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reAlpha Tech Corp. Announces Financial Results for the Transition Period ended December 31, 2023 and Provides Business Update

reAlpha Tech Corp. (“reAlpha,” “Company,” “us,” “we” or “our”) (Nasdaq: AIRE), a real estate technology company focused on developing, utilizing and commercializing real estate-focused artificial intelligence (“AI”) technologies, today provides a business update and reports financial results for the eight month period ended December 31, 2023. In accordance with a change of its fiscal year end from April 30 to December 31, effective as of December 31, 2023, the Company is reporting results for the transition period between May 1, 2023 and December 31, 2023.

“2023 marked a pivotal chapter in reAlpha’s journey,” said Giri Devanur, Chief Executive Officer of reAlpha. “We successfully debuted on the Nasdaq Capital Market in October, raised $8.0 million in gross proceeds through a public offering in November, and introduced GENA, our AI-powered real estate technology, to kick-start our goal to commercialize our technologies. Additionally, with the execution of definitive agreements to acquire Naamche, Inc. and Naamche Inc. Pvt. Ltd., coupled with a non-binding letter of intent to acquire United Software Group and certain affiliated entities, the due diligence process for which is still ongoing, we believe reAlpha is well-positioned to drive sustainable growth and create stockholder value while advancing innovative AI solutions,” concluded Mr. Devanur.

Recent strategic and operational highlights during the transition period ended December 31, 2023 include:

  • Listed on the Nasdaq Capital Market (“Nasdaq”) under the ticker symbol “AIRE” on October 23, 2023.
  • Announced the launch of GENA, formerly known as BnBGPT, a technology that enhances residential property listings in multiple online real estate marketplaces through the integration of personalized generative AI descriptions.
  • Consummated a public offering for gross proceeds of $8.0 million on November 24, 2023.
  • Entered into definitive agreements to acquire Naamche, Inc. and Naamche, Inc. Pvt. Ltd (collectively, “Naamche”), a technology company focused on developing AI-powered solutions for large industries, including real estate, which is subject to closing conditions and jurisdictional approval (the “Acquisitions”).
  • Approved the change of our fiscal year-end from April 30 to December 31, effective as of December 31, 2023.
  • Entered into a non-binding letter of intent to acquire United Software Group and certain subsidiaries and affiliates (collectively, “USG”), an Ohio-based privately-held, multi-industry information technology consulting company.

Business Strategy Update

Given the current macroeconomic climate, including rising interest rates, inflation, and high property prices, we decided to pause our efforts in acquiring real estate. Instead, we shifted our focus towards improving and developing our AI technologies for commercial applications, aiming to create revenue through technology while our short-term rental operations are on hold. We intend to continue commercializing our technologies to further add technology-derived revenue streams. We may resume the complementary direct real estate investing model from our rental business segment when prevailing interest rates and other macroeconomic factors align more favorably. In the meantime, our growth strategy will encompass both organic and inorganic methods through commercialization of our AI technologies that are in varying stages of development and acquisitions of complementary businesses and technologies.

Financial Results

In accordance with a change of our fiscal year end from April 30 to December 31, effective as of December 31, 2023, we are reporting results for the transition period between May 1, 2023 and December 31, 2023.

Revenue for the eight months ended December 31, 2023 was $121,690, compared to $284,666 for the eight months ended December 31, 2022. Our revenues consist of both the short-term rental revenue that we receive from our listed properties, if any, and platform services income that we receive from our technologies. This decrease in revenues is mainly attributed to lower rental income segment due to the disposal of properties during the eight months ended December 31, 2023, and lower platform services segment revenue compared to the eight months ended December 31, 2022 as a result of the sale of myAlphie.

We had cash and cash equivalents of $6,456,370 as of December 31, 2023 and $1,256,868 as of April 30, 2023.

