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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>As
filed with the Securities and Exchange Commission on  April 17, 2023</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Registration
No.&nbsp;333-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Washington,
D.C. 20549</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>FORM&nbsp;S-1</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>REGISTRATION
STATEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNDER</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>THE
SECURITIES ACT OF&nbsp;1933</B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 14pt"><B><U>reAlpha
Tech Corp.</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Exact
name of registrant as specified in its charter)</B></FONT></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: bottom; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white"><B>6500</B></FONT></TD>
    <TD STYLE="text-align: center; padding-bottom: 1.5pt; vertical-align: bottom; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; width: 32%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>86-3425507</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(State or other jurisdiction
    of<BR>
    incorporation or organization)</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Primary Standard Industrial<BR>
    Classification Code Number)</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(I.R.S. Employer <BR>
    Identification Number)</B></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>6515
Longshore Loop, Suite 100</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Dublin,
OH 43017</B></FONT></P>

<P STYLE="text-align: center; margin-top: 0; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(707)
732-5742</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>(Address,
including zip code, and telephone number, including area code, of registrant&rsquo;s principal executive offices)</B>&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Giri
Devanur</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Chief
Executive Officer </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>reAlpha
Tech Corp.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>6515
Longshore Loop, Suite 100</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Dublin,
OH 43017</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Tel.:
(707) 732-5742</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><I>(Name, address, including zip code, and telephone number, including
area code, of agent for service)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">With copies to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Nimish
Patel, Esq.</B></FONT></P>

<P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Blake
Baron, Esq.</B></FONT></P>

<P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Mitchell
Silberberg &amp; Knupp LLP</B></FONT></P>

<P STYLE="text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>437
Madison Ave., 25th Floor</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>New
York, New York 10022</B></FONT></P>

<P STYLE="text-align: center; font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Tel.:
(212) 509-7239</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Approximate
date of commencement of proposed sale to the public: As soon as practicable after this registration statement is declared effective.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to If any of the securities
being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check
the following box.&nbsp;&nbsp;&#9746;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a&nbsp;non-accelerated&nbsp;filer, a smaller
reporting company or an emerging growth company. See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer,&rdquo;
&ldquo;smaller reporting company&rdquo; and &ldquo;emerging growth company&rdquo; in Rule&nbsp;12b-2&nbsp;of the Exchange Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large&nbsp;accelerated&nbsp;filer</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Accelerated&nbsp;filer</FONT></TD>
    <TD STYLE="width: 25%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9744;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Non-accelerated filer</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Smaller&nbsp;reporting&nbsp;company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emerging&nbsp;growth&nbsp;company</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9746;</FONT></TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act.&nbsp;&nbsp;&#9744;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective
on such date as the Commission, acting pursuant to said Section 8(a), may determine.</B></FONT></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities
and we are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
<TR STYLE="vertical-align: top; text-align: left">
  <TD STYLE="text-align: center; width: 49%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: Red"><B>Preliminary Prospectus</B></FONT></TD>
  <TD STYLE="width: 2%"><FONT STYLE="color: Red">&nbsp;</FONT></TD>
  <TD STYLE="text-align: center; width: 49%"><FONT STYLE="color: Red"><B>Subject to Completion, dated April 17, 2023</B></FONT></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>41,666,554
shares of common stock</B>&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;<IMG SRC="image_001.jpg" ALT=""></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>reAlpha
Tech Corp.</B></FONT></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus relates to the registration of the resale of up to 41,666,554 shares of our common stock, $0.001 par value per share (the
&ldquo;common stock&rdquo;), by our stockholders identified in this prospectus, or their permitted transferees (the &ldquo;Registered
Stockholders&rdquo;), in connection with our direct listing (the &ldquo;Direct Listing&rdquo;) on the Nasdaq Capital Market (&ldquo;Nasdaq&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Unlike
an initial public offering, the resale by the Registered Stockholders is not being underwritten by any investment bank. The Registered
Stockholders may, or may not, elect to sell their shares of common stock covered by this prospectus, as and to the extent they may determine.
The&nbsp;Registered Stockholders may offer, sell or distribute all or a portion of the securities hereby registered publicly or through
private transactions at prevailing market prices or at negotiated prices. We are required to pay certain costs, expenses and fees in
connection with the registration of these securities, including with regard to compliance with state securities or &ldquo;blue sky&rdquo;
laws. The&nbsp;Registered Stockholders will bear all commissions and discounts, if any, attributable to their sale of shares of common
stock (see the &ldquo;<I>Plan of Distribution</I>&rdquo; section). If the Registered Stockholders choose to sell or distribute, as applicable,
their shares of common stock, we will not receive any proceeds from the sale or distribution, as applicable, of shares of our common
stock by the Registered Stockholders.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to this Direct Listing,
no public market has existed for our common stock. We intend to apply to have our common stock listed on Nasdaq under the symbol &ldquo;[&#9679;]<SUP>&rdquo;</SUP>.
If our application is not approved or we otherwise determine that we will not be able to secure the listing of our common stock on Nasdaq,
we will not complete this Direct Listing. This listing is a condition to the offering. No assurance can be given that our application
will be approved and that our common stock will ever be listed on Nasdaq. If our listing application is not approved by Nasdaq, we will
not be able to consummate the offering and will terminate this Direct Listing.</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B>We
will be deemed to be a &ldquo;controlled company&rdquo; under the Nasdaq listing rules because Giri Devanur, our chief executive officer
and Chairman, owns 65.0% of our outstanding common stock. As a controlled company, we are not required to comply with certain of Nasdaq&rsquo;s
corporate governance requirements. We do not currently intend to take advantage of any of these exceptions. See &ldquo;Prospectus Summary
&mdash; Controlled Company.&rdquo;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Investing
in our common stock involves a high degree of risk. Before buying any shares, you should carefully read the discussion of material risks
of investing in our common stock in &ldquo;Risk Factors&rdquo; beginning on page 13  of this prospectus. </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are an &ldquo;emerging growth company,&rdquo; as defined under U.S. federal securities laws and, as such, are eligible and have elected
to comply with certain reduced public company reporting requirements for this prospectus and for future filings.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 1in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white">The date of this prospectus
is&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></P>

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<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; text-indent: 0cm; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; text-indent: 0cm; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;<IMG SRC="image_002.jpg" ALT=""></B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; text-indent: 0cm; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><A NAME="a_003"></A><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>INFORMATION
    REGARDING FORWARD-LOOKING STATEMENTS</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
    prospectus includes forward-looking statements, which involve risks and uncertainties. These forward-looking statements can be identified
    by the use of forward-looking terminology, including the terms &ldquo;believe,&rdquo; &ldquo;estimate,&rdquo; &ldquo;project,&rdquo;
    &ldquo;anticipate,&rdquo; &ldquo;expect,&rdquo; &ldquo;seek,&rdquo; &ldquo;predict,&rdquo; &ldquo;continue,&rdquo; &ldquo;possible,&rdquo;
    &ldquo;intend,&rdquo; &ldquo;may,&rdquo; &ldquo;might,&rdquo; &ldquo;will,&rdquo; &ldquo;could,&rdquo; would&rdquo; or &ldquo;should&rdquo;
    or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters
    that are not historical facts. They appear in a number of places throughout this prospectus and include statements regarding our
    intentions, beliefs or current expectations concerning, among other things, our products, product development, prospects, strategies,
    the industry in which we operate and potential acquisitions. We derive many of our forward-looking statements from our operating
    budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution
    that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors
    that could affect our actual results. Forward-looking statements should not be read as a guarantee of future performance or results
    and may not be accurate indications of when such performance or results will be achieved. In light of these risks and uncertainties,
    the forward-looking events and circumstances discussed in this prospectus may not occur and actual results could differ materially
    from those anticipated or implied in the forward-looking statements.</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Forward-looking
    statements speak only as of the date of this prospectus. You should not put undue reliance on any forward-looking statements. We
    assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors
    affecting forward-looking information, except to the extent required by applicable laws. If we update one or more forward-looking
    statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
    should read this prospectus and the documents that we reference in this prospectus and have filed with the SEC as exhibits to the
    registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity,
    performance and events and circumstances may be materially different from what we expect. All forward-looking statements are based
    upon information available to us on the date of this prospectus. Important factors that could cause our results to vary from expectations
    include, but are not limited to:&nbsp;</FONT></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>
<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    are employing a business model with a limited track record, which makes our business difficult to evaluate;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    intend to utilize a significant amount of indebtedness in the operation of our business;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
    ability to retain our executive officers and other key personnel of our advisors and their affiliates;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
    investments are and will continue to be concentrated in certain markets and in the single-family properties sector of the real estate
    industry, thus, exposing us to risk concentrations, which, in turn, exposes us to risk caused by seasonal fluctuations in short-term
    rental demand and downturns in certain markets or in the single-family properties sector;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
    face significant competition in the short-term rental market for guests, which may limit our ability to short-term rent our properties
    on favorable terms; and</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
    impact of laws and regulations regarding privacy, data protection, consumer protection, and other matters. Many of these laws and
    regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary
    penalties, or otherwise harm our business.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By
their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that
may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that
our actual results of operations, financial condition, business and prospects may differ materially from those made in or suggested by
the forward-looking statements contained in this prospectus. In addition, even if our results of operations, financial condition, business
and prospects are consistent with the forward-looking statements contained in this prospectus, those results may not be indicative of
results in subsequent periods.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or
risk factors that we are faced with. Forward-looking statements necessarily involve risks and uncertainties, and our actual results could
differ materially from those anticipated in the forward-looking statements due to a number of factors, including those set forth below
under &ldquo;Risk Factors&rdquo; and elsewhere in this prospectus. The factors set forth below under &ldquo;Risk Factors&rdquo; and other
cautionary statements made in this prospectus should be read and understood as being applicable to all related forward-looking statements
wherever they appear in this prospectus. The forward-looking statements contained in this prospectus represent our judgment as of the
date of this prospectus. We caution readers not to place undue reliance on such statements. Except as required by law, we undertake no
obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events
occur in the future. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the cautionary statements contained above and throughout this prospectus.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">You
should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement
of which this prospectus is a part completely and with the understanding that our actual future results may be materially different from
what we expect. We qualify all of our forward-looking statements by these cautionary statements.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

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OF CONTENTS</U></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0cm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

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<TR STYLE="font: 10pt Times New Roman, Times, Serif">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 91%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="border-bottom: black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; width: 8%; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Page</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_001"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prospectus Summary</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_003"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Information Regarding Forward-Looking Statements</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">i</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a_002">Risk Factors</A></FONT></TD>
<TD>&nbsp;</TD>
<TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">13</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#G_001">Trademarks, Service Marks, Copyrights and Tradenames</A></FONT></TD>
<TD>&nbsp;</TD>
<TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">43</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_004"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Use of Proceeds</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">44</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_005"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Market Information for Securities and Dividend Policy</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">44</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_006"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">45</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_007"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Business</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">53</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_008"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">68</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_009"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Executive Compensation</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">74</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_010"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Principal Stockholders</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">77</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_011"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Certain Relationships and Related Party Transactions</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">78</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_012"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Registered Stockholders</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">79</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_012a">Description of Securities</A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">84</FONT></TD></TR>
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<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_012b">Material U.S. Federal Income Tax Consequences to Non-U.S. Holders</A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">88</FONT></TD></TR>
<TR STYLE="background-color: White">
<TD STYLE="font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#G_002">Plan of Distribution</A></FONT></TD>
<TD STYLE="font-size: 10pt">&nbsp;</TD>
<TD STYLE="text-align: center; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">93</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_014"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Legal Matters</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">95</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: White">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_015"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Experts</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">95</FONT></TD></TR>
<TR STYLE="font: 10pt Times New Roman, Times, Serif; background-color: rgb(204,238,255)">
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><A HREF="#a_016"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Where You Can Find More Information</FONT></A></TD>
<TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
<TD STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">95</FONT></TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>About
this Prospectus</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
prospectus is part of a registration statement on&nbsp;Form&nbsp;S-1&nbsp;that we filed with the SEC using a &ldquo;shelf&rdquo; registration
or continuous offering process. Under this process, the Registered Stockholders may, from time to time, sell the common stock covered
by this prospectus in the manner described in the section titled &ldquo;Plan of Distribution.&rdquo; Additionally, we may provide a prospectus
supplement to add information to, or update or change information contained in, this prospectus, including the section titled &ldquo;Plan
of Distribution.&rdquo; You may obtain this information without charge by following the instructions under the section titled &ldquo;Where
You Can Find Additional Information&rdquo; appearing elsewhere in this prospectus. You should read this prospectus and any prospectus
supplement before deciding to invest in our common stock.&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of April 17, 2023, we have
a total of 42,522,091 shares of our common stock issued and outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Certain amounts, percentages,
and other figures presented in this prospectus have been subject to rounding adjustments. Accordingly, figures shown as totals, dollars,
or percentage amounts of changes may not represent the arithmetic summation or calculation of the figures that precede them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_001"></A>PROSPECTUS
SUMMARY</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>This
prospectus summary highlights certain information contained elsewhere in this prospectus. As this is a summary, it does not contain all
of the information that you should consider in making an investment decision. You should read the entire prospectus carefully, including
the information under the sections entitled &ldquo;Risk Factors,&rdquo; &ldquo;Management&rsquo;s Discussion and Analysis of Financial
Condition and Results of Operations&rdquo; and our financial statements and the related notes thereto included in this prospectus, before
investing. This prospectus includes forward-looking statements that involve risks and uncertainties. See &ldquo;Information Regarding
Forward-Looking Statements.&rdquo; Unless the context otherwise requires, we use the terms &ldquo;reAlpha,&rdquo; the &ldquo;Company,&rdquo;
&ldquo;we,&rdquo; &ldquo;us&rdquo; and &ldquo;our&rdquo; in this prospectus to refer to reAlpha Tech Corp. and any and all of our subsidiaries.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: #011024"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Overview</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: #011024"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We are an early stage company with a mission to develop and utilize
our artificial intelligence focused technology stack to empower retail investor participation in short-term rental properties, which are
real estate units listed for a rental term of 31 days or less. People may use vacation rentals for a variety of reasons including, but
not limited to: vacation or travel, relocation for an upcoming move, a place to stay while their residence is going through renovations
or repairs, extended work trips, special events like weddings or family reunions, temporary work assignments, or seasonal activities.
We were founded on the belief that every person should have the access and the freedom to pursue wealth creation through real estate.
However, there are significant barriers to entry for the average individual and lucrative returns are currently mainly realized by private
equity firms and larger-scale developers. We intend to leverage technology to democratize access to short-term rental investments. To
support this goal, we intend to build what we believe would be a new model for property ownership and real estate investment. We believe
in simplified wealth creation, access to new markets, diversification, exceptional guest experiences, and community-building network effects.</P>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Business Model</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Our business model is built around providing retail investors with
the opportunity to participate in short-term rental properties we will acquire by offering interest in each property portfolio. We intend
to make that opportunity available pursuant to exempt offerings directed at those retail investors through syndications, which investors
we call &ldquo;Syndicate Members,&rdquo; as described below. We are focusing on the short term rental industry since it is highly fragmented
and is ideal for consolidation from both a real estate and technology and artificial intelligence perspective. According to public filings
from Airbnb, Inc. (&ldquo;Airbnb&rdquo;), the total market size is estimated to be $1.2T.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company decided to focus on short-term rentals (vs. long term rentals) because of their profitability. We believe short-term rentals
can be more profitable than long-term rentals for three main reasons:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Higher
                                            rental rates</I>. Short-term rental rates are typically higher than long-term rental rates,
                                            especially in popular tourist destinations or during peak travel seasons.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Flexibility</I>.
                                            With short-term rentals, you have the flexibility to adjust your rental rates and availability
                                            based on demand.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>More
                                            tax deductions</I>. Short-term rental owners may be able to deduct more expenses than long-term
                                            rental owners, such as cleaning fees, supplies, and utilities.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
implement our business model, we plan to acquire properties that satisfy our internal Investment Criteria (as defined below) (the &ldquo;Target
Properties&rdquo;). Then, if needed, we renovate the Target Properties, prepare them for rent, list them on short-term rental sites and
arrange for the Target Properties to be managed, internally or through third-parties. Eventually, we expect such management of the Target
Properties will be beneficial for the Company as well as the investors that acquire minority interests through syndications (or through
a real estate investment trust, as applicable). We expect that in the future these investors will become Syndicate Members through the
purchasing of minority interests in our acquired properties. In addition to managing the property operations, whether internally or through
third-parties, we will also manage the financial performance of the asset, such as evaluating if the after-repair value or appreciated
value of the property is higher than the purchase price, or whether the property is ready to generate the expected profitability. At
this time, we started our first syndication of one of our Orlando properties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1.5pt solid; width: 49%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>The
    average person does not:</B></FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 2%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: black 1.5pt solid; width: 49%; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Proposed
    solution:</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Have
    access to wholesale real-estate market prices.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
    a bulk buyer, we will have access to the wholesale real estate market, which most people do not even know exists. This includes bulk
    portfolio acquisition strategy.</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Have
    the cash for a 25% down payment.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reAlpha
    has strategic partnerships with lending institutions, which will allow us to close on property acquisitions within two to three weeks
    rather than the two to three months customary period for property acquisitions.</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Have
    the time to buy, renovate and manage an investment property.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reAlpha
    handles the acquisition, renovation, onboarding and property management. Syndicate Members never have to answer a guest or pick up
    a paintbrush.</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Want
    to deal with a complex mortgage process (personal guarantee, negotiation with lenders, personal credit checks).</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reAlpha
    eliminates the entire process for Syndicate Members. Syndicate Members will never need to give a personal guarantee and their credit
    will never be checked when financing directly through reAlpha.</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Qualification
    + Mortgage Lending Restrictions - Income determines how much an individual can leverage/borrow.</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By
    fractionalizing the ownership process, we expect reAlpha Syndicate Members can own a smaller percentage of a home or group of homes
    rather than covering an entire down payment and being required to go through loan qualification requirements required by lenders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Through
these property acquisition investments, our goal is to obtain: (i) consistent cash flow from short-term tenants; (ii) long-term capital
appreciation by leveraging our property&rsquo;s value after repair and/or renovations in appreciating markets; and (iii) favorable tax
treatment of long-term capital gains.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
finance these property acquisition investments, we may engage in leverage financing to enhance total returns to our Syndicate Members
and investors through a combination of senior financing on our real estate acquisitions, secured facilities, and capital markets financing
transactions. We will seek to secure conservatively structured leverage that is long-term, non-recourse, non-mark-to-market financing
to the extent obtainable on a cost-effective basis. Our operating policies in respect to credit risk and interest rate risk we may face
in connection with these financings include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Credit
Risk Management</B><I>. </I>We may be exposed to various levels of credit and special hazard risk depending on the nature of our assets.
We will review and monitor credit risk and other risks of loss associated with each investment and our overall credit risk and levels
of provision for loss.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Interest
Rate Risk Management</B><I>. </I>We will follow an interest rate risk management policy intended to mitigate the negative effects of
major interest rate changes. We intend to minimize our interest rate risk from borrowings by attempting to &ldquo;match-fund,&rdquo;
which means that we will seek to structure the key terms of our borrowings to generally correspond with the expected holding period of
our assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Syndicate
Member Exempt Offerings</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
implement our business model, we will purchase Target Properties, as described below, through wholly-owned LLCs that will be formed for
each property or group of related properties that are ready to be listed on short term rental sites (as described below in &ldquo;<I>Business
- Business Process for Acquired Properties</I>&rdquo; below). We expect to utilize a credit line to facilitate funding and acquisition
of Target Properties. As we grow and develop additional funding sources, we may set up additional subsidiaries to further facilitate
funding and credit opportunities available to us through each of these additional subsidiaries (for more information on our most recent
credit facility agreement, refer to the &ldquo;<I>Recent Developments</I>&rdquo; section below).</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
2023, we started to offer securities to Syndicate Members via a SEC registered broker-dealer managed process under Section 4(a)(6) of
the Securities Act, or directly by the issuer under Section 4(a)(2) of the Securities Act and/or Regulation D, where only accredited
investors are involved. As we transition from properties that have been placed in the market utilizing lines of credit or short-term
financing to long-term funding and syndicate membership, we may restructure our holdings. Specifically, we may refinance our property
holdings with different lenders that may offer better financing terms after the property has between 3 to 6 months of operation history.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">However,
we expect reAlpha Acquisitions, LLC, one of our subsidiaries, will maintain management control of each of the LLCs. When this phase is
implemented, we expect Syndicate Members to collectively buy up to 100% of the newly formed LLC. The offerings by the LLCs of Syndicate
Membership will be made after the completion of this Direct Listing, pursuant to Securities and Exchange Commission Regulation A, Regulation
Crowdfunding, Regulation CF or Regulation D, all of which we believe would be available for such offerings and facilitate the utilization
of exemptions from registration under federal and state securities laws (see &ldquo;<I>Recent Developments</I> - <I>First Syndication
of the Jasmine property</I>&rdquo; for more details on our most recent Syndicate Member offering).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Growth Strategy </B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business and growth strategy consists of acquiring Target Properties through the use of our credit facilities, furnish, lightly renovate,
if needed, and rent them on the short-term rental market. We will manage, selectively leverage and sell homes located in markets that
satisfy our market selection requirements across the United States, as further described below. In the future, we may consider expanding
to other favorable global markets. We believe that these markets should offer investors a blend of attractive yields and a prospect for
long-term property value appreciation.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Market
Selection</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
intend to focus our business efforts on the markets in which Airbnb operates, which include some or all of the following characteristics:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sufficient
    inventory to make it feasible to achieve scale in the local market (100 &ndash; 500 homes);</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Large
    universities and skilled workforce;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Popular
    with Airbnb travelers;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Favorable
    competitive landscape with respect to other institutional residence buyers; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hotel
    room capacity and occupancy rates in given destinations.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">During
our testing phase, we started acquiring properties in our initial geographic market of Dallas, Texas as a proof of concept. Now, we have
discontinued our Dallas operations by selling any properties we previously had in that market, and moved into the Orlando, Florida market.
We believe that this market offers strong growth in population, jobs, rental rates, and value appreciation. Additionally, we have selected
Tampa, Ft. Lauderdale, and Panhandle areas in Florida as our next markets.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<DIV STYLE="padding: 6pt; border: Black 1.5pt solid; width: 98%">

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
will focus on acquiring properties we believe (i) are likely to generate stable cash flows in the short-term rental market and/or (ii)
have the potential for long-term capital appreciation, such as those located in neighborhoods with what we see as high growth potential
and those available from sellers who are distressed or face time-sensitive deadlines. As a result of the extended time to complete the
renovation of properties caused by the current supply chain issues, including labor, material, and furniture shortages, we have shifted
the focus of our acquisition strategy to rent-ready homes. This will help us to deploy the properties that we purchase to be onboarded
on Airbnb and start generating revenues more quickly as these rent-ready properties do not need any major upgrades. In the future, we
may revisit purchasing renovation heavy homes depending on the labor and supply availabilities.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
expect to revisit market statistics and market selection criteria on a periodic basis. Selected markets may not necessarily meet every
single criterion. In the future, we may choose to enter additional markets such as Florida, California, Texas, New York, Illinois and,
eventually, we expect that will expand to other states in the U.S., and subsequently globally. At this time, we have not set a timeline
for expansion. We may also evaluate certain additional markets in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Investment
Criteria</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
determine our Target Properties utilizing our investment criteria, which evaluates acquisition investments using our proprietary algorithms
(the &ldquo;Investment Criteria&rdquo;). Investment decisions made pursuant to our Investment Criteria may include single-family homes,
multifamily units, experiential properties, resorts, resort communities and others.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
plan to have continuously assess property acquisition investments using our Investment Criteria and intend to purchase properties that
include, but are not limited to, the following primary characteristics:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Target Properties identified by our reAlpha Score algorithms
    (described below) are considered for acquisition;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Target Properties with an average of three (3) bedrooms
    and two (2) bathrooms per unit;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Target Properties with an average price range of $250,000
    - $600,000 and a repair/improvement budget requirement of less than 20% of the home purchase price; In select markets, this price
    range may significantly vary.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
also intend to regularly consider acquiring properties outside of these ranges depending on market conditions, uniqueness, and condition
of the Target Property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Investment
Decisions</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
we will employ our proprietary technology and our real estate professionals to identify suitable properties for acquisition, the Company
will be responsible for final decisions. We will use the methodology described below and our bespoke technologies to reach buy or sell
decisions. We have developed an investment approach that combines the experience of our management, the reAlpha Score and an approach
that emphasizes market research, underwriting standards and down-side analysis of the risks of each investment.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">To
execute our disciplined investment approach, we plan to closely monitor the profit and loss of each investment.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following is a summary of our methodology for property acquisition:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Local
                                            Market Research. </I>We will research the acquisition and underwriting of each transaction.
                                            The research will focus on finding any &#8220;red flags&#8221; to acquire a property. These
                                            &#8220;red flags&#8221; include (i) heavy regulation on short-term rentals at a state, county,
                                            or homeowner&#8217;s association (&#8220;HOA&#8221;) level; (ii) homes that have been on
                                            the market for longer than a year, or (iii) areas where natural disasters are extremely common
                                            and damaging. Additionally, we consider things such as tourist numbers and market size, seasonality,
                                            walkability, proximity to airports, restaurants and entertainment and events that would attract
                                            renters.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Underwriting
                                            Discipline. </I>We will examine all elements of a potential investment, including, with respect
                                            to real property, its location, income-producing capacity, prospects for long-range appreciation,
                                            tax considerations and liquidity.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 2.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Risk
                                            Management. </I>Operating or performance risks generally arise at the investment level and
                                            often require real estate operating experience to cure, as described in the &#8220;<I>Risk
                                            Factors</I>&#8221; section below. We will review the current operating performance of property
                                            investments against our internal projections and provide the oversight necessary to detect
                                            and resolve issues as they arise.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 2.25pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Asset
                                            Management</I>. Prior to the purchase of a property, we will develop a property business
                                            strategy, which will be customized based on the acquisition and underwriting data. Our property
                                            business strategy is a forecast of the action items to be taken and the capital needed to
                                            achieve the targeted returns for a Target Property. The property business strategy includes:
                                            (i) offer amount and negotiations, (ii) financing structure, (iii) furniture and design,
                                            (iv) achieving the most beneficial holding period for the property, (v) tax strategy and
                                            (vi) exit strategy. These strategies will be customized based on data found during the due
                                            diligence process for each of Target Property to adapt to economic conditions, seasonality,
                                            and the unique factors of each market.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Business
Process for Acquired Properties</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Once
we have decided to acquire a property using our Investment Criteria, we intend to use the following steps to maximize its value:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 54pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">1.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
                                            wholly-owned subsidiary (e.g. wholly-owned LLCs) buys the Target Property using short-term
                                            leverage provided by one of our lending partners.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">2.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            wholly-owned subsidiary arranges for the renovation of the purchased Target Property, at
                                            the cost of that wholly-owned subsidiary, by one of our preselected national partners after
                                            transferring it to the new reAlpha LLC subsidiary.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Within
                                            a period of 4-to-18-months, reAlpha will refinance the Target Property by swapping the short-term
                                            loan with a long-term loan from any one of our lending partners. If current market conditions
                                            or lending opportunities are poor, we may choose to not refinance or refinance out of the
                                            respective target time frame of 4-to-18 months.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                            the after-repair value or appreciated value (within 4 to 18 months after acquisition) of
                                            the Target Property is higher than the purchase price, then the remaining money from the
                                            equity may be used for purchasing additional properties in the same reAlpha LLC subsidiary
                                            for all owners.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
                                            new reAlpha LLC subsidiary will offer up to 100% of its membership interests for purchase
                                            through syndicate membership (or other investment vehicle such as real estate investment
                                            trust), as explained above.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            Syndicate Members may receive distributions proportional to their membership based on the
                                            free cash flows after taxes from the overall performance of the property on Airbnb.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After
                                            the Target Property <FONT STYLE="color: #1D1C1D">has generated the target returns</FONT>
                                            the property may be sold to book the profit for the reAlpha LLC subsidiary.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8.</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
                                            profit, if any, may be used to purchase further properties in the same reAlpha LLC subsidiary
                                            for our benefit and the benefit of the Syndicate Members. The Syndicate Members may choose
                                            to invest further in new properties or redeem their investments.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
we may sell properties, we intend to hold and manage the properties we acquire for a period of one to six years. The reAlpha LLCs that
will manage these properties will receive a gross fee of 15% to 30% of the property&rsquo;s revenue. The 15-30% fee is of gross receipts
generated by the property. &ldquo;Gross Receipts&rdquo; means (i) receipts from the short-term or long-term rental of the property; (ii)
receipts from rental escalations, late charges and/or cancellation fees; (iii) receipts from tenants for reimbursable operating expenses;
(iv) receipts from concessions granted or goods or services provided in connection with the Property or to the tenants or prospective
tenants; (v) other miscellaneous operating receipts; and (vi) proceeds from rent or business interruption insurance, excluding (A) tenants&rsquo;
security or damage deposits until the same are forfeited by the person making such deposits, (B) property damage insurance proceeds,
and (C) any award or payment made by any governmental authority in connection with the exercise of any right of eminent domain.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
each of our properties reaches what we believe to be its appropriate disposition value, based on internal metrics, we will consider disposing
of the property. The determination of when a particular property should be sold or otherwise disposed of will be made after consideration
of relevant factors, including prevailing and projected economic conditions, whether the value of the property is anticipated to appreciate
or decline substantially, and how any existing leases on a property may impact the potential sales price. The Company will utilize the
reAlpha Score to measure properties against set key performance indexes and determine when to objectively dispose of a property. The
Company may determine that it is in the best interests of stockholders to sell a property earlier than one year or to hold a property
for more than six years. When we determine to sell a particular property, we intend to achieve a selling price that captures the capital
appreciation for investors based on then-current market conditions. We cannot assure you that this objective will be realized.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each
property will be charged a market rate property disposition fee that are paid by the seller at the time of the sale, consisted of realtor
fees and closing costs (taxes and other related costs). This disposition fee should cover property sale expenses such as brokerage commissions,
and title, escrow and closing costs upon the disposition and sale of a property. It is expected that this disposition fee charged will
range from 6% to 8% of the property sale price. Following the sale of a property, the Company expects to re-invest the proceeds of such
sale, minus the property disposition fee described in this paragraph, into more properties for our portfolio and for the Syndicate Members
to have the opportunity to invest in.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
the properties may be also managed by third-party property management firms at the Company&rsquo;s discretion. The services provided
by such third-party property manager would include (i) ensuring compliance with local and other applicable laws and regulations; (ii)
handling tenant access to properties; (iii) and any other action deemed necessary by the property manager or desirable for the performance
of any of the services under our respective management agreement. These management agreements are subject to an asset management fee
between 15% and 30% of the short-term rental gross revenue generated. As we achieve scale in the number of properties owned and operated,
we may seek to bring property management in-house. In the event we manage a property, such property management fees would then be retained
by us. If a short-term rental property is vacant and not producing rental income, the property management fee will not be paid during
any such period of vacancy, including properties managed by third-parties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
operating expenses that each reAlpha LLC will be responsible for, as described above, include, but is not limited to: (i) mortgage principal
and interest; (ii) property tax; (iii) homeowner insurance; (iv) utilities; (v) landscaping; (vi) pool maintenance costs; (vii) routine
maintenance and repairs; (viii) HOA fees; and (ix) pest control. We will share the expenses related to the short-term rental properties
with the Syndicate Members and will bear its own operating and management expenses in proportion to the ownership of the LLC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Our
Platform and Technologies</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>reAlpha
App (Trademarked as reAlpha M3<SUP>TM</SUP>)</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
reAlpha App is a mobile application we are developing, which, when operational, will allow Syndicate Members to view live the financial
metrics and performance of properties they have invested in. Just as you may monitor your stock portfolio and performance on an app like
Robinhood, the reAlpha App will give Syndicate Members real-time visibility into their property asset portfolio and performance.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
reAlpha App is being designed to support our mission to make real estate ownership accessible and user friendly. When operational, it
will fetch property listing data as well as data on short-term rental market trends from multiple third party API providers and display
the consolidated data for a particular property in an easily accessible format. The reAlpha app will be a broker-dealer managed marketplace
that our Syndicate Members will be able to utilize with ease.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>reAlpha
HUMINT<SUP>TM</SUP></I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the artificial
intelligence (&ldquo;AI&rdquo;) being utilized in our technologies, we added a human factor that analyzes the short-term rental profitability.
Qualitative features depend on human analysis and cannot be fetched automatically. That is why we will utilize both internal analysts
at reAlpha and freelance analysts.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
reAlpha HUMINT app allows property analysts to analyze the property and provide the missing property features together with an estimated
reAlpha score. This is used as feedback to improve reAlpha BRAIN AI.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>BnBGPT</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">BnBGPT
is a product that simplifies the process of generating personalized and effective home descriptions. The app is designed for both realtors
and hosts, with features that help them save time and money while creating descriptions that stand out in a crowded market. Our GPT powered
app for real estate is an essential tool for anyone looking to leave a mark in the real estate industry. By harnessing the power of AI,
our app ensures that each description is personalized and effective, giving users a competitive edge in the marketplace.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
<I>Realtors</I>. Our app will offer a feature that generates advertising content directly from uploaded images and they can be used by
realtors to advertise their properties, eliminating the need for professional copywriters and other costly marketing tools. This makes
it easy for realtors to create descriptions that truly capture the essence of a home and highlight its unique features and benefits.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
<I>Hosts</I>. Our app will offer features that simplify the process of creating descriptions for Airbnb, VRBO, and Booking.com listings.
Our app will automatically organize these descriptions into sections, making it easy to highlight key features of a space and provide
important information about guest access. Additionally, we will include the proximity data of attractions near the property (e.g., restaurants,
museums, areas of interest for tourists in the area and others), making it easier to highlight those for the host. This helps hosts spend
less time writing descriptions and more time focusing on providing a great guest experience.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Competition
and Competitive Strengths</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
face competition from different sources in our primary activity of acquiring properties. We believe our competitors in acquiring properties
for investment purposes are individual investors, small private investment partnerships looking for one-off acquisitions of investment
properties that can either be leased or restored and sold, and larger investors, including private equity funds and other REITs, that
are seeking to capitalize on the same market opportunity that we have identified. Our primary competitors in acquiring portfolios include
large and small private equity investors, public and private REITs, and other sizable private institutional investors. These same competitors
may also compete with us for investors. Competition may increase the prices for properties that we would like to purchase, reduce the
amount of rent we may charge for our properties, reduce the occupancy of our portfolio, and adversely impact our ability to achieve attractive
total returns. We also face competition from other real estate platform companies such as Roofstock, Inc., Fundrise LLC, Invitation Homes,
Pacaso, as well as a range of emerging new entrants. There are a number of established and emerging competitors in the real estate platform
market. The market is fragmented, rapidly evolving, competitive, and with relatively low barriers to entry.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 18pt; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
our competitors may be more established and better funded than we are, we believe that our acquisition platform, Investment Criteria,
extensive in-market property operations infrastructure, and local expertise in our markets provide us with competitive advantages. We
consider our competitive differentiators in our market to primarily be:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">our
                                            focus on the short-term rental market, compared to other established players in the industry
                                            that focus on long-term rentals;</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">Syndicate
                                            Member rewards program that allows for utilization of properties when they are unoccupied,
                                            which is currently being developed;</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">consistent
                                            short-term rental income with use of optimum amounts of leverage;</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">our
                                            proprietary technology to make objective and strategic investments in property and market
                                            selection;</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">lower
                                            minimum investment amounts; and</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: top; text-align: justify">
<TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.5in"></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&#9679;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">favorable
                                            tax treatment associated with long-term capital gains.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: normal">&nbsp;</FONT></P>

</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Intellectual
Property</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is currently developing four technologies. However, this is only part of our technology roadmap. We strive to continue innovating
for our benefit and for the benefit of our Syndicate Members by using better wealth-creation tools, as well as generating returns by
leveraging new technologies to optimize guest experience.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>reAlpha
BRAIN<SUP>TM </SUP>&amp; reAlpha Score*</I></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"><IMG SRC="image_003.jpg" ALT=""></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: center; color: Red"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I></I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Patent
applied</FONT></TD>
</TR></TABLE>



