reAlpha Tech Corp. (AIRE) presents a deeply negative liquidation recovery posture as of March 31, 2026. Total assets are $17.6M against total liabilities of $8.3M, yielding reported book equity of approximately $8.3M. However, under liquidation haircuts, recoverable asset value collapses substantially. Cash of $4.7M recovers at par. Accounts receivable of $92K recovers at 90-95%, approximately $87-87K. The $4.2M intangible asset base (net of accumulated amortization) and $7.5M goodwill — together comprising roughly 67% of total assets — recover at zero under liquidation assumptions. PP&E of $103K recovers at 50-70%, or approximately $51-72K. The equity method investment of $59K and the $1.2M escrow/investment balances carry uncertain but likely partial recovery. After applying these haircuts, recoverable assets approximate $6-7M against face-value liabilities of $8.3M, implying negative equity recovery. MFFAIS independently estimates liquidation value at approximately $2.0M, consistent with this analysis. The liability stack includes current deferred consideration from the Prevu acquisition of $1.2M and non-current deferred consideration of $578K — fixed cash or stock obligations not extinguished on windup. The MMC derivative liability stands at $4.6M fair value as of period end, classified within current liabilities; this would be a face-value claim in liquidation. Short-term borrowings (AiChat term loans, net) total $187K and long-term debt (unrelated parties, net) totals $72K. The $1.1M Series A Preferred Stock in mezzanine equity carries a $5M aggregate liquidation preference and would absorb value senior to common equity. The accumulated deficit has grown to $60.4M. Management has issued going concern disclosures, citing approximately 5 months of cash runway as of the filing date. Cash decreased 40% quarter-over-quarter from $7.8M to $4.7M, driven by $3.1M operating cash outflows. The filing discusses the Prevu deferred consideration obligation ($2.5M total, $1.2M current) and the proposed InstaMortgage acquisition ($8.5M consideration, $500K cash at closing held in escrow) in MD&A but these are partially tagged in XBRL. The GEM warrant litigation represents an unquantified contingent liability not separately tagged. A 1-for-25 reverse stock split was approved post-period and expected effective April 30, 2026. Compared to the prior filing (10-K, December 31, 2025), total assets declined from $21.7M to $17.6M — a $4.1M reduction in one quarter — driven primarily by cash burn and goodwill/intangible amortization, while the liability structure remained broadly stable with modest debt paydown.
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