Net loss was $1,251,259 for the eight months ended December 31, 2023, compared to a net loss of $4,241,555 for the eight months ended December 31, 2022. This significant decrease in net loss is predominantly attributable to the sale of myAlphie during the eight months ended December 31, 2023. This decrease in net loss may not accurately represent our current business operations and may be unusually elevated for this period due to the impact of the myAlphie sale.

Adjusted EBITDA was $(2,297,480) for the eight months ended December 31, 2023, compared to $(4,031,674) for the eight months ended December 31, 2022. The full reconciliation to Adjusted EBITDA is set forth below.

Explanatory Notes on Use of Non-GAAP Financial Measures

To supplement our financial information presented in accordance with U.S. GAAP (“GAAP”), we believe “Adjusted EBITDA,” a “non-GAAP financial measure”, as such term is defined under the rules of the U.S. Securities and Exchange Commission (the “SEC”), is useful in evaluating our operating performance. We use Adjusted EBITDA to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that Adjusted EBITDA may be helpful to investors because it provides consistency and comparability with past financial performance. However, Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

We reconcile our non-GAAP financial measure of Adjusted EBITDA to our net income, adjusted to exclude interest expense, provision for (benefit from) income taxes, depreciation and amortization, non-recurring acquisition-related compensation expenses, non-recurring direct listing expenses, unrealized gain or loss on foreign exchange, non-recurring legal reserves, settlement expenses and related costs and non-recurring gains and losses. For the transition period ended December 31, 2023 and the fiscal year ended April 30, 2023, we did not have any restructuring expenses or non-recurring acquisition-related compensation expenses.

About reAlpha

reAlpha is a real estate technology company with a mission to shape the property technology market, or “proptech,” landscape through the commercialization of artificial intelligence (“AI”) technologies and strategic synergistic acquisitions that complement our business model. For more information about reAlpha, visit www.realpha.com.

Forward-Looking Statements

The information in this press release includes “forward-looking statements”. Any statements other than statements of historical fact contained herein, including statements as to future results of operations and financial position, planned acquisitions, business strategy and plans, objectives of management for future operations of reAlpha, market size and growth opportunities, competitive position and technological and market trends, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: whether reAlpha’s recent business strategy shift will be successful; reAlpha’s ability to pay contractual obligations; reAlpha’s liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha’s limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha’s technology and products will be accepted and adopted by its customers and intended users; reAlpha’s ability to satisfy closing conditions and obtain jurisdictional approval for the Acquisitions; reAlpha’s ability to successfully negotiate a definitive agreement to acquire USG and satisfy associated closing conditions, including potential stockholder approval; reAlpha’s ability to integrate the business of Naamche and USG into its existing business and the anticipated demand for Naamche’s and USG’s services; reAlpha’s ability to commercialize its developing AI-based technologies; the inability to maintain and strengthen reAlpha’s brand and reputation; any accidents or incidents involving cybersecurity breaches and incidents; the inability to accurately forecast demand for short-term rentals and AI-based real estate focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha’s growth; the inability of reAlpha’s customers to pay for reAlpha’s services; the inability of reAlpha to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against reAlpha; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in our SEC filings. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha’s future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha’s filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

REALPHA TECH CORP.

Consolidated Balance Sheet

December 31, 2023, April 30, 2023 and April 30, 2022

 

 

December 31,

2023

 

April 30,

2023

 

April 30,

2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash

$

6,456,370

 

$

1,256,868

 

$

2,072,090

 

Restricted cash

 

-

 

 

-

 

 

23,311

 

Accounts receivable

 

30,630

 

 

68,120

 

 

133,816

 

Receivable from related parties

 

-

 

 

20,874

 

 

-

 

Prepaid expenses

 

242,795

 

 

3,061,196

 

 

111,944

 

Other current assets

 

670,499

 

 

250,680

 

 

14,897

 

Total current assets

 

7,400,294

 

 

4,657,738

 

 

2,356,058

 

 

 

 

 

 

 

 

 

 

 

Property and Equipment, at cost

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

328,539

 

 

2,185,992

 

 

3,816,149

 

 

 

