AIRE · 10-Q · 2026Q1 · Full report

Liquidity and Cash Position

reAlpha Tech Corp. · 2026-04-28 · Importance 95 · Surprise 92 · In source text

Cash and cash equivalents declined to approximately $4.7 million as of March 31, 2026 from $7.8 million as of December 31, 2025 (≈40% decrease), and management estimates current resources are insufficient to meet working capital needs for the 12-month period following issuance of these financial statements. Based on current operating plans, cash was expected to fund operating and capex needs for approximately five months as of the filing date, and management states that recurring losses and limited cash raise substantial doubt about the company’s ability to continue as a going concern within one year. The company raised ~ $126,150 net proceeds via its ATM program in Q1 2026 and notes outstanding warrants exercisable into 10,900,266 shares that could generate up to ~$4.65 million gross proceeds if exercised, although exercise is uncertain due to disputes; the company has also received Nasdaq notice of non-compliance and the Board approved a 1-for-25 reverse stock split expected around April 30, 2026. These liquidity items materially affect corporate financing runway and capital raise strategies in the near term (Q1–Q2 2026).

Key facts

• Based on estimates, the company does not have sufficient working capital to meet its financial needs for the 12-month period following issuance of the unaudited condensed consolidated financial statements. source
• Estimated cash and cash equivalents as of March 31, 2026 will be sufficient to fund operating expenses and capital expenditures for approximately five months as of the filing date of this report. source
• Cash and cash equivalents as of March 31, 2026: approximately $4.7 million ($4,667,612). source
• Cash and cash equivalents decreased approximately 40% in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. source
• Outstanding warrants as of March 31, 2026 are exercisable into an aggregate of 10,900,266 shares of common stock with potential aggregate gross proceeds of approximately $4,646,396 if all were exercised for cash. source
• Cash and cash equivalents as of December 31, 2025: approximately $7.8 million ($7,783,529). source
• Nasdaq notice of non-compliance with minimum bid price requirement; Board approved a 1-for-25 reverse stock split expected to become effective on or around April 30, 2026, subject to filing and effectiveness of certificate amendment with Delaware Secretary of State. source
• Net cash provided by financing activities decreased by $30,938 in the three months ended March 31, 2026 compared to the prior-year period, primarily due to raising less capital through the ATM program. source

Impact estimates