<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
reAlpha BRAIN<SUP>TM </SUP>will bring machine learning (&ldquo;ML&rdquo;) and AI to the world of short-term rental investment. This platform
will utilize a natural language processing (&ldquo;NLP&rdquo;) program to scan through large quantities of data regarding properties
and ML algorithms to choose the properties that have higher than expected industry standard return on investment. For this, it will gather
and integrate a variety of data relevant to the properties from multiple sources including wholesalers, various multiple listing service
(&ldquo;MLS&rdquo;) data sources, realtors, small Airbnb &ldquo;mom and pop&rdquo; operators, and other larger property owners. For instance,
it will collect data on the properties&rsquo; price, house structure and sale history from different MLS&rsquo; listings in the U.S.
This data, combined with the information about the neighborhood appeal, accessibility and safety of the neighborhood surrounding the
properties enables the algorithm to learn the hidden patterns underlying high return short-term rental investments. This will allow reAlpha
to predict how likely a particular property will generate expected profitability. The platform will convey this knowledge by assigning
each property with a &ldquo;reAlpha Score&rdquo; ranging from 0-100. The higher the value, the more favorable a property is for investment.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Currently,
the process of analyzing a property as a potential investment typically begins with an email received from real-estate agent&rsquo;s
distribution list to which reAlpha has subscribed. However, we use multiple other sources outside of inbound emails to identify properties.
In the email scenario, the reAlpha BRAIN<SUP>TM</SUP> will include an AI email parser based on NLP that looks for the property of concern
within the unstructured email and extracts its street address. This address will then be used to query various data providers for a detailed
description of the property&rsquo;s structure, neighborhood and finances. This ML model, which is being built and will be hosted on the
Amazon Sagemaker platform provided by Amazon Web Services (&ldquo;AWS&rdquo;), will then calculate the reAlpha Score for that property.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
model will also continuously improve and learns over time. As the Company makes its decision to invest in properties, the model will
check the effectiveness of its recommendations to reduce false positives and false negatives. As of April 2023, the reAlpha BRAIN has
analyzed over 1,500,000 homes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Recent
Developments</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Regulation
A Offering</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">We completed our Regulation A+ offering on January 19, 2022, and we
raised $8,555,370 as a result of that offering as of January 31, 2023.</P>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>reAlpha
Acquisitions Churchill, LLC</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reAlpha
Acquisitions Churchill, LLC, a wholly-owned subsidiary of the Company was formed on May 17, 2022, to hold properties acquired and utilizing
financing provided by Churchill Finance I, LLC. reAlpha Acquisitions Churchill, LLC, executed a master credit facility worth up to $200
million on August 18, 2022. This credit facility allows a loan-to-cost ratio of up to 80% and is at a fixed rate of 12%. Access to this
credit facility will allow us to acquire properties with the intention of utilizing them as short-term rental properties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>reAlpha
Realty, LLC</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have also formed an in-house brokerage, reAlpha Realty, LLC, a subsidiary of reAlpha Asset Management, Inc. (DBA reAlpha Homes) on September
12, 2022. reAlpha Realty, LLC operates out of a new office in Miramar, Florida, reAlpha Realty is led by Designated Broker Jorge Aldecoa,
who also serves as President of reAlpha Homes.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Tree
Houses Partnership</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
July 2022, we also signed a partnership with Free Spirit Spheres, a developer of tree houses that can be used for short-term rental.
We intend to utilize this partnership for the development of tree houses in the United States for short-term rental to allow guests unique
experiences consistent with our brand development strategy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>reAlpha Homes and
SAIML Capital Pte. Limited </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in">On November 17, 2022, reAlpha Homes and SAIML Capital Pte. Limited,
a Singapore-based asset management firm, signed a binding term sheet to form a joint venture to invest $40.8 million in equity in rent-ready
short-term rental (&ldquo;STR&rdquo;) properties. Balaji Swaminathan, who was appointed as a member of our board of directors in April
2023, is the Chief Executive Officer and director of SAIML Capital Pte. Limited. The joint venture, once formed, would have a 51% stake
held by reAlpha Homes and a 49% stake held by SAIML. The joint venture planned to make up to $200 million in investments across California,
Arizona, Florida, and Tennessee, leveraging the reAlphaBRAIN to identify properties that meet its investment criteria pursuant to the
terms and conditions of a definitive joint venture agreement to be entered into on or before January 31, 2023. This joint venture may
have also expanded its partnership by contributing an additional $61.2 million of equity, with the potential to invest up to $500 million
in STR properties through additional debt financing. As of the date hereof, the definitive joint venture agreement has not been entered
into and, therefore, this joint venture has not been formed. Mr. Swaminathan received no compensation under the term sheet while it was
outstanding.</P>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>GEM
Global Yield LLC Capital Commitment</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
December 1, 2022, reAlpha Homes entered into an agreement with GEM Global Yield LLC SCS (&ldquo;GEM&rdquo;) a Luxembourg-based private
alternative investment group, for a $100 million capital commitment, which includes a share subscription facility of up to $100 million
for a 36-month term following a public listing by reAlpha Tech Corp. (the &ldquo;GEM Agreement&rdquo;). The Company will have control
in terms of timing and, within certain limits, the maximum amount of each individual drawdown. There is no minimum drawdown obligation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; color: #111111">Pursuant
to the GEM Agreement, the Company can issue a Draw Down Notice (&ldquo;Draw Down Notice&rdquo;) at any time (the &ldquo;Draw Down&rdquo;),
which will trigger the commencement of a Pricing Period (&ldquo;Pricing </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Period&rdquo;).
The Pricing Period will last for the following thirty (30) consecutive trading days, and the Draw Down will close on the first trading
day following the end of the Pricing Period. GEM will honor Draw Down Notices from the Company based upon a per-share subscription price
equal to ninety percent (90%) of the average closing bid price during the Pricing Period (&ldquo;Purchase Price&rdquo;).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
ninety percent (90%) of the closing bid price on a given pricing period amount is less than the threshold price (or floor price) set
by the Company (the &ldquo;Threshold Price&rdquo;), then the Investor&rsquo;s payment obligation under the Draw Down will be reduced
by 1/30th, and the closing bid price for that day will not be factored into the Purchase Price calculation. The Threshold Price will
be set prior to using this facility. For each Draw Down, the Company may issue a Draw Down Notice for up to four hundred percent (400%)
of the average daily trading volume for the Pricing Period.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>First
Syndication of the Jasmine property</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
March 2023, we opened our first Regulation CF offering listed under reAlpha 612 Jasmine Lane Inc. where we are completing our first syndication
through our initial public offering platform, whereby we offered to investors the opportunity to buy fractional minority interest in
our property. The minimum offering amount is $388,639 and the maximum is $614,036.50, inclusive of investor payment processing fees.
The offering is selling shares of the company which owns the property 612 Jasmine Lane, Davenport, FL 33897. The minimum investment is
$500 plus the 2.5% investor transaction fee. We have raised $323,600 as a result of this Regulation CF offering, and we expect it to
be concluded on or around June 30, 2023.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>reAlpha
Asset Management Inc. merges with reAlpha Tech Corp</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
March 21, 2023 (the &ldquo;Effective Time&rdquo;), reAlpha Tech Corp. (the &ldquo;Parent&rdquo;), merged with and into reAlpha Asset
Management, Inc. (the &ldquo;Subsidiary&rdquo;), pursuant to a short-form merger in accordance with Section 253 of the Delaware General
Corporate Law (&ldquo;DGCL&rdquo;) (the &ldquo;Downstream Merger&rdquo;), with the Subsidiary surviving the Merger (the &ldquo;Surviving
Corporation&rdquo;). This Downstream Merger has resulted in reAlpha Asset Management, Inc. gaining access to all of the technologies
and intellectual property owned by reAlpha Tech Corp.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to the Downstream Merger, the Parent owned more than 90% of the issued and outstanding shares of common stock of the Subsidiary. As of
the Effective Time, by virtue of the Downstream Merger and without any action on the part of the Parent, Subsidiary or Surviving Corporation,
each share of the Subsidiary&rsquo;s common stock issued and outstanding immediately prior to the Effective Time (other than shares of
the Subsidiary common stock that were cancelled, as described below) were automatically converted into one validly issued, fully paid
and nonassessable share of common stock of the Surviving Corporation. Further, each share of the Subsidiary&rsquo;s common stock issued
and outstanding immediately prior to the Effective Time that was held by the Parent or the Subsidiary (as treasury stock or otherwise)
was automatically cancelled and returned to the status of authorized but unissued shares of the Subsidiary. And, lastly, as of the Effective
Time, all of the shares of common stock of the Parent issued and outstanding immediately prior to the consummation of the Merger were
automatically converted into a number of shares of common stock of the Surviving Corporation, pro-rated for the number of shares of the
Subsidiary&rsquo;s common stock held by the Parent at such time.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 40.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Downstream Merger has resulted in the Company gaining ownership of a 25% stake in Naamche Inc., an artificial intelligence (&ldquo;AI&rdquo;)
studio, and a 25% stake Carthagos Inc., a design and branding studio. Naamche, Inc. has assisted us in research and development of our
proprietary algorithms and other technologies (see &ldquo;<I>Research and Development</I>&rdquo; section below for more details). Carthagos
Inc. is a design and branding studio that the Company acquired for marketing purposes (see &ldquo;Sales and <I>Marketing</I>&rdquo; section
below for more details). This acquisition is expected to enhance our technological capabilities, broaden its portfolio of services, and
contribute towards cost savings, positioning them for growth and success in the future.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
development is significant as it will enable reAlpha AMI to further enhance its offerings and provide customers with a broader range
of AI solutions. With access to reAlpha Tech Corp's advanced technologies and IPs, reAlpha AMI can now offer more comprehensive solutions
that cater to a wider range of industries and use cases.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>reAlpha
Asset Management Inc. changes names to reAlpha Tech Corp</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
connection with the Downstream Merger, on March 21, 2023 reAlpha Asset Management Inc. changed its name to reAlpha Tech Corp. This development
reflects the company's evolution and expansion beyond asset management into broader areas of financial technology and innovation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
name change to reAlpha Tech Corp. is not just a cosmetic rebranding, but rather a strategic move that reflects the company's broader
focus on delivering cutting-edge solutions across a wider range of property management and financial services. The company's new name
highlights its commitment to leveraging advanced technologies, including artificial intelligence and machine learning, to deliver innovative
solutions to clients.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Overall,
the name change to reAlpha Inc. is a significant development that underscores the company's commitment to growth, innovation, and delivering
exceptional value to its clients.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
additional information on recent developments, please see the discussion in &ldquo;<I>Legal Proceedings</I>&rdquo; below.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Rhove
Acquisition</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On March 24, 2023, the Company acquired Roost Enterprises, Inc. (&ldquo;Rhove&rdquo;),
a leading provider of real estate technology solutions. The Rhove acquisition includes technology developed for the purpose of syndicating
real estate properties for investment by retail and institutional investors (the &ldquo;Syndication Platform&rdquo;). Pursuant to the
Stock Purchase Agreement entered into in connection with the Rhove acquisition (the &ldquo;Stock Purchase Agreement&rdquo;) among the
Company, Rhove and certain investor sellers in Rhove (the &ldquo;Sellers&rdquo;), we acquired all the intellectual property related to
the Syndication Platform and other related intangible property and proprietary information of Rhove.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
purchase price under the Stock Purchase Agreement for the Rhove acquisition includes: (1) payment to Silicon Valley Bridge Bank, N.A.
(&ldquo;SVBB&rdquo;), of $25,000 in cash and the issuance of 49,029 shares of our common stock (collectively the &ldquo;SVBB Consideration&rdquo;),
(2) 1,263,000 shares of our for Sellers and the issuance of option letters to Sellers (on a pro rata basis) to purchase in aggregate
1,263,000 shares of our common stock for $10.00 per share with an expiration date of two years from the date of issuance; and (3) payment
of certain transaction expenses of Rhove totaling $50,000.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
part of the transaction, Rhove&rsquo;s major investor, Drive Capital and certain of its funds, became investors of reAlpha. As of the
date of acquisition, Rhove has over 5,000 users that will join the reAlpha ecosystem. As part of the transaction, Calvin Cooper, the
CEO of Rhove, will join reAlpha in an advisory role. Calvin brings a wealth of knowledge, connections, and resources in the real estate
fractionalization space.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Rhove's
innovative platform will enhance reAlpha's capabilities and enable us to offer a more seamless and efficient real estate investment experience
to our clients. With Rhove's technology, we will be able to provide our clients with access to real estate investment opportunities and
manage their investments through a user-friendly platform. Rhove's platform also offers unique features such as the ability to earn rent
rewards, making real estate investing more accessible and rewarding.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
believe that this acquisition will help us continue to innovate and deliver value to our clients, and we look forward to leveraging Rhove's
technology to drive the future of real estate investing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>Management
Changes</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
April 11, 2023, the Company entered into an employment agreement with Jorge Aldecoa to act as the Company&rsquo;s Chief Operating Officer,
replacing Michael J. Logozzo as interim Chief Operating Officer. Pursuant to Mr. Aldecoa&rsquo;s employment agreement, he will serve
as the Company&rsquo;s Chief Operating Officer until his agreement is terminated by either Mr. Aldecoa or the Company, and he will receive
a yearly salary of $200,000 for the fiscal year ended April 30, 2023 and a pro-rated amount of such base salary for the year ended April
30, 2022.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">Mr.
Aldecoa&rsquo;s employment agreement also provides for a base salary adjustment to of $215,000 upon a successful follow-on offering of
the Company&rsquo;s securities for an amount of $8 million or more, subject to the compensation committee&rsquo;s approval. Further,
Mr. Aldecoa is entitled to </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">additional compensation in
the form of a discretionary bonus of up to $50,000 based on the achievement of certain established performance targets, which is payable
annually, and certain benefits such as unlimited vacation, health insurance and others. Further, Mr. <FONT STYLE="background-color: white">Aldecoa
</FONT>is eligible to participate in the Plan (as defined below). Mr. Aldecoa or the Company may terminate the employment agreement at
any time upon written notice to the other party. Mr. <FONT STYLE="background-color: white">Aldecoa</FONT>&rsquo;s employment agreement
has a confidentiality provision and a non-compete for a period of two (2) years following the termination of his employment.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Controlled Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">A controlled company is a
company of which more than 50% of the voting power for the election of directors is held by an individual, a group or another company.
We are a controlled company because Mr. Giri Devanur, our Chief Executive Officer and Chairman, holds more than 50% of our voting power,
and we expect we will continue to be a controlled company upon the Direct Listing. For so long as we remain a controlled company, we are
exempt from the obligation to comply with certain Nasdaq corporate governance requirements, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our board of directors is not required to be
comprised of a majority of independent directors.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our board of directors is not subject to the
compensation committee requirement; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">we are not subject to the requirements that director
nominees be selected either by the independent directors or a nomination committee comprised solely of independent directors.</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt">The controlled company exemptions
do not apply to the audit committee requirement or the requirement for executive sessions of independent directors. We are required to
disclose in our annual report that we are a controlled company and the basis for that determination. Although we do not plan to take advantage
of the exemptions provided to controlled companies, we may in the future take advantage of such exemptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Selected
Risks Associated with Our Business</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Investing
in our common stock involves a high degree of risk. You should carefully consider all the information in this prospectus prior to investing
in our common stock. These risks are discussed more fully in the section entitled &ldquo;Risk Factors&rdquo; immediately following this
prospectus summary. These risks and uncertainties include, but are not limited to, the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            are employing a business model with a limited track record, which makes our business difficult
                                            to evaluate.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            technology that is currently being developed may not yield expected results or be delivered
                                            on time.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            intend to utilize a significant amount of indebtedness in the operation of our business.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A
                                            significant portion of our portfolio properties&#8217; costs and expenses are fixed and we
                                            may not be able to adapt our cost structure to offset declines in our revenue.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            ability to retain our executive officers and other key personnel of our advisors and their
                                            affiliates;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Global
                                            economic, political and market conditions and economic uncertainty caused by the recent outbreak
                                            of coronavirus (COVID-19) may adversely affect our business, results of operations and financial
                                            condition.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            investments are and will continue to be concentrated in certain markets and in the single-family
                                            properties sector of the real estate industry, thus, exposing us to risk concentrations,
                                            which, in turn, exposes us to risk caused by seasonal fluctuations in short-term rental demand
                                            and downturns in certain markets or in the single-family properties sector.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Contingent
                                            or unknown liabilities could adversely affect our financial condition, cash flows and operating
                                            results.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            are subject to certain risks associated with bulk portfolio acquisitions and dispositions.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Availability
                                            of appropriate property acquisition targets;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: 0cm"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            dependence upon third parties for key services may have an adverse effect on our operating
                                            results or reputation if the third parties fail to perform.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            face significant competition in the short-term rental market for guests, which may limit
                                            our ability to short-term rent our properties on favorable terms.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Compliance
                                            with governmental laws, regulations and covenants that are applicable to our properties or
                                            that may be passed in the future, including permit, license and zoning requirements, may
                                            adversely affect our ability to make future acquisitions or renovations, result in significant
                                            costs or delays, and adversely affect our growth strategy.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Failure
                                            to integrate any acquisitions successfully.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
                                            business is subject to laws and regulations regarding privacy, data protection, consumer
                                            protection, and other matters. Many of these laws and regulations are subject to change and
                                            uncertain interpretation, and could result in claims, changes to our business practices,
                                            monetary penalties, or otherwise harm our business.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
                                            may not be able to attract investors to invest in our portfolio properties.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                            we fail to attract guests, or if we fail to provide high-quality stays and experiences, our
                                            business, results of operations, and financial condition would be materially adversely affected.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify; text-indent: -18pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
                                            we fail to retain guests or add new guests, our business, results of operations, and financial
                                            condition would be materially adversely affected.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Corporate
Information and Incorporation</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">reAlpha
Tech Corp. (previously reAlpha Asset Management, Inc.) is a Delaware corporation formed in April 2021 (the &ldquo;Company,&rdquo; &ldquo;reAlpha,&rdquo;
&ldquo;we,&rdquo; &ldquo;our,&rdquo; or &ldquo;us&rdquo;). On March 21, 2023, we changed our name to reAlpha Tech Corp, following our
Downstream Merger (as defined above).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">reAlpha
Acquisitions Churchill, LLC, a wholly-owned subsidiary of the Company was formed on May 17, 2022, to hold properties acquired and
utilizing financing provided by Churchill Finance I, LLC. reAlpha Acquisitions Churchill, LLC, executed a master credit facility
worth up to $200 million on August 18, 2022. This credit facility allows a loan-to-cost ratio of up to 80% and is at a fixed rate of
12%. Access to this credit facility will allow reAlpha to acquire properties with the intention of utilizing them as short-term
rental properties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have also formed an in-house brokerage, reAlpha Realty, LLC, a subsidiary of the Company (DBA reAlpha Homes) on September 12, 2022. reAlpha
Realty, LLC operates out of a new office in Miramar, Florida, reAlpha Realty is led by Designated Broker Jorge Aldecoa, who also serves
as our Chief Operating Officer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: #011024"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
principal executive office is located at 6515 Longshore Loop, Suite 100, Dublin, OH 43107. Our phone number is (707) 732-5742. Our corporate
website is located at www.realpha.com. Information on our website is not part of this prospectus.</FONT></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