 

 

 

 

 

 

 

 

Other Assets

 

 

 

 

 

 

 

 

 

Investments

 

115,000

 

 

115,000

 

 

115,000

 

Other long term assets

 

406,250

 

 

-

 

 

-

 

Intangible assets, net

 

997,962

 

 

-

 

 

-

 

Goodwill

 

17,337,739

 

 

5,135,894

 

 

-

 

Capitalized software development - work in progress

 

839,085

 

 

8,998,755

 

 

599,459

 

TOTAL ASSETS

$

27,424,869

 

$

21,093,379

 

$

6,886,666

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

Accounts payable

$

461,875

 

$

412,947

 

$

81,377

 

Settling subscriptions, net of offering costs

 

-

 

 

-

 

 

3,773,097

 

Mortgage loans, net

 

-

 

 

1,222,000

 

 

2,229,162

 

Other loans

 

190,095

 

 

-

 

 

-

 

Notes payable

 

-

 

 

5,850,000

 

 

6,000,000

 

Deferred liabilities, current portion

 

593,750

 

 

-

 

 

-

 

Accrued expenses

 

817,114

 

 

195,299

 

 

121,362

 

Total current liabilities

 

2,062,834

 

 

7,680,246

 

 

12,204,998

 

 

 

 

 

 

 

 

 

 

 

Long-Term Liabilities

 

 

 

 

 

 

 

 

 

Deferred liabilities, net of current portion

 

406,250

 

 

-

 

 

-

 

Mortgage loans

 

247,000

 

 

247,000

 

 

-

 

Total liabilities

 

2,716,084

 

 

7,927,246

 

 

12,204,998

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2023, April 30, 2023 and April 30, 2022

 

-

 

 

-

 

 

-

 

Common stock ($0.001 par value; 200,000,000 shares authorized, 44,122,091 shares outstanding as of December 31, 2023; 200,000,000 shares authorized, 42,522,091 shares outstanding as of April 30, 2023; 50,000,000 shares authorized, 8,634,210 shares outstanding as of April 30, 2022)

 

44,123

 

 

42,523

 

 

8,634

 

Additional paid-in capital

 

36,899,497

 

 

24,107,159

 

 

192,490

 

Accumulated deficit

 

(12,237,885

)

 

(10,986,162

)

 

(5,533,053

)

Total stockholders’ equity (deficit) of reAlpha Tech Corp.

 

24,705,735

 

 

13,163,520

 

 

(5,331,929

)

 

 

 

 

 

 

 

 

 

 

Non-controlling interests in consolidated entities

 

3,050

 

 

2,613

 

 

13,597

 

Total stockholders’ equity (deficit)

 

24,708,785

 

 

13,166,133

 

 

(5,318,332

)

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

27,424,869

 

$

21,093,379

 

$

6,886,666

 

REALPHA TECH CORP.

Consolidated Statements of Operations

For the Eight Months Ended December 31, 2023 and Years Ended April 30, 2023 and 2022

 

 

For the

Eight

Months

Ended

 

For the Year Ended

April 30,

 

 

December 31,

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

Revenues

$

121,690

 

$

419,412

 

$

305,377

 

Cost of revenues

 

94,665

 

 

293,204

 

 

167,193

 

Gross Profit

 

27,025

 

 

126,208

 

 

138,184

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

Wages, benefits and payroll taxes

 

710,737

 

 

1,114,403

 

 

1,177,110

 

Repairs & maintenance

 

51,436

 

 

24,794

 

 

47,601

 

Utilities

 

12,321

 

 

32,456

 

 

49,058

 

Travel

 

45,276

 

 

-

 

 

-

 

Dues & subscriptions

 

24,581

 

 

98,309

 

 

105,047

 

Marketing & advertising

 

193,612

 

 

2,002,884

 

 

2,569,730

 

Professional & legal fees

 

4,619,480

 

 

1,483,889

 

 

712,322

 

Depreciation & amortization

 

289,067

 

 

