What changed in this filing

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Item 1A. Risk Factors

2026-04-28 compared with 2025-11-12 · 59 added, 288 removed, 20 unchanged (95% of the section changed)

2 unchanged sentences

Risk Factors” of our Form 10-K, except as set forth

We have a history of operating losses, and

we may not be able to generate sufficient revenue to achieve and sustain profitability.

We have not achieved profitability

and have incurred losses since inception.

For the quarter ended September 30, 2025, we recorded a net loss of $5,781,324.

ended December 31, 2024, we recorded a net loss of $26,023,028, which included a loss of $18,339,635 from discontinued operations related

to our former rental business and operations of our subsidiary, Rhove, and a loss of $7,682,714 from continuing operations.

As of September

30, 2025, we had an accumulated deficit of $51,008,326 and outstanding indebtedness of $598,705.

While we have experienced some revenue

growth over recent periods, we may not be able to sustain or increase our growth or achieve profitability in the future.

continue to invest diligently in sales and marketing efforts.

In addition, we expect to incur significant additional legal, accounting,

and other expense related to our being a public company as compared to when we were a private company.

While our revenue has grown since

our inception, if our revenue declines or fails to grow at a rate faster than these increases in our operating expense, we will not be

able to achieve and maintain profitability in future periods.

As a result, we may continue to generate losses.

Additionally, we may encounter

unforeseen operating expense, difficulties, complications, delays, and other unknown factors that may result in losses in future periods.

If these losses exceed our expectations or our revenue growth expectations are not met in future periods, our financial performance will

Our financial condition previously raised and may in the future

raise substantial doubt as to our ability to continue as a going concern.

Our independent registered

public accounting firm previously expressed substantial doubt regarding our ability to continue as a going concern in its audit report

dated April 2, 2025, for the year ended December 31, 2024.

This conclusion was based on recurring losses from operations, negative cash

flows, and the need to raise additional capital to support ongoing activities.

Although we cannot predict

with certainty all of our particular short-term cash uses or the timing or amount of cash requirements, management has concluded that

the conditions that raised substantial doubt about our ability to continue as a going concern have been alleviated as of September 30,

2025, as discussed in “Note 3 – Going Concern” of our unaudited condensed consolidated financial statements included

in this report.

However, our recurring losses, negative cash flow and the uncertainties surrounding our ability to execute and to realize

our planned revenue growth and expected benefits from our operational improvement initiatives, could impact our future profitability and

liquidity, which could in the future raise substantial doubt about our ability to continue to execute our operating plan as currently

intended and require us to seek additional financing.

If adequate funds or additional financings are not available, if and

when needed, or if the terms of potential funding sources are unfavorable, our business, financial condition, and results of operations

could be materially and adversely affected.

Additionally, our financial statements have been prepared assuming that we will continue to

operate as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

Thus, our financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

If we are unable to satisfy Nasdaq’s

continued listing requirements, our common stock could be delisted and the price and liquidity of our common stock may be adversely affected.

Our financial

condition raises substantial doubt as to our ability to continue as a going concern.

independent registered public accounting firm previously expressed substantial doubt regarding our ability to continue as a going concern

in its audit report dated March 12, 2026, for the year ended December 31, 2025.

This conclusion was based on recurring losses from operations,

negative cash flows, and the need to raise additional capital to support our ongoing activities.

we cannot predict with certainty all of our particular short-term cash uses or the timing or amount of cash requirements, management has

concluded that there is substantial doubt about our ability to continue as a going concern as discussed in “Note 3 – Going

Concern” of our unaudited condensed consolidated financial statements included in this report.

Our recurring losses, negative cash

flow and the uncertainties surrounding our ability to execute and to realize our planned revenue growth and expected benefits from our

operational improvement initiatives, could impact our future profitability and liquidity, which could in the future raise substantial

doubt about our ability to continue to execute our operating plan as currently intended and require us to seek additional financing.

adequate funds or additional financings are not available, if and when needed, or if the terms of potential funding sources are unfavorable,

our business, financial condition, and results of operations could be materially and adversely affected.