</DIV>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><A NAME="a_002"></A>RISK
FACTORS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>An
investment in our shares of common stock involves significant risks. Before making an investment in our shares of common stock, you should
carefully consider the risks and uncertainties discussed below under &ldquo;Information Regarding Forward-Looking Statements,&rdquo;
and the specific risks set forth herein. Any of the following risks could have a material adverse effect on our business, financial condition
and results of operations. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may
also materially and adversely affect our business, prospects, financial condition, results of operations, cash flows and ability to pay
dividends. In any such case, the market price of our shares of common stock could decline, and you may lose all or part of your investment.</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Risks
Related to Our Business</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
have a limited operating history and may not be able to operate our business successfully or generate sufficient cash flows to accomplish
our business objectives.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have a limited operating history. As a result, an investment in our common stock entails more risk than an investment in the common stock
of a company with a substantial operating history. If we are unable to operate our business successfully, you could lose all or a portion
of your investment in our common stock. Our ability to successfully operate our business and implement our operating policies and investment
strategy depends on many factors, including:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to obtain additional capital;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to effectively manage renovation, maintenance, marketing and other operating costs for our properties;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">economic
conditions in the markets which we operate in or hold an interest in real estate in (&ldquo;our markets&rdquo;), including changes in
employment and household earnings and expenses, as well as the condition of the financial and real estate markets and the economy, in
general;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to maintain high occupancy rates and target rent levels;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
availability of, and our ability to identify, attractive acquisition opportunities consistent with our investment strategy;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
ability to compete with other investors entering the sector for short-term Target Properties;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">costs
that are beyond our control, including title litigation, litigation with guests, legal compliance, real estate taxes, HOA fees and insurance;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">judicial
and regulatory developments affecting landlord-guest relations that may affect or delay our ability to dispose of our properties, evict
occupants or increase rental rates;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">population,
employment or homeownership trends in our markets; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">interest
rate levels and volatility, such as the accessibility of short-term and long-term financing on desirable terms.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
audited financial statements indicate that there is a substantial doubt about our ability to continue as a going concern.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
audited financial statements as of and for the period ended April 30, 2022 were prepared on the assumption that we would continue as
a going concern. Those financial statements and the accompanying opinion of our auditor expressed a substantial doubt about our ability
to continue as a going concern. Those audited financial statements did not include any adjustments that might result from the outcome
of this uncertainty. We will need additional capital for full commencement of our planned operations and we are subject to significant
risks and uncertainties, including failing to secure funding to commence our planned operations or failing to profitably operate the
business. We intend to raise funds through various potential sources, such as equity or debt financings; however, we can provide no assurance
that such financing will be available on acceptable terms, or at all. If adequate financing is not available, we may be required to significantly
curtail or cease our operations, and our business would be jeopardized.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"></FONT></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
have minimal operating capital and minimal revenue from operations.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have minimal operating capital and for the foreseeable future will be dependent upon our ability to finance our operations from the sale
of equity or other financing alternatives. There can be no assurance that we will be able to successfully raise operating capital. The
failure to successfully raise operating capital, and the failure to attract qualified real estate companies and sufficient investor purchase
commitments, could result in our bankruptcy or other event which would have a material adverse effect on us and our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are employing a business model with a limited track record, which makes our business difficult to evaluate.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Until
recently, the short-term rental business consisted primarily of private and individual investors in local markets and was managed individually
or by small, non-institutional owners and property managers. Our business strategy involves purchasing, renovating, maintaining and managing
a large number of residential properties and renting them short-term to guests. Entry into this market by large, well-capitalized investors
is a relatively recent trend, so few peer companies exist and none have yet established long-term track records that might assist us
in predicting whether our business model and investment strategy can be implemented and sustained over an extended period of time. It
may be difficult for you to evaluate our potential future performance without the benefit of established long-term track records from
companies implementing a similar business model. We may encounter unanticipated problems as we continue to refine our business model,
which may adversely affect our results of operations and ability to make distributions to our stockholders and cause our share price
to decline significantly.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may not be able to attract investors to invest in our portfolio properties.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
success of our business model is dependent upon our ability to attract investors to co-invest in the portfolio properties we have acquired
and those we intend to acquire in the future. There is no assurance that we will be able to obtain investors to invest in our portfolio
properties upon terms acceptable to us, if at all.</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
may not be able to effectively manage our growth, and any failure to do so may have an adverse effect on our business and operating results.</I></B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
future operating results may depend on our ability to effectively manage our potential growth, which is dependent, in part, upon our
ability to:</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">stabilize
and manage an increasing number of properties and guest relationships across a geographically dispersed portfolio while maintaining a
high level of guest satisfaction, and building and enhancing our brand;</FONT></TD>
</TR></TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">identify
and supervise a number of suitable third parties on which we rely to provide certain services outside of property management to our properties;</FONT></TD>
</TR></TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">attract,
integrate and retain new management and operations personnel; and</FONT></TD>
</TR></TABLE>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">continue
to improve our operational and financial controls and reporting procedures and systems.</FONT></TD>
</TR></TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
can provide no assurance that we will be able to manage our properties or grow our business efficiently or effectively, or without incurring
significant additional expenses. Any failure to do so may have an adverse effect on our business and operating results.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>The
acquisition of homes may be costly and unsuccessful, and, when acquiring portfolios of homes we may acquire some assets that we would
not otherwise purchase.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
business model involves acquiring homes through a variety of channels, renovating these homes to the extent necessary and leasing them
to guests. When acquiring homes on an individual basis through foreclosure sales or other transactions, these acquisitions of homes may
be costly and may be less efficient than acquisitions of portfolios of homes. Alternatively, portfolio acquisitions are more complex
than single-home acquisitions, and we may not be able to implement this strategy successfully. The costs involved in locating and performing
due diligence (when feasible) on portfolios of homes as well as negotiating and entering into transactions with potential portfolio sellers
could be significant, and there is a risk that either the seller may withdraw from the entire transaction for failure to come to an agreement
or the seller may not be willing to sell us the portfolio on terms that we view as favorable. In addition, a seller may require that
a group of homes be purchased as a package even though we may not want to purchase certain individual assets in the portfolio.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we acquire a portfolio of leased homes, to the extent the management and leasing of such homes has not been consistent with our property
management and leasing standards, we may be subject to a variety of risks, including risks relating to the condition of the properties,
the credit quality and employment stability of the residents and compliance with applicable laws, among others. In addition, financial
and other information provided to us regarding such portfolios during our due diligence may be inaccurate, and we may not discover such
inaccuracies until it is too late to seek remedies against such sellers. To the extent we timely pursue such remedies, we may not be
able to successfully prevail against the seller in an action seeking damages for such inaccuracies. If we conclude that certain assets
purchased in bulk portfolios do not fit our target investment criteria, we may decide to sell these assets, which could take an extended
period of time and may not result in a sale at an attractive price.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Properties
that are being sold through short sales or foreclosure sales are subject to risks of theft, mold, infestation, vandalism, deterioration
or other damage that could require extensive renovation prior to renting and adversely impact operating results.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">When
a property is put into foreclosure due to a default by the owner on its mortgage obligations or the value of the property is substantially
below the outstanding principal balance on the mortgage and the owner decides to seek a short sale, the owner may abandon the home or
cease to maintain the home as rigorously as the owner normally would. Neglected and vacant properties are subject to increased risks
of theft, mold, infestation, vandalism, general deterioration and other maintenance problems that may persist without appropriate attention
and remediation. If we begin to purchase a large volume of properties in bulk sales and are not able to inspect them immediately before
closing on the purchase, we may purchase properties that may be subject to these problems, which may result in maintenance and renovation
costs and time frames that far exceed our estimates. These circumstances could substantially impair our ability to quickly renovate and
lease such homes in a cost efficient manner or at all, which would adversely impact our operating results.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>We
are subject to certain risks associated with bulk portfolio acquisitions and dispositions.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
may acquire and dispose of properties we acquire or sell in bulk from or to other owners of single-family homes, banks and loan servicers.
When we acquire a portfolio of properties we may not be permitted, or it may not be feasible for us, to perform on-site inspections of
all or any of the properties in the portfolio (or, if applicable, underlying the loans in the portfolio) prior to our acquisition of
the portfolio. Such inspection processes may fail to reveal major defects associated with such properties, which may cause the amount
of time and cost required to renovate and/or maintain such properties to substantially exceed our estimates. Moreover, to the extent
the management and short-term renting of such properties has not been consistent with our property management and leasing standards,
we may be subject to a variety of risks, including risks relating to the condition of the properties, the credit quality and employment
stability of the residents and compliance with applicable laws, among others. In addition, financial and other information provided to
us regarding such portfolios during our due diligence may be inaccurate and we may not discover such inaccuracies until it is too late
to seek remedies against such sellers. To the extent we pursue such remedies, we may not be able to successfully prevail against the
seller in an action seeking damages for such inaccuracies. As a result, the value of any such properties could be lower than we anticipated
at the time of acquisition, and/or such properties could require substantial and unanticipated renovations prior to their conversion
into rental homes.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Our
evaluation of homes involves a number of assumptions that may prove inaccurate, which could result in us paying too much for any such
assets we acquire or overvaluing such assets or such assets failing to perform as we expect.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
determining whether particular homes meet our Investment Criteria, we make a number of assumptions, including, in the case of homes,
assumptions related to estimated time of possession and estimated renovation costs and time frames, annual operating costs, market rental
rates and potential rent amounts, time from purchase to leasing and resident default rates. These assumptions may prove inaccurate. As
a result, we may pay too much for homes we acquire or overvalue such assets, or our homes may fail to perform as we expect. Adjustments
to the assumptions we make in evaluating potential purchases may result in fewer homes qualifying under our Investment Criteria, including
assumptions related to our ability to lease homes we have purchased. Reductions in the supply of homes that meet our investment criteria
may adversely affect our ability to implement our investment strategy and operating results.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Furthermore,
the homes that we will acquire may vary materially in terms of time to possession, renovation, quality and type of construction, location
and hazards. Our success will depend on our ability to acquire homes that can be quickly possessed, renovated, repaired, upgraded and
rented with minimal expense and maintained in rentable condition. Our ability to identify and acquire such homes is fundamental to our
success. In addition, the recent market and regulatory environments relating to homes and residential mortgage loans have been changing
rapidly, making future trends difficult to forecast. For example, an increasing number of homeowners now wait for an eviction notice
or eviction proceedings to commence before vacating foreclosed premises, which significantly increases the time period between the acquisition
of, and the leasing of, a home. Such changes affect the accuracy of our assumptions and, in turn, may adversely affect us.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>A
significant portion of our portfolio properties&rsquo; costs and expenses are fixed and we may not be able to adapt our cost structure
to offset declines in our revenue.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Many
of the expenses associated with our portfolio properties, such as real estate taxes, HOA fees, personal and property taxes, insurance,
utilities, acquisition, renovation and maintenance costs, and other general corporate expenses are relatively inflexible and will not
necessarily decrease with a reduction in revenues. Some components of our fixed assets will depreciate more rapidly and require ongoing
capital expenditures. Our expenses and ongoing capital expenditures will also be affected by inflationary increases and certain of our
cost increases may exceed the rate of inflation in any given period or market. By contrast, short-term rental income will be affected
by many factors beyond our control, such as the availability of alternative short-term rental housing and economic conditions in our
markets. In addition, state and local regulations may require the properties that we own, even if the cost of maintenance is greater
than the value of the property or any potential benefit from renting the property, or pass regulations that limit our ability to increase
short-term rental rates. As a result, we may not be able to fully offset rising costs and capital spending by increasing short-term rental
rates, which could have a material adverse effect on our results of operations and cash available for distribution.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>If
we overestimate the value or income-producing ability or incorrectly price the risks of our investments, we may experience losses.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Analysis
of the value or income-producing ability of a property is highly subjective and may be subject to error. We value potential investments
based on yields and risks, taking into account estimated future losses on the commercial real estate loans and the mortgaged property
included in the securitization&rsquo;s pools or select commercial real estate equity investments, and the estimated impact of these losses
on expected future cash flows and returns. In the event that we underestimate the risks relative to the price we pay for a particular
investment, we may experience losses with respect to such investment.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Increasing
property taxes, HOA fees and insurance costs may negatively affect our financial results.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
cost of property taxes and insuring our properties is a significant component of our expenses. Our properties are subject to real and
personal property taxes that may increase as tax rates change and as the real properties are assessed or reassessed by taxing authorities.
As the owner of our properties, we are ultimately responsible for payment of the taxes to the applicable government authorities. If real
property taxes increase, our expenses will increase. If we fail to pay any such taxes, the applicable taxing authority may place a lien
on the real property and the real property may be subject to a tax sale.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, a significant portion of our properties may be located within HOAs and we are subject to HOA rules and regulations. HOAs have
the power to increase monthly charges and make assessments for capital improvements and common area repairs and maintenance. Property
taxes, HOA fees, and insurance premiums are subject to significant increases, which can be outside of our control. If the costs associated
with property taxes, HOA fees and assessments or insurance rise significantly and we are unable to increase rental rates due to rent
control laws or other regulations to offset such increases, our results of operations would be negatively affected.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
intend to utilize a significant amount of indebtedness in the operation of our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
intend to employ prudent leverage, to the extent available, to fund the acquisition of residential assets, refinancing existing debt
and for other corporate and business purposes deemed advisable by us. In determining to use leverage, we assess a variety of factors,
including without limitation the anticipated liquidity and price volatility of the assets in our investment portfolio, the cash flow
generation capability of our assets, the availability of credit on favorable terms, any prepayment penalties and restrictions on refinancing,
the credit quality of our assets and our outlook for borrowing costs relative to the unlevered yields on our assets. We may continue
to employ portfolio financing and expect to utilize credit facilities or other bank or capital markets debt financing, if available.
We may consider seller or in-place financing, if available, from sellers of portfolios of residential assets and potentially financing
from government sponsored enterprises if attractive programs are available. We may also utilize other financing alternatives such as
securitizations, depending upon market conditions, and other capital raising alternatives such as follow-on offerings of our common shares,
preferred shares and hybrid equity, among others. We have no limitation under our organizational documents or any contract on the amount
of funds that we may borrow for any single investment or that may be outstanding at any one time in the aggregate. We may significantly
increase the amount of leverage we utilize at any time without approval of our board of trustees.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Incurring
substantial debt could subject us to many risks that, if realized, would adversely affect us, including the risk that: (i) our cash flow
from operations may be insufficient to make required payments of principal and interest on the debt, which is likely to result in acceleration
of such debt; (ii) our debt may increase our vulnerability to adverse economic and industry conditions with no assurance that investment
yields will increase with higher financing cost; (iii) we may be required to dedicate a portion of our cash flow from operations to payments
on our debt, thereby reducing funds available for distributions to our stockholders, operations and capital expenditures, future acquisition
opportunities, or other purposes; and, (iv) the terms of any refinancing may not be as favorable as the terms of the debt being refinanced.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
we do not have sufficient funds to repay our debt at maturity, it may be necessary to refinance the debt through additional debt financings
or additional capital raising. If, at the time of any refinancing, prevailing interest rates or other factors result in higher interest
rates on refinancing, increases in interest expense could adversely affect our cash flows, and, consequently, cash available for distribution
to our stockholders. If we are unable to refinance our debt on acceptable terms, we may be forced to dispose of substantial numbers of
homes on disadvantageous terms, potentially resulting in losses. To the extent we cannot meet any future debt service obligations, we
will risk losing some or all of our homes that may be pledged to secure our obligations to foreclosure. Any unsecured debt agreements
we enter into may contain specific cross-default provisions with respect to specified other indebtedness, giving the unsecured lenders
the right to declare a default if we are in default under other loans in some circumstances. Defaults under our debt agreements could
materially and adversely affect us and cause the value of our common shares to decline.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
cash flows and operating results could be adversely affected by required payments of debt or related interest and other risks of our
debt financing.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are generally subject to risks associated with debt financing. These risks include: (1) our cash flow may not be sufficient to satisfy
required payments of principal and interest; (2) we may not be able to refinance existing indebtedness or the terms of the refinancing
may be less favorable to us than the terms of existing debt; (3) required debt payments are not reduced if the economic performance of
any property declines; (4) debt service obligations could reduce funds available for distribution to our stockholders and funds available
for capital investment; (5) any default on our indebtedness could result in acceleration of those obligations and possible loss of property
to foreclosure; and (6) the risk that necessary capital expenditures cannot be financed on favorable terms. If a property is pledged
to secure payment of indebtedness and we cannot make the applicable debt payments, we may have to surrender the property to the lender
with a consequent loss of any prospective income and equity value from such property. Any of these risks could place strains on our cash
flows, reduce our ability to grow and adversely affect our results of operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may be unable to obtain financing through the debt and equity markets, which would have a material adverse effect on our growth strategy
and our financial condition and results of operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
cannot assure you that we will be able to access the capital and credit markets to obtain additional debt or equity financing or that
we will be able to obtain financing on terms favorable to us. Our inability to obtain financing could have negative effects on our business.
Among other things, we could have great difficulty acquiring, re-developing or maintaining our properties, which would materially and
adversely affect our business strategy and portfolio, and may result in our: (1) liquidity being adversely affected; (2) inability to
repay or refinance our indebtedness on or before its maturity; (3) making higher interest and principal payments or selling some of our
assets on terms unfavorable to us to service our indebtedness; or (4) issuing additional capital stock, which could further dilute the
ownership of our existing stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Secured
indebtedness exposes us to the possibility of foreclosure on our ownership interests in our short-term rental homes.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Incurring
mortgage and other secured indebtedness increases our risk of loss of our ownership interests in our rental homes because defaults thereunder,
and the inability to refinance such indebtedness, may result in foreclosure action initiated by lenders. For tax purposes, a foreclosure
of any of our short-term rental homes would be treated as a sale of the home for a purchase price equal to the outstanding balance of
the indebtedness secured by such rental home. If the outstanding balance of the indebtedness secured by such short-term rental home exceeds
our tax basis in the short-term rental home, we would recognize taxable income on foreclosure without receiving any cash proceeds.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Covenants
in our debt agreements may restrict our operating activities and adversely affect our financial condition.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
financing arrangements that we have entered into contain (and those we may enter into in the future likely will contain) covenants affecting
our ability to incur additional debt, make certain investments, reduce liquidity below certain levels, make distributions to our stockholders
and otherwise affect our distribution and operating policies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
we fail to meet or satisfy any of these covenants in our debt agreements, we will be in default under these agreements, which could result
in a cross-default under other debt agreements, and our lenders could elect to declare outstanding amounts due and payable, terminate
their commitments, require the posting of additional collateral and enforce their respective interests against existing collateral. Additionally,
borrowing base requirements associated with our financing arrangements may prevent us from drawing upon our total maximum capacity under
these financing arrangements if sufficient collateral, in accordance with our facility agreements, is not available. Further, debt agreements
entered into in the future may contain specific cross-default provisions with respect to other specified indebtedness, giving the lenders
the right to declare a default if we are in default under other loans in some circumstances. A default also could limit significantly
our financing alternatives, which could cause us to curtail our investment activities and/or dispose of assets when we otherwise would
not choose to do so. If we default on several of our debt agreements or any single significant debt agreement, we could be materially
and adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Aspects
of our business are subject to privacy, data use and data security regulations, which may impact the way we use data to target customers.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Privacy
and security laws and regulations may limit the use and disclosure of certain information and require us to adopt certain cybersecurity
and data handling practices that may affect our ability to effectively market our manufacturing capabilities to current, past or prospective
customers. In many jurisdictions consumers must be notified in the event of a data security breach, and such notification requirements
continue to increase in scope and cost. The changing privacy laws in the U.S., Europe and elsewhere, including the General Data Protection
Regulation (&ldquo;GDPR&rdquo;) in the European Union, which became effective May 25, 2018, and the California Consumer Privacy Act of
2018, which was enacted on June 28, 2018 and became effective on January 1, 2020, create new individual privacy rights and impose increased
obligations, including disclosure obligations, on companies handling personal data. . In addition, the California Consumer Privacy Act
of 2018 (&ldquo;CCPA&rdquo;) took effect on January 1, 2020, which broadly defines personal information, gives California residents expanded
privacy rights and protections, and provides for civil penalties for certain violations. Furthermore, in November 2020, California voters
passed the California Privacy Rights and Enforcement Act of 2020 (&ldquo;CPRA&rdquo;), which amends and expands CCPA with additional
data privacy compliance requirements and establishes a regulatory agency dedicated to enforcing those requirements. Additional countries
and states, including Nevada, Virginia, Colorado, Utah, and Connecticut, have also passed comprehensive privacy laws with additional
obligations and requirements on businesses. These laws and regulations are increasing in severity, complexity and number, change frequently,
and increasingly conflict among the various jurisdictions in which we operate, which has resulted in greater compliance risk and cost
for us. In addition, we are also subject to the possibility of security breaches and other incidents, which themselves may result in
a violation of these laws. The impact of these continuously evolving laws and regulations could have a material adverse effect on the
way we use data to digitally market and pursue our customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Global
economic, political and market conditions and economic uncertainty caused by the recent outbreak of coronavirus (COVID-19) may adversely
affect our business, results of operations and financial condition.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
current worldwide volatility of financial markets, domestic inflationary pressures, various social and political tensions in the United
States and around the world, and public health crises, such as the one caused by COVID-19, may continue to contribute to increased market
volatility, may have long-term effects on the United States and worldwide financial markets, and may cause further economic uncertainties
or deterioration in the United States and worldwide. Economic uncertainty can have a negative impact on our business through changing
spreads, structures and purchase multiples, as well as the overall supply of investment capital. Since 2010, several European Union,
or EU, countries, including Greece, Ireland, Italy, Spain, and Portugal, have faced budget issues, some of which may have negative long-term
effects for the economies of those countries and other EU countries. Further, there is continued concern about national-level support
for the Euro and the accompanying coordination of fiscal and wage policy among European Economic and Monetary Union member countries.
In addition, the fiscal policy of foreign nations, such as China, may have a severe impact on the worldwide and United States financial
markets. Finally, public health crises, pandemics and epidemics, such as those caused by new strains of viruses such as H5N1 (avian flu),
severe acute respiratory syndrome (SARS) and, most recently, COVID-19, are expected to increase as international travel continues to
rise and could adversely impact our business by interrupting business, supply chains and transactional activities, disrupting travel,
and negatively impacting local, national or global economies. We do not know how long the financial markets will continue to be affected
by these events and cannot predict the effects of these or similar events in the future on the United States economy and securities markets
or on our investments. As a result of these factors, there can be no assurance that we will be able to successfully monitor developments
and manage our investments in a manner consistent with achieving our investment objectives.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
ongoing COVID-19 pandemic and measures intended to prevent its spread could have a material adverse effect on our business, results of
operations, cash flows and financial condition.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
COVID-19 pandemic has caused, and is likely to continue to cause, severe economic, market and other disruptions worldwide. We cannot
assure you that conditions in the bank lending, capital and other financial markets will not continue to deteriorate as a result of the
pandemic, or that our access to capital and other sources of funding will not become constrained, which could adversely affect the availability
and terms of future borrowings, renewals or refinancings. In addition, the deterioration of global economic conditions as a result of
the pandemic may ultimately decrease occupancy levels and pricing across our portfolio and may cause one or more of our tenants to be
unable to meet their rent obligations to us in full, or at all, or to otherwise seek modifications of such obligations. In addition,
governmental authorities may enact laws that will prevent us from taking action against tenants who do not pay rent.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
extent of the COVID-19 pandemic&rsquo;s effect on our operational and financial performance will depend on future developments, including
the duration, spread and intensity of the outbreak, all of which are uncertain and difficult to predict. Due to the speed with which
the situation is developing, we are not able at this time to estimate the effect of these factors on our business, but the adverse impact
on our business, results of operations, financial condition and cash flows could be material.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Maintenance
of our Investment Company Act exemption imposes limits on our operations, which may adversely affect our operations.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
intend to conduct our operations so that neither we nor any of our subsidiaries is required to register as an investment company under
the Investment Company Act. We anticipate that we will hold real estate and real estate-related assets described below (i) directly,
(ii) through wholly-owned subsidiaries, (iii) through majority-owned joint venture subsidiaries, and, (iv) to a lesser extent, through
minority-owned joint venture subsidiaries.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
connection with the Section 3(a)(1)(C) analysis, the determination of whether an entity is a majority-owned subsidiary of our Company
is made by us. The Investment Company Act defines a majority-owned subsidiary of a person as a company 50% or more of the outstanding
voting securities of which are owned by such person, or by another company that is a majority-owned subsidiary of such person. The Investment
Company Act further defines voting security as any security presently entitling the owner or holder thereof to vote for the election
of directors of a company. We treat companies in which we own at least a majority of the outstanding voting securities as majority-owned
subsidiaries. We also treat subsidiaries of which we or our wholly-owned or majority-owned subsidiary is the manager (in a manager-managed
entity) or managing member (in a member-managed entity) or in which our agreement or the agreement of our wholly-owned or majority-owned
subsidiary is required for all major decisions affecting the subsidiaries (referred to herein as &ldquo;Controlled Subsidiaries&rdquo;),
as majority-owned subsidiaries even though none of the interests issued by such Controlled Subsidiaries meets the definition of voting
securities under the Investment Company Act. We reached our conclusion on the basis that the interests issued by the Controlled Subsidiaries
are the functional equivalent of voting securities. We have not asked the SEC staff for concurrence of our analysis, our treatment of
such interests as voting securities, or whether the Controlled Subsidiaries, or any other of our subsidiaries, may be treated in the
manner in which we intend, and it is possible that the SEC staff could disagree with any of our determinations. If the SEC staff were
to disagree with our treatment of one or more companies as majority-owned subsidiaries, we would need to adjust our strategy and our
assets. Any such adjustment in our strategy could have a material adverse effect on us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Certain
of our subsidiaries may rely on the exclusion provided by Section 3(c)(5)(C) under the Investment Company Act. Section 3(c)(5)(C) of
the Investment Company Act is designed for entities &ldquo;primarily engaged in the business of purchasing or otherwise acquiring mortgages
and other liens on and interests in real estate&rdquo;. This exclusion generally requires that at least 55% of the entity&rsquo;s assets
on an unconsolidated basis consist of qualifying real estate interests and at least 80% of the entity&rsquo;s assets consist of qualifying
real estate interests or real estate-related assets. These requirements limit the assets those subsidiaries can own and the timing of
sales and purchases of those assets.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
classify the assets held by our subsidiaries as qualifying real estate interests or real estate-related assets, we rely on no-action
letters and other guidance published by the SEC staff regarding those kinds of assets, as well as upon our analyses (in consultation
with counsel) of guidance published with respect to other types of assets. There can be no assurance that the laws and regulations governing
the Investment Company Act status of companies similar to ours, or the guidance from the SEC or its staff regarding the treatment of
assets as qualifying real estate interests or real estate-related assets, will not change in a manner that adversely affects our operations.
In fact, in August 2011, the SEC published a concept release in which it asked for comments on this exclusion from regulation. To the
extent that the SEC staff provides more specific guidance regarding any of the matters bearing upon our exemption from the need to register
or exclusion under the Investment Company Act, we may be required to adjust our strategy accordingly. Any additional guidance from the
SEC staff could further inhibit our ability to pursue the strategies that we have chosen.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Furthermore,
although we intend to monitor the assets of our subsidiaries regularly, there can be no assurance that our subsidiaries will be able
to maintain their exclusion from registration. Any of the foregoing could require us to adjust our strategy, which could limit our ability
to make certain investments or require us to sell assets in a manner, at a price or at a time that we otherwise would not have chosen.
This could negatively affect the value of our common shares, the sustainability of our business model and our ability to make distributions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Registration
under the Investment Company Act would require us to comply with a variety of substantive requirements that impose, among other things:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">limitations
                                            on capital structure;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">restrictions
                                            on specified investments;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">restrictions
                                            on leverage or senior securities;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">restrictions
                                            on unsecured borrowings;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">prohibitions
                                            on transactions with affiliates; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">compliance
                                            with reporting, record keeping, voting, proxy disclosure and other rules and regulations
                                            that would significantly increase our operating expenses.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
we were required to register as an investment company but failed to do so, we could be prohibited from engaging in our business, and
criminal and civil actions could be brought against us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Registration
with the SEC as an investment company would be costly, would subject us to a host of complex regulations and would divert attention from
the conduct of our business, which could materially and adversely affect us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Our board of directors may change significant
corporate policies without stockholder approval.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
investment, financing, borrowing and dividend policies and our policies with respect to all other activities, including growth, debt,
capitalization and operations, will be determined by our board of directors. These policies may be amended or revised at any time and
from time to time at the discretion of our board of directors without a vote of our stockholders. In addition, our board of directors
may change our policies with respect to conflicts of interest provided that such changes are consistent with applicable legal requirements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
rights of our stockholders to take action against our directors and officers are limited.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Second Amended and Restated Certificate of Incorporation (the &ldquo;Certificate of Incorporation&rdquo;) provides for indemnification
of our directors and officers to the fullest extent authorized or permitted under Delaware law, except to the extent such exemption from
liability or limitation thereof is not permitted under the DGCL as the same exists or hereafter may be amended.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
Second Amended and Restated Bylaws (the &ldquo;Bylaws&rdquo;) will obligate us to indemnify each of our directors or officers who is
or is threatened to be made a party to or witness in a proceeding by reason of his or her service in those or certain other capacities,
to the maximum extent permitted by Delaware law, from and against any claim or liability to which such person may become subject or which
such person may incur by reason of his or her status as a present or former director or officer of us or serving in such other capacities.
In addition, we may be obligated to reimburse the expenses reasonably incurred by our present and former directors and officers in connection
with such proceedings. As a result, we and our stockholders may have more limited rights to recover money damages from our directors
and officers than might otherwise exist absent these provisions in our Bylaws or that might exist with other companies, which could limit
your recourse in the event of actions that are not in our best interests.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
technology that is currently being developed may not yield expected results or be delivered on time.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
could face delays, bugs, or crashes during and after the development process of any of our technologies that could cause adverse results
on our timelines and ability to perform. We rely on our technology for our business model and scalability. Should the technology not
yield the expected results, we may not be able to achieve scalability on the time-line or at all that we have forecasted. We rely on
the ability of our employees to develop our technologies to achieve desired results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may incur significant transaction and acquisition-related costs in connection with company acquisitions and such expenditures may create
significant liquidity and cash flow risks for us.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
could incur significant, nonrecurring, and recurring costs associated with potential related company acquisition(s), including costs
associated with the continued integration of the businesses. In addition, we may continue to incur additional significant, nonrecurring
costs in connection with completing a Private Placement. While we have assumed that this level of expense will be incurred, there are
factors beyond our control that could affect the total amount, including other integration expenses. Moreover, many of the expenses that
will be incurred are, by their nature, difficult to estimate accurately. To the extent any acquisition and integration expenses are higher
than anticipated and we do not have sufficient cash, including the additional capital raised in any exempt or private placement offering,
then we may experience liquidity or cash flow issues.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Failing
to successfully execute and integrate acquisitions could materially adversely affect our business, results of operations, and financial
condition.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
have acquired Roost Enterprises, Inc. (d/b/a Rhove) recently, and may acquire more business, as we continue to evaluate potential acquisitions.
We may expend significant cash or incur substantial debt to finance such acquisitions, which indebtedness could result in restrictions
on our business and significant use of available cash to make payments of interest and principal. In addition, we may finance acquisitions
by issuing equity or convertible debt securities, which could result in further dilution to our existing stockholders. We may enter into
negotiations for acquisitions that are not ultimately consummated. Those negotiations could result in diversion of management time and
significant out-of-pocket costs. If we fail to evaluate and execute acquisitions successfully, our business, results of operations, and
financial condition could be materially adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, we may not be successful in integrating acquisitions or the businesses we acquire may not perform as well as we expect. Any
future failure to manage and successfully integrate acquired businesses could materially adversely affect our business, results of operations,
and financial condition. Acquisitions involve numerous risks, including the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">difficulties
in integrating and managing the combined operations, technology platforms and realizing the anticipated economic, operational, and other
benefits in a timely manner, which could result in substantial costs and delays, and failure to execute on the intended strategy and
synergies;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">failure
of the acquired businesses to achieve anticipated revenue, earnings, or cash flow;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">diversion
of management&rsquo;s attention or other resources from our existing business;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our
inability to maintain the key customers, business relationships, suppliers, and brand potential of acquired businesses;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">uncertainty
of entry into businesses or geographies in which we have limited or no prior experience or in which competitors have stronger positions;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">unanticipated
                                            costs associated with pursuing acquisitions or greater than expected costs in integrating
                                            the acquired businesses;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">responsibility
                                            for the liabilities of acquired businesses, including those that were not disclosed to us
                                            or exceed our estimates, such as liabilities arising out of the failure to maintain effective
                                            data protection and privacy controls, and liabilities arising out of the failure to comply
                                            with applicable laws and regulations, including tax laws;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">difficulties
                                            in or costs associated with assigning or transferring to us or our subsidiaries the acquired
                                            companies&rsquo; intellectual property or its licenses to third-party intellectual property;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">inability
                                            to maintain our culture and values, ethical standards, controls, procedures, and policies;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">challenges
                                            in integrating the workforce of acquired companies and the potential loss of key employees
                                            of the acquired companies;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">challenges
                                            in integrating and auditing the financial statements of acquired companies that have not
                                            historically prepared financial statements in accordance with GAAP; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">potential
                                            accounting charges to the extent goodwill and intangible assets recorded in connection with
                                            an acquisition, such as trademarks, customer relationships, or intellectual property, are
                                            later determined to be impaired and written down in value.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
depend on our executive officers and dedicated personnel and the departure of any of our key personnel could materially and adversely
affect us. We face intense competition for the employment of highly skilled managerial, investment, financial and operational personnel.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
success is largely dependent on the efforts and abilities of our senior executive group and other key personnel. The loss of the services
of one or more of our executive officers or personnel could adversely impact our financial and operational performance and our ability
to execute our strategies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, our future success depends on our ability to attract, train, manage and retain qualified personnel. Competition for highly
skilled managerial, investment, financial and operational personnel is intense. As additional large real estate investors enter into
and expand their scale within the short-term rental business, we will faced increased challenges in hiring and retaining personnel, and
we cannot assure our stockholders that we will be successful in attracting and retaining such skilled personnel. If we are unable to
hire and retain qualified personnel as required, our growth and operating results could be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
ability to meet our labor needs while controlling our labor costs is subject to numerous external factors, including unemployment levels,
prevailing wage rates, changing demographics and changes in employment legislation. If we are unable to retain qualified personnel or
our labor costs increase significantly, our business operations and our financial performance could be adversely impacted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
dependence upon our business partners and their key personnel whose continued service is not guaranteed.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
business operations are dependent upon our relationships with key business partners, including vendors, suppliers, service providers,
and other strategic partners. The loss of one or more of these key business partners, or a significant change in the terms of our relationship
with them, could disrupt our business operations and negatively impact our financial performance. Furthermore, the success of our partnerships
depends on the continued service and expertise of key personnel at these companies, and we cannot guarantee that these individuals will
remain with their respective companies or continue to provide the same level of service or expertise to us. If these individuals leave
or are unable to continue providing their services, our ability to maintain and grow our business relationships could be negatively impacted,
which could harm our financial results.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
dependence upon third parties for key services may have an adverse effect on our operating results or reputation if the third parties
fail to perform.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Though
we are internally managed, we use third-party vendors and service providers to provide certain services for our properties or subcontract
for such services. For example, we typically engage third-party home improvement professionals with respect to certain maintenance and
specialty services, such as HVAC, roofing, painting and floor installations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Selecting,
managing and supervising these third-party service providers requires significant resources and expertise, and because our portfolio
consists of geographically dispersed properties, our ability to adequately select, manage and supervise such third parties may be more
limited or subject to greater inefficiencies than if our properties were more geographically concentrated. We generally do not have exclusive,
direct or long-term contractual relationships with the third-party providers performing the ultimate services, and we can provide no
assurance that we will have uninterrupted or unlimited access to their services. If we do not select, manage and supervise appropriate
third parties to provide these services, our reputation and financial results may suffer. Notwithstanding our efforts to implement and
enforce strong policies and practices regarding service providers, we may not successfully detect and prevent fraud, misconduct, incompetence
or theft by our third-party service providers, including our general contractors. In addition, any removal or termination of third-party
service providers would require us to seek new vendors or providers, which would create delays and adversely affect our operations. Poor
performance by such third-party service providers will reflect poorly on us and could significantly damage our reputation among desirable
residents. In the event of fraud or misconduct by a third party, we could also be exposed to material liability and be held responsible
for damages, fines or penalties and our reputation may suffer. In the event of failure by our general contractors to pay their subcontractors,
our properties may be subject to filings of mechanics or materialmen liens, which we may need to resolve to remain in compliance with
certain debt covenants, and for which indemnification from the general contractors may not be available.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
implementation of artificial intelligence (&ldquo;AI&rdquo;) into our technologies may prove to be more difficult than anticipated.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
business relies on the use of AI to improve our product development and business operations, including through the usage of our reAlpha
Score. However, the implementation of AI poses certain risks that need to be carefully considered. The use of AI can potentially lead
to unintended consequences, ethical concerns, and data privacy issues. Additionally, reliance on AI can lead to a lack of human oversight
and control, which can have negative implications for our organization.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
inability to protect our intellectual property rights could harm our reputation, damage our business or interfere with our competitive
position.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
intellectual property is valuable and provides us with certain competitive advantages. Copyrights, patents, trademarks, service marks,
trade secrets, technology licensing agreements, nondisclosure agreements and contracts are used to protect these proprietary rights.
Despite these precautions, it may be possible for third parties to copy aspects of our products or, without authorization, to obtain
and use information that we regard as trade secrets. Our pending patents may be denied, and our patents may be circumvented by our competitors.
In addition, the laws of some foreign countries do not protect our proprietary rights as fully as do the laws of the United States. There
can be no assurance that our means of protecting our proprietary rights in the United States or abroad will be adequate or that competing
companies will not independently develop similar technologies. Our failure to adequately protect our proprietary rights could have a
material adverse effect on our competitive position and our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to the Real Estate Industry</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
operating results are subject to general economic conditions and risks associated with the subsidiary&rsquo;s real estate assets.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
operating results are subject to risks generally incident to the ownership and rental of residential real estate, many of which are beyond
our control, including, without limitation:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">changes
                                            in global, national, regional or local economic, demographic or real estate market conditions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">changes
                                            in job markets and employment levels on a national, regional and local basis;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">declines
                                            in the value of residential real estate;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">overall
                                            conditions in the housing market, including:</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">macroeconomic
                                            shifts in demand for rental homes;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">inability
                                            to lease or re-lease short-term rent homes to guests on a timely basis, on attractive terms,
                                            or at all;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">failure
                                            of guests to pay rent when due or otherwise perform their short-term rental obligations;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">unanticipated
                                            repairs, capital expenditures, weather events and possible damages from them, or other costs;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">uninsured
                                            damages;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">increases
                                            in property taxes, homeowners&rsquo; association (HOA) fees and insurance costs;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">level
                                            of competition for suitable short-term rental homes;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">terms
                                            and conditions of purchase contracts;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">costs
                                            and time period required to convert acquisitions to short-term rental homes;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes
                                            in interest rates and availability of financing that may render the acquisition of any homes
                                            difficult or unattractive;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            illiquidity of real estate investments, generally;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            short-term nature of most or all guest stays and the costs and potential delays in re-renting;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">changes
                                            in laws, including those that increase operating expenses or limit our ability to increase
                                            short-term rental rates;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            impact of potential reforms relating to government-sponsored enterprises involved in the
                                            home finance and mortgage markets;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">rules,
                                            regulations and/or policy initiatives by government and private actors, including HOAs, to
                                            discourage or deter the purchase of single-family properties by entities owned or controlled
                                            by institutional investors;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">disputes
                                            and potential negative publicity in connection with guest stays;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">costs
                                            resulting from the clean-up of, and liability to third parties for damages resulting from,
                                            environmental problems, such as indoor mold;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">casualty
                                            or condemnation losses;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            geographic mix of our properties;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            cost, quality and condition of the properties we are able to acquire; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">our
                                            ability to provide adequate management, maintenance and insurance.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any one or more of these factors could adversely affect
our business, financial condition and results of operations.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Inflation
may adversely affect us by increasing costs beyond what we can recover through price increases.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Inflation
can adversely affect us by increasing costs of property, materials and labor. In addition, significant inflation is often accompanied
by higher interest rates, which have a negative impact on demand for our homes. In an inflationary environment, depending on homebuilding
industry and other economic conditions, we may be precluded from raising home prices enough to keep up with the rate of inflation, which
would reduce our profit margins. Although the rate of inflation has been low for the last several years, there has recently been increases
in the prices of labor and materials above the general inflation rate.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
investments are and will continue to be concentrated in certain markets and in the single-family properties sector of the real estate
industry, thus, exposing us to risk concentrations, which, in turn, exposes us to risk caused by seasonal fluctuations in short-term
rental demand and downturns in certain markets or in the single-family properties sector.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
investments in real estate assets are and will continue to be concentrated in certain markets and in the single-family properties sector
of the real estate industry. This makes our investments exposed to concentrations of risk as a result. For example, a downturn or slowdown
in the short-term rental demand for single-family housing caused by adverse economic, regulatory or environmental conditions, or other
events, in our markets may have a greater impact on the value of our properties or our operating results than if we had more fully diversified
our investments. Likewise, there are seasonal fluctuations in short-term rental demand. The aforementioned risk concentrations expose
us to greater fluctuation risk in our operating results, which, in turn can affect our actual results and ability to achieve our business
plan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition to general, regional, national and international economic conditions, our operating performance will be impacted by the economic
conditions in our markets. We base a substantial part of our business plan on our belief that property values and operating fundamentals
for single-family properties in our markets will continue to increase. However, these markets have experienced substantial economic downturns
in the past and could experience similar or worse economic downturns in the future. We can provide no assurance as to the extent property
values and operating fundamentals in these markets will increase if at all. If economic downturn in these markets return or if we fail
to accurately predict the timing of the economic performance of these markets, the value of our properties could decline and our ability
to execute our business plan may be adversely affected to a greater extent than if we owned a real estate portfolio that was more geographically
diversified, which could adversely affect our financial condition, operating results and our ability to make distributions to our stockholders
and cause the value of our common shares to decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
our techniques for managing risk are ineffective, we may be exposed to unanticipated losses.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
order to manage the significant risks inherent in our business, we must maintain effective policies, procedures and systems that enable
us to identify, monitor and control our exposure to market, operational, legal and reputational risks. Our risk management methods may
prove to be ineffective due to their design or implementation or as a result of the lack of adequate, accurate or timely information.
If our risk management efforts are ineffective, we could suffer losses or face litigation, particularly from our clients, and sanctions
or fines from regulators.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
techniques for managing risks may not fully mitigate the risk exposure in all economic or market environments, or against all types of
risk, including risks that we might fail to identify or anticipate. Any failures in our risk management techniques and strategies to
accurately quantify such risk exposure could limit our ability to manage risks or to seek positive, risk-adjusted returns. In addition,
any risk management failures could cause fund losses to be significantly greater than historical measures predict. Our more qualitative
approach to managing those risks could prove insufficient, exposing us to unanticipated losses in our net asset value and therefore a
reduction in our revenues.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Hedging
against interest rate exposure may adversely affect our earnings, limit our gains or result in losses, which could adversely affect cash
available for distribution to our stockholders.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may enter into interest rate swap agreements or pursue other interest rate hedging strategies. Our hedging activity, if any, will vary
in scope based on the level of interest rates, the type of portfolio investments held, and other changing market conditions. Interest
rate hedging may fail to protect or could adversely affect us because, among other things:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">interest
                                            rate hedging can be expensive, particularly during periods of rising and volatile interest
                                            rates;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">available
                                            interest rate hedging may not correspond directly with the interest rate risk for which protection
                                            is sought;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            duration of the hedge may not match the duration of the related liability or asset;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            credit quality of the party owing money on the hedge may be downgraded to such an extent
                                            that it impairs our ability to sell or assign our side of the hedging transaction;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            party owing money in the hedging transaction may default on its obligation to pay; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">we
                                            may purchase a hedge that turns out not to be necessary, i.e., a hedge that is out of the
                                            money.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
hedging activity we engage in may adversely affect our earnings, which could adversely affect cash available for distribution to our
stockholders. Therefore, while we may enter into such transactions to seek to reduce interest rate risks, unanticipated changes in interest
rates may result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the
degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions
being hedged or liabilities being hedged may vary materially. Moreover, for a variety of reasons, we may not seek to establish a perfect
correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from
achieving the intended hedge and expose us to risk of loss.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
investments will be illiquid and we may not be able to vary our portfolio in response to changes in economic and other conditions.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Many
factors that are beyond our control affect the real estate market and could affect our ability to sell properties and other investments
for the price, on the terms or within the time frame that we desire. These factors include general economic conditions, the availability
of financing, interest rates and other factors, including supply and demand. Because real estate investments are relatively illiquid,
we have a limited ability to vary our portfolio in response to changes in economic or other conditions. Further, before we can sell a
property on the terms we want, it may be necessary to expend funds to correct defects or to make improvements. However, we can give no
assurance that we will have the funds available to correct such defects or to make such improvements. Moreover, the senior mortgage loans,
subordinated loans, mezzanine loans and other loans and investments we may originate or purchase will be particularly illiquid investments
due to their short life and the greater difficulty of recoupment in the event of a borrower&rsquo;s default. As a result, we expect many
of our investments will be illiquid, and if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly
less than the value at which we have previously recorded our investments and our ability to vary our portfolio in response to changes
in economic and other conditions may be relatively limited, which could adversely affect our results of operations and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may not be able to effectively control the timing and costs arising from renovation our properties, and the cost of maintaining rental
properties is generally higher than the cost of maintaining owner-occupied homes, which may adversely affect our operating results and
ability to make distributions to our stockholders.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
properties often require some level of renovation either immediately upon their acquisition or in the future. While our focus is on rent-ready
homes, we may acquire properties that we plan to extensively renovate. We may also acquire properties that we expect to be in good condition
only to discover unforeseen defects and problems that require extensive renovation and capital expenditures. In addition, from time to
time, we may perform ongoing maintenance or make ongoing capital improvements and replacements and perform significant renovations and
repairs that insurance may not cover. Because our portfolio may consist of geographically dispersed properties, our ability to adequately
monitor or manage any such renovations or maintenance may be more limited or subject to greater inefficiencies than if our properties
were more geographically concentrated.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
properties may have infrastructure and appliances of varying ages and conditions. Consequently, we will retain independent contractors
and trade professionals to perform physical repair work and are exposed to all of the risks inherent in property renovation and maintenance,
including potential cost overruns, increases in labor and materials costs, delays by contractors in completing work, delays in the timing
of receiving necessary work permits, supply-chain challenges for material required to complete work timely and cost effectively, and
poor workmanship. If our assumptions regarding the costs or timing of renovation and maintenance across our properties prove to be materially
inaccurate, our operating results and ability to make distributions to our stockholders may be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Further,
renters impose additional risks to owning real property. Renters do not have the same interest as an owner in maintaining a property
and its contents and generally do not participate in any appreciation of the property. Accordingly, renters may damage a property and
its contents, and may not be forthright in reporting damages or amenable to repairing them completely or at all. A rental property may
need repairs and/or improvements after each resident vacates the premises, the costs of which may exceed any security deposit provided
to us by the resident when the rental property was originally leased. Accordingly, the cost of maintaining rental properties can be higher
than the cost of maintaining owner-occupied homes, which will affect our costs of operations and may adversely impact our ability to
make distributions to our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
leases are relatively short-term in nature, typically a few days or weeks, which exposes us to the risk that we may have to re-lease
our properties frequently and we may be unable to do so on attractive terms, on a timely basis or at all. </I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Because
these leases generally permit the residents to leave at the end of the lease term without penalty, our rental revenues may be impacted
by declines in market rental rates more quickly than if our leases were for longer terms. Short-term leases may result in high turnover,
which involves costs such as restoring the properties, marketing costs and lower occupancy levels. Our resident turnover rate and related
cost estimates may be less accurate than if we had more operating data upon which to base such estimates. In addition, to the extent
that a potential resident is represented by a leasing agent, we may need to pay all or a portion of any related agent commissions, which
will reduce the revenue from a particular rental home. Alternatively, to the extent that a lease term exceeds one year, we may miss out
on the ability to raise rents in an appreciating market and be locked into a lower rent until such lease expires. If the rental rates
for our properties decrease or our residents do not renew their leases, our operating results and ability to make distributions to our
stockholders could be adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
face significant competition in the short-term rental market for guests, which may limit our ability to short-term rent our properties
on favorable terms.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
believe that our competitors include:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Here.co,
                                            Arrived Homes, Pacaso, Invitation Homes, real estate developers with short-term rentals,
                                            and mom-and-pop hosts; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Hotel
                                            chains, such as Marriott, Hilton, Accor, Wyndham, InterContinental, and Huazhu, as well as
                                            boutique hotel chains and independent hotels.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
depend on short-term rental income from guests to cover our operating costs. As a result, our success depends in large part upon our
ability to attract guests for our properties. We face competition for guests from other lessors of single-family properties, apartment
buildings and condominium units. Competing properties may be newer, better located and more attractive to residents. Potential competitors
may have lower rates of occupancy than we do or may have superior access to capital and other resources, which may result in competing
owners more easily locating residents and leasing available housing at lower rental rates than we might offer at our homes. Many of these
competitors may successfully attract residents with better incentives and amenities, which could adversely affect our ability to obtain
quality residents and lease our single-family properties on favorable terms. This competition may affect our ability to attract and retain
guests and may reduce the short-term rental rates we are able to charge.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, we could also be adversely affected by high vacancy rates of short-term rentals in our markets, which could result in an excess
supply of short-term rental homes and reduce occupancy and rental rates. Continuing development of apartment buildings and condominium
units in many of our markets will increase the supply of housing and exacerbate competition for residents.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">No
assurance can be given that we will be able to attract guests. If we are unable to short-term rent our homes to suitable guests, we would
be adversely affected and the value of our common stock could decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may acquire alternative property types that may have less appreciation and could be more difficult to dispose.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">While
our acquisition strategy focuses on rent-ready single-family homes, we may in the future acquire multifamily vacation rentals, experimental
homes, experiential homes, or other vacation rental viable properties. These homes may add liquidity risk and could be harder to sell
at optimal prices with proper timing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
intend to continue to acquire properties, from time to time, consistent with our investment strategy even if the short-term rental and
housing markets are not as favorable as they have been in the recent past, which could adversely impact anticipated yields.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
intend to continue to acquire properties, from time to time, consistent with our investment strategy, even if the rental and housing
markets are not as favorable as they have been in the recent past. Future acquisitions of properties may be more costly than those we
have acquired previously. The following factors, among others, may make acquisitions more expensive:</FONT></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">improvements
                                            in the overall economy and employment levels;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                            in the economy affecting demand or supply of real estate properties in our markets;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                            in the economy affecting the money supply and interest rates in our markets;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">changes
                                            in the economy affecting the availability of credit in our markets;</FONT></TD>
</TR></TABLE>
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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">greater
                                            availability of consumer credit;</FONT></TD>
</TR></TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">improvements
                                            in the pricing and terms of mortgages;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the
                                            emergence of increased competition for single-family properties from private investors and
                                            entities with similar investment objectives to ours; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