157,802

 

 

151,478

 

Other operating expenses

 

419,137

 

 

160,050

 

 

154,780

 

Total operating expenses

 

6,365,647

 

 

5,074,587

 

 

4,967,126

 

Operating Loss

 

(6,338,622

)

 

(4,948,379

)

 

(4,828,942

)

 

 

 

 

 

 

 

 

 

 

Other Income (Expense)

 

 

 

 

 

 

 

 

 

Interest income

 

557

 

 

-

 

 

147

 

Other income

 

89,860

 

 

53,093

 

 

34,853

 

Gain on sale of myAlphie

 

5,502,774

 

 

-

 

 

-

 

Interest expense

 

(70,676

)

 

(169,776

)

 

(177,273

)

Other expense

 

(230,866

)

 

(387,321

)

 

(420,797

)

Total other income (expense)

 

5,291,649

 

 

(504,004

)

 

(563,070

)

 

 

 

 

 

 

 

 

 

 

Net Loss before income taxes

 

(1,046,973

)

 

(5,452,383

)

 

(5,392,012

)

Income tax expense

 

(204,286

)

 

-

 

 

-

 

Net Loss

$

(1,251,259

)

$

(5,452,383

)

$

(5,392,012

)

 

 

 

 

 

 

 

 

 

 

Less: Net Income (Loss) Attributable to Non-Controlling Interests

 

464

 

 

726

 

 

(12,642

)

 

 

 

 

 

 

 

 

 

 

Net Loss Attributable to Controlling Interests

$

(1,251,723

)

$

(5,453,109

)

$

(5,379,370

)

 

 

 

 

 

 

 

 

 

 

Net loss per share — basic

$

(0.03

)

$

(0.13

)

 

NA

 

 

 

 

 

 

 

 

 

 

 

Net loss per share — diluted

$

(0.03

)

$

(0.13

)

 

NA

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares — basic

 

42,688,666

 

 

40,439,190

 

 

NA

 

 

 

 

 

 

 

 

 

 

 

Weighted-average outstanding shares — diluted

 

42,688,666

 

 

40,439,190

 

 

NA

 

REALPHA TECH CORP.

Consolidated Statements of Changes in Stockholders’ Equity (Deficit)

For the Eight Months Ended December 31, 2023 and Years Ended April 30, 2023 and 2022

 

 

 

 

 

 

 

 

 

 

 

 

ReAlpha

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tech Corp.

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional

Paid-in

 

 

Accumulated

 

 

and

Subsidiaries

 

 

Non-

Controlling

 

 

Total

Stockholders’

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Equity

 

 

Interests

 

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at April 30, 2021

 

 

8,624,210

 

 

$

8,624

 

 

$

92,500

 

 

$

(153,683

)

 

$

(52,559

)

 

$

24,929

 

 

$

(27,630

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,379,370

)

 

 

(5,379,370

)

 

 

(12,642

)

 

 

(5,392,012

)

Shares issued through Reg A offering

 

 

10,000

 

 

 

10

 

 

 

99,990

 

 

 

-

 

 

 

100,000

 

 

 

-

 

 

 

100,000

 

RTC India - Non controlling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

-

 

 

 

1,310

 

 

 

1,310

 

Balance at April 30, 2022

 

 

8,634,210

 

 

$

8,634

 

 

$

192,490

 

 

$

(5,533,053

)

 

$

(5,331,929

)

 

$

13,597

 

 

$

(5,318,332

)

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(5,453,109

)

 

 

(5,453,109

)

 

 

726

 

 

 

(5,452,383

)

Shares issued through Reg A offering

 

 

895,537

 

 

 

896

 

 

 

8,954,474

 

 

 

-

 

 

 

8,955,370

 

 

 

-

 

 

 

8,955,370

 

Reg A offering costs

 

 

-

 

 

 

-

 

 

 

(777,466

)

 

 

-

 

 

 

(777,466

)

 

 

-

 

 

 

(777,466

)