Additionally, our financial statements

have been prepared assuming that we will continue to operate as a going concern, which contemplates the realization of assets and the

satisfaction of liabilities in the normal course of business.

Thus, our financial statements do not include any adjustments that might

be necessary if we are unable to continue as a going concern.

We have a history

of operating losses, and we may not be able to generate sufficient revenue to achieve and sustain profitability.

We have not achieved profitability and have incurred losses since inception.

For the quarter ended March 31, 2026, we recorded a net loss of $4,338,495.

For the year ended December 31, 2025, we recorded a net loss

of $17,590,392.

As of March 31, 2026, we had an accumulated deficit of $60,356,156.

While we have experienced revenue growth over recent

periods, we may not be able to sustain or increase our growth or achieve profitability in the future.

We intend to continue to invest

diligently in sales and marketing efforts.

In addition, we expect to incur significant additional legal, accounting, compliance and other

expenses related to public company compliance and the expansion of our business.

If our revenue fails to grow at a rate faster than these

increases in our operating expenses, we will not be able to achieve and maintain profitability in future periods.

As a result, we may

continue to generate losses.

Additionally, we may encounter unforeseen operating expenses, difficulties, complications, delays, and other

unknown factors that may result in losses in future periods.

If these losses exceed our expectations or our revenue growth expectations

are not met in future periods, our financial performance will be harmed.

If we are unable to satisfy the continued

listing requirements of the Nasdaq, our common stock could be delisted and the price and liquidity of our common stock may be adversely

Our common stock may lose

2 unchanged sentences

on Nasdaq, we can give no assurance that we will be able to satisfy the continued listing requirements of Nasdaq in the future, including,

but not limited to the corporate governance requirements and the Minimum Bid Price Requirement.

On May 20, 2025, we received a letter from the Staff indicating that,

based upon the closing bid price of our common stock for the 30 consecutive business days ending on May 19, 2025, we no longer met the

Minimum Bid Price Requirement.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we have been provided a period of 180 calendar days,

or until November 17, 2025, in which to regain compliance with the Minimum Bid Price Requirement.

To regain compliance, the closing bid

price of our common stock must be at least $1 per share for a minimum of ten consecutive business days during this 180-day period (subject

to the Staff’s discretion to extend this ten consecutive business day period).

The letter regarding the Minimum Bid Price Requirement has no immediate

effect on the listing of our common stock on the Nasdaq Capital Market.

In the event that we do not regain compliance with the Minimum

Bid Price Requirement prior to the expiration of the 180-day compliance period, we may be eligible to seek an additional compliance period

of 180 calendar days if we meet the continued listing requirement for market value of publicly held shares and all other initial listing

standards for Nasdaq, with the exception of the Minimum Bid Price Requirement, and provide written notice to Nasdaq of our intent to cure

the deficiency during the additional compliance period by effecting a reverse stock split, if necessary.

In the event that we are

not eligible for the additional compliance period, or if it appears to the Staff that we will not be able to cure the deficiency during

any such compliance period, the Staff will provide written notice to us that our common stock will be subject to delisting.

At that time,

we may appeal the Staff’s delisting determination to a Nasdaq Hearing Panel.

We will continue to monitor

the closing bid price of our common stock as we consider our available options to regain compliance with the Minimum Bid Price Requirement,

including by effectuating a reverse stock split.

There can be no assurance that we will be able to regain compliance with the Minimum

Bid Price Requirement or maintain compliance with the other continued listing requirements of Nasdaq.

but not limited to, the corporate governance requirements and the minimum closing bid price requirement or the minimum equity requirement.