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<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">tax
                                            or other government incentives that encourage homeownership.</FONT></TD>
</TR></TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
plan to continue acquiring properties as long as we believe such properties offer an attractive total return opportunity. Accordingly,
future acquisitions may have lower yield characteristics than recent past and present opportunities and, if such future acquisitions
are funded through equity issuances, the yield and distributable cash per share will be reduced, and the value of our common stock may
decline.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Competition
in identifying and acquiring our properties could adversely affect our ability to implement our business and growth strategies, which
could materially and adversely affect us.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
acquiring our properties, we compete with a variety of institutional investors, including REITs, specialty finance companies, public
and private funds, savings and loan associations, banks, mortgage bankers, insurance companies, institutional investors, investment banking
firms, financial institutions, governmental bodies and other entities. We also compete with individual private home buyers and small-scale
investors. Certain of our competitors may be larger in certain of our markets and may have greater financial or other resources than
we do. Some competitors may have a lower cost of funds and access to funding sources that may not be available to us. In addition, any
potential competitor may have higher risk tolerances or different risk, which could allow them to consider a wider variety of investments.
Competition may result in fewer investments, higher prices, a broadly dispersed portfolio of properties that does not lend itself to
efficiencies of concentration, acceptance of greater risk, lower yields and a narrower spread of yields over our financing costs. In
addition, competition for desirable investments could delay the investment of our capital, which could adversely affect our results of
operations and cash flows. As a result, there can be no assurance that we will be able to identify and finance investments that are consistent
with our investment objectives or to achieve positive investment results, and our failure to accomplish any of the foregoing could have
a material adverse effect on us and cause the value of our common stock to decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Compliance
with governmental laws, regulations and covenants that are applicable to our properties or that may be passed in the future, including
permit, license and zoning requirements, may adversely affect our ability to make future acquisitions or renovations, result in significant
costs or delays, and adversely affect our growth strategy.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Short-term
rental homes are subject to various covenants and local laws and regulatory requirements, including permitting, licensing and zoning
requirements. Local regulations, including municipal or local ordinances, restrictions and restrictive covenants imposed by community
developers may restrict our use of our properties and may require us to obtain approval from local officials or community standards organizations
at any time with respect to our properties, including prior to acquiring any of our properties or when undertaking renovations of any
of our existing properties. Among other things, these restrictions may relate to fire and safety, seismic, asbestos-cleanup or hazardous
material abatement requirements. Additionally, such local regulations may cause us to incur additional costs to renovate or maintain
our properties in accordance with the particular rules and regulations. We cannot assure you that existing regulatory policies will not
adversely affect our ability to achieve results in terms of adherence to our forecasted plans and achieved in service rental properties
on our projected timeline. Likewise, regulatory policies may adversely affect the timing or cost of our future acquisitions or renovations
Additional regulations may be adopted that will increase delays or result in additional costs. Our business and growth strategies may
be materially and adversely affected by our ability to obtain permits, licenses and approvals. Our failure to obtain such permits, licenses
and approvals could have a material adverse effect on us and cause the value of our common stock to decline.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may become a target of legal demands, litigation (including class actions), and negative publicity by tenant and consumer rights organizations,
which could directly limit and constrain our operations and may result in significant litigation expenses and reputational harm.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Numerous
tenant rights and consumer rights organizations exist throughout the country and operate in our markets. We may attract attention from
some of these organizations and become a target of legal demands, litigation, and negative publicity. Many consumer organizations have
become more active and better funded in connection with mortgage foreclosure-related issues and with the increased market for homes arising
from displaced homeownership. Some of these organizations may shift their litigation, lobbying, fundraising, and grass roots organizing
activities to focus on landlord-resident issues. While we intend to conduct our business lawfully and in compliance with applicable landlord-tenant
and consumer laws, such organizations might work in conjunction with trial and pro bono lawyers in one or multiple states to attempt
to bring claims against us on a class action basis for damages or injunctive relief and to seek to publicize our activities in a negative
light. We cannot anticipate what form such legal actions might take or what remedies they may seek.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Additionally,
such organizations may lobby local county and municipal attorneys or state attorneys general to pursue enforcement or litigation against
us, may lobby state and local legislatures to pass new laws and regulations to constrain or limit our business operations, adversely
impact our business, or may generate negative publicity for our business and harm our reputation. If they are successful in any such
endeavors, they could directly limit and constrain our operations and may impose on us significant litigation expenses, including settlements
to avoid continued litigation or judgments for damages or injunctions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
business is subject to laws and regulations regarding privacy, data protection, consumer protection, and other matters. Many of these
laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices,
monetary penalties, or otherwise harm our business.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are subject to a variety of laws and regulations that involve matters such as: privacy; data protection; personal information; rights
of publicity; content; marketing; distribution; data security; data retention and deletion; electronic contracts and other communications;
consumer protection; and online payment services. These laws and regulations are constantly evolving and can be subject to significant
change. As a result, the application, interpretation, and enforcement of these laws and regulations are often uncertain and may be interpreted
and applied inconsistently. Additionally, as we depend on third parties for key services, we rely on such third-party service providers&rsquo;
compliance with laws and regulations regarding privacy, data protection, consumer protection, and other matters relating to our customers.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
are a number of legislative proposals at both the federal and state level, as well as other jurisdictions that could impose new obligations
in areas affecting our business. We are subject to numerous, complex, and frequently changing laws, regulations, and contractual obligations
designed to protect personal information. Various federal and state privacy and data security laws and regulatory standards create data
privacy rights for users, including more ability to control how their data is shared with third parties. These laws and regulations,
as well as any associated inquiries or investigations or any other government actions, may be costly to comply with, result in negative
publicity, require significant management time and attention, and subject us to remedies that may harm our business, including fines
or demands or orders that we modify or cease existing business practices.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may not successfully detect and prevent fraud, misconduct, incompetence or theft by our third-party service providers. In addition, any
removal or termination of third-party service providers would require us to seek new vendors or providers, which would create delays
and adversely affect our operations. Poor performance by such third-party service providers will reflect poorly on us and could significantly
damage our reputation among guests. In the event of fraud or misconduct by a third party, we could also be exposed to material liability
and be held responsible for damages, fines or penalties and our reputation may suffer.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may from time to time in the future acquire some of our homes through the auction process, which could subject us to significant risks
that could adversely affect us.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may from time to time in the future acquire some of our homes through the auction process, including auctions of homes that have been
foreclosed upon by third party lenders. Such auctions may occur simultaneously in a number of markets, including monthly auctions on
the same day of the month in certain markets. As a result, we may only be able to visually inspect properties from the street and will
purchase these homes without a contingency period and in &ldquo;as is&rdquo; condition with the risk that unknown defects in the property
may exist. Upon acquiring a new home, we may have to evict residents who are in unlawful possession before we can secure possession and
control of the home. The holdover occupants may be the former owners or residents of a property, or they may be squatters or others who
are illegally in possession. Securing control and possession from these occupants can be both costly and time-consuming or generate negative
publicity for our business and harm our reputation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Title
defects could lead to material losses on our investments in our properties.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
title to a property may be challenged for a variety of reasons, and in such instances title insurance may not prove adequate. We may,
from time to time, in the future, acquire a number of our properties on an &ldquo;as is&rdquo; basis, at auctions or otherwise. When
acquiring properties on an &ldquo;as is&rdquo; basis, title commitments are often not available prior to purchase and title reports or
title information may not reflect all senior liens, which may increase the possibility of acquiring houses outside predetermined acquisition
and price parameters, purchasing residences with title defects and deed restrictions, HOA restrictions on short-term renting, or purchasing
the wrong residence without the benefit of title insurance prior to closing. This could lead to a material if not complete loss on our
investment in such properties.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">For
properties we acquire at auction, we similarly do not obtain title insurance prior to purchase, and we are not able to perform the type
of title review that is customary in acquisitions of real property. As a result, our knowledge of potential title issues will be limited,
and no title insurance protection will be in place. This lack of title knowledge and insurance protection may result in third parties
having claims against our title to such properties that may materially and adversely affect the values of the properties or call into
question the validity of our title to such properties. Without title insurance, we are fully exposed to, and would have to defend ourselves
against, such claims. Further, if any such claims are superior to our title to the property we acquired, we risk loss of the property
purchased.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Increased
scrutiny of title matters could lead to legal challenges with respect to the validity of the sale. In the absence of title insurance,
the sale may be rescinded and we may be unable to recover our purchase price, resulting in a complete loss. Title insurance obtained
subsequent to purchase offers little protection against discoverable defects because they are typically excluded from such policies.
In addition, any title insurance on a property, even if acquired, may not cover all defects or the significant legal costs associated
with obtaining clear title.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Any
of these risks could adversely affect our operating results, cash flows, and ability to make distributions to our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
lack of a long operating history could adversely impact us.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">As
a start-up business, we do not have a long operating history. Accordingly, recent events, including the securities regulatory matters,
could have a greater impact upon us than a company that has a long operating history. For example, it may make it more difficult for
us to bind coverage with insurance carriers or to achieve better rates from other service providers or lenders due to these recent events
due to a higher risk profile.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Contingent
or unknown liabilities could adversely affect our financial condition, cash flows and operating results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Assets
and entities that we have acquired or may acquire in the future may be subject to unknown or contingent liabilities for which we may
have limited or no recourse against the sellers. Unknown or contingent liabilities might include liabilities for or with respect to liens
attached to properties, unpaid real estate tax, utilities, or HOA charges for which a subsequent owner remains liable, clean-up or remediation
of environmental conditions or code violations, claims of customers, vendors, or other persons dealing with the acquired entities, and
tax liabilities. Purchases of single-family properties acquired at auction, in short sales, from lenders, or in portfolio purchases typically
involve few or no representations or warranties with respect to the properties and may allow us limited or no recourse against the sellers.
Such properties also often have unpaid tax, utility, and HOA liabilities for which we may be obligated but fail to anticipate. As a result,
the total amount of costs and expenses that we may incur with respect to liabilities associated with acquired properties and entities
may exceed our expectations, which may adversely affect our operating results and financial condition. Additionally, such properties
may be subject to covenants, conditions, or restrictions that restrict the use or ownership of such properties, including prohibitions
on short-term renting. We may not discover such restrictions during the acquisition process and such restrictions may adversely affect
our ability to operate such properties as we intend.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Environmentally
hazardous conditions may adversely affect us.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Under
various federal, state and local environmental laws, a current or previous owner or operator of real property may be liable for the cost
of removing or remediating hazardous or toxic substances on such property. Such laws often impose liability whether or not the owner
or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Even if more than one person may have
been responsible for the contamination, each person covered by applicable environmental laws may be held responsible for all of the clean-up
costs incurred. In addition, third parties may sue the owner or operator of a site for damages based on personal injury, natural resources
or property damage or other costs, including investigation and clean-up costs, resulting from the environmental contamination. The presence
of hazardous or toxic substances on one of our properties, or the failure to properly remediate a contaminated property, could give rise
to a lien in favor of the government for costs it may incur to address the contamination or otherwise adversely affect our ability to
sell or short-term rent the property or borrow using the property as collateral. Environmental laws also may impose restrictions on the
manner in which property may be used or businesses may be operated. A property owner who violates environmental laws may be subject to
sanctions which may be enforced by governmental agencies or, in certain circumstances, private parties. In connection with the acquisition
and ownership of our properties, we may be exposed to such costs. The cost of defending against environmental claims, of compliance with
environmental regulatory requirements or of remediating any contaminated property could materially and adversely affect us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Compliance
with new or more stringent environmental laws or regulations or stricter interpretation of existing laws may require material expenditures
by us. We may be subject to environmental laws or regulations relating to our properties, such as those concerning lead-based paint,
mold, asbestos, and proximity to power lines or other issues. We cannot assure you that future laws, ordinances or regulations will not
impose any material environmental liability or that the current environmental condition of our properties will not be affected by the
activities of residents, existing conditions of the land, operations in the vicinity of the properties or the activities of unrelated
third parties. In addition, we may be required to comply with various local, state and federal fire, health, life-safety and similar
regulations. Failure to comply with applicable laws and regulations could result in fines and/or damages, suspension of personnel, civil
liability or other sanctions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
we fail to attract guests, or if we fail to provide high-quality stays and experiences, our business, results of operations, and financial
condition would be materially adversely affected.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
business depends on our ability to maintain our properties and engage in practices that encourage guests to book those properties, including
increasing the number of nights that are available to book, providing timely responses to inquiries from guests, offering a variety of
desirable and differentiated listings at competitive prices that meet the expectations of guests, and offering hospitality, services,
and experiences that satisfy guests and which prospective guests view as valuable. If we do not establish or maintain a sufficient number
of listings and availability for listings, or if the number of nights booked declines for a particular period, or the prices we are able
to charge declines, our revenue would decline and our business, results of operations, and financial condition would be materially adversely
affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Additional
reasons for our financial performance may be affected by economic, social, and political factors; perceptions of trust and safety in
our properties; negative experiences with guests, including guests who damage our property, throw unauthorized parties, or engage in
violent and unlawful acts; and our decision to remove guests for not adhering to our guest standards or other factors we deem detrimental
to our community. Our business, results of operations, and financial condition could be materially adversely affected if our guests are
unable to return to normal travel in the near to immediate term.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>If
we fail to retain guests or add new guests, our business, results of operations, and financial condition would be materially adversely
affected.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
success depends significantly on existing guests continuing to book and attracting new guests to book our properties. Our ability to
attract and retain guests could be materially adversely affected by a number of factors discussed elsewhere in these &ldquo;Risk Factors,&rdquo;
including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">events
                                            beyond our control, such as the COVID-19 pandemic, other pandemics and health concerns, increased
                                            or continuing restrictions on travel, immigration, trade disputes, economic downturns, and
                                            the impact of climate change on travel, including fires, floods, severe weather and other
                                            natural disasters, and the impact of climate change on seasonal destinations;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">failing
                                            to meet guests&rsquo; expectations, including increased expectations for cleanliness in light
                                            of the COVID-19 pandemic;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">increased
                                            competition and use of our competitors&rsquo; properties;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">failing
                                            to provide differentiated, high-quality, and an adequate supply of stays or experiences at
                                            competitive prices;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">guests
                                            not receiving timely and adequate support from us;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                            failure to provide new or enhanced offerings, tiers, or features that guests value;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">declines
                                            or inefficiencies in our marketing efforts;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">negative
                                            associations with, or reduced awareness of, our brand;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">negative
                                            perceptions of the trust and safety in our properties; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">macroeconomic
                                            and other conditions outside of our control affecting travel and hospitality industries generally.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, if our listings and other content provided are not displayed effectively to guests, we are not effective in engaging guests
across our various offerings, we fail to provide an experience in a manner that meets rapidly changing demand, or guests have unsatisfactory
search, booking, or payment experiences, we could fail to convert first-time guests and fail to engage with existing guests, which would
materially adversely affect our business, results of operations, and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Properties
could be difficult to short-term rent, which could adversely affect our revenues.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
properties we acquire are vacant at the time of closing and we may not be successful in attracting guests to short-term rent the individual
properties that we acquire as quickly as we had expected or at all. Rental revenues may be affected by declines in market rental rates
more quickly than if our leases were for longer terms. Even if we are able to find guests as quickly as we had expected, we may incur
vacancies and may not be able to re-short-term rent those properties without longer-than-assumed delays, which may result in increased
renovation and maintenance costs. In addition, the value of a vacant property could be substantially impaired. Vacant homes may also
be at risk for fraudulent activity which could impact our ability to lease a home. As a result, if vacancies continue for a longer period
of time than we expect or indefinitely, we may suffer reduced revenues, which may have a material adverse effect on us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Declining
real estate valuations and impairment charges could adversely affect our financial condition and operating results.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
periodically review the value of our properties to determine whether their value, based on market factors, projected income and generally
accepted accounting principles, has permanently decreased such that it is necessary or appropriate to take an impairment loss in the
relevant accounting period. Such a loss would cause an immediate reduction of net income in the applicable accounting period and would
be reflected in a decrease in our balance sheet assets. The reduction of net income from impairment losses could lead to a reduction
in our dividends, both in the relevant accounting period and in future periods. Even if we do not determine that it is necessary or appropriate
to record an impairment loss, a reduction in the intrinsic value of a property would become manifest over time through reduced income
from the property and would therefore affect our earnings and financial condition.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively
affect us and the value of our common stock.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
operations are dependent upon our internal operating systems, and property management platforms, as well as external short-term rental
platforms, like Airbnb, which include certain automated processes that require access to telecommunications or the internet, each of
which is subject to system security risks. Certain critical components are dependent upon third party service providers and a significant
portion of our business operations are conducted over the internet. As a result, we could be severely impacted by a catastrophic occurrence,
such as a natural disaster or a terrorist attack, or a circumstance that disrupted access to telecommunications, the internet or operations
at our third-party service providers, including viruses or experienced computer programmers that could penetrate network security defenses
and cause system failures and disruptions of operations. Even though we believe we utilize appropriate duplication and back-up procedures,
a significant outage in telecommunications, the internet or at our third-party service providers could negatively impact our operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Security
breaches and other disruptions could compromise our information systems and expose us to liability, which would cause our business and
reputation to suffer.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Information
security risks have generally increased in recent years due to the rise in new technologies and the increased sophistication and activities
of perpetrators of cyberattacks. In the ordinary course of our business, we acquire and store sensitive data, including intellectual
property, our proprietary business information and personally identifiable information of our prospective and current residents, employees
and third-party service providers. The secure processing and maintenance of such information is critical to our operations and business
strategy. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached
due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored therein
could be accessed, publicly disclosed, misused, lost or stolen. Any such access, disclosure or other loss of information could result
in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, disruption
to our operations and the services we provide to customers or damage our reputation, any of which could adversely affect our results
of operations, reputation and competitive position.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
rely upon Amazon Web Services to operate certain aspects of our service and any disruption of or interference with our use of the Amazon
Web Services operation would impact our operations and our business would be adversely impacted.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Amazon
Web Services (&ldquo;AWS&rdquo;) provides a distributed computing infrastructure platform for business operations, or what is commonly
referred to as a &ldquo;cloud&rdquo; computing service. Our software and computer systems have been designed to utilize data processing,
storage capabilities and other services provided by AWS. Currently, we run the vast majority of our computing on AWS. Given this, along
with the fact that we cannot easily switch our AWS operations to another cloud provider, any disruption of or interference with our use
of AWS would impact our operations and our business would be adversely impacted.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may be involved in a variety of litigation.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
may be involved in a range of legal actions in the ordinary course of business. These actions may include, among others, challenges to
title and ownership rights, disputes arising over potential violations of HOA rules and regulations, issues with local housing officials
arising from the condition or maintenance of the property, outside vendor disputes and trademark infringement and other intellectual
property claims. These actions can be time-consuming and expensive, and may adversely affect our reputation. Although we are not currently
involved in any legal or regulatory proceedings that we expect would have a material adverse effect on our business, results of operations
or financial condition, and such proceedings may arise in the future.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may suffer losses that are not covered by insurance.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
attempt to ensure that our properties are adequately insured to cover casualty losses. However, there are certain losses, including losses
from floods, fires, earthquakes, wind, pollution, acts of war, acts of terrorism or riots, for which we may self-insure or which may
not always or generally be insured against because it may not be deemed economically feasible or prudent to do so. Changes in the cost
or availability of insurance could expose us to uninsured casualty losses. In particular, a number of our properties may be located in
areas that are known to be subject to increased earthquake activity, fires, or wind and/or flood risk. While we may have policies for
earthquakes and hurricane and/or flood risk, our properties may nonetheless incur a casualty loss that is not fully covered by insurance.
In such an event, the value of the affected properties would be reduced by the amount of any such uninsured loss, and we could experience
a significant loss of capital invested and potential revenues in such properties and could potentially remain obligated under any recourse
debt associated with such properties. Inflation, changes in building codes and ordinances, environmental considerations and other factors
might also keep us from using insurance proceeds to replace or renovate a particular property after it has been damaged or destroyed.
Under those circumstances, the insurance proceeds we receive might be inadequate to restore our economic position on the damaged or destroyed
property. Any such losses could adversely affect us and cause the value of our common stock to decline. In addition, we may have no source
of funding to repair or reconstruct the damaged home, and we cannot assure that any such sources of funding will be available to us for
such purposes in the future.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
face possible risks associated with natural disasters and extreme weather events (the frequency and severity of which may be impacted
by climate change), which may include more frequent or severe storms, extreme temperatures and ambient temperature increases, hurricanes,
flooding, rising sea levels, shortages of water, droughts, and wildfires, any of which could have a material adverse effect on our business,
results of operations, and financial condition. </I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are subject to the risks associated with natural disasters and the physical effects of climate change, which may include more frequent
or severe storms, extreme temperatures and ambient temperature increases, hurricanes, flooding, rising sea levels, shortages of water,
droughts, and wildfires (although it is currently impossible to accurately predict the impact of climate change on the frequency or severity
of these events), any of which could have a material adverse effect on our business, results of operations, and financial condition.
We will operate in certain areas where the risk of natural or climate-related disaster or other catastrophic losses exists, and the occasional
incidence of such an event could cause substantial damage to our properties or the surrounding area. For example, to the extent climate
change causes changes in weather patterns or an increase in extreme weather events, our coastal destinations could experience increases
in storm intensity and rising sea-levels causing damage to our properties and result in a reduced number of listings in these areas.
Other destinations could experience extreme temperatures and ambient temperature increases, shortages of water, droughts, wildfires,
and other extreme weather events that make those destinations less desirable. Climate change may also affect our business by increasing
the cost of, or making unavailable, property insurance on terms we find acceptable in areas most vulnerable to such events, increasing
operating costs, including the availability and cost of water or energy, and requiring us to expend funds as we seek to repair and protect
our properties in connection with such events. As a result of the foregoing and other climate-related issues, we may decide to remove
such listings from our platform. If we are unable to provide listings in certain areas due to climate change, we may lose guests, which
could have a material adverse effect on our business, results of operations, and financial condition.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Eminent
domain could lead to material losses on our investments in our properties.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Governmental
authorities may exercise eminent domain to acquire the land on which our properties are built in order to build roads and other infrastructure.
Any such exercise of eminent domain would allow us to recover only the fair value of the affected properties. In addition, &ldquo;fair
value&rdquo; could be substantially less than the real market value of the property for a number of years, and we could effectively have
no profit potential from properties acquired by the government through eminent domain.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may have difficulty selling our real estate investments and our ability to distribute all or a portion of the net proceeds from any such
sale to our stockholders may be limited.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Real
estate investments are relatively illiquid and, as a result, we may have a limited ability to sell our properties. When we sell any of
our properties, we may recognize a loss on such sale. We may elect not to distribute any proceeds from the sale of properties to our
stockholders. Instead, we may use such proceeds for other purposes, including:</FONT></P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">purchasing
                                            additional properties;</FONT></TD>
</TR></TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">repaying
                                            debt or buying back shares</FONT></TD>
</TR></TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">creating
                                            working capital reserves; or</FONT></TD>
</TR></TABLE>
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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">making
                                            repairs, maintenance or other capital improvements or expenditures to our remaining properties.</FONT></TD>
</TR></TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Laws,
regulations, and rules that affect the short-term rental may limit our ability to offer short-term rentals and could expose us to significant
penalties, which could have a material adverse effect on our business, results of operations, and financial condition.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Hotels
and groups affiliated with hotels, neighborhoods, and communities have engaged and will likely continue to engage in various lobbying
and political efforts for stricter regulations governing short-term rentals with both local and national jurisdictions. These groups
and others cite concerns around affordable housing and over-tourism in major cities, and some state and local governments have implemented
or considered implementing rules, ordinances, or regulations governing the short-term rental of properties and/or home sharing. Such
regulations include ordinances that restrict or ban short-term rentals, set annual caps on the number of days we can rent our homes for
short-term rental, require us to register with the municipality or city, or require us to obtain permission before offering short-term
rentals. In addition, some jurisdictions regard short-term rental as &ldquo;hotel use&rdquo; and claim that such use constitutes a conversion
of a residential property to a commercial property requiring a permitting process. Macroeconomic pressures and public policy concerns
could continue to lead to new laws and regulations, or interpretations of existing laws and regulations, which limit the ability of hosts
to share their spaces. If laws, regulations, rules, or agreements significantly restrict or discourage short-term rentals in certain
jurisdictions, it would have a material adverse effect on our business, results of operations, and financial condition.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Guest,
or third-party actions that are criminal, violent, inappropriate, or dangerous, or fraudulent activity, may undermine the safety or the
perception of safety of our properties and our ability to attract and retain guests and materially adversely affect our reputation, business,
results of operations, and financial condition.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
have no control over or ability to predict the actions of our guests and other third parties, such as neighbors or invitees, either during
the guest&rsquo;s stay, experience, or otherwise, and therefore, we cannot guarantee the safety of our guests, and third parties. The
actions of guests and other third parties can result in fatalities, injuries, other bodily harm, fraud, invasion of privacy, property
damage, discrimination and brand and reputational damage, which could create potential legal or other substantial liabilities for us.
We do not verify the identity of our guests nor do we verify or screen third parties who may be present during a reservation. We rely
on the booking sites&rsquo; ability to validate the guests&rsquo; information. The verification processes used by the booking sites are
beneficial but not exhaustive and have limitations due to a variety of factors, including laws and regulations that prohibit or limit
their ability to conduct effective background checks in some jurisdictions, the unavailability of information, and the inability of their
systems to detect all suspicious activity. There can be no assurances that these measures will significantly reduce criminal or fraudulent
activity.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
guests, or third parties engage in criminal activity, misconduct, fraudulent, negligent, or inappropriate conduct or use our properties
as a conduit for criminal activity, consumers may not consider our listings safe, and we may receive negative media coverage, or be subject
to involvement in a government investigation concerning such activity, which could adversely impact our brand and reputation &ndash;
thereby impacting our operating results.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">The
methods used by perpetrators of fraud and other misconduct are complex and constantly evolving, and our trust and security measures may
currently or in the future be insufficient to detect and help prevent all fraudulent activity and other misconduct.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
addition, certain regions where we are planning to operate have higher rates of violent crime or more relaxed safety standards, which
can lead to more safety and security incidents, and may adversely impact the bookings of our properties in those regions and elsewhere.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
criminal, inappropriate, fraudulent, or other negative incidents occur due to the conduct of guests or third parties, our ability to
attract and retain guests would be harmed, and our business, results of operations, and financial condition would be materially adversely
affected &ndash; thereby impacting other guests. Such incidents may in the future prompt stricter home short-term rental regulations
or regulatory inquiries into our policies and business practices.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Measures
that we are planning to take to ensure the trust and safety of our properties may cause us to incur significant expenditures and may
not be successful.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are planning to take measures to ensure the trust and safety of our properties, to combat fraudulent activities and other misconduct
and improve trust, such as using smart locks, noise monitoring systems, and potentially use identity scanners at each property. These
measures are long-term investments in our business to promote the trust and safety of our properties; however, some of these measures
increase friction by increasing the number of steps required to be able to rent one of our properties, which could reduce Guest activity,
and could materially and adversely affect our business, results of operations, and financial condition. The timing and implementation
of these measures will vary across geographies. There can be no assurances that our plans to invest in the trust and safety of our properties
will be successful, significantly reduce criminal or fraudulent activity on or off our properties, or be sufficient to protect our reputation
in the event of such activity.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>In
the future, we may have operations in countries known to experience high levels of corruption and any violation of anti-corruption laws
could subject us to penalties and other adverse consequences.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are subject to the U.S. Foreign Corrupt Practices Act (&ldquo;FCPA&rdquo;) and other laws in the United States and elsewhere that prohibit
improper payments or offers of payments to foreign governments and their officials, political parties, state-owned or controlled enterprises,
and/or private entities and individuals for the purpose of obtaining or retaining business. We may have operations in, and that otherwise
deal with countries known to experience corruption. Our activities in these countries create the risk of unauthorized payments or offers
of payments by one of our employees, contractors, agents, or users that could be in violation of various laws, including the FCPA and
anti-bribery laws in these countries. Failure to comply with any of these laws and regulations may result in extensive internal or external
investigations as well as significant financial penalties and reputational harm, which could materially adversely affect our business,
results of operations, and financial condition.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Risks
Related to this Direct Listing and Ownership of Our Common Stock </B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
will control the direction of our business and its ownership of our common stock will prevent you and other stockholders from influencing
significant decisions.</I></B></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As long as our Company&rsquo;s
major stockholders continue to hold those shares, it will be able to significantly influence or effectively control the composition of
our board of directors and the approval of actions requiring stockholder approval through its voting power. Accordingly, for such period
of time, Giri Devanur, our Chief Executive Officer, will have significant influence with respect to our management, business plans and
policies. In particular, for so long our company continues to hold its shares, it may be able to cause or prevent a change of control
of our Company or a change in the composition of our board of directors, and could preclude any unsolicited acquisition of our Company.
The concentration of ownership could deprive you of an opportunity to receive a premium for your shares of common stock as part of a sale
of our Company and ultimately might affect the value of your common stock.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>There
is no assurance that we will successfully list on Nasdaq.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
can be no assurance that our company will be able to list on Nasdaq, or that such a listing will be maintained even if achieved. Our
ability to list on Nasdaq is subject to a number of conditions, including meeting certain financial and corporate governance requirements.
While we believe we currently satisfy these requirements, there is no guarantee that we will continue to do so in the future. Additionally,
Nasdaq may reject our application for listing or we may encounter delays or other issues that prevent or delay our listing. If we are
unable to list on Nasdaq, or if we are delisted after listing, we may be forced to seek alternative listing arrangements or operate on
an over-the-counter market, which could negatively impact our ability to raise capital, our liquidity, and the marketability of our securities.
Our inability to list on Nasdaq could also have a negative impact on our reputation, business prospects, and financial condition. Therefore,
investors should carefully consider the risks and uncertainties related to our ability to list on Nasdaq before making an investment
decision.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Because we are a &ldquo;controlled company&rdquo;
as defined in the Nasdaq Stock Market Rules, you may not have protection of certain corporate governance requirements which otherwise
are required by Nasdaq&rsquo;s rules.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under Nasdaq&rsquo;s rules,
a controlled company is a company of which more than 50% of the voting power for the election of directors is held by an individual, group
or another company. We are a controlled company because Mr. Giri Devanur, our chief executive officer and Chairman, holds more than 50%
of our voting power, and we expect we will continue to be a controlled company upon the Direct Listing. For so long as we remain a controlled
company, we are not required to comply with the following permitted to elect to rely, and may rely, on certain exemptions from the obligation
to comply with certain corporate governance requirements, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                            board of directors is not required to be comprised of a majority of independent directors;</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
                                                                  </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our
                                            board of directors is not subject to the compensation committee requirement; and</FONT></TD></TR><TR STYLE="vertical-align: top">
<TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
                                                        </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">we
                                            are not subject to the requirements that director nominees be selected either by the independent
                                            directors or a nomina</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">tion
                                            committee comprised solely of independent directors.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">We have not taken advantage of these exemptions. As a result, to the
extent that we take advantage of these exemptions, you will not have the same protections afforded to stockholders of companies that are
subject to all of the Nasdaq corporate governance requirements. Although we do not currently intend to take advantage of the controlled
company exemptions, we cannot assure you that, in the future, we will not seek to take advantage of these exemptions.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
failure to meet the continued listing requirements of the Nasdaq could result in a delisting of our common stock and could make it more
difficult to raise capital in the future.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Nasdaq
has listing requirements for inclusion of securities for trading on the Nasdaq, including minimum levels of stockholders&rsquo; equity,
market value of publicly held shares, number of public stockholders and stock price. There can be no assurance that we will be successful
in maintaining our listing on the Nasdaq as it is possible that we may fail to satisfy the continued listing requirements, such as the
corporate governance requirements or the minimum stock price requirement. If we fail to satisfy the continued listing requirements, the
Nasdaq may take steps to delist our common stock. Such a delisting, or the announcement of such delisting, will have a negative effect
on the price of our common stock and would impair your ability to sell or purchase our common stock when you wish to do so. In the event
of a delisting, we may attempt to take actions to restore our compliance with the Nasdaq listing requirements, but we can provide no
assurance that any such action taken by us would allow our common stock to become listed again, stabilize the market price or improve
the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum listing requirements or prevent future
non-compliance with the Nasdaq listing requirements. If we do not maintain the listing of our common stock on the Nasdaq, it could make
it harder for us to raise additional capital in the long-term. If we are unable to raise capital when needed in the future, we may have
to cease or reduce operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Our
financial situation creates doubt whether we will continue as a going concern.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">There
can be no assurances that we will ever be able to achieve a level of revenues adequate to generate sufficient cash fflow from operations
or obtain additional financing through private placements, public offerings and/or bank financing necessary to support our working capital
requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient,
we will have to raise additional working capital and no assurance can be given that additional financing will be available, or, if available,
will be on acceptable terms. The recent interest rate hikes and the present conditions and state of the United States and global economies
make it difficult to predict whether and/or when and to what extent a recession has occurred or will occur in the near future. These
conditions potentially raise substantial doubt about our ability to continue as a going concern. If adequate working capital is not available,
we may be forced to discontinue operations, which would cause investors to lose their entire investment.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>The
price of our common stock may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our
common stock in this offering.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">Our
common stock price is likely to be volatile. The stock market has experienced extreme volatility that has often been unrelated to the
operating performance of particular companies. As a result of this volatility, you may not be able to sell your common stock at or above
the initial public offering price. The market price for our common stock may be influenced by many factors, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            success of competitive products or technologies;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">regulatory
                                            or legal developments in the United States,</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            recruitment or departure of key personnel;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">actual
                                            or anticipated changes in our development timelines;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our
                                            ability to raise additional capital;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">disputes
                                            or other developments relating to proprietary rights, litigation matters and our ability
                                            to obtain patent protection for our product candidates in the future should we choose to
                                            do so;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">significant
                                            lawsuits, including stockholder litigation;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">variations
                                            in our financial results or those of companies that are perceived to be similar to us;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">general
                                            economic, industry and market conditions; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">the
                                            other factors described in this &ldquo;Risk Factors&rdquo; section.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">If
our quarterly operating results fall below the expectations of investors or securities analysts, the price of our common stock could
decline substantially. Furthermore, any quarterly fluctuations in our operating results may, in turn, cause the price of our stock to
fluctuate substantially. We believe that quarterly comparisons of our financial results are not necessarily meaningful and should not
be relied upon as an indication of our future performance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">In
the past, following periods of volatility in the market price of a company&rsquo;s securities, securities class-action litigation often
has been instituted against that company. Such litigation, if instituted against us, could cause us to incur substantial costs to defend
such claims and divert management&rsquo;s attention and resources.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Because
we do not expect to pay dividends for the foreseeable future, investors seeking cash dividends should not purchase shares of common stock.
</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance
the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future. Our payment of
any future dividends will be at the discretion of our board of directors of Directors after taking into account various factors, including
but not limited to our financial condition, operating results, cash needs, growth plans and the terms of any credit agreements that we
may be a party to at the time. Accordingly, investors must rely on sales of their common stock after price appreciation, which may never
occur, as the only way to realize any future gains on their investments. Furthermore, our Credit Agreement contains negative covenants
that limit our ability to pay dividends. For more information, see the section titled &ldquo;Management&rsquo;s Discussion and Analysis
of Financial Condition and Results of Operations - Liquidity and Capital Resources.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>Although
we intend to apply to list our common stock on Nasdaq, an active trading market for our common stock may not develop.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Prior
to this offering, no public market has existed for our common stock. Further, we intend to apply to list our common stock on Nasdaq,
and there can be no assurance that we will be approved. Although this offering will not commence without the approval for the trading
of our common stock on Nasdaq, an active trading market for our shares may never develop or be sustained following this offering. If
an active market for our common stock does not develop, it may be difficult for you to sell shares you purchase in this offering without
depressing the market price for the shares, or at all. &nbsp;An inactive market may also impair our ability to raise capital by selling
our common stock and may impair our ability to expand our business by using our common stock as consideration in an acquisition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
will be subject to additional regulatory burdens resulting from our public listing.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
are working with our legal, accounting and financial advisors to identify those areas in which changes should be made to our financial
management control systems to manage our obligations as a public company listed on the Nasdaq.&nbsp;These areas include corporate governance,
corporate controls, disclosure controls and procedures and financial reporting and accounting systems. We have made, and will continue
to make, changes in these and other areas, including our internal controls over financial reporting. However, we cannot assure holders
of our common stock that these and other measures that we might take will be sufficient to allow us to satisfy our obligations as a public
company listed on the Nasdaq on a timely basis. In addition, compliance with reporting and other requirements applicable to public companies
listed on the Nasdaq will create additional costs for us and will require the time and attention of management. We cannot predict the
amount of the additional costs that we might incur, the timing of such costs or the impact that management&rsquo;s attention to these
matters will have on our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>We
may sell additional common stock or other securities that are convertible or exchangeable into common stock in subsequent offerings or
may issue additional common stock or other securities to finance future acquisitions.</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">We
cannot predict the size or nature of future sales or issuances of securities or the effect, if any, that such future sales and issuances
will have on the market price of the common stock. Sales or issuances of substantial numbers of common stock or other securities that
are convertible or exchangeable into common stock, or the perception that such sales or issuances could occur, may adversely affect prevailing
market prices of the common stock. With any additional sale or issuance of common stock or other securities that are convertible or exchangeable
into common stock, investors will suffer dilution to their voting power and economic interest in our company. Furthermore, to the extent
holders of any stock options or other convertible securities convert or exercise their securities and sell the common stock they receive,
the trading price of the common stock may decrease due to the additional amount of common stock available in the market.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">To
the extent we may issue additional equity interests, our stockholders&rsquo; percentage ownership interest in our Company would be diluted.
In addition, depending upon the terms and pricing of any additional offerings, the use of the proceeds and the value of our real estate
investments, you may also experience dilution in the value of your shares and in the earnings and dividends per share.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Upon its effectiveness, our Certificate
of Incorporation will provide that the Court of Chancery of the State of Delaware will be the exclusive forum for certain disputes between
us and our stockholders, which could limit our stockholders&rsquo; ability to obtain a favorable judicial forum for disputes with us
or our directors, officers or employees.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon its effectiveness, our
Certificate of Incorporation will provide that, with certain limited exceptions, the Court of Chancery of the State of Delaware will
be the exclusive forum for:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
                                            derivative action or proceeding brought on our behalf;</FONT></TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">any
                                            action asserting a claim of breach of fiduciary duty owed by any director, officer or stockholder;</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt"> &#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">any action asserting a claim against us arising under the Delaware General Corporation Law (&ldquo;DGCL&rdquo;), or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">any action arising pursuant to any provision of our Bylaws or Certificate of Incorporation; and</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">any action asserting a claim against us or any current or former director, officer or stockholder that is governed by the internal-affairs doctrine.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This exclusive-forum provisions
may limit a stockholder&rsquo;s ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors,
officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees. Any person or entity
purchasing or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to this provision.
There is no certainty that a court located outside of Delaware would give effect to this provision in any given case. If a court were
to find this exclusive-forum provision in our Certificate of Incorporation to be inapplicable or unenforceable in an action, we may incur
additional costs associated with resolving the dispute in other jurisdictions.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in"><B><I>We are an emerging growth
company and a smaller reporting company and intend to take advantage of reduced disclosure requirements applicable to emerging growth
companies, which could make the common stock less attractive to investors.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are an &ldquo;emerging
growth company&rdquo; (&ldquo;EGC&rdquo;) as defined in the Jumpstart Our Business Startups Act of 2012. we will remain an EGC until the
earliest to occur of (i) the last day of the fiscal year in which it has total annual gross revenue of $1.235 billion or more; (ii) the
last day of the fiscal year following the fifth anniversary of the date of the first sale of common stock pursuant to this registration
statement; (iii) the date on which it has issued more than $1.0 billion in non-convertible debt securities during the prior three-year
period; or (iv) the date it qualifies as a &ldquo;large accelerated filer&rdquo; under the rules of the SEC, which means the market value
of the common stock held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal
quarter after it has been a reporting company in the United States for at least 12 months. For so long as we remain an EGC, it is permitted
to and intends to rely upon exemptions from certain disclosure requirements that are applicable to other public companies that are not
EGCs. These exemptions include not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act (&ldquo;SOX&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We may take advantage of some,
but not all, of the available exemptions available to EGCs. We cannot predict whether investors will find the common stock less attractive
if it relies on these exemptions. If some investors find the common stock less attractive as a result, there may be a less active trading
market for the common stock and the price of the common stock may be more volatile.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are also a smaller reporting
company, as defined in Rule 405 promulgated under the Securities Act (&ldquo;SRC&rdquo;). As an SRC, our company intends to utilize certain
reduced disclosure requirements, including publishing two years of audited financial statements instead of three years, as required for
companies that do not qualify as an SRC. Our company will remain an&nbsp;SRC&nbsp;until the last day of the fiscal year in which it had
(i) a public float that exceeded $250 million or (ii) annual revenues of more than $100 million and a public float that exceeded $700
million. To the extent our company takes advantage of such reduced disclosure obligations, it may make comparison of its financial statements
to those of other public companies difficult or impossible.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After our company ceases to
be an SRC, it is expected to incur additional management time and cost to comply with the more stringent reporting requirements applicable
to companies that are accelerated filers or large accelerated filers, including complying with the auditor attestation requirements of
Section 404 of SOX.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="G_001"></A>TRADEMARKS, SERVICE MARKS, COPYRIGHTS AND TRADENAMES&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We own or otherwise have rights
to the trademarks, service marks, and copyrights, including those mentioned in this prospectus, used in conjunction with the operation
of our business. This prospectus includes our own trademarks, which are protected under applicable intellectual property laws, as well
as trademarks, service marks, copyrights, and tradenames of other companies, which are the property of their respective owners. We do
not intend our use or display of other companies&rsquo; trademarks, service marks, copyrights, or tradenames to imply a relationship with,
or endorsement or sponsorship of us by, any other companies. Solely for convenience, trademarks and tradenames referred to in this prospectus
may appear without the&nbsp;<SUP>&reg;</SUP>,&nbsp;<SUP>&trade;</SUP>, or SM symbols, but such references are not intended to indicate,
in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and tradenames.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the date of this prospectus,
we have applied for 2 trademarks and has filed a provisional patent application for the reAlpha Score. As of the date of this prospectus,
the Company has the following pending applications for federal trademarks and a license to use the following federal trademark in the
United States:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: left">Mark Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">International<BR>
 Classes</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Application<BR>
 Number</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Filed Date</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; font-weight: bold; text-align: center">Owner</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; width: 34%; text-align: left"><FONT STYLE="font-size: 10pt">reAlpha M<SUP>3 TM</SUP></FONT></TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">035</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">90670058</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: center; padding-left: 5pt">2021-04-25</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 20%; text-align: center; padding-left: 5pt">reAlpha Tech Corp</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">reAlpha HUMINT<SUP>TM</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">035</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90670061</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">2021-04-25</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">reAlpha Tech Corp</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">reAlpha BRAIN<SUP>TM</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">035</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90670577</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">2021-04-25</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">reAlpha Tech Corp</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left"><FONT STYLE="font-size: 10pt">reAlpha Hub<SUP>TM</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">035</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">90670055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">2021-04-25</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">reAlpha Tech Corp</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">IPO &ndash; Investment Property Offering</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">042</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97603076</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">2022-09-22</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">reAlpha Tech Corp</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="vertical-align: top; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; text-align: left">Vacation Capitalist</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">036</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">97703446</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5pt">2022-12-05</TD><TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: center; padding-left: 5pt">reAlpha Tech Corp</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_004"></A>USE OF PROCEEDS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Registered
Stockholders may, or may not, elect to sell or distribution, as applicable, shares of our common stock covered by this prospectus. To
the extent any Registered Stockholder chooses to sell or distribution, as applicable, shares of our common stock covered by this prospectus,
we will not receive any proceeds from any such sales of our common stock. See &ldquo;Principal and Registered Stockholders.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_005"></A>MARKET INFORMATION FOR SECURITIES AND DIVIDEND
POLICY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Market Price and
Ticker Symbols</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is currently no market
for our common stock. We intend to apply to list on Nasdaq under the symbol &ldquo;[&#9679;]&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Holders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 17, 2023, there were
3,123 holders of record of the Company&rsquo;s common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Dividend Policy</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
have never declared or paid any cash dividend on our capital stock. We do not anticipate paying any cash dividends in the foreseeable
future and we intend to retain all of our earnings, if any, to finance our growth and operations and to fund the expansion of our business.
Payment of any dividends will be made in the discretion of our board of directors. Our board of directors may take into account general
and economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs,
capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends by us to our stockholders
or by our subsidiaries to us and such other factors as our board of directors may deem relevant. In addition, our ability to pay dividends
is limited by our credit facilities and may be limited by covenants of other indebtedness we or our subsidiaries incur in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><B>&nbsp;</B></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B><A NAME="a_006"></A>MANAGEMENT&rsquo;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>RESULTS OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><I>The
following discussion and analysis of our financial condition and results of operations should be read in conjunction with the information
presented in our historical combined financial statements and the related notes included elsewhere in this prospectus. In addition to
historical information, the following discussion contains forward-looking statements, such as statements regarding our expectation for
future performance, liquidity and capital resources, which involve risks, uncertainties and assumptions that could cause actual results
to differ materially from our expectations. Our actual results may differ materially from those contained in or implied by any forward-looking
statements. Factors that could cause such differences include those identified below and those described in &ldquo;Information Regarding
Forward-Looking Statements,&rdquo; &ldquo;Risk Factors&rdquo; and &ldquo;Financial Information.&rdquo; </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Business Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business model is built
around acquiring short-term rental properties that meet its internal investment criteria, which it calls Target Properties. Once acquired,
we plan to renovate these properties to prepare them for rent and list them on short-term rental sites. We also plan to manage the financial
performance of these assets, which includes evaluating the property&rsquo;s after-repair value and profitability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To make this business model
available to retail investors, we plan to offer interest in each property portfolio through exempt offerings directed at those investors.
The investors who participate in these offerings are called Syndicate Members. We expect that in the future, these Syndicate Members will
purchase minority interests in the Company&rsquo;s acquired properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our goal is to achieve consistent
cash flow from short-term tenants, long-term capital appreciation, favorable tax treatment of long-term capital gains, and capital preservation.
To finance these property acquisition investments, the company may engage in leverage financing. This involves a combination of senior
financing on its real estate acquisitions, secured facilities, and capital markets financing transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We plan to secure conservatively
structured leverage that is long-term, non-recourse, and non-mark-to-market financing. It intends to manage credit risk and interest rate
risk associated with these financings by monitoring credit risk and other risks of loss associated with each investment and its overall
credit risk and levels of provision for loss. Additionally, we will follow an interest rate risk management policy intended to mitigate
the negative effects of major interest rate changes. This includes attempting to &ldquo;match-fund,&rdquo; which means that it will structure
the key terms of its borrowings to generally correspond with the expected holding period of its assets. We have already started its first
syndication of one of its Orlando properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Results of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><U>The three months ended January 31, 2023,
compared to the three months ended January 31, 2022</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Three months<BR>
ended<BR>
 January 31,<BR>
 2023</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Three months<BR>
ended<BR>
 January 31,<BR>
 2022</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify">Rental Income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">37,070</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">95,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Cost of sales</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(7,785</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(24,781</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">29,285</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">70,219</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">General, Administrative &amp; Other Non-Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,495,788</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,432,924</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(67,683</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(70,372</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,534,186</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,433,077</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Less: Net Loss Attributable to Non-Controlling Interests</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,211</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt"> Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,534,186</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,430,866</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I></I></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Three months ended<BR>
 January 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">% &nbsp;Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-weight: bold; text-align: left">Gross Profit</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">29,285</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">70,372</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(58.3</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Gross Margin %</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">78.9</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73.9</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.00</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Revenues.&nbsp;</I></B>Total
revenues were $37,070 for the three&nbsp;months ended January 31, 2023 compared to $95,000 for the three&nbsp;months ended January 31,
2022. Our revenues consist of short-term rental revenue that we receive from our listed properties. The decline in revenue for the period
ending January 31, 2023, can be attributed to a decrease in the number of properties listed compared to January 31, 2022, as we are in
the process of discontinuing our Dallas, Texas operations by selling most of the properties we previously had in that market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cost
of Sales.</I></B> Total cost of sales was $7,785 for the three months ended January 31, 2023 compared to $24,781 for the three months
ended January 31, 2022. The decrease in the cost of sales for the three months ended January 31, 2023, is attributed to a reduction in
the property management fee. This fee is charged based on the revenue earned, and since the revenue declined for the three months ended
January 31, 2023, due to a decrease in the number of properties listed as compared to January 31, 2022, it resulted in a decline in the
cost of sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Gross Profit</I></B>.
Gross profit was $29,285 for the three months ended January 31, 2023, compared to $70,219 for the same period of 2022. The decrease in
gross profit is mainly attributed to a decline in revenue resulting from a decrease in property management fees and host charges associated
with our listed properties compared to the three months ended January 31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Gross Margin. </I></B>Gross
margin was 78.9% for the three months ended January 31, 2023, compared to 73.9% for the same period of 2022. The increase in gross margins
of 5% during the three months ended January 31, 2023, is mainly due to the decrease in property management fees and host charges associated
with our listed properties, which had been charged to us by Airbnb for hosting our properties during three months ended January 31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>General, Administrative
and other Non-Operating Expenses</I></B>.&nbsp;General administrative and other non-operating expenses were $1,495,788 for the three&nbsp;months
ended January 31, 2023 compared to $1,432,924 for the three&nbsp;months ended January 31, 2022. This increase in general administrative
and other non-operating expenses can be attributed to a minor rise in legal expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><B><I>&nbsp;&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Operating
Expense.&nbsp;</I></B>We recognized operating expense of $67,683 for the three&nbsp;months ended January 31, 2023, compared to $70,372
for the three&nbsp;months ended January 31, 2022. The reduction in expenses is attributable to a lower number of properties compared to
January 31, 2022. Operating expenses includes utilities, repairs, maintenance, property insurance costs, property taxes, depreciation,
amortization and others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Net
Loss.</I></B>&nbsp;Net loss was $1,534,186 for the three&nbsp;months ended January 31, 2023, compared to $1,430,866 in the prior year
comparable period. This increase in net loss is attributable to a decline in revenues due to decrease in the number of properties listed
compared to January 31, 2022, and an increase in our non-operating expenses due to our increased legal expenses during such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><U>The nine months ended January 31, 2022,
compared to the nine months ended January 31, 2021</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Nine months&nbsp;ended<BR>
 January 31,<BR>
 2023</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Nine months&nbsp;ended<BR>
 January 31,<BR>
 2022</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify">Rental Income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">96,860</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">168,771</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Cost of sales</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(20,336</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(37,758</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">76,524</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">131,013</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">General, Administrative &amp; Other Non-Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,004,491</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,956,136</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(221,366</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(208,508</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,149,333</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,033,631</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Less: Net Loss Attributable to Non-Controlling Interests</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,082</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management, Inc.)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,149,333</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,025,549</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Nine months ended<BR> January 31,</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%&nbsp;Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-weight: bold; text-align: left">Gross Profit</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">76,524</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">131,013</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">(41.6</TD><TD STYLE="width: 1%; text-align: left">)%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Gross Margin %</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">79.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">77.6</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.4</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Revenues.&nbsp;</I></B>Total
revenues were $96,860 for the nine&nbsp;months ended January 31, 2023 compared to $168,771 for the nine months ended January 31, 2022.
The decline in revenue for the nine months ended January 31, 2023, can be attributed to a decrease in the number of properties listed
compared to January 31, 2022, as we disposed of certain properties, including most of the properties we previously had in the Dallas,
Texas market. Our revenues consist of short-term rental revenue that we receive from our listed properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cost
of Sales.</I></B> Total cost of sales was $20,336 for the nine months ended January 31, 2023 compared to $37,758 for the nine months ended
January 31, 2022. The decrease in the cost of sales for the nine months ended January 31, 2023, is attributed to a reduction in the property
management fee. This fee is charged based on the revenue earned, and since the revenue declined for the nine months ended January 31,
2023, due to a decrease in the number of properties listed as compared to January 31, 2022, it resulted in a decline in the cost of sales.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Gross Profit</I></B>.
Gross profit was $76,524 for the nine months ended January 31, 2023, compared to $131,103 for the same period of 2022. The revenue is
not inclusive of the sale amount from these disposed properties. It included only the short-term rentals amount generated from the properties
during their listing period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Gross
Margin. </I></B>Gross margin was 79.0% for the nine months ended January 31, 2023, compared to 77.6% for the same period of
2022. The increase in gross margins of 1.4% during the nine months ended January 31, 2023, is mainly due to the decrease in property management
fees and host charges associated with our listed properties, which had been charged to us by Airbnb for hosting our properties during
nine months ended January 31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>General, Administrative
and other Non-Operating Expenses. </I></B>General administrative and other non-operating expenses were $3,004,491 for the nine months
ended January 31, 2023, compared to $1,956,136 for the nine months ended January 31, 2022. The Increase can be attributed to a rise in
legal expenses in connection with our Regulation A offering and general business operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><B><I>&nbsp;&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Operating Expense.&nbsp;</I></B>We
recognized operating expenses of $211,366 for the nine&nbsp;months ended January 31, 2023 compared to $208,508 for the nine months ended
January 31, 2022. Operating expenses includes utilities, repairs, maintenance, property insurance costs, property taxes, depreciation,
amortization and others. The rise in expenses is attributable to an increase in depreciation and amortization costs compared to January
31, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Net Loss</I></B>.&nbsp;Net loss was $3,149,333
for the nine&nbsp;months ended January 31, 2023, compared to $2,025,549 in the prior year comparable period. This increase in net loss
was due to a decline in revenue, which was due to a decrease in the number of properties listed compared to the nine months ended January
31, 2022 period, and increase in the non-operating expenses, such as increased legal expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><U>The&nbsp;fiscal year&nbsp;ended&nbsp;April
30, 2022,&nbsp;compared to the&nbsp;fiscal year&nbsp;ended&nbsp;April 30, 2021</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Fiscal year&nbsp;ended<BR>
 April 30,<BR>
 2022</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Fiscal year&nbsp;ended<BR>
 April 30,<BR>
 2021</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: justify">Rental Income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">229,672</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">784</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Cost of sales</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(55,717</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(199</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Gross profit</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">173,955</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">585</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">General, Administrative &amp; Other Non-Operating Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,995,365</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,809</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Total operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(381,932</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(1,189</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify">Provision for income taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify">Net loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,203,342</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(3,413</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Less: Net Loss Attributable to Non-Controlling Interests</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(13,304</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(71</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: justify; padding-bottom: 1.5pt">Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management, Inc.)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,190,038</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,342</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center"></TD>
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year ended<BR>
 April 30,</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">%&nbsp;Change</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; font-weight: bold; text-align: left">Gross Profit</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">173,955</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">585</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">29,636</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Gross Margin %</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75.7</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74.6</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.1</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Revenues.&nbsp;</I></B>Total
revenues were $229,672 for the fiscal year ended April 30, 2022, compared to $784 for the fiscal year ended April 30, 2021. The revenue
increase for the period ending April 30, 2022, is due to the fact that we were formed on April 22, 2021, and the fiscal year ended on
April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30, 2022 (i.e. 365 days). Our revenues
consist of short-term rental revenue that we receive from our listed properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Cost of Sales.</I></B>
Total cost of sales was $55,717 for the fiscal year ended April 30, 2022, compared to $199 for the fiscal year ended April 30, 2021. The
increase in the cost of sales for the fiscal year ended April 30, 2022, is attributed to the fact that our operations began on April 22,
2021, and the fiscal year ended on April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30,
2022 (i.e. 365 days).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Gross Profit</I></B>.
Gross profit was $173,955 for the fiscal year ended April 30, 2022, compared to $585 for the same period of 2021. The increase for the
period ending April 30, 2022, is due to the fact that we were formed on April 22, 2021, and our fiscal year ended on April 30, 2021, hence
it only reflected 8 days of operations, compared to the year ending April 30, 2022 (i.e. 365 days).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Gross Margin. </I></B>Gross
margin was 75.7% for the fiscal year ended April 30, 2022, compared to 74.6% for the same period of 2021. The increase in gross margins
during the fiscal year ended April 30, 2022, is mainly due to the fact that we were formed on April 22, 2021, and the fiscal year ended
on April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30, 2022 (i.e. 365 days).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>General, Administrative
and other Non-Operating Expenses.</I></B> General administrative and other non-operating expenses were $2,995,365 for the fiscal year
ended April 30, 2022 compared to $2,809 for the fiscal year ended April 30, 2021. The increase for the fiscal year ended April 30, 2022,
is due to the fact that we were formed on April 22, 2021, and the fiscal year ended on April 30, 2021, hence it only reflected 8 days
of operations, compared to the year ended April 30, 2022 (i.e. 365 days).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><B><I>&nbsp;&nbsp;&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Operating Expense.&nbsp;</I></B>We
recognized operating expense of $381,932 for the fiscal year ended April 30, 2022 compared to $1,189 for the fiscal year ended April 30,
2021. Operating expenses includes utilities, repairs, maintenance, property insurance costs, property taxes, depreciation, amortization
and others. The operating expenses increase for the period ended April 30, 2022, is due to the fact that we were formed on April 22, 2021,
and the fiscal year ended on April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30, 2022 (i.e.
365 days).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Net Loss.</I></B>&nbsp;Net
loss was $3,190,038 for the fiscal year ended April 30, 2022, compared to $3,342 for the fiscal year ended April 30, 2021. The decrease
in net loss for the period ended April 30, 2022, is due to the fact that we were formed on April 22, 2021, and the fiscal year ended on
April 30, 2021, hence it only reflected 8 days of operations, compared to the year ending April 30, 2022 (i.e. 365 days).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Liquidity and Capital
Resources</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Liquidity
describes the ability of a company to generate sufficient cash flows to meet the cash requirements of its business operations, including
working capital needs, debt services, acquisitions, contractual obligations and other commitments. As of the date of this prospectus,
we have yet to generate meaningful revenue from our business operations and have funded acquisitions, capital expenditure and working
capital requirement through equity and debt financing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our
liquidity and capital resources are critical to our ability to execute on our business plan and achieve our strategic objectives. We anticipate
that we will require working capital in the next 12 months to finance our growth and support our operations. Accordingly, we will need
to raise additional capital by securing additional financing. The timing, size, and terms of any such offering have not yet been determined.
<FONT STYLE="background-color: white">To the extent the Company requires additional funds more than 12 months from the date hereof, and
collections from our short-term rentals cannot fund our needs, the Company may utilize equity offerings to raise these funds. </FONT>We
cannot provide any assurance that we will be able to raise additional funds on acceptable terms, if at all. Our ability to raise additional
capital will depend on various factors, including market conditions, investor demand, and our financial performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our
business model requires significant capital expenditures to build and maintain the infrastructure and technology required to support our
operations. In addition, we may incur additional costs associated with research and development of new products and services, expansion
into new markets or geographies, and general corporate overhead. As a result, we may require additional financing in the future to fund
these initiatives, which may include additional equity or debt financing or strategic partnerships. We currently do not have any commitments
or arrangements for additional financing, and there can be no assurance that we will be able to obtain additional financing on terms acceptable
to us, or at all. If we are unable to obtain additional financing when required, we may be forced to reduce the scope of our operations,
delay the launch of new products or services, or take other actions that could adversely affect our business, financial condition, and
results of operations. We may also be required to seek additional financing on terms that are unfavorable to us, which could result in
the dilution of our stockholders&rsquo; ownership interests or the imposition of burdensome terms and restrictions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The
following table summarizes our cash flows from operating, investing and financing activities for the periods presented.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Nine Months Ended</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year Ended</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Particulars</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">January 31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">January 31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">April 30,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">April 30,<BR> 2021</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Net cash used in operating activities</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(4,478,549</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(30,482</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(1,558,025</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(11,326</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash used in investing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,687,271</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,322,374</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(2,645,816</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(98,189</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net cash provided by financing activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">3,644,095</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">4,485,184</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">5,533,173</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">442,735</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Cash flows from operating
activities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Net
cash used in operating activities was $(4,478,549) and $(30,482) for the nine months ended January 31, 2023 and 2022, respectively. The
increase in net cash flows used in operating activities as compared to the same period in 2022 was primarily driven by general, administrative
and legal expenses in relation with Regulation A fund raising and other related activities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Net
cash used in operating activities was $(1,558,025) for the year ended April 30, 2022, compared to $(11,326) for the year ended April 30,
2021. The difference in net cash flows used in operating activities as compared to the same period in 2022 is primarily due to the business
was operating for a significantly shorter duration (i.e., 8 days since April 22, 2021 inception date) during the period ended April 30,
2021 compared to the year ending April 30, 2022, which operated for the whole year (i.e. 365 days).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Cash flows from investing
activities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Our
cash flows from investing activities have been comprised primarily of purchases and sales of real estate properties and improvements to
those properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Net
cash used in investing activities was $1,687,271 and $(2,322,374) for the nine months ended January 31, 2023 and 2022, respectively. The
increase in inflow from investing was primarily due to the sale of real estate properties during the nine months ended January 31, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Net
cash used in investing activities was $(2,645,816) for the year ended April 30, 2022, compared to $(98,189) for the year ended April 30,
2021. The increase was primarily due to purchases of new properties during the year ended April 30, 2022 and also due to the business
was operating for a significantly shorter duration (i.e., 8 days) during the period ended April 30, 2021 compared to the year ending April
30, 2022 (i.e. 365 Days). As the company got incorporated on 22<SUP>nd</SUP> April, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>Cash flows from financing
activities</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">We
have financed our operations primarily through sales of equity securities, loans and advances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Net
cash provided by financing activities was $3,644,095 and $4,485,184 for the nine months ended January 31, 2023 and 2022, respectively.
The increase in net outflow is primarily consists of mortgage loan payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Net
cash provided by financing activities was $5,533,173 and $442,735 for the year ended April 30, 2022 and 2021, respectively. The increase
in net inflow is primarily consists of mortgage loan receipts and Regulation A Settlement stock subscription during the year end April
30, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Contractual and Obligations
and Commitments</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Our
contractual obligations as of April 30, 2022 include existing mortgage loans of the 5 properties currently owned by the Company. Monthly
mortgage interest amounts will vary due to interest rate fluctuation, and as of April 30, 2022 they were approximately as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Properties</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">City &amp; State</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Mortgage<BR>
 Loan<BR>
 Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 65%; text-align: left">506 West Parnell Street</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 22%; text-align: center; padding-left: 5.4pt">Denison, Texas</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">98,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">503 North Patton Avenue</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Dallas, Texas</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">177,974</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">3121 Fieldview Drive</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Garland, Texas</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">228,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Joaquin</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Dallas, Texas</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">226,737</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">606 West Acheson Street</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Denison, Texas</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">110,250</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">746 Greenland Way</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Grand Praire, Texas</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">217,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">790 Pebble Beach Drive</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Champions Gate, Florida</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">276,553</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">612 Jasmine Lane</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Davenport, Florida</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">337,242</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">7676 Amazonas Street</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; padding-left: 5.4pt">Kissimmee, Florida</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">266,204</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">2540 Hamlet Lane</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: center; padding-left: 5.4pt">Kissimmee, Florida</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">342,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; text-align: left">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: center; padding-left: 5.4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,281,211</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Off-Balance Sheet
Arrangements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; background-color: white">As of January 31, 2023,
we had no off-balance sheet arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Critical Accounting
Policies and Estimates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">This
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with GAAP. The preparation of these statements requires management to make estimates and judgments that
affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities
at the date of our consolidated financial statements. Actual results may differ from these estimates under different assumptions or conditions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Critical
accounting policies are defined as those that involve significant judgment and potentially could result in materially different results
under different assumptions and conditions. Management believes the following critical accounting policies are affected by our more significant
judgments and estimates used in the preparation of our consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><U>Revenue Recognition:</U>
Our revenues primarily consist of short-term rental revenues. We have the following revenue sources and revenue recognition policies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Short-term rental revenues include revenues from the rental
of our properties via Airbnb and such digital hospitality platforms.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">Fee and other income include late fees, violation fees, and
other revenue arising from contractual agreements with third parties. This revenue is recognized as the services are transferred in accordance
with ASC 606.</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><U>Investment Property
and Equipment and Depreciation</U>: Property and equipment are carried at cost. Depreciation for buildings is computed principally on
the straight-line method over the estimated useful lives of the assets (27.5 years). Depreciation of improvements to buildings, rental
homes and equipment, and vehicles is computed principally on the straight-line method over the estimated useful lives of the assets (ranging
from 3 to 27.5 years). Land &amp; its development costs are not depreciated but are capitalized as Land and land improvements. Interest
expenses, Maintenance, and repairs are charged to expenses as incurred and improvements are capitalized. The costs and related accumulated
depreciation of property sold or otherwise disposed of are removed from the financial statements and any gain or loss is reflected in
the current year&rsquo;s results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><U>Impairment Policy:</U>
The Company applies FASB ASC 360-10, &ldquo;Property, Plant and Equipment,&rdquo; to measure impairment in real estate investments. Rental
properties are individually evaluated for impairment when conditions exist which may indicate that it is probable that the sum of expected
future cash flows (on an undiscounted basis without interest) from a rental property is less than the carrying value under its historical
net cost basis. These calculations of expected future cash flows consider factors such as future operating income, trends, and prospects,
as well as the effects of leasing demand, competition, and other factors. Upon determination that a permanent impairment has occurred,
rental properties are reduced to their fair value. For properties to be disposed of, an impairment loss is recognized when the fair value
of the property (less the estimated cost to sell) is less than the carrying amount of the property measured at the time there is a commitment
to sell the property and/or it is actively being marketed for sale. A property to be disposed of will be reported at the lower end of
the carrying amount or its estimated fair value, less its cost to sell. Subsequent to the date that a property is held for disposition,
depreciation expense is not recorded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in"><U>Income Taxes:</U>
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine
deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities
by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates
on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax
assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider
all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable
income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets
in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which
would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process
in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits
of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount
of tax benefit that is more than 50 percent likely to be realized upon the ultimate settlement with the related tax authority. We recognize
interest and penalties, if any, with income tax expense in the accompanying consolidated statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Recent Accounting
Pronouncements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
June 2016, the FASB issued ASU No. 2016-13, &ldquo;Financial Instruments &ndash; Credit Losses (Topic 326): Measurement of Credit Losses
on Financial Instruments.&rdquo; ASU 2016-13 requires that entities use a new forward looking &ldquo;expected loss&rdquo; model that generally
will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical
experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No.
2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December
15, 2022. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Emerging Growth Company
Status</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The JOBS Act permits an emerging
growth company such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable
to public companies until those standards would otherwise apply to private companies. We have irrevocably elected to apply this extended
transition period and, as a result, we will not adopt new or revised accounting standards on the relevant dates on which adoption of such
standards is required for public entities. Accordingly, our financial statements may not be comparable to other public companies that
do not elect the extended transition period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><A NAME="a_007"></A><B>BUSINESS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Overview</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are an early stage company
with a mission to develop and utilize our artificial intelligence focused technology stack to empower retail investor participation in
short-term rental properties, which are real estate units listed for a rental term of 31 days or less. People may use vacation rentals
for a variety of reasons including, but not limited to: vacation or travel, relocation for an upcoming move, a place to stay while their
residence is going through renovations or repairs, extended work trips, special events like weddings or family reunions, temporary work
assignments, or seasonal activities. We were founded on the belief that every person should have the access and the freedom to pursue
wealth creation through real estate. However, there are significant barriers to entry for the average individual and lucrative returns
are currently mainly realized by private equity firms and larger-scale developers. We intend to leverage technology to democratize access
to short-term rental investments. To support this goal, we intend to build what we believe would be a new model for property ownership
and real estate investment. We believe in simplified wealth creation, access to new markets, diversification, exceptional guest experiences,
and community-building network effects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Business Model</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business model is built
around providing retail investors with the opportunity to participate in short-term rental properties we will acquire by offering interest
in each property portfolio. We intend to make that opportunity available pursuant to exempt offerings directed at those retail investors
through syndications, which investors we call &ldquo;Syndicate Members,&rdquo; as described below. We are focusing on the short term rental
industry since it is highly fragmented and is ideal for consolidation from both a real estate, technology and artificial intelligence
perspective. According to public filings from Airbnb, Inc. (&ldquo;Airbnb&rdquo;), the total market size is estimated to be $1.2T.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company decided to focus
on short-term rentals (vs. long term rentals) because of their profitability. We believe short-term rentals can be more profitable than
long-term rentals for three main reasons:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><I>Higher rental rates</I>. Short-term rental rates are typically higher than long-term rental rates, especially in popular tourist
destinations or during peak travel seasons.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><I>Flexibility</I>. With short-term rentals, you have the flexibility to adjust your rental rates and availability based on demand.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify"><I>More tax deductions</I>. Short-term rental owners may be able to deduct more expenses than long-term rental owners, such as cleaning
fees, supplies, and utilities.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To implement our business
model, we plan to acquire properties that satisfy our internal Investment Criteria (as defined below) (the &ldquo;Target Properties&rdquo;).
Then, if needed, we renovate the Target Properties, prepare them for rent, list them on short-term rental sites and arrange for the Target
Properties to be managed, internally or through third-parties. Eventually, we expect such management of the Target Properties will be
beneficial for the Company as well as the investors that acquire minority interests through syndications (or through a real estate investment
trust, as applicable). We expect that in the future these investors will become Syndicate Members through the purchasing of minority interests
in our acquired properties. In addition to managing the property operations, whether internally or through third-parties, we will also
manage the financial performance of the asset, such as evaluating if the after-repair value or appreciated value of the property is higher
