| D&A | $466.7K |
| Depreciation | $24.9K |
| Amortization | $441.8K |
| Non-Operating Income | $-19.1M |
| Pre-Tax Income | $-26.0M |
| Income Tax | $-54.3K |
| Continuing Ops | $-7.7M |
| Discontinued Ops | $-18.3M |
| Net Income | $-26.0M |
| Minority Interest | $679 |
| Net to Common | $-26.0M |
| Metric | 2024 |
|---|---|
| Current Assets | $4.0M |
| Cash & Equivalents | $3.1M |
| Accounts Receivable | $182.4K |
| Other Current Assets | $737.1K |
| Long-Term Assets | $8.0M |
| PP&E (Net) | $102.6K |
| Intangibles | $3.3M |
| Goodwill | $4.2M |
| Other LT Assets | $137.2K |
| Total Assets | $12.0M |
| Current Liabilities | $4.1M |
| Accounts Payable | $655.8K |
| Deferred Revenue | $1.5M |
| Other Current Liab | $790.4K |
| Long-Term Liabilities | $6.3M |
| Total Liabilities | $10.4M |
| Shareholders' Equity | $1.6M |
| Paid-In Capital | $39.8M |
| Retained Earnings | $-38.3M |
| AOCI | $5.0K |
| Total L&E | $12.0M |
| Metric | 2024 |
|---|---|
| Net Income (CFO) | $-26.0M |
| Non-Cash Adjustments | $19.7M |
| Working Capital Changes | $323.3K |
| Cash from Operations | $-6.0M |
| Cash from Investing | $-1.6M |
| Debt Issuances | $6.2M |
| Debt Repayments | $1.2M |
| Cash from Financing | $4.3M |
| FX Effect | $0 |
| Net Change in Cash | $-3.3M |
| Beginning Cash | $6.5M |
| Ending Cash | $3.1M |
Frequently Asked Questions
How does reAlpha Tech Corp. make money?
Core software development services, digital infrastructure solutions, and strategic consulting engagements for enterprise clients.
What are the main risks for AIRE?
Severe non-operating loss of $19.1M and negative cash flow from operations of $6.0M indicating high burn rate; significant retained earnings deficit of $38.3M affecting solvency; substantial long-term liabilities of $6.3M compared to total equity of only $1.6M.
What is AIRE's competitive advantage?
Access to a large capital base of $39.8M in paid-in capital providing liquidity flexibility; strong current asset position of $4.0M relative to current liabilities; ability to execute acquisitions totaling $1.3M to expand market presence.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.