On May 20, 2025, we received

a deficiency letter from the Nasdaq Listing Qualifications Department of Nasdaq notifying us that, for 30 consecutive business days, the

closing bid price of our common stock was below the minimum $1.00 per share required for continued listing pursuant to Nasdaq Listing

Rule 5550(a)(2).

The Nasdaq deficiency letter had no immediate effect on the listing of our common stock, and we were initially given

180 calendar days, or until November 17, 2025, to regain compliance with Nasdaq Listing Rule 5550(a)(2), which was extended by an additional

180 calendar days, or May 18, 2026.

On March 30, 2026, the Board

approved a 1-for-25 reverse stock split of our outstanding common stock, which is expected to become effective on or around April 30,

2026, subject to the filing and effectiveness of an amendment to our certificate of incorporation with the Secretary of State of Delaware.

The reverse stock split was previously approved by our stockholders at the 2025 annual meeting of stockholders We anticipate to receive

written confirmation from Nasdaq notifying us that we have regained compliance with Nasdaq Listing Rule 5550(a)(2) on or around May 14,

2026, assuming that our stock price remains above $1.00 for a period of at least 10 business days, but there is no assurance that we will

receive such written confirmation from Nasdaq at or around such date, or at all.

If we were to be delisted,

11 unchanged sentences

become listed again, stabilize the market price or improve the liquidity of our common stock, prevent our common stock from dropping below

the Minimum Bid Price Requirement, or prevent future non-compliance with Nasdaq’s listing requirements.

Our business is subject to various laws

and regulations, including financial protections and securities laws.

We are subject to a variety

of laws and regulations relating to financial protection, data privacy, and securities laws.

These laws and regulations are constantly

evolving and can be subject to significant change.

Such laws and regulations are numerous, complex, and frequently changing.

to satisfy such laws and regulations, we may face inquiries or investigations or other government actions, which may be costly to comply

with, result in negative publicity, require management’s time and attention, and subject us to remedies that may harm our business,

including fines or demands or orders that we modify or cease business practices.

Additionally, as we depend on third parties for key services,

we rely on such third-party service providers’ compliance with laws and regulations regarding privacy, data protection, consumer

protection, securities regulation, and other matters relating to our customers and business activities.

Should there be deficiencies in

our compliance (including by third-party service providers), this could adversely impact our reputation and could also expose us to material

liability and responsibility for damages, fines, or penalties.

We are permanently barred from raising capital

in Massachusetts pursuant to a Consent Order.

On April 15, 2022, we entered

into a consent order (the “Consent Order”) with the Securities Division of the Office of the Secretary of the Commonwealth

of Massachusetts.

Under the Consent Order, the Company is barred from offering or selling securities in the Commonwealth of Massachusetts,

and ordered to cease and desist from committing future violations of Massachusetts Uniform Securities Act, Mass.

“Act”), and the regulations promulgated thereunder at 950 Code Mass.

10.01-14.413.

The National Securities Markets Improvement

Act of 1996 (“NSMIA”) prevents or preempts the states from regulating the sale of certain securities, which are referred to

as “covered securities,” including securities listed on a national securities exchange such as Nasdaq.

Because our common

stock is listed on Nasdaq, our common stock qualifies as covered securities under such statute.

Although the states are preempted from

regulating the sale of covered securities, NSMIA does allow the states to investigate companies if there is a suspicion of fraud, and,

if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case.

The Consent Order expressly states that it is not intended to be a final order based upon violations of the Act that prohibit fraudulent,

manipulative, or deceptive conduct.

As a result, there is uncertainty as to whether the Consent Order’s prohibition on offers or

sales of our securities in the Commonwealth of Massachusetts is enforceable under federal law.

Regardless of this uncertainty, we have

not undertaken a legal determination as to the preemption question and are continuing to comply with the Consent Order.

To the extent

that the Consent Order is enforceable, our ability to sell securities of the Company is limited to the remaining 49 states and expressly

excludes natural persons or legal entities that are residents of the Commonwealth of Massachusetts.