than the purchase price, or whether the property is ready to generate the expected profitability. At this time, we started our first syndication
of one of our Orlando properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid; width: 48%; text-align: justify"><FONT STYLE="font-size: 10pt"><B>The average person does not:</B></FONT></TD>
    <TD STYLE="width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 50%; text-align: justify"><FONT STYLE="font-size: 10pt"><B>Proposed solution:</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Have access to wholesale real-estate market prices.</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">As a bulk buyer, we will have access to the wholesale real estate market, which most people do not even know exists. This includes bulk portfolio acquisition strategy.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Have the cash for a 25% down payment.</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">reAlpha has strategic partnerships with lending institutions, which will allow us to close on property acquisitions within two to three weeks rather than the two to three months customary period for property acquisitions.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Have the time to buy, renovate and manage an investment property.</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">reAlpha handles the acquisition, renovation, onboarding and property management. Syndicate Members never have to answer a guest or pick up a paintbrush.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Want to deal with a complex mortgage process (personal guarantee, negotiation with lenders, personal credit checks).</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">reAlpha eliminates the entire process for Syndicate Members. Syndicate Members will never need to give a personal guarantee and their credit will never be checked when financing directly through reAlpha.</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Qualification + Mortgage Lending Restrictions - Income determines how much an individual can leverage/borrow.</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">By fractionalizing the ownership process, we expect reAlpha Syndicate Members can own a smaller percentage of a home or group of homes rather than covering an entire down payment and being required to go through loan qualification requirements required by lenders.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Through these property acquisition
investments, our goal is to obtain: (i) consistent cash flow from short-term tenants; (ii) long-term capital appreciation by leveraging
our property&rsquo;s value after repair and/or renovations in appreciating markets; and (iii) favorable tax treatment of long-term capital
gains.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To finance these property
acquisition investments, we may engage in leverage financing to enhance total returns to our Syndicate Members and investors through a
combination of senior financing on our real estate acquisitions, secured facilities, and capital markets financing transactions. We will
seek to secure conservatively structured leverage that is long-term, non-recourse, non-mark-to-market financing to the extent obtainable
on a cost-effective basis. Our operating policies in respect to credit risk and interest rate risk we may face in connection with these
financings include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Credit Risk Management</B><I>.
</I>We may be exposed to various levels of credit and special hazard risk depending on the nature of our assets. We will review and monitor
credit risk and other risks of loss associated with each investment and our overall credit risk and levels of provision for loss.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Interest Rate Risk Management</B><I>.
</I>We will follow an interest rate risk management policy intended to mitigate the negative effects of major interest rate changes. We
intend to minimize our interest rate risk from borrowings by attempting to &ldquo;match-fund,&rdquo; which means that we will seek to
structure the key terms of our borrowings to generally correspond with the expected holding period of our assets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Syndicate Member Exempt Offerings</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To implement our business
model, we will purchase Target Properties, as described below, through wholly-owned LLCs that will be formed for each property or group
of related properties that are ready to be listed on short term rental sites (as described below in &ldquo;<I>Business - Business Process
for Acquired Properties</I>&rdquo; below). We expect to utilize a credit line to facilitate funding and acquisition of Target Properties.
As we grow and develop additional funding sources, we may set up additional subsidiaries to further facilitate funding and credit opportunities
available to us through each of these additional subsidiaries (for more information on our most recent credit facility agreement, refer
to the &ldquo;<I>Recent Developments</I>&rdquo; section below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">During
2023, we started to offer securities to Syndicate Members via a SEC registered broker-dealer managed process under Section 4(a)(6) of
the Securities Act, or directly by the issuer under Section 4(a)(2) of the Securities Act and/or Regulation D, where only accredited investors
are involved. As we transition from properties that have been placed in the market utilizing lines of credit or short-term financing to
long-term funding and syndicate membership, we may restructure our holdings. Specifically, we may refinance our property holdings with
different lenders that may offer better financing terms after the property has a between 3 to 6 months of operation history.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">However,
we expect reAlpha Acquisitions, LLC, one of our subsidiaries, will maintain management control of each of the LLCs. When this phase is
implemented, we expect Syndicate Members to collectively buy up to 100% of the newly formed LLC. The offerings by the LLCs of Syndicate
Membership will be made after the completion of this Direct Listing, pursuant to Securities and Exchange Commission Regulation A, Regulation
Crowdfunding, Regulation CF or Regulation D, all of which we believe would be available for such offerings and facilitate the utilization
of exemptions from registration under federal and state securities laws (see &ldquo;<I>Recent Developments</I> - <I>First Syndication
of the Jasmine property</I>&rdquo; for more details on our most recent Syndicate Member offering).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Growth Strategy </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business and growth strategy
consists of acquiring Target Properties through the use of our credit facilities, furnish, lightly renovate, if needed, and rent them
on the short-term rental market. We will manage, selectively leverage and sell homes located in markets that satisfy our market selection
requirements across the United States, as further described below. In the future, we may consider expanding to other favorable global
markets. We believe that these markets should offer investors a blend of attractive yields and a prospect for long-term property value
appreciation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Market Selection</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to focus our business
efforts on the markets in which Airbnb operates, which include some or all of the following characteristics:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Sufficient inventory to make it
feasible to achieve scale in the local market (100 &ndash; 500 homes);</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Large universities and skilled
workforce;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Popular with Airbnb travelers;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Favorable competitive landscape
with respect to other institutional residence buyers; and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Hotel room capacity and occupancy
rates in given destinations.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">During our testing phase,
we started acquiring properties in our initial geographic market of Dallas, Texas as a proof of concept. Now, we have moved into the Orlando,
Florida market. We believe that this market offers strong growth in population, jobs, rental rates, and value appreciation. Additionally,
we have selected Tampa, Ft. Lauderdale, and Panhandle areas in Florida as our next markets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will focus on acquiring
properties we believe (i) are likely to generate stable cash flows in the short-term rental market and/or (ii) have the potential for
long-term capital appreciation, such as those located in neighborhoods with what we see as high growth potential and those available from
sellers who are distressed or face time-sensitive deadlines. As a result of the extended time to complete the renovation of properties
caused by the current supply chain issues, including labor, material, and furniture shortages, we have shifted the focus of our acquisition
strategy to rent-ready homes. This will help us to deploy the properties that we purchase to be onboarded on Airbnb and start generating
revenues more quickly as these rent-ready properties do not need any major upgrades. In the future, we may revisit purchasing renovation
heavy homes depending on the labor and supply availabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We expect to revisit market
statistics and market selection criteria on a periodic basis. Selected markets may not necessarily meet every single criterion. In the
future, we may choose to enter additional markets such as Florida, California, Texas, New York, Illinois and, eventually, we expect that
will expand to other states in the U.S., and subsequently globally. At this time, we have not set a timeline for expansion. We may also
evaluate certain additional markets in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investment Criteria</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We determine our Target Properties
utilizing our investment criteria, which evaluates acquisition investments using our proprietary algorithms (the &ldquo;Investment Criteria&rdquo;).
Investment decisions made pursuant to our Investment Criteria may include single-family homes, multifamily units, experiential properties,
resorts, resort communities and others.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We plan to have continuously
assess property acquisition investments using our Investment Criteria and intend to purchase properties that include, but are not limited
to, the following primary characteristics:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Target Properties identified by
our reAlpha Score algorithms (described below) are considered for acquisition;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Target Properties with an average
of three (3) bedrooms and two (2) bathrooms per unit;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Target Properties with an average
price range of $250,000 - $600,000 and a repair/improvement budget requirement of less than 20% of the home purchase price; In select
markets, this price range may significantly vary.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We also intend to regularly
consider acquiring properties outside of these ranges depending on market conditions, uniqueness, and condition of the Target Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Investment Decisions</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">While we will employ our proprietary
artificial intelligence technology and our real estate professionals to identify suitable properties for acquisition, the Company will
be responsible for final decisions. We will use the methodology described below and our bespoke technologies to reach buy or sell decisions.
We have developed an investment approach that combines the experience of our management, the reAlpha Score and an approach that emphasizes
market research, underwriting standards and down-side analysis of the risks of each investment.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To execute our disciplined
investment approach, we plan to closely monitor the profit and loss of each investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following is a summary
of our methodology for property acquisition:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Local Market Research</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will research the acquisition
and underwriting of each transaction. The research will focus on finding any &ldquo;red flags&rdquo; to acquire a property. These &ldquo;red
flags&rdquo; include (i) heavy regulation on short-term rentals at a state, county, or homeowner&rsquo;s association (&ldquo;HOA&rdquo;)
level; (ii) homes that have been on the market for longer than a year, or (iii) areas where natural disasters are extremely common and
damaging. Additionally, we consider things such as tourist numbers and market size, seasonality, walkability, proximity to airports, restaurants
and entertainment and events that would attract renters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Market Analysis</B>. When entering a market
that we do not currently own property. We first determine what the demographic and real estate relate trends have been. More specifically,
we look to see positive trends in statistics such as, but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">i.</TD><TD STYLE="text-align: justify">Historical and projected population growth;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">ii.</TD><TD STYLE="text-align: justify">Historical and projected median income/median income growth;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">iii.</TD><TD STYLE="text-align: justify">Historical real estate property appreciation;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">iv.</TD><TD STYLE="text-align: justify">Historical rental rate growth;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">v.</TD><TD STYLE="text-align: justify">Laws, ordinances, restrictions related to short term rentals;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">vi.</TD><TD STYLE="text-align: justify">Residential inventory supply; and</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">vii.</TD><TD STYLE="text-align: justify">Annual tourism demand.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Submarket Analysis</B>. In our submarket analysis,
we look for all the same stats/trends as completed at the market level but for a smaller geographical area such as a specific city and/or
zip code. Additionally, we will look to see positive trends in statistics such as, but not limited to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">i.</TD><TD STYLE="text-align: justify">Total short term rental demand in the submarket;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">ii.</TD><TD STYLE="text-align: justify">Active short term rental listings in the submarket;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">iii.</TD><TD STYLE="text-align: justify">Average submarket daily rates based on seasonality;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">iv.</TD><TD STYLE="text-align: justify">Average submarket occupancy; and</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">v.</TD><TD STYLE="text-align: justify">Licensing requirements.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Property Analysis</B>. In our property analysis,
we look to analyze the subject property or properties to determine:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">i.</TD><TD STYLE="text-align: justify">Age and construction type, including roof, doors and windows;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">ii.</TD><TD STYLE="text-align: justify">Property condition;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">iii.</TD><TD STYLE="text-align: justify">Level and finesse of finishes in the property;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">iv.</TD><TD STYLE="text-align: justify">Is there any deferred maintenance to be done in the property
before putting it in the market;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">v.</TD><TD STYLE="text-align: justify">Age/condition of major mechanical components including roof,
plumbing and appliances;</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">vi.</TD><TD STYLE="text-align: justify">Upcoming capital expenditures; and</TD>
</TR></TABLE>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">vii.</TD><TD STYLE="text-align: justify">Reoccurring maintenance.</TD>
</TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Underwriting Analysis</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will examine all elements
of a potential investment, including, with respect to real property, its location, income-producing capacity, prospects for long-range
appreciation, tax considerations and liquidity. Utilizing the market, submarket and property analysis, we develop a complete pro forma
calculation from acquisition through projected sale is completed for each property or portfolio of properties acquired. Each pro forma
calculation must meet the required minimum metrics threshold set by the company prior to making a formal investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Risk Management</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Operating or performance risks
generally arise at the investment level and often require real estate operating experience to cure, as described in the &ldquo;<I>Risk
Factors</I>&rdquo; section below. We will review the current operating performance of property investments against our internal projections
and provide the oversight necessary to detect and resolve issues as they arise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Asset Management</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to the purchase of a
property, we will develop a property business strategy, which will be customized based on the acquisition and underwriting data. Our property
business strategy is a forecast of the action items to be taken and the capital needed to achieve the targeted returns for a Target Property.
The property business strategy includes: (i) offer amount and negotiations, (ii) financing structure, (iii) furniture and design, (iv)
achieving the most beneficial holding period for the property, (v) tax strategy and (vi) exit strategy. These strategies will be customized
based on data found during the due diligence process for each of Target Property to adapt to economic conditions, seasonality, and the
unique factors of each market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Properties and/or portfolios
of acquired properties will have annual budgets completed prior to the commencement of any given operating year. Quarterly financials
will include variance to pro forma calculations and budget reports. Variances greater than 15% for any line item that exceeds an amount
equal to $10,000 shall include an explanation of said variance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Business Process for Acquired Properties</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Once we have decided to acquire
a property using our Investment Criteria, we intend to use the following steps to maximize its value:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">1.</TD><TD STYLE="text-align: justify">A wholly-owned subsidiary (e.g. wholly-owned LLCs) buys the
Target Property using short-term leverage provided by one of our lending partners.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">2.</TD><TD STYLE="text-align: justify">The wholly-owned subsidiary arranges for the renovation of
the purchased Target Property, at the cost of that wholly-owned subsidiary, by one of our preselected national partners after transferring
it to the new reAlpha LLC subsidiary.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">3.</TD><TD STYLE="text-align: justify">Within a period of 4-to-18-months, reAlpha will refinance
the Target Property by swapping the short-term loan with a long-term loan from any one of our lending partners. If current market conditions
or lending opportunities are poor, we may choose to not refinance or refinance out of the respective target time frame of 4-to-18 months.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">4.</TD><TD STYLE="text-align: justify">If the after-repair value or appreciated value (within 4 to
18 months after acquisition) of the Target Property is higher than the purchase price, then the remaining money from the equity may be
used for purchasing additional properties in the same reAlpha LLC subsidiary for all owners.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">5.</TD><TD STYLE="text-align: justify">The new reAlpha LLC subsidiary will offer up to 100% of its
membership interests for purchase through syndicate membership (or other investment vehicle such as real estate investment trust), as
explained above.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">6.</TD><TD STYLE="text-align: justify">Our Syndicate Members may receive distributions proportional
to their membership based on the free cash flows after taxes from the overall performance of the property on Airbnb.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">7.</TD><TD STYLE="text-align: justify">After the Target Property has generated the target returns
the property may be sold to book the profit for the reAlpha LLC subsidiary.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.25in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">8.</TD><TD STYLE="text-align: justify">This profit, if any, may be used to purchase further properties
in the same reAlpha LLC subsidiary for our benefit and the benefit of the Syndicate Members. The Syndicate Members may choose to invest
further in new properties or redeem their investments.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although we may sell properties,
we intend to hold and manage the properties we acquire for a period of one to six years. The reAlpha LLCs that will manage these properties
will receive a gross fee of 15% to 30% of the property&rsquo;s revenue. The 15-30% fee is of gross receipts generated by the property.
&ldquo;Gross Receipts&rdquo; means (i) receipts from the short-term or long-term rental of the property; (ii) receipts from rental escalations,
late charges and/or cancellation fees; (iii) receipts from tenants for reimbursable operating expenses; (iv) receipts from concessions
granted or goods or services provided in connection with the Property or to the tenants or prospective tenants; (v) other miscellaneous
operating receipts; and (vi) proceeds from rent or business interruption insurance, excluding (A) tenants&rsquo; security or damage deposits
until the same are forfeited by the person making such deposits, (B) property damage insurance proceeds, and (C) any award or payment
made by any governmental authority in connection with the exercise of any right of eminent domain.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As each of our properties
reaches what we believe to be its appropriate disposition value, based on internal metrics, we will consider disposing of the property.
The determination of when a particular property should be sold or otherwise disposed of will be made after consideration of relevant factors,
including prevailing and projected economic conditions, whether the value of the property is anticipated to appreciate or decline substantially,
and how any existing leases on a property may impact the potential sales price. The Company will utilize the reAlpha Score to measure
properties against set key performance indexes and determine when to objectively dispose of a property. The Company may determine that
it is in the best interests of stockholders to sell a property earlier than one year or to hold a property for more than six years. When
we determine to sell a particular property, we intend to achieve a selling price that captures the capital appreciation for investors
based on then-current market conditions. We cannot assure you that this objective will be realized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Each property will be charged
a market rate property disposition fee that are paid by the seller at the time of the sale, consisted of realtor fees and closing costs
(taxes and other related costs). This disposition fee should cover property sale expenses such as brokerage commissions, and title, escrow
and closing costs upon the disposition and sale of a property. It is expected that this disposition fee charged will range from 6% to
8% of the property sale price. Following the sale of a property, the Company expects to re-invest the proceeds of such sale, minus the
property disposition fee described in this paragraph, into more properties for our portfolio and for the Syndicate Members to have the
opportunity to invest in.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Further, the properties may
be also managed by third-party property management firms at the Company&rsquo;s discretion. The services provided by such third-party
property manager would include (i) ensuring compliance with local and other applicable laws and regulations; (ii) handling tenant access
to properties; (iii) and any other action deemed necessary by the property manager or desirable for the performance of any of the services
under our respective management agreement. These management agreements are subject to an asset management fee between 15% and 30% of the
short-term rental gross revenue generated. As we achieve scale in the number of properties owned and operated, we may seek to bring property
management in-house. In the event we manage a property, such property management fees would then be retained by us. If a short-term rental
property is vacant and not producing rental income, the property management fee will not be paid during any such period of vacancy, including
properties managed by third-parties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The operating expenses that
each reAlpha LLC will be responsible for, as described above, include, but is not limited to: (i) mortgage principal and interest; (ii)
property tax; (iii) homeowner insurance; (iv) utilities; (v) landscaping; (vi) pool maintenance costs; (vii) routine maintenance and repairs;
(viii) HOA fees; and (ix) pest control. We will share the expenses related to the short-term rental properties with the Syndicate Members
and will bear its own operating and management expenses in proportion to the ownership of the LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Platform and Technologies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>reAlpha App (Trademarked as reAlpha M3<SUP>TM</SUP>)</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The reAlpha App is a mobile
application we are developing, which, when operational, will allow Syndicate Members to view live the financial metrics and performance
of properties they have invested in. Just as you may monitor your stock portfolio and performance on an app like Robinhood, the reAlpha
App will give Syndicate Members real-time visibility into their property asset portfolio and performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The reAlpha App is being designed
to support our mission to make real estate ownership accessible and user friendly. When operational, it will fetch property listing data
as well as data on short-term rental market trends from multiple third party API providers and display the consolidated data for a particular
property in an easily accessible format. The reAlpha app will be a broker-dealer managed marketplace that our Syndicate Members will be
able to utilize with ease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>reAlpha HUMINT<SUP>TM</SUP></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition to the artificial
intelligence (&ldquo;AI&rdquo;) being utilized in our technologies, we added a human factor that analyzes the short-term rental profitability.
Qualitative features depend on human analysis and cannot be fetched automatically. That is why we will utilize both internal analysts
at reAlpha and freelance analysts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The reAlpha HUMINT app allows
property analysts to analyze the property and provide the missing property features together with an estimated reAlpha score. This is
used as feedback to improve reAlpha BRAIN AI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>BnBGPT</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">BnBGPT is a product that simplifies
the process of generating personalized and effective home descriptions. The app is designed for both realtors and hosts, with features
that help them save time and money while creating descriptions that stand out in a crowded market. Our GPT powered app for real estate
is an essential tool for anyone looking to leave a mark in the real estate industry. By harnessing the power of AI, our app ensures that
each description is personalized and effective, giving users a competitive edge in the marketplace.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For <I>Realtors</I>. Our app
will offer a feature that generates advertising content directly from uploaded images and they can be used by realtors to advertise their
properties, eliminating the need for professional copywriters and other costly marketing tools. This makes it easy for realtors to create
descriptions that truly capture the essence of a home and highlight its unique features and benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For <I>Hosts</I>. Our app
will offer features that simplify the process of creating descriptions for Airbnb, VRBO, and Booking.com listings. Our app will automatically
organize these descriptions into sections, making it easy to highlight key features of a space and provide important information about
guest access. Additionally, we will include the proximity data of attractions near the property (e.g., restaurants, museums, areas of
interest for tourists in the area and others), making it easier to highlight those for the host. This helps hosts spend less time writing
descriptions and more time focusing on providing a great guest experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Our Industry</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our business model is based
on a digital marketplace with design and functions incorporating elements of multiple growing markets more fully described below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_004.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Airbnb Effect</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Airbnb is an online community
marketplace for people to list, discover, book and rent accommodations through easy-to-use technology. Platforms like Airbnb have increased
traveler accommodation by enabling &ldquo;home-sharing&rdquo; on a global scale. Because of its scale and brand recognition, Airbnb has
been chosen as the platform to market and operate our short-term rental properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to offer standardized
and personalized experiences like those provided by individual hosts within the Airbnb system but at the scale and efficiency of professional
hosts. Airbnb continues to grow its host community in size and quality though consistent investment. According to Airbnb&rsquo;s public
filings, about 90% of Airbnb&rsquo;s hosts are individual hosts with the majority having just a single listing. Professional hosts, such
as property management companies, serviced apartment providers, and boutique hotels comprise only 10% of the host community.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Robinhood Effect</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to Market Insider,
retail investors still remain very active in the United States making up nearly 10% of US equity trading in the Russell 3000 (Jun 30,
2021; Retail trading has cooled from its pandemic peak, but still makes up 10% of stock trading volume in the US, Morgan Stanley says).
The barrier-to-entry for brokerage applications has decreased, which in turn, has created easier access to the market. Simultaneously,
the emerging demographic of first-time investors is typically young people. Evidence has shown that approximately 78% of Robinhood users
are under the age of 35, according to Fast &amp; Company (August 14, 2017; How Brokerage App Robinhood Got Millennials to Love the Market).
Furthermore, due to the COVID-19 pandemic, there has been a substantial increase of 3 million retail investors on Robinhood in Q1 2020.
As of December 2022, Robinhood has 11.4M monthly active users on their platform. A remarkable 83% of those who received stimulus checks
in May 2020 invested half into the market, according to Mirae Assets (October, 15, 2020; The Renewed Rise of The Retail Investor). These
macro trends are important to note because they signify the rapidly expanding growth of Millennial and Fintech investing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We are expanding the democratization
of inaccessible markets, which will revolutionize personal finances through the adoption of fractionalized ownership. A Company like ours
will allow individuals with less capital and less direct involvement to invest in real estate projects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>The Stripe Effect</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Integration of disconnected
technology ecosystems refers to disruption created by companies like Stripe, which is a provider of payments infrastructure for the internet.
Millions of businesses use Stripe&rsquo;s software and APIs to accept payments, send payouts, and manage their businesses online. Stripe
took a fragmented industry and created a fully integrated suite of payments products that bring together everything that is required to
build websites and apps that accept payments and send payouts globally. There is an opportunity to utilize our core technological capabilities
to unite the fragmented ecosystem currently serving markets like Airbnb.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>INVH Effect</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The consolidation of single-family
homes backed by institutional capital is a relatively recent phenomenon that has become standard in the industry today. The single-family
rental market was previously composed of a small percentage of institutionally owned rental homes. Companies like Invitation Homes entered
the market and stepped in front of non-permanent capital investors that were looking to liquidate their portfolios.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This paved the way for longer-term,
permanent capital entities with more established operating scale, providing growth opportunities beyond the underlying market growth.
With increasing scale brought about by companies like Invitation Homes, the single-family rental sector has been able to deliver better
operating efficiency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>COVID-19 Impact</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The travel industry has been
grappling with the impacts of the COVID-19 pandemic for over two years now. However, according to Airbnb CEO Brian Chesky, the company
is poised for its best quarter yet, despite concerns over the economic slowdown. In a recent interview with Bloomberg Television, Chesky
expressed confidence in the future of the travel industry, stating that regardless of the macroeconomic environment, people will continue
to want to live on Airbnb and travel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Despite rising inflation levels,
consumers have continued to splurge on travel rentals, suggesting a strong demand for vacation accommodation. With vaccination rates increasing
and travel restrictions easing, it is likely that the demand for travel rentals will continue to grow, providing opportunities for Airbnb
and other companies in the industry. As the pandemic situation continues to evolve, it is important for travel industry players to stay
agile and adapt to changing consumer needs and safety protocols to ensure they can meet the demands of travelers in this new environment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I></I></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>COVID-19 Impact on Travel</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Resurgence of the travel market
is expected to happen once the COVID-19 pandemic wanes. This will likely increase the demand for hosts&rsquo; multi-fold. In an interview
aired by CNBC &ldquo;TechCheck&rdquo;, Airbnb CEO, Brian Chesky expects that more guests will flock to Airbnb than the platform&rsquo;s
four million hosts can accommodate due to expected resurging travel not seen in recent times.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According to a survey of a
census-balanced sample of 1,994 U.S. adults conducted by the payments and commerce content platform, PYMNTS.com, about 65% of surveyed
consumers want to re-engage in the physical world for fun and leisure activities, such as seeing friends and family and attending sporting
events and concerts. According to the survey, about 60% of surveyed consumers said they want to be able to travel within the U.S. again.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>COVID-19 Impact on Real Estate</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">New home sales continue to
be buoyant. Sales of new single-family houses in the US increased 1.1% month-over-month to a seasonally adjusted annual rate of 640,000
units in February 2023, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development,
which is the highest level since August of the previous year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">According
to the National Association of Home Builders (NAHB) estimates, the total count of second homes, vacation homes, and investment properties
was 7.5 million, accounting for 5.5% of the total housing stock. These second homes account for 15% of new single-family home sales. Nearly
50% of those second homes are rented out using professional management companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Competition and Competitive Strengths</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
face competition from different sources in our primary activity of acquiring properties. We believe our competitors in acquiring properties
for investment purposes are individual investors, small private investment partnerships looking for one-off acquisitions of investment
properties that can either be leased or restored and sold, and larger investors, including private equity funds and other REITs, that
are seeking to capitalize on the same market opportunity that we have identified. Our primary competitors in acquiring portfolios include
large and small private equity investors, public and private REITs, and other sizable private institutional investors. These same competitors
may also compete with us for investors. Competition may increase the prices for properties that we would like to purchase, reduce the
amount of rent we may charge for our properties, reduce the occupancy of our portfolio, and adversely impact our ability to achieve attractive
total returns. We also face competition from other real estate platform companies such as Roofstock, Inc., Fundrise LLC, Invitation Homes,
Pacaso, as well as a range of emerging new entrants. There are a number of established and emerging competitors in the real estate platform
market. The market is fragmented, rapidly evolving, competitive, and with relatively low barriers to entry.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Although
our competitors may be more established and better funded than we are, we believe that our acquisition platform, Investment Criteria,
extensive in-market property operations infrastructure, and local expertise in our markets provide us with competitive advantages. We
consider our competitive differentiators in our market to primarily be:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">our focus on the short-term rental market, compared to other established players in the industry that focus on long-term rentals;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Syndicate Member rewards program
that allows for utilization of properties when they are unoccupied, which is currently being developed;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">consistent short-term rental income
with use of optimum amounts of leverage;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">our proprietary technology to
make objective and strategic investments in property and market selection;</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">lower minimum investment amounts;
and</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">favorable tax treatment associated
with long-term capital gains.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Intellectual Property</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The company is currently developing
four technologies. However, this is only part of our technology roadmap. We strive to continue innovating for our benefit and for the
benefit of our Syndicate Members by using better wealth-creation tools, as well as generating returns by leveraging new technologies to
optimize guest experience.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>reAlpha BRAIN<SUP>TM </SUP>&amp; reAlpha Score*</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><IMG SRC="image_005.jpg" ALT="" STYLE="width: 436px; height: 223px">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Patent applied</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The reAlpha BRAIN<SUP>TM </SUP>will
bring machine learning (&ldquo;ML&rdquo;) and AI to the world of short-term rental investment. This platform will utilize a natural language
processing (&ldquo;NLP&rdquo;) program to scan through large quantities of data regarding properties and ML algorithms to choose the properties
that have higher than expected industry standard return on investment. For this, it will gather and integrate a variety of data relevant
to the properties from multiple sources including wholesalers, various multiple listing service (&ldquo;MLS&rdquo;) data sources, realtors,
small Airbnb &ldquo;mom and pop&rdquo; operators, and other larger property owners. For instance, it will collect data on the properties&rsquo;
price, house structure and sale history from different MLS&rsquo; listings in the U.S. This data, combined with the information about
the neighborhood appeal, accessibility and safety of the neighborhood surrounding the properties enables the algorithm to learn the hidden
patterns underlying high return short-term rental investments. This will allow reAlpha to predict how likely a particular property will
generate expected profitability. The platform will convey this knowledge by assigning each property with a &ldquo;reAlpha Score&rdquo;
ranging from 0-100. The higher the value, the more favorable a property is for investment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Currently, the process of
analyzing a property as a potential investment typically begins with an email received from real-estate agent&rsquo;s distribution list
to which reAlpha has subscribed. However, we use multiple other sources outside of inbound emails to identify properties. In the email
scenario, the reAlpha BRAIN<SUP>TM</SUP> will include an AI email parser based on NLP that looks for the property of concern within the
unstructured email and extracts its street address. This address will then be used to query various data providers for a detailed description
of the property&rsquo;s structure, neighborhood and finances. This ML model, which is being built and will be hosted on the Amazon Sagemaker
platform provided by Amazon Web Services (&ldquo;AWS&rdquo;), will then calculate the reAlpha Score for that property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The model will also continuously
improve and learns over time. As the Company makes its decision to invest in properties, the model will check the effectiveness of its
recommendations to reduce false positives and false negatives. As of April 2023, the reAlpha BRAIN has analyzed over 1,500,000 homes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Research and Development</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The industry in which we plan
to operate and compete is subject to rapid technological developments, evolving industry standards, changes in customer requirements and
competitive new products and features. As a result, we believe our success, in part, will depend on our ability to build and enhance our
technology and artificial intelligence capabilities in a timely and efficient manner and to develop and introduce those technologies while
reducing total cost of ownership. To achieve these objectives, we have made research and development investments through third-party acquisitions
to facilitate the development of our technologies, and we may explore in the future third-party licensing agreements.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 33.75pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">An
example of our third-party acquisitions include our ownership of a 25% stake in Naamche Inc., an artificial intelligence (&ldquo;AI&rdquo;)
studio, and a 25% stake Carthagos Inc., a design studio (&ldquo;Carthagos&rdquo;). Naamche, Inc. has assisted us in research and development
of our proprietary algorithms and other technologies. This acquisition is expected to enhance our technological capabilities, broaden
its portfolio of services, and contribute towards cost savings, positioning them for growth and success in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Sales and Marketing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have a dedicated marketing department responsible
for various aspects of the company&rsquo;s marketing initiatives and strategies. The department&rsquo;s primary responsibilities include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">1.</TD><TD STYLE="text-align: justify">Managing all advertising and content creation efforts, including
the development and execution of targeted marketing campaigns. The marketing department works closely with internal teams and external
agencies to create engaging and informative content that showcases our value proposition, products, and services. This content is distributed
through various channels, such as social media, email marketing, and paid advertising, to reach a wide audience.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">2.</TD><TD STYLE="text-align: justify">Collaborating with the technology team to ensure optimal product
design and user experience, tailoring the products and services to effectively meet customer needs and expectations.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">3.</TD><TD STYLE="text-align: justify">Manage and maintain our corporate website, ensuring a seamless
digital experience for users.</TD>
</TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">4.</TD><TD STYLE="text-align: justify">Oversee the press team and lead efforts to build and strengthen
our brand. This includes crafting compelling narratives, managing media relations, and generating positive coverage for the company.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our marketing department collaborates
with Carthagos, a design agency that we partially own. Carthagos is responsible for visual content creation and design such as UI/UX design,
social media visuals, and advertising collateral.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Governmental Regulation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>General</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our
business operations and properties are subject to various covenants, laws, ordinances, and rules. We believe that we are in material compliance
with such covenants, laws, ordinances, and rules, and we also require that our residents agree to comply with such covenants, laws, ordinances,
and rules in their leases with us.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Fair Housing Act</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The
Fair Housing Act (&ldquo;FHA&rdquo;) and its state law counterparts, and the regulations promulgated by the United States Department of
Housing and Urban Development and various state agencies, prohibit discrimination in housing on the basis of race or color, national origin,
religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people
in the process of adopting a child or securing custody of children under the age of 18), disability or, in some states, financial capability.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Municipal Regulations and Homeowners&rsquo;
Associations</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our
properties are subject to various municipal regulations and orders, and county and city ordinances, including without limitation, use,
operation and maintenance of our properties. Certain of our properties are subject to the rules of the various HOAs where such properties
are located. HOA rules and regulations are commonly referred to as &ldquo;covenants, conditions and restrictions,&rdquo; or CC&amp;Rs,
and typically consist of various restrictions or guidelines regarding use and maintenance of the property, including, among others, noise
restrictions or guidelines as to how many cars may be parked on the property.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Broker Licensure</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
own an in-house brokerage to serve our investors and utilize in-market leasing experience specialists to drive an end-to-end resident
experience that achieves our occupancy, revenue, and retention goals while facilitating enjoyment of a worry-free leasing lifestyle. Our
in-house brokerage is subject to numerous federal, state, and local laws and regulations that govern the licensure of real estate brokers
and affiliate brokers and set forth standards for, and prohibitions on, the conduct of real estate brokers. Such standards and prohibitions
include, among others, those relating to fiduciary and agency duties, administration of trust funds, collection of commissions, and advertising
and consumer disclosures, as well as compliance with federal, state, and local laws and programs for providing housing to low-income families.
Under applicable state law, we generally have a duty to supervise and are responsible for the conduct of our in-house brokerage.</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Environmental Matters</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As
a current or prior owner of real estate, we are subject to various federal, state, and local environmental laws, regulations, and ordinances,
and we could be liable to third parties as a result of environmental contamination or noncompliance at our properties, even if we no longer
own such properties. We are not aware of any environmental matters that would have a material adverse effect on our financial position
(see &ldquo;<I>Risk Factors &mdash; Risks Related to Our Business and Industry</I>&rdquo;).</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Laws and Regulations Regarding Privacy
and Data Protection</I></B></P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Data privacy laws and regulations
in the U.S. and foreign countries apply to the access, collection, transfer, use, storage, and destruction of personal information in
connection with our services. In the U.S., our financial institution customers are required to comply with privacy regulations imposed
under the Gramm-Leach-Bliley Act, in addition to other regulations. As a processor of personal information in our role as a provider of
services to financial institutions, we are bound by similar limitations on disclosure of the information received from our customers as
apply to the financial institutions themselves. In addition, federal and state privacy and information security laws, and consumer protection
laws, which apply to businesses that collect or process personal information, may also apply to our businesses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There has been increased
public attention regarding the use of personal information and data transfer, accompanied by legislation and regulations intended to
strengthen data protection, information security and consumer and personal privacy. The law in these areas continues to develop and the
changing nature of privacy laws in the U.S., the European Union (&ldquo;E.U.&rdquo;) and elsewhere could impact our processing of personal
information of our employees and on behalf of our customers. In the E.U. the comprehensive General Data Privacy Regulation (the &ldquo;GDPR&rdquo;)
went into effect in May 2018. The GDPR has introduced significant privacy-related changes for companies operating both in and outside
the E.U. In the U.S., California has adopted the California Consumer Privacy Act, and Nevada has adopted the Nevada Privacy Law, both
of which went into effect on January 2020, and several states are considering adopting similar laws imposing obligations regarding the
handling of personal information. While we believe that we are compliant with our regulatory responsibilities, information security threats
continue to evolve resulting in increased risk and exposure. In addition, legislation, regulation, litigation, court rulings, or other
events could expose us to increased costs, liability, and possible damage to our reputation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Human Capital</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of January 31, 2023, we
had 9 full-time employees. We believe that we maintain good relations with our employees.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Properties</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">As
of April 10, 2023, we owned and operated 5 properties located in Dallas, Texas, Kissimmee, Davenport, and Champions Gate in Florida. These
5 properties were renovated. Below are details of existing mortgage loans of the 5 properties. Monthly mortgage interest amounts will
vary due to interest rate fluctuation. As of January 31, 2023, we paid monthly mortgage interest of $1,544 for 825 Austrian Road property,
$9,472 for 790 Pebble Beach Drive, 612 Jasmine Lane and Amazonas Street Property and $3,608 for 2540 Hamlet Lane Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Properties</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">City &amp; State</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Mortgage<BR>
 Loan<BR>
 Amount</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 67%; text-align: left">825 Austrian Road</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: left">Grand Prairie, Texas</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">247,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">790 Pebble Beach Drive</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Champions Gate, Florida</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276,553</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">612 Jasmine Lane</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Davenport, Florida</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">337,242</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">7676 Amazonas Street</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Kissimmee, Florida</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">266,204</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">2540 Hamlet Lane</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Kissimmee, Florida</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">342,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold">Total</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,469,000</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><I>Ohio Subpoena</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><I>&nbsp;</I></FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On May 2, 2022, we received
a subpoena duces tecum and requests for depositions of three senior managers of the Company from the Ohio Division of Securities (the
&ldquo;ODS&rdquo;), all related to the Company&rsquo;s Regulation A+ securities offering in the State of Ohio, and based on Ohio Revised
Code1707.23. The depositions were taken in July 2022. The ODS has not asserted any securities violations by the Company other than a late
notice filing for its offering. The Company is fully cooperating with the ODS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Massachusetts Consent Order</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On April 15, 2022, we entered
into a consent order (the &ldquo;Consent Order&rdquo;) with the Securities Division of the Office of the Secretary of the Commonwealth
of Massachusetts (the &ldquo;MSD&rdquo;) following an investigation by the MSD into whether the Company had engaged in acts or practices
that violated the Massachusetts Uniform Securities Act (the &ldquo;Massachusetts Act&rdquo;) and the regulations promulgated thereunder
(the &ldquo;Massachusetts Regulations&rdquo;). For purposes of the Consent Order, the Company did not admit or deny the findings of fact
or law or any of the allegations contained therein. The Consent Order provides that it is not intended to form the basis of any disqualification
under Section 3(a)(39) of the Securities Exchange Act of 1934, or Rules 504(b)(3) and 506(d)(i) of Regulation D, Rule 262(a) of Regulation
A and Rule 503(a) of Regulation CF under the Securities Act of 1933. Likewise, the Consent Order provides that it is not intended to form
a basis of a disqualification under Section 204(a)(2) of the Uniform Securities Act of 1956 or Section 412(d) of the Uniform Securities
Act of 2002. MSD alleged in the Consent Order that the Company <I>initially</I> failed to disclose an ongoing &ldquo;criminal&rdquo; proceeding
taking place in India against the Company&rsquo;s CEO that involves allegations of fraud and forgery. MSD also alleged that the Company
posted sample stock images of properties on its website, along with corresponding property &ldquo;scores,&rdquo; purchase dates, and addresses,
despite not actually owning these properties. MSD further alleged that the Company failed to disclose a potential conflict of interest
in connection with the Company&rsquo;s real estate acquisitions. The MSD finally alleged that the Company failed to notice file with the
MSD and submit a consent for service of process before marketing and selling shares to investors in Massachusetts. In the Consent Order
the MSD noted that &ldquo;[e]xcept in any action by the Division to enforce the obligations of the Consent Order, any acts performed or
documents executed in settlement of this matter: (A) may not be deemed or used as an admission of, or evidence of, the validity of any
alleged wrongdoing, liability, or lack of any wrongdoing or liability; and (B) may not be deemed or used as an admission of, or evidence
of, any such alleged fault or omission of the Company in any civil, criminal, arbitral, or administrative proceeding in any court, administrative
agency, or tribunal.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the terms of the Consent
Order, the Company is censured, barred from offering or selling securities in Massachusetts, and ordered to cease and desist from committing
future violations of the Massachusetts Act and the Massachusetts Regulations. Pursuant to the Consent Order, on April 21, 2022, the Company
paid a $375,000 administrative fine and offered to rescind the purchases of each of the fourteen Massachusetts investors who acquired
the Company&rsquo;s common stock in its Regulation A offering. Such investors paid an aggregate amount of $19,500 to purchase the Company&rsquo;s
common stock. Seven out of the fourteen Massachusetts investors elected to rescind the purchase and the Company has already refunded them
a total of $11,500. The Company has fully complied with the terms of the Consent Order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company engaged counsel
to make all the necessary securities filings. However, the Company&rsquo;s then-counsel did not make any blue sky filings until MSD informed
of such irregularity to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A copy of the Consent Order
was filed on Form 1-U on April 15, 2022, as Exhibit 6.5 thereto, and is Exhibit 99.1 to the Offering Statement. For additional information
on the Consent Order, we refer you to Exhibit 99.1. As of the date of this filing, we have sold $4.468 million of shares to investors
other than our former parent company, reAlpha Tech Corp. (which as of the date of this Direct Listing no longer exists, as further described
on &ldquo;<I>Business &ndash; Recent Developments</I>&rdquo; above), and $500,000 to our former parent company, for aggregate sales of
$4.968 million. The holdings that belonged to our former parent company have been assigned to reAlpha Tech Corp. post the Downstream Merger
(as defined above). For additional information on the India proceeding involving Mr. Devanur see &ldquo;<I>India Proceeding Involving
Giri Devanur</I>&rdquo; section below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Parent Company Litigation</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">On December 27, 2021, Ms.
Valentina Isakina, a former board advisor of reAlpha Tech Corp., our former parent company, filed a lawsuit in the Southern District of
Ohio against, reAlpha Tech Corp. in connection with her termination package. After three months of service, our then-parent company discontinued
her services as she was not the right fit for the company&rsquo;s needs. reAlpha Tech Corp. contends that pursuant to the terms of her
employment agreement, she was offered 12,500 shares of reAlpha Tech Corp., which was supposed to vest over a period of time, however she
never accepted the shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Ms. Isakina, however, contends
she is owed up to 5% from reAlpha Tech Corp. for an alleged agreement to serve on the board of directors, which reAlpha Tech Corp. has
denied of its existence. The parties are in the process of completing discovery. There is no trial set, and we believe the matter will
be resolved in late 2023 or in 2024.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>India Proceeding Involving Giri Devanur</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Mr. Devanur was previously
the CEO of a company named Gandhi City Research Park, Pvt. Ltd (&ldquo;Gandhi City Research Park&rdquo;), which was financially impacted
and liquidated as a result of the Lehman Brothers collapse. In 2010, an investor in Gandhi City Research Park filed a fraud complaint
with the Cubbon Park Police in Bengaluru, India, against, among others, Mr. Devanur. In 2014, the Cubbon Park Police dismissed all claims
and concluded that no case had been made out by the investor. In 2015, the investor appealed the Cubbon Park Police&rsquo;s decision.
As a result, a summons for a criminal proceeding was issued to, among others, Mr. Devanur in 2018. As of today, no charges have been brought
against Mr. Devanur. Based on the Petition filed by Giri Devanur in 2019, the High Court of Karnataka has stayed the entire trial before
the Magistrate Court.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="a_008"></A>MANAGEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Executive Officers and Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table provides
information regarding our executive officers, significant employees and directors as of April 17, 2023.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1.5pt solid; width: 25%; text-align: left"><FONT STYLE="font-size: 10pt"><B>Name</B></FONT></TD>
    <TD STYLE="text-align: left; width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 8%; text-align: center"><FONT STYLE="font-size: 10pt"><B>Age</B></FONT></TD>
    <TD STYLE="text-align: left; width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: black 1.5pt solid; width: 36%"><FONT STYLE="font-size: 10pt"><B>Position</B></FONT></TD>
    <TD STYLE="text-align: left; width: 2%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: black 1.5pt solid; width: 25%; text-align: left"><FONT STYLE="font-size: 10pt"><B>Term of Office</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><I>Board Members</I></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>Brian Cole (1)(2)(3)</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">43</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Independent Director</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Since Inception</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>Monaz Karkaria</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">49</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Director <BR>
(formerly COO from Inception until resignation in January 2022)</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Since January 2022</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><B>Dimitrios Angelis (1)(2)(3)</B></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">53</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Independent Director</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Since April 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>Balaji Swaminathan (1)(2)(3)</B></FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">58</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Independent Director</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Since April 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><I>Executive Officers</I></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>Giri Devanur</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">52</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Chief Executive Officer, President and <BR>
Chairman of the Board of Directors</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left">
    Since Inception Since April 2023</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>Michael J. Logozzo</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">50</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Chief Financial Officer</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Since Inception</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>Jorge Aldecoa</B></FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">38</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Chief Operating Officer</FONT></TD>
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Since April 2023</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt"><B>Christie Currie</B></FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-size: 10pt">26</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Chief Marketing Officer</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">Since Inception</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Member of the audit committee of the board of directors.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Member of the compensation committee of the board of directors.</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Member of the nominating and corporate governance committee
of the board of directors.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Giri Devanur</I></B> is our Chief Executive
Officer, President and Chairman of the board of directors. Mr. Devanur became a member of our board of directors in April 2021 and Chairman
of the board of directors in April 2023. He is a serial business entrepreneur and an experienced chief executive officer who has been
involved in capital planning and investor presentations as an executive officer for various issuers, all of which are now private. He
has more than 25 years of experience in the information technology industry. Earlier, he served as the CEO of AMERI Holdings, Inc., a
global SAP consulting company becoming its CEO and a member of its board of directors in May 2015. AMERI Holdings, Inc. was listed on
Nasdaq during Mr. Devanur&rsquo;s tenure as CEO in November 2017. Following Mr. Devanur&rsquo;s departure from AMERI Holdings, Inc., the
company went private in January 2020, and, therefore, is no longer listed on NASDAQ. Previously, he founded WinHire Inc., a company in
India, 2010, an innovative company building software products through technology and human capital management experts and combining them
with professional services. Mr. Devanur has a master&rsquo;s degree in Technology Management from Columbia University and a bachelor&rsquo;s
degree in computer engineering from the University of Mysore, India. He has attended Executive Education programs at the Massachusetts
Institute of Technology and Harvard Law School.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Michael J. Logozzo</I></B> is the Chief
Financial Officer of reAlpha Tech Corp., and he was our interim Chief Operating Officer from January 2022 until April 2023. Prior to his
current role at the Company, Mr. Logozzo was Managing Director of the Americas Region for L Marks, covering the U.S., Canada, and Latin
America from May 2019 to February 2021. He was also a strategic and transformation leader at BMW Financial Services from 2001 to 2019.
During his 18-year tenure, Mr. Logozzo was responsible for finance operations, innovation, and best practices integration at the automotive
company&rsquo;s Americas Regional Services Center in Columbus, Ohio and the headquarters in Munich, Germany. Mr. Logozzo holds a Management
Information Systems Bachelor of Science (B.S.) from Youngstown State University, and a Business Administration, Management and Operations
Masters of Business Administration (MBA) from Franklin University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Christie Currie </I></B>is our Chief Marketing
Officer of reAlpha Tech Corp. During her college career Christie launched her own business in the MedTech space, winning multiple venture
pitch competitions. Ms. Currie worked at a London-based corporate innovation firm, L Marks from December 2019 to June 2021, where she
led corporate organizations to identify strategic areas of need and successfully engage industry disrupting startups. Further, from December
2017 to April 2021, Ms. Currie was the Founder and Chief Executive Officer of Zandaland LLC. Ms. Currie is also a board member of Carthagos,
Inc., a marketing studio that does the branding and marketing for the Company. Ms. Currie has an Entrepreneurship Studies and Marketing
Bachelor of Arts (B.A.) from Miami University, and a Technology Management Masters from Columbia University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Jorge Aldecoa </I></B>is the Chief Operating
Officer of the Company. Mr. Aldecoa brings over 12 years of experience in residential and commercial real estate and is an expert in acquisition,
disposition, and asset management. Most recently he has served as Vice President of Operations for Transcendent Electra and Managing Broker
of Transcendent Electra Realty &amp; BUSB Realty from 2018 to 2022. He brings experience in successfully leading the creation and implementation
of a property management platform to facilitate the acquisition and management of 2,200 newly constructed single-family rental homes.
He also gained experience as Chief Investment Officer of Firm Capital American Realty Partners and Interim Chief Operating Officer for
its predecessor from 2014 to 2017. Mr. Aldecoa holds a Residential Development and Property Management Bachelor&rsquo;s degree of Science
(B.S.) from Florida State University.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Non-Employee Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Brian Cole</I></B> has been a member of
our board of directors since April 2021. Mr. Cole has also acted as the managing member of Baird&rsquo;s Technology and Services Investment
Banking Group since March 2010. In that role, Mr. Cole leads merger and acquisition and capital raising transactions, advising premier
tech-enabled outsourcing companies. Prior to joining Baird&rsquo;s Technology Services Investment Banking Group, Mr. Cole was a manager
in PricewaterhouseCoopers&rsquo; Transaction Services practice where he led mergers and acquisitions advisory and financial due diligence
engagements for private equity and corporate clients including leveraged buyouts, mergers, carve-out divestitures, take-privates, and
joint ventures. Brian received his M.B.A. from Indiana University&rsquo;s Kelley School of Business and a Bachelor&rsquo;s of Science
(B.S.) in business from the same institution with honors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Monaz Karkaria </I></B>was
our Chief Operating Officer from inception until her resignation from those roles in January 2022. In January 2022, she became a member
of our board of directors. Ms. Karkaria has been investing in rental properties since 1999 and has been a part of over 100 real-estate
transactions. Ms. Karkaria is the owner and founder of Ben Zen Investments LLC and Ben Zen Properties LLC since 2013. Ms. Karkaria was
also a social director at ZANT a non-profit organization from 2015 to 2017. Further, Ms. Karkaria was a business consultant in Brazil
from 2006 to 2008. Ms. Karkaria holds a Bachelor&rsquo;s degree from the All India Institute of Physical Medicine and Rehabilitation.
The board of directors believes that Ms. Karkaria&rsquo;s substantial experience in the real estate industry will enable her to bring
real estate business insights to the board of directors.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Dimitrios Angelis</I></B>
became a member of our board of directors in April 2023. Mr. Angelis is an accomplished business strategist who brings over two decades
of experience as general counsel from several multinational companies. Since July 2016, he has been the managing member of Pharma Tech
Law LLC, a law firm that specializes in the life sciences field. Further, since November 2018, he has acted as the President, co-founder
and chairman of the board of directors of Sparta Biomedical Inc., a privately-held developer of orthopedic solutions. Mr. Angelis has
also been a member of the board of directors of The One Group (NASDAQ: STKS) since March 2018. Mr. Angelis has a Bachelor of Arts (B.A.)
in Philosophy and English from Boston College, a Master of Arts (M.A.) in Behavioral Science from California State University and a Juris
Doctor (J.D.) from NYU School of Law. Our board of directors believes that Mr. Angelis&rsquo; substantial experience as an accomplished
attorney, negotiator and general counsel to public and private companies in the healthcare field will enable him to bring a wealth of
strategic, legal and business acumen to the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B><I>Balaji Swaminathan</I></B> became a member
of our board of directors in April 2023. Mr. Swaminathan is an accomplished business leader with extensive experience in financial services
and entrepreneurship. Since 2018, Mr. Swaminathan has been the founder, Chief Executive Officer and a member of the board of directors
of SAIML Pte Ltd, a Singapore-based Capital Markets Services licensed company that provides personalized wealth management solutions for
ultra-high net worth customers. Prior to his entrepreneurial pursuits, Mr. Swaminathan also held several key leadership roles in major
financial institutions, including serving as President of Westpac International from 2012 to 2019. Mr. Swaminathan also holds multiple
directorships with Singapore-based private companies in the finance industry, including S Cube Digilytics Venture Pte Ltd., Turbo Tech
Ltd. and Allied Blenders and Distillers Liimited since 2022; AT Holdings Pte Ltd. Since 2019; and Vigbyor Realty &amp; Investments Private
Limited since 2018. Mr. Swaminathan has a Bachelor&rsquo;s of Commerce (B.C.) in Finance from St. Xavier&rsquo;s College, a Finance degree
from The Institute of Chartered Accountants of India, a Finance Cost &amp; Works degree from The Institute of Cost &amp; Works Accountants
of India and an Advanced Management Program from Harvard Business School. With his extensive experience and knowledge in the financial
services industry, the board of directors believes that Mr. Swaminathan will be a valuable asset to our Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Family Relationships</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">There are no family relationships
among any of our executive officers or directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Involvement in Certain Legal Proceedings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">None of our directors or executive
officers has, during the past ten years:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">been convicted in a criminal proceeding or been subject to
a pending criminal proceeding (excluding traffic violations and other minor offences);</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">had any bankruptcy petition filed by or against the business
or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive
officer, either at the time of the bankruptcy filing or within two years prior to that time;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">been subject to any order, judgment, or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining,
barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking,
savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">been found by a court of competent jurisdiction in a civil
action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities
or commodities law, and the judgment has not been reversed, suspended, or vacated;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">been the subject of, or a party to, any federal or state judicial
or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement
of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law
or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary
or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order,
or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity;
or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">been the subject of, or a party to, any sanction or order,
not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange
Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))),
or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated
with a member.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Composition of Our Board of Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Upon
the effectiveness of this registration statement, our board will consist of five members, each of whom serves as a director pursuant to
the board composition provisions of our Certificate of Incorporation and Bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Our Status as a Controlled Company</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Mr.
Giri Devanur, who owns 65.0% of the voting power of our outstanding common stock, will have the ability to control the outcome of matters
submitted to our stockholders for approval, including the election of our directors, as well as the overall management and direction of
our company. In the event of his death, the shares of our common stock that Mr. Devanur owns will be transferred to the persons or entities
that he designates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Because
Mr. Devanur controls a majority of our outstanding voting power, we are a &ldquo;controlled company&rdquo; under the corporate governance
rules for publicly-listed companies. For so long as we remain a controlled company, we are exempt from the obligatio<FONT STYLE="font-family: Times New Roman, Times, Serif">n
to comply with certain Nasdaq corporate governance requirements, including:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our
                                            board of directors is not required to be comprised of a majority of independent directors.</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">our
                                            board of directors is not subject to the compensation committee requirement; and</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif">we
                                            are not subject to the requirements that director nominees be selected either by the independent
                                            directors or a nomination committee comprised solely of independent directors.</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
controlled company exemptions do not apply to the audit committee requirement or the requirement for executive sessions of independent
directors. We are required to disclose in our annual report that we are a controlled company and the basis for that determination. Although
we do not plan to take advantage of the exemptions provided to controlled companies, we may in the future take advantage of such exemptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Director Independence</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to apply to list
our common stock on the Nasdaq Capital Market. Subject to the controlled company exemption described above, the listing rules of Nasdaq
generally require that a majority of the members of a listed company&rsquo;s board of directors be independent. In addition, the listing
rules generally require that, subject to specified exceptions, each member of a listed company&rsquo;s audit, compensation, and governance
committees be independent subject to the controlled company exemptions described above, as applicable to the compensation and governance
committees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Audit committee members must
also satisfy the independence criteria set forth in Rule 10A-3 under the Securities Exchange Act of 1934, as amended (Exchange Act). In
order to be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than
in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: accept, directly or indirectly,
any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or be an affiliated person of
the listed company or any of its subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our board of directors undertook
a review of its composition, the composition of its committees and the independence of our directors and considered whether any director
has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her
responsibilities. Based upon information requested from and provided by each&nbsp;non-employee&nbsp;director concerning his or her background,
employment and affiliations, including family relationships, our board of directors has determined that none of our directors have relationships
that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these
directors is &ldquo;independent&rdquo; as that term is defined under the rules of Nasdaq and Rule&nbsp;10A-3&nbsp;and Rule&nbsp;10C-1&nbsp;under
the&nbsp;Exchange Act. Only Monaz Karkaria and Giri Devanur are not independent under Nasdaq&rsquo;s independence standards.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Board Committees</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the effectiveness of
this registration statement, our board of directors will establish an audit committee, a compensation committee, and a nominating and
corporate governance committee, each of which will operate pursuant to a charter to be adopted by our board of directors and will be in
place upon the effectiveness of this registration statement. Upon the effectiveness of this registration statement, the composition and
functioning of all of our committees will comply with all applicable requirements of the Sarbanes-Oxley Act of 2002, Nasdaq,&nbsp;and
SEC rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Audit Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the effectiveness of
this registration statement, our board of directors will establish an audit committee of the board of directors. Under the national exchange
listing standards and applicable SEC rules, we are required to have at least three members of the audit committee, all of whom must be
independent, subject to certain phase-in provisions. Balaji Swaminathan, Brian Cole and Dimitrios Angelis meet the independent director
standard under national exchange listing standards and under Rule 10-A-3(b)(1) of the Exchange Act. Balaji Swaminathan will serve as chairman
of our audit committee. Each member of the audit committee is financially literate and our board of directors has determined that Balaji
Swaminathan qualifies as an &ldquo;audit committee financial expert&rdquo; as defined in applicable SEC rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will adopt an audit committee
charter, which will detail the purpose and principal functions of the audit committee, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">appoint, compensate, and oversee the work of any registered public accounting firm employed by us;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">resolve any disagreements between management and the auditor regarding financial reporting;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">pre-approve all auditing and non-audit services;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">retain independent counsel, accountants, or others to advise the audit committee or assist in the conduct of an investigation;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">seek any information it requires from employees, all of whom are directed to cooperate with the audit committee&rsquo;s requests-or external parties;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">oversee and report to the board of directors regarding the Company&rsquo;s major financial risk exposures, as well as areas including cybersecurity, information technology and data security risks;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">meet with our officers, external auditors, or outside counsel, as necessary; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">oversee that management has established and maintained processes to assure our compliance with all applicable laws, regulations and corporate policy.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Compensation Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the effectiveness of
this registration statement, our board of directors will establish a compensation committee of the board of directors. Balaji Swaminathan,
Brian Cole and Dimitrios Angelis will serve as members of our compensation committee. Under the national exchange listing standards and
applicable SEC rules, we are required to have at least two members of the compensation committee, all of whom must be independent, subject
to certain phase-in provisions. Each of Balaji Swaminathan, Brian Cole and Dimitrios Angelis meet the independent director standard under
national exchange listing standards applicable to members of the compensation committee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will adopt a compensation
committee charter, which will detail the purpose and responsibility of the compensation committee, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD>
    discharge the responsibilities relating to
certain disclosures in public filings of the Company, including, but not limited to, in the Company&rsquo;s proxy statement, Annual Report
on Form 10-K and Quarterly Report on Form 10-Q;&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">discharge the responsibilities of the board of directors relating to compensation of the our directors, executive officers and other key employees;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">review and make recommendations to the board of directors in establishing appropriate incentive compensation and equity-based plans; </FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">oversee the annual process of evaluation of the performance of our management; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">perform such other duties and responsibilities as enumerated in and consistent with compensation committee&rsquo;s charter.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The charter will permit the
committee to retain or receive advice from a compensation consultant and will outline certain requirements to ensure the consultants independence
or certain circumstances under which the consultant need not be independent. We have not retained such a consultant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Nominating and Governance Committee</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Upon the effectiveness of
this registration statement, our board of directors will establish a nominating and governance committee of the board of directors that
will be comprised of independent directors. Balaji Swaminathan, Brian Cole and Dimitrios Angelis will serve as members of our nominating
and governance. We will adopt a nominating and governance committee charter, which will detail the purpose and responsibilities of the
nominating and governance committee, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">assist the board of directors by identifying qualified candidates for director nominees, including through search firms to assist in identifying qualified director nominees, and to recommend to the board of directors the director nominees for the next annual meeting of stockholders;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">establish procedures to be followed by stockholders in submitting recommendations for director candidates to the nominating and governance committee;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">lead the board of directors and board of directors committees in their annual review of their performance;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">recommend to the board director nominees for each committee of the board of directors; and</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">develop and recommend to the board of directors corporate governance guidelines applicable to us.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Risk Oversight</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Our
audit committee will be responsible for overseeing our risk management process. Our audit committee will focus on our general risk management
policies and strategy, the most significant risks facing us, and oversees the implementation of risk mitigation strategies by management.
Our board of directors is also apprised of particular risk management matters in connection with its general oversight and approval of
corporate matters and significant transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Code of Business Conduct and Ethics</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Upon
the effectiveness of this registration statement, our board of directors will adopt a Code of Business Conduct and Ethics, or the &ldquo;Code
of Conduct,&rdquo; applicable to all directors, executive officers and employees. The Code of Conduct will be available on the Investor
Relations portion of our website at www.realpha.com. The nominating and corporate governance committee of our board of directors will
be responsible for overseeing the Code of Conduct and must approve any waivers of the Code of Conduct for employees, executive officers
and directors. In addition, we intend to post on our website all disclosures that are required by law or Nasdaq&rsquo;s listing standards
concerning any amendments to, or waivers of, any provision of the Code of Conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="a_009"></A>EXECUTIVE COMPENSATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Named Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">Our named executive officers
<FONT STYLE="background-color: white">for the years ended April 30, 2022 and 2021 were as follows</FONT>:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Giri Devanur, Chief Executive Officer;</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Michael J. Logozzo, Chief Financial Officer; and</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in">&#9679;</TD><TD STYLE="text-align: justify">Christine Currie, Chief Marketing Officer.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center; background-color: white"><B>Summary Compensation
Table</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Prior
to the consummation of the Downstream Merger (as defined above), the compensation for each of our named executive officers was paid by
our previous parent company, reAlpha Tech Corp. Since March 21, 2023, the compensation of our named executive officers has been paid by
the Company (f.k.a. reAlpha Asset Management, Inc.). The following table contains information about the compensation paid to or earned
by each of our named executive officers during the years ended April 30, 2022 and 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name and Principal Position</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Year</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Salary ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Stock Awards ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Bonus (1)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">All other compensation ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total Compensation ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Giri Devanur</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 11%; text-align: center">2022</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">100,000</TD><TD STYLE="width: 1%; text-align: left">(2)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">64,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">12,500</TD><TD STYLE="width: 1%; text-align: left">(4)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">177,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Chief Executive Officer and President</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">(3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Michael J. Logozzo</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">140,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">195,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Chief Financial Officer and Interim Chief Operating Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,650</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -0.125in; padding-left: 0.125in">Christine Currie</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,243</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,288</TD><TD STYLE="text-align: left">(5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">166,781</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-style: italic; text-align: left; text-indent: -0.125in; padding-left: 0.125in">Chief Marketing Officer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2021</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,333</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,333</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">2022 amounts reflect
                                            the payment of a year-end discretionary bonus earned and paid in the year ended April 30,
                                            2022 pursuant to the named executive officer&rsquo;s employment agreements. These year-end
                                            bonuses were approved by the board of directors on December 19, 2021.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">Reflects the pro-rated
                                            amount for Mr. Devanur&rsquo;s annual salary of $150,000 from September 1, 2021 until April
                                            30, 2022.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0in; margin-bottom: 0in; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">Mr. Devanur received
                                            no compensation for the fiscal year ended April 30, 2021.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(4)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;All
    other compensation&rdquo; for Mr. Devanur is comprised of his compensation for services as a member of our board of directors for
    the year ended April 30, 2022.</FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(5)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&ldquo;All
    other compensation&rdquo; for Ms. Currie is comprised of tuition payments for a Technology Management Master&rsquo;s degree from
    Columbia University as part of her professional development. </FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-right: 0; margin-bottom: 0pt; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Employment Agreements with Executive Officers</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Employment Agreement with Giri Devanur</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company entered into an
employment agreement with Giri Devanur on September 1, 2021. Pursuant to Mr. Devanur&rsquo;s employment agreement, he will serve as the
Company&rsquo;s Chief Executive Officer until his agreement is terminated by either Mr. Devanur or the Company, and he received a yearly
salary of $150,000, pro-rated for the fiscal year ended April 30, 2022, and an additional discretionary bonus of $50,000 per year, subject
to the discretion of the board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">By
letter agreement, dated April 11, 2023, the Company entered into an updated employment agreement with Mr. </FONT>Devanur<FONT STYLE="background-color: white">,
which provides for a base salary of $150,000, which may be adjusted to $250,000 upon a successful follow-on offering of the Company&rsquo;s
securities for an amount of $8 million or more, subject to the compensation committee&rsquo;s approval. Further, Mr. </FONT>Devanur <FONT STYLE="background-color: white">is
entitled to </FONT>additional compensation in the form of a discretionary bonus of up to $75,000 based on the achievement of certain established
performance targets, which is payable annually, and certain benefits such as unlimited vacation, health insurance and others. In addition,
Mr. Devanur is eligible to participate in the Plan (as defined below). Mr. Devanur or the Company may terminate the employment agreement
at any time upon written notice to the other party. Mr. Devanur&rsquo;s employment agreement has a confidentiality provision and a non-compete
for a period of two (2) years following the termination of his employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Employment Agreement with Michael J. Logozzo</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company entered into an
employment agreement with Michael J. Logozzo on February 21, 2021. Pursuant to Mr. Logozzo&rsquo;s employment agreement, he will serve
as the Company&rsquo;s Chief Financial Officer until his agreement is terminated by either Mr. Logozzo or the Company, and he received
a yearly salary of $140,000 for the fiscal year ended April 30, 2022 and a pro-rated amount of such base salary for the year ended April
30, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">By
letter agreement, dated April 11, 2023, the Company entered into an updated employment agreement with Mr. Logozzo, which provides for
a base salary of $140,000, which may be adjusted to $250,000 upon a successful follow-on offering of the Company&rsquo;s securities for
an amount of $8 million or more, subject to the compensation committee&rsquo;s approval. Further, Mr. Logozzo is entitled to </FONT>additional
compensation in the form of a discretionary bonus of up to $75,000 based on the achievement of certain established performance targets,
which is payable annually, and certain benefits such as unlimited vacation, health insurance and others. Further, Mr. Logozzo is eligible
to participate in the Plan (as defined below). Mr. Logozzo or the Company may terminate the employment agreement at any time upon written
notice to the other party. Mr. Logozzo&rsquo;s employment agreement has a confidentiality provision and a non-compete for a period of
two (2) years following the termination of his employment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Employment Agreement with Christine Currie</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company entered into an
employment agreement with Christine Currie on March 2, 2021 as Vice President of Innovation for the Company. Pursuant to Ms. Currie&rsquo;s
employment agreement, she served as the Vice President of Innovation until her agreement is terminated by either Ms. Currie or the Company,
and she received a yearly salary of $80,000 for the fiscal year ended April 30, 2022 and a pro-rated amount of such base salary for the
year ended April 30, 2021. Ms. Currie was promoted to Chief Marketing Officer in April 2021, and the board of directors approved an increase
to her base annual salary from $80,000 to $100,000 on September 16, 2021, with no changes to her other benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">By
letter agreement, dated April 11, 2023, the Company entered into an updated employment agreement with </FONT>Ms. Currie for her to serve
as the Company&rsquo;s Chief Marketing Officer<FONT STYLE="background-color: white">, which provides for a base salary of $100,000, which
may be adjusted to $175,000 upon a successful follow-on offering of the Company&rsquo;s securities for an amount of $8 million or more,
subject to the compensation committee&rsquo;s approval. Further, </FONT>Ms. Currie <FONT STYLE="background-color: white">is entitled to
</FONT>additional compensation in the form of a discretionary bonus of up to $25,000 based on the achievement of certain established performance
targets, which is payable annually, and certain benefits such as unlimited vacation, health insurance and others. Ms. Currie or the Company
may terminate the employment agreement at any time upon written notice to the other party. Further, Ms. Currie is eligible to participate
in the Plan (as defined below). Ms. Currie&rsquo;s employment agreement has a confidentiality provision and a non-compete for a period
of two (2) years following the termination of his employment.</P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; background-color: white"><B>Outstanding Equity
Awards at April 30, 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">The
Company has no outstanding equity awards as of April 30, 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Equity Incentive Plan</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">We
maintain the reAlpha Tech Corp. 2022 Equity Incentive Plan (the &ldquo;Plan&rdquo;), under which we may grant awards to our employees,
officers and directors and certain other service providers. Our board of directors administers the Plan. The board of directors is authorized
to grant awards to eligible employees, consultants and other service providers. The aggregate number of shares of common stock that may
be issued under the Plan may not exceed 4,000,000 shares of common stock. All of our current employees, consultants and other service
providers are eligible to be granted awards under the Plan. Eligibility for awards under the Plan is determined by the board of directors
at its discretion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Plan permits the discretionary
award of incentive stock options (&ldquo;ISOs&rdquo;), non-statutory stock options (&ldquo;NQSOs&rdquo;), stock awards (which may have
varying vesting schedules and be subject to lock-up periods at the board of directors&rsquo; discretion) and other equity awards to selected
participants. Unless sooner terminated, no ISO may be granted under the Plan on or after the 10<SUP>th</SUP> anniversary of the effective
date of the Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The plan administrator has
the sole discretion in setting the vesting period and, if applicable, exercise schedule of an award, determining that an award may not
vest for a specified period after it is granted and accelerating the vesting period of an award. The plan administrator determines the
exercise or purchase price of each award, to the extent applicable. The Plan does not allow for the assignment, transfer or exercise of
awards other than by will or the laws of descent and distribution.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> Unless otherwise provided by the participant&rsquo;s
Option Award Agreement or Stock Award Agreement issued pursuant to the Plan, upon the participant&rsquo;s termination for any reason,
including but not limited to death, Disability (as defined in the Plan), voluntary termination nor involuntary termination with or without
Cause (as defined in the Plan), all unvested equity awards in the form of options or shares shall be forfeited. Vested options, unless
otherwise provided, will remain exercisable for three (3) months following termination of the participant if such termination is for any
reason other than death, Disability or termination for Cause. In case the participant&rsquo;s separation from service is due to death
or Disability, then the vested options will be exercisable for a period of twelve (12) months thereafter. In case the participant&rsquo;s
termination is for Cause, the participant will immediately forfeit any and all options issued to such participant under the Plan.  </P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Plan also provides the
Company with a right of repurchase all or portion of the shares awarded to the participant under the Plan, which may be exercised in case
a participant separates from service for any reason, at a price equal to the fair market value, as determined by the board of directors.
In the event of a Change in Control (as defined in the Plan), the board of directors will have the sole discretion to address the treatment
of a participant&rsquo;s unvested awards in connection with such Change in Control in the participant&rsquo;s award agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The board of directors may
modify, amend or terminate the plan at any time, provided that no such modification, amendment or termination of the Plan materially affects
the rights of a participant under a previously granted award without that participant&rsquo;s consent. Further, the board of directors
cannot, without the approval of the Company&rsquo;s stockholders, amend this plan: (i) increase the number of common stock with respect
to the ISOs that may be granted under the Plan; (ii) make any changes in the class of employees eligible to receive the ISOs under the
plan; (iii) without stockholder approval if required by applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Director Compensation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">The
following table presents the total compensation earned and paid to non-employee&nbsp;and employee member directors of our board of directors
during the year ended April 30, 2022, which is payable quarterly. Our non-executive directors are entitled to an annual compensation of
$25,000, payable in cash in quarterly installments of $6,250, plus reimbursements for reasonable travel expenses, and out-of-pocket&nbsp;costs
incurred in attending meetings of our board of directors or events attended on behalf of the Company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">Mr.&nbsp;Giri
Devanur, our Chief Executive Officer, President and member of the board of directors, received a total of $12,500 for his service as a
member of our board of directors during the period presented below. Mr.&nbsp;Devanur&rsquo;s total compensation for service as an employee
and as a member of our board of directors is presented under the heading &ldquo;<I>Summary Compensation Table</I>&rdquo; above. </FONT></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Year</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Fees Earned<BR> and Paid in<BR> Cash ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Option Awards ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Stock Awards ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total<BR> ($)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 41%; text-align: left">Giri Devanur</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: center">2022</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">12,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;&nbsp;-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">12,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Monaz Karkaria</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,250</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,250</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Brian Cole</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Brent Crawford</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Dr, Art Langer</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">2022</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><A NAME="a_010"></A><B>PRINCIPAL STOCKHOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The following table sets forth information regarding the beneficial
ownership of our common stock by (i)&nbsp;each stockholder known by us to be the beneficial owner of more than 5% of our outstanding shares
of common stock&nbsp;, (ii) each of our directors, (iii)&nbsp;each of our named executive officers and (iv) all of our directors and executive
officers as a group. Unless otherwise indicated, the address of each executive officer and director is c/o reAlpha Tech Corp. at 6515
Longshore Loop, Suite 100, Dublin, OH 43017. Applicable percentage ownership is based on 42,522,091 shares of common stock outstanding
at April 17, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
number of shares of common stock beneficially owned by each stockholder is determined under rules issued by the SEC regarding the beneficial
ownership of securities. This information is not necessarily indicative of beneficial ownership for any other purpose. Under these rules,
beneficial ownership of shares of our common stock includes (1) any shares as to which the person or entity has sole or shared voting
power or investment power and (2) any shares as to which the person or entity has the right to acquire beneficial ownership within 60
days after the date hereof. Each holder&rsquo;s percentage ownership after this Direct Listing is based on shares of common stock to be
outstanding immediately after the consummation of this Direct Listing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name of Beneficial Owner</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number&nbsp;of&nbsp;Shares<BR> Beneficially<BR> Owned</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage of <BR> Shares<BR> Beneficially<BR> Owned Before<BR> Offering</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage&nbsp;of<BR> Shares<BR> Beneficially<BR> Owned After<BR> Offering</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic">5% Stockholders</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left; padding-left: 9pt">Brent Crawford (1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">2,370,995</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">5.6</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">5.6</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; font-style: italic; text-align: left">Directors and Named Executive Officers</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Monaz Karkaria</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,947,991</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.9</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.9</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Brian Cole</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Dimitrios Angelis</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Balaji Swaminathan</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Giri Devanur</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,637,410</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65.0</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">65.0</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 9pt">Mike Logozzo</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,199,938</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.1</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.1</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 9pt">Christie Currie</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,473,995</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.5</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.5</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-left: 9pt">All executive officers and directors as a group (8 persons)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">37,367,327</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">87.8</TD><TD STYLE="font-weight: bold; text-align: left">%</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">87.8</TD><TD STYLE="font-weight: bold; text-align: left">%</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">*</TD><TD STYLE="text-align: justify">Less than one percent of outstanding shares.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">Includes (i) 368,499 shares of common stock; (ii) 1,001,248
shares of common stock held by CH REAlpha Investments, LLC<FONT STYLE="background-color: white">; and (iii) 1,001,248 shares of common
stock held by </FONT>CH REAlpha Investments II, LLC<FONT STYLE="background-color: white">. Mr. Crawford has the sole voting and dispositive
control over the shares held by </FONT>CH REAlpha Investments, LLC <FONT STYLE="background-color: white">and </FONT>CH REAlpha Investments
II, LLC<FONT STYLE="background-color: white">.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_011"></A>CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as disclosed herein,
no director, executive officer, stockholder holding at least 5% of shares of our common stock, or any family member thereof, had any material
interest, direct or indirect, in any transaction, or proposed transaction since May 1, 2020, in which the amount involved in the transaction
exceeds the lesser of $120,000 or one percent of the average of our total assets at the year-end for the last two completed fiscal years.</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Related Party Transactions</B></P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>myAlphie LLC</I></P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company, by means of a
merger, owns (a) subsidiary named myAlphie LLC with all of its technology and intellectual property and (b) two on demand promissory notes
of $975,000 and $4,875,000 payable to CH REAlpha Investments, LLC, and CH REAlpha Investments II, LLC, respectively. The promissory notes
carry an Interest rate of Prime Rate plus one percent (1%).</P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>Master Service Agreement </I></P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Company (f.k.a. reAlpha
Asset Management Inc) had a Master Service Agreement with ReAlpha Tech Corp. (our previous parent company) for their patented technologies
and platforms and agreed to pay ReAlpha Tech Corp. a management fee of 20% of rental income, however, this agreement is no longer effective
post-Downstream Merger (as defined above).</P>

