AIRE · 10-Q · 2026Q1 · Full report
Other Expense and Contingent Consideration
reAlpha Tech Corp. · 2026-04-28 · Importance 76 · Surprise 82 · In source text
Other expense declined to $57,837 in Q1 2026 from $427,909 in Q1 2025, a reduction of $370,072 year-over-year. The decrease was primarily due to a reduction in the fair value of contingent consideration in the current period versus an increase in the prior year. The prior-year period also included interest expense and financing-related costs such as amortization of commitment fees that did not recur in Q1 2026. The change reduced non-operating charges and partially offset operating losses in the quarter.
Key facts
- Decrease in other expense was primarily attributable to a reduction in the fair value of contingent consideration during the current period. source
- Change in fair value of contingent consideration excluded in reconciliation: $(18,350) for the three months ended March 31, 2026. source
- Change in fair value of derivative liability excluded in reconciliation: $27,500 for the three months ended March 31, 2026. source
- Other expense for the three months ended March 31, 2026: $57,837. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -6.9% | Other expense for the three months ended March 31, 2026: $57,837. |
| operating_income | negative | realized | -3.3% | Change in fair value of derivative liability excluded in reconciliation: $27,500 for the three months ended March 31, 2026. |
| operating_income | positive | realized | +2.1% | Decrease in other expense was primarily attributable to a reduction in the fair value of contingent consideration during the current period. |