Based on information currently available

to us, we are not aware of any sales that have been made by the Company in the Commonwealth of Massachusetts since we entered into the

Consent Order.

However, if an offering of our securities were to result in sales to residents of the Commonwealth of Massachusetts, even

inadvertently, it could be viewed as a violation of the Consent Order and could subject us to additional regulatory actions or penalties.

A regulatory action, even if it does not result in a finding of wrongdoing or penalty, could require substantial expenditures of time,

resources, and money, and could potentially damage our reputation.

Any such regulatory action or penalty could adversely affect our business,

result of operations or access to capital markets.

Our financial results are highly dependent

on broader macroeconomic and U.S.

residential real estate market conditions, which are seasonal and cyclical in nature.

Our financial results are highly dependent on broader macroeconomic

conditions and U.S.

residential real estate market conditions, which are seasonal, cyclical and affected by changes in macroeconomic conditions

beyond our control.

Such macroeconomic conditions include, but are not limited to, increased interest rates, slow economic growth or recessionary

conditions, supply chain disruptions, the pace of home price appreciation or the lack of it, housing affordability, changes in household

debt levels, inflation and increased unemployment or consumer income levels, and credit availability and its impact on consumers’

ability and willingness to make loan payments.

Such macroeconomic conditions also include competitive pressures and other market dynamics,

including changes in consumer behavior, pricing strategies, customer acquisition costs, geographic expansion risks, marketing activity,

or other operational factors, that may limit margin expansion even in periods of increased transaction activity.

Some of these macroeconomic

conditions, such as changes to interest rates and inflation, tend to be cyclical and may be influenced by actions taken by the Federal

Reserve or other governmental authorities.

Furthermore, national or global events including, but not limited to, geopolitical conflicts,

natural disasters, natural events or man-made disruptions, may exacerbate such macroeconomic conditions and cyclical market conditions.

During periods of high or

rising interest rates, declining affordability or deteriorating economic conditions, refinancing activity and home purchase transactions

generally decline and suppress housing turnover, in turn may negatively impact demand for our real estate brokerage, mortgage origination,

and closing services.

In contrast, lower interest rate environments or improved affordability may increase transaction volume, though

competitive pressures and market dynamics may limit corresponding gains in margin or profitability.

Given the cyclical and sometimes

volatile nature of the loan origination activity and broader real estate market, we may experience significant fluctuations in our revenues

from quarter to quarter or year to year.

There can be no assurance that the current macroeconomic and real estate conditions will continue.

New or increased tariffs could negatively affect U.S.

national or regional economies, which could affect the demand for homes in the U.S.,

suppress housing activity, and lower demand for real estate transactions and related services.

Such impacts could slow our mortgage origination

business and reduce transaction volume across our brokerage and title operations.

For instance, the current administration has adopted

tariffs and certain reforms to U.S.

tax laws, both of which could negatively impact our business and financial results.

Our business is subject to cyclical and

seasonal fluctuations that may materially affect our results of operations and financial performance.

The residential real estate

and mortgage markets in which we operate are inherently cyclical and subject to seasonal trends, both of which may adversely impact our

business, financial condition, and results of operations.

Historically, home buying activity is strongest during the spring and summer

months and declines in the fall and winter.

These seasonal patterns affect transaction volumes and may influence demand across our real

estate brokerage, mortgage origination, and title and closing services.

As a result, our revenue and operating metrics may fluctuate significantly

from quarter to quarter.

Our results are also affected

by broader macroeconomic conditions, including mortgage interest rates, employment levels, consumer confidence, housing affordability,

inventory levels, and inflation.

Prolonged periods of elevated interest rates or reduced affordability may limit consumer willingness

or ability to purchase homes or refinance existing mortgages.

These factors may reduce demand for our services and increase competitive

pressure on pricing, margins, and customer acquisition costs.