<P STYLE="margin: 0pt 0; font-size: 6pt; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><I>reAlpha Homes and
SAIML Capital Pte. Limited </I></P>

<P STYLE="margin: 0pt 0; font-size: 6pt; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
November 17, 2022, reAlpha Homes and SAIML Capital Pte. Limited, a Singapore-based asset management firm, signed a binding term sheet
to form a joint venture to invest $40.8 million in equity in rent-ready short-term rental (&ldquo;STR&rdquo;) properties. Balaji Swaminathan,
who was appointed as a member of our board of directors in April 2023, is the Chief Executive Officer and director of SAIML Capital Pte.
Limited. The joint venture, once formed, would have a 51% stake held by reAlpha Homes and a 49% stake held by SAIML. The joint venture
planned to make up to $200 million in investments across California, Arizona, Florida, and Tennessee, leveraging the reAlphaBRAIN to identify
properties that meet its investment criteria pursuant to the terms and conditions of a definitive joint venture agreement to be entered
into on or before January 31, 2023. This joint venture may have also expanded its partnership by contributing an additional $61.2 million
of equity, with the potential to invest up to $500 million in STR properties through additional debt financing. As of the date hereof,
the definitive joint venture agreement has not been entered into and, therefore, this joint venture has not been formed. Mr. Swaminathan
received no compensation under the term sheet while it was outstanding.</P>