Distribution to syndicate members

 

 

-

 

 

 

 

 

 

 

(46,587

)

 

 

-

 

 

 

(46,587

)

 

 

(12,351

)

 

 

(58,938

)

Shares issued for acquisition of Rhove

 

 

1,312,025

 

 

 

1,312

 

 

 

13,118,938

 

 

 

-

 

 

 

13,120,250

 

 

 

-

 

 

 

13,120,250

 

Shares issued for services

 

 

304,529

 

 

 

305

 

 

 

3,044,985

 

 

 

-

 

 

 

3,045,290

 

 

 

-

 

 

 

3,045,290

 

Shares issued in former parent

 

 

543,420

 

 

 

543

 

 

 

149,457

 

 

 

-

 

 

 

150,000

 

 

 

 

 

 

 

150,000

 

RTC India - Non controlling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

641

 

 

 

641

 

Cancellation of shares in the former parent

 

 

(9,167,630

)

 

 

(9,167

)

 

 

(241,957

)

 

 

-

 

 

 

(251,124

)

 

 

 

 

 

 

(251,124

)

Recapitalization of shares

 

 

40,000,000

 

 

 

40,000

 

 

 

410,000

 

 

 

-

 

 

 

450,000

 

 

 

 

 

 

 

450,000

 

Downstream merger transaction

 

 

-

 

 

 

-

 

 

 

(697,175

)

 

 

-

 

 

 

(697,175

)

 

 

-

 

 

 

(697,175

)

Balance at April 30, 2023

 

 

42,522,091

 

 

$

42,523

 

 

$

24,107,159

 

 

$

(10,986,162

)

 

$

13,163,520

 

 

$

2,613

 

 

$

13,166,133

 

Net loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,251,723

)

 

 

(1,251,723

)

 

 

464

 

 

 

(1,251,259

)

Shares issued through follow on listing

 

 

1,600,000

 

 

 

1,600

 

 

 

3,898,898

 

 

 

-

 

 

 

3,900,498

 

 

 

-

 

 

 

3,900,498

 

Issuance of warrants

 

 

 

 

 

 

-

 

 

 

4,099,502

 

 

 

-

 

 

 

4,099,502

 

 

 

-

 

 

 

4,099,502

 

Issuance of stock options for Rhove acquisition

 

 

-

 

 

 

-

 

 

 

5,462,000

 

 

 

-

 

 

 

5,462,000

 

 

 

-

 

 

 

5,462,000

 

Reg A offering costs

 

 

-

 

 

 

-

 

 

 

(562

)

 

 

-

 

 

 

(562

)

 

 

-

 

 

 

(562

)

Follow on listing offering costs

 

 

-

 

 

 

-

 

 

 

(667,500

)

 

 

-

 

 

 

(667,500

)

 

 

-

 

 

 

(667,500

)

RTC India - Non controlling interest

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(27

)

 

 

(27

)

Balance at December 31, 2023

 

 

44,122,091

 

 

$

44,123

 

 

$

36,899,497

 

 

$

(12,237,885

)

 

$

24,705,735

 

 

$

3,050

 

 

$

24,708,785

 

REALPHA TECH CORP.

Condensed Consolidated Statements of Cash Flows

For the Eight Months Ended December 31, 2023 and Years Ended April 30, 2023 and 2022

 

 

 

For the

Eight

Months

Ended

 

 

For the Year Ended

April 30,

 

 

 

December 31,

2023

 

 

2023

 

 

2022

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(1,251,259

)

 

$

(5,452,383

)

 

$

(5,392,012

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

289,067

 

 

 

157,802

 

 

 

151,478

 

Non cash legal & professional expenses

 

 

3,045,290

 

 

 

-

 

 

 

-

 

Gain on sale of properties

 

 

(85,077

)

 

 

(22,817

)

 

 

(34,853

)

Gain on sale of myAlphie

 

 

(5,502,774

)

 

 

-

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

37,490

 

 

 

65,696

 

 

 

