AIRE · 10-Q · 2026Q1 · Full report

Acquisitions and Deferred Consideration

reAlpha Tech Corp. · 2026-04-28 · Importance 64 · Surprise 42

In connection with the Prevu acquisition, the company is obligated to pay deferred consideration totaling $2.5 million under the Prevu Merger Agreement, payable in four equal installments of $625,000 over an 18-month period following closing and payable in cash or shares at the company’s discretion. On March 16, 2026 the company satisfied $617,496 of the deferred consideration through issuance of common stock; as of March 31, 2026 three remaining installments totaling $1,217,466 are due within the next 12 months and are recorded in current liabilities, with $577,836 classified as long-term. Management states that electing cash payment would reduce liquidity while electing stock issuance would dilute existing stockholders. The deferred consideration schedule and the company’s choice of cash versus equity settlement materially affect near-term cash requirements and shareholder dilution risk.

Key facts

• Company previously decided in Q1 2024 to halt asset-heavy short-term rental operations and in Q1 2025 board approved discontinuation of short-term rental business operations reported as discontinued operations. source