reAlpha Tech Corp. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a substantial increase in revenue, with total revenues for the three months reaching $339,227, a 475% increase from $59,022 in the same period of 2023. For the nine months, revenues rose to $422,006, up 87% from $225,300 year-over-year. This growth was primarily driven by the technology services segment, particularly from AI conversational platforms and mortgage brokerage services.

Despite the revenue growth, reAlpha reported increased operating losses. The operating loss for the three months ended September 30, 2024, was $(1,689,620), compared to $(728,839) in the same quarter of 2023. For the nine months, the operating loss expanded to $(4,124,075) from $(2,281,253) in the prior year. The rise in operating expenses, which totaled $1,915,486 for the quarter (up 153% from $757,501 in 2023), was attributed to higher salaries from new acquisitions, marketing, and professional services.

The net loss for the three months was $(2,098,574), compared to $(777,607) in the same period last year, while the nine-month net loss reached $(4,995,931), a stark contrast to the net income of $3,011,936 reported for the same period in 2023. The company’s cash position improved slightly, with cash and cash equivalents increasing to $7,076,877 as of September 30, 2024, from $6,456,370 at the end of 2023.

Strategically, reAlpha has shifted its focus from real estate acquisitions to enhancing its AI technologies, particularly for its commission-free homebuying platform, reAlpha. The company suspended its real estate acquisition operations due to macroeconomic challenges, including high interest rates and inflated property prices. In 2024, reAlpha completed several acquisitions, including Naamche, AiChat, Hyperfast Title, and Be My Neighbor, aimed at bolstering its technology services and expanding its operational capabilities.

The company also reported a significant increase in total liabilities, which rose to $11,637,641 as of September 30, 2024, from $2,716,084 at the end of 2023. This increase reflects the financial obligations associated with recent acquisitions and a secured promissory note issued for $5,455,000. The company is currently assessing its ability to continue as a going concern, given that its short-term obligations exceed available resources.