<P STYLE="margin: 0pt 0; font-size: 6pt; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Policy for approval
of related-person transactions</B></P>

<P STYLE="margin: 0pt 0; font-size: 6pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to this Direct Listing,
we have not had a formal policy regarding approval of transactions with related persons. In connection with this Direct Listing, our board
of directors has adopted a related-person transaction policy that sets forth our procedures for the identification, review, consideration
and approval or ratification for the review of any transaction, arrangement or relationship in which we are a participant, the amount
involved exceeds $120,000 and one of our executive officers, directors, director nominees or each person whom we know to beneficially
own more than 5% of our outstanding shares of common stock (a &ldquo;5% stockholder&rdquo;) (or their immediate family members), each
of whom we refer to as a &ldquo;related person,&rdquo; has a direct or indirect material interest.</P>

<P STYLE="margin: 0pt 0; font-size: 6pt; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If
a related person proposes to enter into such a transaction, arrangement or relationship, which we refer to as a &ldquo;related-person
transaction,&rdquo; the related person must report the proposed related-person transaction to the Company&rsquo;s general counsel. The
policy calls for the proposed related-person transaction to be reviewed by and if deemed appropriate approved by, the audit committee
of our board of directors after full disclosure of the related-person interest in the transaction. Whenever practicable, the reporting,
review and approval will occur prior to entry into the transaction. If advance review and approval is not practicable, the audit committee
will review and, in its discretion, may ratify the related-person transaction. The policy also permits the chair of the audit committee
to review, and if deemed appropriate approve, proposed related-person transactions that arise between audit committee meetings, subject
to ratification by the audit committee at its next meeting. Any related-person transactions that are ongoing in nature will be reviewed
annually.</P>

<P STYLE="margin: 0pt 0; font-size: 6pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">A
related-person transaction reviewed under the policy will be considered approved or ratified if it is authorized by the audit committee
after full disclosure of the related person&rsquo;s interest in the transaction. As appropriate for the circumstances, the committee will
review and consider:</P>

<P STYLE="margin: 0pt 0; font-size: 6pt; text-align: justify; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">the related person&rsquo;s interest in the related-person transaction;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">the approximate dollar amount involved in the related-person transaction;</FONT></TD></TR>
</TABLE>