(133,816

)

Receivable from related parties

 

 

20,874

 

 

 

(20,874

)

 

 

-

 

Prepaid expenses

 

 

(226,889

)

 

 

96,038

 

 

 

-

 

Other current assets

 

 

(419,849

)

 

 

(81,689

)

 

 

(116,754

)

Accounts payable

 

 

48,928

 

 

 

235,433

 

 

 

81,377

 

Deferred liabilities

 

 

593,750

 

 

 

-

 

 

 

-

 

Accrued expenses

 

 

621,815

 

 

 

60,741

 

 

 

67,773

 

Total adjustments

 

 

(1,577,375

)

 

 

490,330

 

 

 

15,205

 

Net cash used in operating activities

 

 

(2,828,634

)

 

 

(4,962,053

)

 

 

(5,376,807

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sale of properties

 

 

731,343

 

 

 

1,539,997

 

 

 

1,691,644

 

Additions to property, plant & equipment

 

 

(40,840

)

 

 

19,721

 

 

 

(4,386,691

)

Other investment

 

 

-

 

 

 

-

 

 

 

(115,000

)

Cash paid to acquire business

 

 

(50,000

)

 

 

(25,000

)

 

 

-

 

Capitalized software development - work in progress

 

 

(134,400

)

 

 

(452,451

)

 

 

(597,676

)

Net cash provided by (used in) investing activities

 

 

506,103

 

 

 

1,082,267

 

 

 

(3,407,723

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from issuance of debt, net

 

 

190,095

 

 

 

247,000

 

 

 

7,923,351

 

Payments of long-term debt

 

 

-

 

 

 

(1,071,709

)

 

 

(1,420,987

)

Deferred financing costs

 

 

-

 

 

 

-

 

 

 

(92,288

)

Proceeds from issuance of common stock - Reg A

 

 

(562

)

 

 

4,282,274

 

 

 

98,253

 

Proceeds from issuance of common stock - Follow on

 

 

7,332,500

 

 

 

-

 

 

 

-

 

Settling subscription issuance of common stock contributions

 

 

-

 

 

 

-

 

 

 

4,273,098

 

Offering costs paid on issuance of common stock

 

 

-

 

 

 

(416,312

)

 

 

(500,000

)

Net cash provided by financing activities

 

 

7,522,033

 

 

 

3,041,253

 

 

 

10,281,427

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

5,199,502

 

 

 

(838,533

)

 

 

1,496,897

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash - Beginning of Period

 

 

1,256,868

 

 

 

2,095,401

 

 

 

598,504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash - End of Period

 

$

6,456,370

 

 

$

1,256,868

 

 

$

2,095,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Cash

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

6,456,370

 

 

$

1,256,868

 

 

$

2,072,090

 

Restricted cash

 

 

-

 

 

 

-

 

 

 

23,311

 

Total cash

 

$

6,456,370

 

 

$

1,256,868

 

 

$

2,095,401

 

 

 

For the Eight Months Ended

December 31,

 

 

 

2023

 

 

2022

 

Net loss

 

 

(1,251,259

)

 

 

(4,241,555

)

Adjusted to exclude the following:

 

 

-

 

 

 

-

 

Depreciation and amortization

 

 

289,067

 

 

 

98,256

 

gain on sale of myAlphie

 

 

(5,502,774

)

 

 

-

 

Interest expense

 

 

70,676

 

 

 

111,625

 

Legal settlement expenses

 

 

125,000

 

 

 

-

 

Non-recurring direct listing expenses (1)

 

 

3,767,524

 

 

 

-

 

Income tax expenses, current

 

 

204,286

 

 

 

-

 

Adjusted EBITDA

 

 

(2,297,480

)

 

 

(4,031,674

)

(1)

Consists of (ii) 304,529 shares of our common stock issued for services rendered in connection with our direct listing on Nasdaq at an aggregate fair market value of approximately $3.05 million, and (ii) cash payments of approximately $0.72 million.

 

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