Our financial performance

may also vary due to changes in consumer behavior, geographic expansion, marketing activity, or other operational factors that could mask

or intensify the effects of seasonality or cyclicality.

While our integrated model is intended to streamline the transaction process,

our operations remain exposed to external housing market cycles and macroeconomic volatility.

Accordingly, comparisons across reporting

periods may not be meaningful and should not be relied upon as indicators of future performance.

If adverse seasonal or cyclical

conditions persist or worsen, or if we are unable to adjust our cost structure and operations accordingly, our business, financial condition,

and results of operations could be materially and adversely affected.

Our ongoing disputes with GYBL may be costly,

time consuming and, if adversely determined against us, could result in a significant downward adjustment of the GEM Warrants’ exercise

price, and potentially other penalties and expenses, which could have a material adverse effect on our financial position and business

On November 1, 2024, we filed a lawsuit against GYBL in the Court,

pursuant to which we asserted two causes of action:

(i) rescission of the GEM Warrants issued to GYBL pursuant to Section 29(b) of the

Exchange Act due to GYBL’s underlying violation of Section 15(a) of the Exchange Act for effecting the GEM Warrants as an unregistered

dealer, and (ii) in the alternative, a declaratory judgment that the exercise price adjustment calculation of the GEM Warrants is governed

by the terms provided in the GEM Warrants, rather than the terms of the GEM Agreement.

Following a motion to dismiss filed by GYBL on

January 17, 2025, the Court granted such motion to dismiss on March 14, 2025.

On April 15, 2025, we filed an appeal of the Court’s

decision dismissing our case to the Second Circuit.

The briefing schedule at the Second Circuit is being held in abeyance in order to

allow two previously filed appeals, filed by two other public companies on identical issues against other similar investors, to be resolved

However, if and when the appellate briefing moves forward, there is no assurance that it will be successful.

Additionally, following the Court’s grant of GYBL’s motion

to dismiss our lawsuit, GYBL filed a separate lawsuit against us, in which GYBL is asserting two causes of action against us:

of the terms of the GEM Warrants, and (2) declaratory relief concerning the validity and enforceability of the GEM Warrants.

to the declaratory relief, GYBL is seeking monetary damages in an amount to be determined at trial, specific performance of the GEM Warrants

and attorneys’ fees and litigation costs.

On June 9, 2025, we filed a motion to dismiss this lawsuit from GYBL.

GYBL responded to

our motion to dismiss on June 23, 2025, asserting that our motion to dismiss should be denied, or, in the alternative, GYBL should be

given leave to further amend its complaint.

On June 30, 2025, we filed a reply in support of its motion to dismiss.

On August 21, 2025,

the Court granted, in part, our motion to dismiss the amended complaint with respect to GYBL’s claim for declaratory relief concerning

the validity and enforceability of the GEM Warrants.

The Court denied our motion to dismiss in all other respects.

Following the

Court’s partial grant and partial dismissal of our motion to dismiss, we filed an answer to GYBL’s amended complaint on September

Given the ongoing disputes

with GYBL, including our pending appeal with the United States Court of Appeals for the Second Circuit, the exercise price of the GEM

Warrants have not been adjusted pursuant to the GEM Warrant’s terms while these disputes are pending, and, to the extent any shares

of common stock are sold pursuant to an equity offering, for instance, at a price per share that is below the then-current exercise price

of the GEM Warrants, we do not plan to adjust the exercise price of the GEM Warrants pending resolution of such disputes.

A final adverse

ruling against us in pending lawsuits and any subsequent appeals, or in any other claim or counterclaim, as applicable, sought by GYBL,

could lead to a significant downward adjustment to the current exercise price of the GEM Warrants, additional expenses incurred related

to the lawsuits during the ongoing disputes, including, but not limited to, attorney’s fees, and any other remedies the court may

Further, any lawsuit, including any additional disputes with GEM, and

subsequent appeals may be expensive, may divert management’s time away from our operations, and may affect the availability and

premiums of our liability insurance coverage, regardless of whether our claims are meritorious, or ultimately lead to a judgment against

We cannot assure you that we will be able to be successful in lawsuits, or any subsequent appeal, against GYBL or resolve any current

or future litigation matters, in which case those litigation matters, including the disputes with GYBL, could have a material and adverse

effect on our business, financial condition, operating results and cash flows.

If we incur penalties pursuant to the Registration

Rights Agreement with GEM and GYBL, our business, results of operations and financial condition may be adversely affected .

GEM and GYBL have certain registration rights, including “piggyback”

registration rights, pursuant to that certain registration rights agreement entered into by and among us, GEM and GYBL concurrently with

the GEM Agreement (the “Registration Rights Agreement”).

The Registration Rights Agreement requires us to use reasonable best

efforts to maintain an effective registration statement covering the resale of the shares of common stock issuable pursuant to the GEM

Agreement and the shares of common stock underlying the GEM Warrants (collectively, the “Registrable Securities”), and the

“piggyback” registration rights provide that, if we determine to prepare and file a registration statement relating to an

offering of any of our equity securities for our own account or for the account of others (other than a registration statement on Form

S-8 or Form S-4, or their equivalent relating to securities to be issued in exchange for other securities or equity securities to be issued

solely in connection with equity securities issuable in connection with the Company’s option or other employee benefit plans) under

the Securities Act of 1933, as amended, then, in the absence of an effective registration statement covering the resale of the Registrable

Securities, we are required to deliver a written notice to GEM and GYBL to that effect.

If, within five days after the delivery of such

written notice, GEM and GYBL request in writing to include in such registration statement all or any part of the Registrable Securities,

then we are required to cause such requested Registrable Securities to be registered in the applicable registration statement.

not maintained an effective registration statement covering the resale of the Registrable Securities.

If we do not adhere to the registration

rights set forth in the Registration Rights Agreement in connection with any offerings of our securities, there is no guarantee that GEM

and/or GYBL will not seek penalties pursuant to the Registration Rights Agreement relating to their registration rights.

If GEM and/or

GYBL seek such penalties, our business, results of operations and financial condition may be adversely affected.

In addition, if we ultimately

determine to adhere to the registration rights, we may be required to expend significant resources to prepare and maintain a registration

statement, respond to registration requests, and cover other associated costs, which would limit cash available for other business purposes.

We expect our business model and pricing

models to continue to evolve.

Our business model has a

limited track record, and as we continue growing our business and operations, we may continue to experiment with different pricing models

and introduce new offerings and services.

We expect that the services and technology offerings associated with our business model, including

the reAlpha platform, will continue to rapidly evolve.

Thus, in order to stay current with the industry, we may need to modify our offerings

to remain relevant.

Further, we have not yet made a final determination regarding how we will charge clients and how certain incentives

we offer through the reAlpha platform, such as commission refunds, for example, will be applied to customers utilizing our offerings and

the reAlpha platform, as applicable.

We cannot guarantee we will be able to produce commercially successful offerings or develop a pricing

model for such offerings that is acceptable to our customers and enable us to operate profitably.

We cannot offer any assurance that modifications

we make to our offerings or business model will be successful or will not harm our business.

If the changes we make are not successful,

or if we fail to make appropriate changes, it would have a material adverse effect on our business, prospects or operations and potentially

on our ability to continue as a going concern.

UNREGISTERED SALES OF EQUITY SECURITIES

AND USE OF PROCEEDS

There are no transactions

that have not been previously included in a Current Report on Form 8-K.

DEFAULTS UPON SENIOR SECURITIES

Not applicable.

MINE SAFETY DISCLOSURES

Not applicable.

the Nasdaq minimum bid price requirement, or prevent future non-compliance with Nasdaq’s listing requirements.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1A. Risk Factors