<P STYLE="font-size: 6pt; margin: 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
  <TR>
    <TD STYLE="text-align: justify; width: 0.5in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify; width: 0.25in">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">the approximate dollar amount of the related person&rsquo;s interest in the transaction without regard to the amount of any profit or loss;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">whether the transaction was undertaken in the ordinary course of our business;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unrelated third party;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">the purpose of, and the potential benefits to us of, the related-person transaction; and</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></TD></TR>
  <TR>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="vertical-align: top; text-align: justify">&#9679;</TD>
    <TD STYLE="vertical-align: top; text-align: justify"><FONT STYLE="font-size: 10pt">any other information regarding the related-person transaction or the related person in the context of the proposed transaction that would be material to investors in light of the circumstances of the particular transaction.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">The
audit committee may approve or ratify the transaction only if the audit committee determines that, under all of the circumstances, the
transaction is not inconsistent with our best interests. The audit committee may impose any conditions on the related-person transaction
that it deems appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
policy provides that transactions involving compensation of executive officers shall be reviewed and approved by the compensation committee
of our board of directors in the manner specified in its charter.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="a_012"></A>REGISTERED STOCKHOLDERS&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following table sets forth
the number of shares of our common stock held by the Registered Stockholders and registered as common stock for resale by means of this
prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.25in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This prospectus registers
for resale shares of our common stock that are held by certain Registered Stockholders that include&nbsp;our officers, directors, affiliates
and certain other stockholders with &ldquo;restricted&rdquo; securities under the applicable securities laws and regulations who, because
of their status as affiliates of us pursuant to Rule 144 or because they acquired their capital stock from an affiliate or from us within
the prior 12 months from the date of any proposed sale, would otherwise be unable to sell their securities pursuant to Rule 144 until
we have been subject to the reporting requirements of Section&nbsp;13 or Section&nbsp;15(d) of the Exchange Act for a period of at least
90 days. See &ldquo;Shares Eligible for Future Sale&rdquo; for further information regarding sales of such &ldquo;restricted&rdquo; securities
if not sold pursuant to this prospectus.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Information concerning the
Registered Stockholders may change from time to time and any changed information will be set forth in supplements to this prospectus,
if and when necessary. Because the Registered Stockholders may sell all, some, or none of the shares of our common stock covered by this
prospectus, we cannot determine the number of such shares of our common stock that will be sold by the Registered Stockholders, or the
amount or percentage of shares of our common stock that will be held by the Registered Stockholders upon consummation of any particular
sale. In addition, the Registered Stockholders listed in the table below may have sold, transferred or otherwise disposed of, or may sell,
transfer or otherwise dispose of, at any time and from time to time, our shares of common stock in transactions exempt from the registration
requirements of the Securities Act, after the date on which they provided the information set forth in the table below. See &ldquo;Management&rdquo;
and &ldquo;Certain Relationships and Related Party Transactions&rdquo; for further information regarding the Registered Stockholders.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We currently intend to use
our reasonable efforts to keep the registration statement of which this prospectus forms a part effective for a period of 90 days after
the effectiveness of the registration statement. We are not party to any arrangement with any Registered Stockholder or any&nbsp;broker-dealer&nbsp;with
respect to sales of shares of our common stock by the Registered Stockholders (see &ldquo;<I>Plan of Distribution</I>&rdquo; section below).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have determined beneficial
ownership in accordance with the rules of the SEC, and thus it represents sole or shared voting or investment power with respect to our
securities. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole
investment power with respect to all shares that they beneficially owned, subject to community property laws where applicable. The information
does not necessarily indicate beneficial ownership for any other purpose, including for purposes of Sections 13(d) and 13(g) of the Exchange
Act.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have based percentage ownership of our common stock based on 42,522,091
shares of our common stock issued and outstanding as of&nbsp;April 17, 2023. <FONT STYLE="background-color: white">These amounts are based
upon information available to the Company as of the date of this filing.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="background-color: white"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Beneficial Ownership Prior to the Effectiveness <BR> of the Registration Statement</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of<BR> Shares of<BR> Common<BR> Stock<BR> Beneficially<BR> Owned+</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total<BR> Number of<BR> Shares of Common<BR> Stock Being Registered<BR> Pursuant<BR> to this<BR> Prospectus</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage<BR> Ownership of <BR> Common<BR> Stock+</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1.5pt solid">Name of Selling Stockholders:</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Giri Devanur (1)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">27,637,409</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">27,637,409</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">65.0</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Monaz Karkaria (2)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,947,991</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,947,991</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.93</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Michael J. Logozzo (3)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,199,938</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,199,938</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.17</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Christine Currie (4)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,473,996</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,473,996</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.47</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Jorge Aldecoa (5)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Bhaargav Kosuri (6)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">460,623</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">460,623</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Saching Garg (7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ravi Srinivas (8)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Dr. Art Langer (9)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Brian Cole (10)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">368,499</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Brent Crawford (11)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,370,995</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,370,995</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5.58</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rakesh Prasad Hosur Rama Prasad (12)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276,374</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276,374</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Jonas Meyer (13)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276,374</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">276,374</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Plato Ghinos (14)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Paul Cecil (15)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Michael Haring (16)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Dru Rai (17)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">92,125</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Viktor Boskovski (18)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,275</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,275</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Srinidhi Kuruvadi Anantharaju (19)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Ram Prasanna Kharvi (20)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Gabby Bajorek (21)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Austin Knisley (22)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,425</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Tejas Gupta (23)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Prem Kumar Dayyala (24)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Nikhil Besta (25)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Nagaraj Kharvi (26)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Holly Scholl (27)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,055</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

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<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Beneficial Ownership Prior to the Effectiveness <BR> of the Registration Statement</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Number of<BR> Shares of<BR> Common<BR> Stock<BR> Beneficially<BR> Owned+</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total<BR> Number of<BR> Shares of Common<BR> Stock Being Registered<BR> Pursuant<BR> to this<BR> Prospectus</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Percentage<BR> Ownership of<BR> Common<BR> Stock+</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; text-align: left">Bharathinagar Chandru Chethan (28)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">11,055</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">11,055</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Drive Capital Fund II, L.P. (29)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539,412</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">539,412</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.27</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Drive Capital Fund II (TE), L.P. (30)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">465,177</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">465,177</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.10</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Drive Capital Ignition Fund II, L.P. (31)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,660</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,660</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">K-Roost, LLC (32)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,042</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,042</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>K-Roost 2, LLC (33)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,867</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,867</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">NCT Ventures Fund II LP (34)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,042</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,042</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Dwight Smith (35)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,972</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,972</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Scott Griffin (36)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">JumpStart Inc. (37)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,162</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,162</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Robert Weiler (38)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,114</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,114</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Alan R. Weiler (39)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,190</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>RH Fund I (40)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,955</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,955</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">David Marcinkowski (41)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,680</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,680</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">SBJM Investment LLC (42)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,799</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,799</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mark A. Pentella (43)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,753</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,753</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Maxim Partners LLC (44)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">204,529</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">204,529</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Mitchell Silberberg &amp; Knupp LLP (45)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Silicon Valley Bank (46)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">49,029</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">49,029</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">*</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-decoration: underline; padding-bottom: 4pt">Total</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">41,666,554</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">41,666,554</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="margin: 0"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify">Indicates beneficial ownership of less than 1% of the outstanding
shares of our common stock.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in; text-align: left"><FONT STYLE="font-size: 10pt">+</FONT></TD><TD STYLE="text-align: justify">Beneficial ownership is determined in accordance with SEC
rules and generally includes voting or investment power with respect to shares of common stock. Shares of common stock subject to options,
warrants and convertible debentures currently exercisable or convertible, or exercisable or convertible within 60 days, are counted as
outstanding.</TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"><FONT STYLE="font-size: 6pt">&nbsp;</FONT></P>

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<TD STYLE="width: 0.5in">(1)</TD><TD STYLE="text-align: justify">The address of Giri Devanur is 6683 Dale Drive, Dublin, OH 43017.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(2)</TD><TD STYLE="text-align: justify">The address of Mona Karkaria is 5911 Chatham Drive, Frisco, TX 75036.</TD></TR></TABLE>

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<TD STYLE="text-align: justify; width: 0.5in">(3)</TD><TD STYLE="text-align: justify">The address of Michael J. Logozzo is 5083 Green Vista Crossing, Powell, OH 43065.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(4)</TD><TD STYLE="text-align: justify">The address of Christine Currie is 3113 Carriage Lane, Columbus, OH 43221.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(5)</TD><TD STYLE="text-align: justify">The address of Jorge Aldecoa is 14808 SW 54th Street, Miramar, FL 33027.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>


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  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify; width: 0.5in">(6)</TD>
    <TD STYLE="text-align: justify">The address of Bhaargav Kosuri is 109 Wayne Street, Apartment 4, Jersey City, NJ 07302.</TD></TR>
  </TABLE>


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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(7)</TD><TD STYLE="text-align: justify">The address of Saching Garg is C2-113, SNN Raj Etternia, Silver County Road, Bangalore, India 560076.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(8)</TD><TD STYLE="text-align: justify">The address of Ravi Srinivas is Villa 112, Confident Bellatrix, Billapura Cross, Sarjapur, Bangalore, Karnataka, India 562125.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(9)</TD><TD STYLE="text-align: justify">The address of Dr. Art Langer is 8 Perth Lane, New City, NY 10956.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(10)</TD><TD STYLE="text-align: justify">The address of Brian Cole is 915 E Lancaster Avenue, Whitefish Bay, WI 53217.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 48px; text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(11)</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Consists of: (i) 368,499 shares of common stock; (ii) 1,001,248 shares of common stock held by CH REAlpha Investments, LLC; and (iii) 1,001,248 shares of common stock held by CH REAlpha Investments II, LLC. Brent Crawford has the sole voting and dispositive control over the shares held by CH REAlpha Investments, LLC and CH REAlpha Investments II, LLC. The address of Mr. Crawford, CH REAlpha Investments, LLC and REAlpha Investments II, LLC is 6640 Riverside Drive, Suite 500, Dublin, OH 43017.</FONT></TD></TR>
  </TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(12)</TD><TD STYLE="text-align: justify">The address of Rakesh Prasad Hosur Rama Prasad is 6663 Rush Street, Apartment A, Dublin, OH, 43017.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(13)</TD><TD STYLE="text-align: justify">The address of Jonas Meyer is 3113 Carriage Lane, Columbus, OH 43221.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(14)</TD><TD STYLE="text-align: justify">The address of Plato Ghinos is 2359 Nantucket Circle, State College, PA 16803.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(15)</TD><TD STYLE="text-align: justify">The address of Paul Cecil is 2981 Angelo Joseph Lane, Columbus, OH 43202.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(16)</TD><TD STYLE="text-align: justify">The address of Michael Haring is 9649 Fair Oaks Drive, Powell, OH 43065.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(17)</TD><TD STYLE="text-align: justify">The address of Dru Rai is 101 Clover Leaf Lane, North Wales, PA 19454.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(18)</TD><TD STYLE="text-align: justify">The address of Viktor Boskovski is 700 Culpepper Drive, Reynoldsburg, OH 43068.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in">(19)</TD><TD STYLE="text-align: justify">The address of Srinidhi Kuruvadi Anantharaju is No 10, 4th Main Road, NR Colony, Bangalore, India 560019.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(20)</TD><TD STYLE="text-align: justify">The address of Ram Prasanna is Kharvi Janani, Siddanbhavi, Muroor Road, Kumta, Uttara Kannada, Karnataka, India 581343.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(21)</TD><TD STYLE="text-align: justify">The address of Gabby Bajorek is 2970 Sandhurst Drive, Lewis Center, OH 43035.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(22)</TD><TD STYLE="text-align: justify">The address of Austin Knisley is 2278 Siskin Avenue, Columbus, OH 43228.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(23)</TD><TD STYLE="text-align: justify">The address of Tejas Gupta is 20/1 Krishna Nilaya, Reservoir Street, Basavangudi, Bangalore, India 560004.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(24)</TD><TD STYLE="text-align: justify">The address of Prem Kumar Dayyala is 13-9-26/2, near Krishnudi Cheruvu, Ramchandra Rao Peta, Tadepalligudem, West Godavari, Andhra
Pradesh , 534102 India.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(25)</TD><TD STYLE="text-align: justify">The address of Nikhil Besta is No 1/132c Palasamudram, Gorantla, Pincode 515241, India.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(26)</TD><TD STYLE="text-align: justify">The address of Nagaraj Kharvi is Kuidanamane Bunder Bhatkal, Mavinakurve, Bhatkal, Uttrakannda, India.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(27)</TD><TD STYLE="text-align: justify">The address of Holly Scholl is 5312 Shannon Park Drive, Dublin, OH 43017.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(28)</TD><TD STYLE="text-align: justify">The address of Bharathinagar Chandru Chethan is No. 27, Samyojitha Nilaya, Last House, 2nd Cross, Sagar Layout, Devarachikkana Halli,
BG Road, Bengaluru, India 560076.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(29)</TD><TD STYLE="text-align: justify">The address of Drive Capital Fund II, L.P. is 629 North High Street, 6th Floor Columbus, OH 43215. Chris Olsen has the sole power
to vote or dispose of the securities held by Drive Capital Fund II, L.P.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(30)</TD><TD STYLE="text-align: justify">The address of Drive Capital Fund II (TE), L.P. is 629 North High Street, 6th Floor, Columbus, OH 43215. Chris Olsen has the sole
power to vote or dispose of the securities held by Drive Capital Fund II (TE), L.P.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(31)</TD><TD STYLE="text-align: justify">The address of Drive Capital Ignition Fund II, L.P. is 629 North High Street, 6th Floor, Columbus, OH 43215. Chris Olsen has the sole
power to vote or dispose of the securities held by Drive Capital Ignition Fund II, L.P.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(32)</TD><TD STYLE="text-align: justify">The address of K-Roost, LLC is 393 North Columbia Avenue, Columbus, OH 43209. Brett Kaufman is a member of K-Roost, LLC and may therefore
be deemed to hold voting and dispositive power with respect to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(33)</TD><TD STYLE="text-align: justify">The address of K-Roost 2, LLC is 393 North Columbia Avenue, Columbus, OH 43209. Brett Kaufman is a member of K-Roost 2, LLC and may
therefore be deemed to hold voting and dispositive power with respect to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(34)</TD><TD STYLE="text-align: justify">The address of NCT Ventures Fund II, L.P. is 421 West State Street, Columbus, OH 43215-4008. William J. Frank is an authorized representative
of NCT Ventures Fund II, L.P. and may therefore be deemed to hold voting and dispositive power with respect to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(35)</TD><TD STYLE="text-align: justify">The address of Dwight Smith is 3099 Big Timber Loop, Lewis Center, OH 43035.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(36)</TD><TD STYLE="text-align: justify">The address of Scott Griffin is 13611 Fernlace Ct., Pickerington, OH 43147.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(37)</TD><TD STYLE="text-align: justify">The address of JumpStart Inc. is 6701 Carnegie Avenue, Suite 100, Cleveland, OH 44103. Hardik Desai is the managing partner of JumpStart
Inc. and may therefore be deemed to hold voting and dispositive power with respect to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(38)</TD><TD STYLE="text-align: justify">The address of Robert Weiler is 10 North High Street, Suite 410, Columbus, OH 43215.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(39)</TD><TD STYLE="text-align: justify">The address of Alan R. Weiler is 9000 Rivers End, Powel, OH 43065.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(40)</TD><TD STYLE="text-align: justify">The address of RH Fund I is 119 South Main Street, Suite 220, Seattle, WA 98104. Peyton Dalton is an authorized representative of
RH Fund I and may therefore be deemed to hold voting and dispositive power with respect to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(41)</TD><TD STYLE="text-align: justify">The address of David Marcinkowski is 4011 111th Street, Lubbock, TX 79423.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(42)</TD><TD STYLE="text-align: justify">The address of SBJM Investment, LLC is 2506 Colts Neck Road, Blacklick, OH. 43004. Steven P Balaloski is a member of SBJM Investment,
LLC and may therefore be deemed to hold voting and dispositive power with respect to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in">(43)</TD><TD STYLE="text-align: justify">The address of Mark A. Pentella Revocable Trust UA DTD is 3070 Forest Ridge Ct., Fairlawn, OH 44333. Mark A. Pentella is the trustee
of the Mark A. Pentella Revocable Trust UA DTD and holds sole power to vote or dispose of such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(44)</TD><TD STYLE="text-align: justify">Maxim Partners LLC is the parent of registered broker-dealer Maxim
Group LLC. The address of Maxim Partners, LLC is 300 Park Avenue, 16th Floor, New York, NY 1002. Anthony Di
                                                       Clemente is the Chief Administrative Officer of Maxim Partners, LLC and may therefore be deemed to hold voting and dispositive power
                                                       with respect to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(45)</TD><TD STYLE="text-align: justify">The address of Mitchell Silberberg &amp; Knupp, LLP is 437 Madison Avenue, 25th Floor, New York, NY 10022. Douglas Gold is the Chief
Operating Officer of Mitchell Silberberg &amp; Knupp LLP and may therefore be deemed to hold voting and dispositive power with respect
to such shares.</TD></TR></TABLE>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top">
<TD STYLE="text-align: justify; width: 0.5in">(46)</TD><TD STYLE="text-align: justify">The address of Silicon Valley Bank is Bank &amp; Trust Company 3003 Tasman Drive, Santa Clara, CA 95054. Sam Simas is the Vice President
of Silicon Valley Bank and may therefore be deemed to hold voting and dispositive power with respect to such shares.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_012a"></A>DESCRIPTION OF SECURITIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">The
following description summarizes important terms of the classes of our capital stock based on our Certificate of Incorporation and Bylaws
that will be in effect immediately prior to the effectiveness of this registration statement. This summary does not purport to be complete
and is qualified in its entirety by the provisions of our Certificate of Incorporation and our Bylaws, which have been filed as exhibits
to the registration statement of which this prospectus is a part.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our authorized capital stock
currently consists of 200,000,000 shares of common stock, par value $0.001 per share, and 5,000,000 shares of &ldquo;blank check&rdquo;
preferred stock, par value $0.001 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the date hereof, there were 42,522,091 issued and outstanding
shares of our common stock held by 3,123 stockholders of record. No shares of preferred stock are currently issued or outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Voting Rights. </I>The
holders of shares of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders.
Any action at a meeting at which a quorum is present will be decided by a majority of the votes cast by the stockholders present in person
or represented by proxy at the meeting and entitled to vote thereon, except in the case of any election of directors, which will be decided
by a plurality of votes cast. There is no cumulative voting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Dividends. </I>The Company
has never declared or paid cash dividends on any of its capital stock and currently does not anticipate paying any cash dividends after
the Direct Listing or in the foreseeable future. The holders of our common stock are entitled to receive dividends as may be declared
from time to time by our board of directors out of legally available funds. Any dividend declared by the board of directors must be equal,
on a per share basis.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><I>Liquidation Rights. </I>In
the event of a voluntary or involuntary liquidation, dissolution, or winding up of the Company, the holders of common stock are entitled
to share ratably in the net assets legally available for distribution to stockholders after the payment of debts and other liabilities
of the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Blank Check Preferred
Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Our
board of directors has the authority to issue undesignated shares of &ldquo;blank check&rdquo; preferred stock in one or more series and
to fix the designation, relative powers, preferences and rights and qualifications, limitations or restrictions of all shares of each
such series, including, without limitation, dividend rates, conversion rights, voting rights, redemption and sinking fund provisions,
liquidation preferences and the number of shares constituting each such series, without any further vote or action by the stockholders.
The issuance of additional preferred stock could decrease the amount of earnings and assets available for distribution to holders of our
common stock or adversely affect the rights and powers, including voting rights, of the holders of our common stock and could, among other
things, have the effect of delaying, deferring or preventing a change in control of our company without further action by the stockholders.
We have no present plans to issue any shares of preferred stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Anti-Takeover Effects of the Certificate of
Incorporation and Bylaws and Certain Provisions of Delaware Law</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Certificate of Incorporation
and the DGCL contain provisions that are summarized in the following paragraphs and that are intended to enhance the likelihood of continuity
and stability in the composition of our board of directors. These provisions are intended to avoid costly takeover battles, reduce our
vulnerability to a hostile or abusive change of control and enhance the ability of our board of directors to maximize stockholder value
in connection with any unsolicited offer to acquire us. However, these provisions may have an&nbsp;anti-takeover effect and may delay,
deter or prevent a merger or acquisition of the Company by means of a tender offer, a proxy contest or other takeover attempt that a stockholder
might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the
Shares of common stock held by stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Authorized but Unissued Capital Stock</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Delaware law does not require
stockholder approval for any issuance of shares that are authorized and available for issuance. However, the listing requirements of Nasdaq,
which would apply so long as the shares of common stock remain listed on Nasdaq, require stockholder approval of certain issuances equal
to or exceeding 20% of the then outstanding voting power or the then outstanding number of shares of common stock. These additional shares
may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.
Additionally, the number of authorized shares of any series of common stock or preferred stock may be increased or decreased (but not
below the number of shares thereof outstanding) by the affirmative vote of the holders of a majority in voting power, irrespective of
the provisions of Section 242(b)(2) of the DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Vacancies and Newly Created Directorships</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Certificate of Incorporation
provides that, subject to the rights granted to one or more series of preferred stock then outstanding, any newly-created directorship
on the board of directors that results from an increase in the number of directors and any vacancies on our board of directors will be
filled solely only by the affirmative vote of a majority of the remaining directors, even if less than a quorum, by a sole remaining director
or by the stockholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Special Stockholder Meetings</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Certificate of Incorporation
provides that special meetings of our stockholders may be called at any time only by the board of directors, the chairman of the board
of directors or our Chief Executive Officer acting pursuant to a resolution approved by the affirmative vote of a majority of the directors
then in office, subject to the rights of holders of any series of preferred stock then outstanding</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Stockholder Action by Written Consent</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Pursuant to Section 228 of
the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without
prior notice, and without a vote if a consent or consents in writing, setting forth the action so taken, is or are signed by the holders
of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting
at which all shares of our stock entitled to vote thereon were present and voted, the Certificate of Incorporation provides otherwise.
In accordance with Section 228, our Bylaws allows for action by written consent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Section 203 of the DGCL</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-indent: 0.5in; margin: 0pt 0; text-align: justify">We have opted out of Section 203 of the DGCL under
our Certificate of Incorporation. As a result, pursuant to our Certificate of Incorporation, we are prohibited from engaging in any business
combination with any stockholder for a period of three years following the time that such stockholder (the &ldquo;interested stockholder&rdquo;)
came to own at least 15% of our outstanding voting stock (the &ldquo;acquisition&rdquo;), except if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">our board of directors approved the acquisition prior to its consummation;</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the interested stockholder owned at least 85% of the outstanding voting stock upon consummation of the acquisition; or</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="width: 0.5in">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; width: 0.25in; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">the acquisition is approved by our board of directors, and by the affirmative vote of at least two-thirds vote of the non-interested stockholders in a meeting.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The restrictions described
above will apply subject to certain exceptions, including if a stockholder becomes an interested stockholder inadvertently and, as soon
as practicable, divests itself of ownership of such shares so that the stockholder ceases to be an interest stockholder, and, within the
three (3) year period, that stockholder has not become an interested stockholder but for such inadvertent acquisition of ownership. Generally,
a &ldquo;business combination&rdquo; or &ldquo;acquisition&rdquo; includes any merger, consolidation, asset or stock sale or certain other
transactions resulting in a financial benefit to the interested stockholder. Subject to certain exceptions, an &ldquo;interested stockholder&rdquo;
is a person who, together with that person&rsquo;s affiliates and associates, owns, or within the previous three years owned, 15% or more
of our outstanding voting stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0pt 0; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
Certificate of Incorporation provisions that elect to opt out of Section 203 of the DGCL may make it more difficult for a person who
would be an &ldquo;interested stockholder&rdquo; to effect various business combinations with us for a three-year period. This may encourage
companies interested in acquiring us to negotiate in advance with our board of directors because the stockholder approval requirement
would be avoided if our board of directors approves the acquisition which results in the stockholder becoming an interested stockholder.
This may also have the effect of preventing changes in our board of directors and may make it more difficult to accomplish transactions
which stockholders may otherwise deem to be in their best interests.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Dissenters&rsquo; Rights of Appraisal and Payment</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the DGCL, with certain
exceptions, our stockholders will have appraisal rights in connection with a merger or consolidation in which we are a constituent entity.
Pursuant to the DGCL, stockholders who properly demand and perfect appraisal rights in connection with such merger or consolidation will
have the right to receive payment of the fair value of their shares as determined by the Court of Chancery of the State of Delaware, plus
interest, if any, on the amount determined to be the fair value, from the effective time of the merger or consolidation through the date
of payment of the judgment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Stockholders&rsquo; Derivative Actions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under the DGCL, any of our
stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the
stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder&rsquo;s
stock thereafter devolved by operation of law. To bring such an action, the stockholder must otherwise comply with Delaware law regarding
derivative actions.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Exclusive forum for certain lawsuits</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Certificate of Incorporation
provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will
be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of
breach of fiduciary duty owed by any director, officer or other employee to us or to our stockholders, (iii) any action asserting a claim
against us, our directors, officers or employees arising pursuant to any provision of the DGCL or our Certificate of Incorporation or
Bylaws or (iv) any action asserting a claim against use, our directors, officers or employees governed by the internal affairs doctrine.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under our Charter, this exclusive
form provision will not apply to claims which are vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery
of the State of Delaware, for which the Court of Chancery of the State of Delaware does not have subject matter jurisdiction, or for which
the Court of Chancery determines there is an indispensable party not subject to its jurisdiction. For instance, the provision would not
apply to actions arising under federal securities laws, including suits brought to enforce any liability or duty created by the Securities
Act, the Exchange Act, or the rules and regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Limitations on Liability and Indemnification
of Officers and Directors</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The DGCL authorizes corporations
to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of
directors&rsquo; fiduciary duties, subject to certain exceptions. The Certificate of Incorporation includes a provision that eliminates
the personal liability of directors for monetary damages to the corporation or its stockholders for any breach of fiduciary duty as a
director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. The effect of these
provisions is to eliminate the rights of us and our stockholders, through stockholders&rsquo; derivative suits on our behalf, to recover
monetary damages from a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior.
However, exculpation does not apply to any director if the director has breached such director&rsquo;s duty of loyalty, acted in bad faith,
knowingly or intentionally violated the law, authorized illegal dividends, redemptions or repurchases or derived an improper benefit from
his or her actions as a director.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The limitation of liability
provision in our Certificate of Incorporation may discourage stockholders from bringing a lawsuit against directors for breach of their
fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers,
even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely
affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification
provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">There is currently no pending
material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Listing</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to apply to list
our common stock on Nasdaq under the symbol &ldquo;[&#9679;].&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prior to the proposed listing
of our common stock on the Nasdaq, there has been no public market for our common stock, and we cannot predict the effect, if any, that
sales of shares of our common stock or the availability of shares of our common stock for sale will have on the market price of our common
stock prevailing from time to time. Future sales of our common stock in the public market, or the availability of such shares for sale
in the public market, could adversely affect market prices prevailing from time to time. Sales of substantial amounts of our common stock
in the public market following our listing on the Nasdaq, or the perception that such sales could occur, could adversely affect the public
price of our common stock and may make it more difficult for you to sell your common stock at a time and price that you deem appropriate.
We will have no input if and when any Registered Stockholder may, or may not, elect to sell its shares of common stock or the prices at
which any such sales may occur. Future sales of our common stock in the public market, or the availability of such shares for sale in
the public market, could adversely affect the trading prices of shares of our common stock prevailing from time to time.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Transfer Agent and Registrar</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The transfer agent and registrar
for our common stock is VStock&nbsp;Transfer, LLC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>SHARES
ELIGIBLE FOR FUTURE SALE</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Before our Direct Listing,
there has not been a public market for shares of our common stock. Future sales of substantial amounts of shares of our common stock in
the public market after our Direct Listing, or the possibility of these sales occurring, could cause the prevailing market price for our
common stock to fall or impair our ability to raise equity capital in the future.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">After our Direct Listing,
we will have outstanding 42,522,091 shares of our common stock, based on the number of shares outstanding as of April 17, 2023. This includes
41,462,025 shares that the Registered Stockholders may resell in the public market immediately following our Direct Listing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Shares of our common stock
will be deemed &ldquo;restricted securities&rdquo; (as defined in Rule 144 under the Securities Act). Restricted securities may be sold
in the public market only if they are registered or if they qualify for an exemption from registration under Rule 144 or Rule 701 under
the Securities Act, which rules are summarized below. Following the listing of our common stock on Nasdaq, shares of our common stock
may be sold either by the Registered Stockholders pursuant to this prospectus or by our other existing stockholders in accordance with
Rule 144 of the Securities Act.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 855,537 shares of common stock that were issued
pursuant to our Regulation A offering will be freely tradable without restrictions or further registration under the&nbsp;Securities Act
of 1933 in the public market immediately following our Direct Listing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">The 204,529 shares of our common stock issued to
Maxim Partners LLC are subject to a lock-up restriction until the earlier of (i) one (1) year from the date of their initial engagement,
or (ii) six (6) months after the date in which the Company gets listed on Nasdaq.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Further, certain Registered
Stockholders listed above beneficially own in the aggregate 6,469,011 shares of our common stock, or 15.21%, all of such shares were granted
pursuant to our Plan, and which shares may be subject to a lock-up restrictions under our Plan&rsquo;s restricted stock award agreement
(the &ldquo;Lock-Up&rdquo;). The Lock-Up will become applicable to the extent that there is an initial underwritten public offering of
the Company&rsquo;s securities. The Lock-Up, if and when applicable, will expire one hundred and eighty (180) days after the effectiveness
of a registration statement of the Company&rsquo;s initial underwritten public offering of the Company&rsquo;s securities. The shares
may be resold for so long as the registration statement, of which this prospectus forms a part, is available for use and any applicable
restrictions are expired or waived. The sale of all securities being offered in this prospectus could result in a significant decline
in the public trading price of our common stock upon effectiveness of an underwritten public offering of the Company&rsquo;s securities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 144</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, under Rule 144
as currently in effect, once we have been subject to the public company reporting requirements of Section&nbsp;13 or Section&nbsp;15(d)
of the Exchange Act for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities
Act at any time during the 90 days preceding a sale and who has beneficially owned the shares proposed to be sold for at least six months,
including the holding period of any prior owner other than our affiliates, is entitled to sell those shares without complying with the
manner of sale, volume limitation, or notice provisions of Rule 144, subject to compliance with the public information requirements of
Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of
any prior owner other than our affiliates, then that person would be entitled to sell those shares without complying with any of the requirements
of Rule 144.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, under Rule 144,
as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled to sell, within any&nbsp;three-month&nbsp;period,
a number of shares of common stock that does not exceed the greater of:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">1% of the number of shares
of our common stock then outstanding; and</FONT></TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the average weekly trading
volume of our common stock on Nasdaq during the four calendar weeks preceding the filing of a notice on Form 144 with respect to that
sale.</FONT></TD>
</TR></TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Sales under Rule 144 by our
affiliates or persons selling shares of our common stock on behalf of our affiliates are also subject to certain&nbsp;manner-of-sale&nbsp;provisions
and notice requirements and to the availability of current public information about us.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Rule 701&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In general, under Rule 701,
any of our employees, directors, officers, consultants, or advisors who purchase shares of capital stock from us in connection with a
compensatory stock option plan or other written agreement before the effective date of the registration statement of which this prospectus
forms a part is entitled to sell such shares 90 days after such effective date in reliance on Rule 144.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Registration Statement on Form&nbsp;S-8</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We intend to file one or more
registration statements on Form&nbsp;S-8&nbsp;under the Securities Act to register shares of our common stock subject to any outstanding
equity awards, as well as shares of our common stock reserved for future issuance under our Plan (as defined above). We expect to file
these registration statements as soon as permitted under the Securities Act. However, the shares registered on Form&nbsp;S-8&nbsp;may
be subject to the volume limitations and the manner of sale, notice, and public information requirements of Rule 144. See &ldquo;Executive
Compensation &mdash; Equity Incentive Plan&rdquo; for a description of our Plan.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_012b"></A>MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
TO&nbsp;NON-U.S.&nbsp;HOLDERS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The following discussion is
a general summary of the material U.S. federal income tax consequences to U.S. Holders and&nbsp;Non-U.S.&nbsp;Holders (as defined below)
generally applicable to the ownership and disposition of our common stock by a&nbsp;U.S. Holder or Non-U.S.&nbsp;Holder that acquires
our common stock and holds our common stock as a capital asset within the meaning of Section 1221 of the U.S. Internal Revenue Code of
1986, as amended (the &ldquo;Code&rdquo;) (generally, property held for investment), but does not purport to be a complete analysis of
all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local,
or&nbsp;non-U.S.&nbsp;tax laws are not discussed. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial
decisions, and published rulings and administrative pronouncements of the IRS, in each case in effect as of the date hereof. These authorities
may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner
that could adversely affect a&nbsp;U.S. Holder or Non-U.S.&nbsp;Holder. We have not sought and will not seek any rulings from the IRS
regarding the matters discussed below. There can be no assurance that the IRS or a court will not take a contrary position to that discussed
below regarding the tax consequences of the ownership and disposition of our common stock.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This discussion does not address
all U.S. federal income tax consequences relevant to a&nbsp;U.S. Holder&rsquo;s or Non-U.S.&nbsp;Holder&rsquo;s particular circumstances,
including the impact of the Medicare contribution tax on net investment income and the alternative minimum tax or subject to special rules,
including, without limitation:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom; width: 0.5in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">U.S. expatriates and former citizens or long-term residents of the United States;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">persons holding our common stock as part of a hedge, straddle, or other risk reduction strategy or as part of a conversion transaction or other integrated investment;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">banks, insurance companies, and other financial institutions;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>



<P STYLE="margin: 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom; width: 0.5in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">brokers, dealers, or traders in securities;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">&ldquo;controlled foreign corporations,&rdquo; &ldquo;passive foreign investment companies,&rdquo; and corporations that accumulate earnings to avoid U.S. federal income tax;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">tax-exempt organizations or governmental organizations;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">persons deemed to sell our common stock under the constructive sale provisions of the Code;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">persons who hold or receive our common stock pursuant to the exercise of any employee stock option or otherwise as compensation;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">tax-qualified retirement plans; and</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">&ldquo;qualified foreign pension funds&rdquo; as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If an entity treated as a
partnership for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in the partnership will depend
on the status of the partner, the activities of the partnership, and certain determinations made at the partner level. Accordingly, partnerships
holding our common stock and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax
consequences to them.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>THIS DISCUSSION IS FOR
INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE
U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS&nbsp;ANY TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR
COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR&nbsp;NON-U.S.&nbsp;TAXING
JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Definition of a U.S. Holder</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this
discussion, a &ldquo;U.S. Holder&rdquo; means a beneficial owner of our common stock (other than an entity or arrangement that is treated
as a partnership for U.S. federal income tax purposes) that is, for U.S. federal income tax purposes, any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: -0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.5in; text-align: justify">&nbsp;</TD>
    <TD STYLE="width: 0.25in; text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an individual who is a citizen or resident of the United States;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a corporation (or entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">an estate, the income of which is includable in gross income for U.S. federal income tax purposes regardless of its source; or</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">a trust if (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more &ldquo;United States persons,&rdquo; as defined under the Code, (&ldquo;U.S. persons&rdquo;) have the authority to control all substantial decisions of the trust or (ii) such trust has made a valid election to be treated as a U.S. person for U.S. federal income tax purposes.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Definition of a&nbsp;Non-U.S.&nbsp;Holder&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this discussion, a&nbsp;&ldquo;Non-U.S.&nbsp;Holder&rdquo;
is any beneficial owner of our common stock that is neither a &ldquo;U.S. Holder&rdquo; nor an entity treated as a partnership for U.S.
federal income tax purposes.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B><I>Taxation of U.S. Holders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Distributions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">If
we pay distributions in cash or other property (other than certain distributions of our stock or rights to acquire our stock) to U.S.
Holders of shares of our common stock, such distributions generally will constitute dividends for U.S. federal income tax purposes to
the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions
in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce
(but not below zero) the U.S. Holder&rsquo;s adjusted tax basis in our common stock. Any remaining excess will be treated as gain realized
on the sale or other disposition of the common stock and will be treated as described under &ldquo;U.S. Holders - Gain or Loss on Sale,
Taxable Exchange or Other Taxable Disposition of Common Stock&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Dividends
we pay to a U.S. Holder that is a taxable corporation generally will qualify for the dividends received deduction if the requisite holding
period is satisfied. With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment
interest deduction limitations), and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. Holder
may constitute &ldquo;qualified dividends&rdquo; that will be subject to tax at the maximum tax rate accorded to long-term capital gains.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Gain or Loss on Sale,
Taxable Exchange or Other Taxable Disposition of Common Stock </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Upon
a sale or other taxable disposition of our common stock, a U.S. Holder generally will recognize capital gain or loss in an amount equal
to the difference between the amount realized and the U.S. Holder&rsquo;s adjusted tax basis in the common stock. Any such capital gain
or loss generally will be long-term capital gain or loss if the U.S. Holder&rsquo;s holding period for the common stock so disposed of
exceeds one year. Long-term capital gains recognized by non-corporate U.S. Holders will be eligible to be taxed at reduced rates. The
deductibility of capital losses is subject to limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Generally,
the amount of gain or loss recognized by a U.S. Holder is an amount equal to the difference between (i) the sum of the amount of cash
and the fair market value of any property received in such disposition and (ii) the U.S. Holder&rsquo;s adjusted tax basis in its common
stock so disposed of. A U.S. Holder&rsquo;s adjusted tax basis in its common stock generally will equal the U.S. Holder&rsquo;s acquisition
cost less any prior distributions treated as a return of capital.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Information Reporting
and Backup Withholding</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">In
general, information reporting requirements may apply to dividends paid to a U.S. Holder and to the proceeds of the sale or other disposition
of our shares of common stock, unless the U.S. Holder is an exempt recipient. Backup withholding may apply to such payments if the U.S.
Holder fails to provide a taxpayer identification number, a certification of exempt status or has been notified by the IRS that it is
subject to backup withholding (and such notification has not been withdrawn).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Backup withholding is
not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a U.S.
Holder&rsquo;s U.S. federal income tax liability provided the required information is timely furnished to the IRS. All U.S. Holders should
consult their tax advisors regarding the application of information reporting and backup withholding to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B><I>Taxation of Non-U.S.
Holders</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Distributions&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As described in the section
titled &ldquo;Dividend Policy,&rdquo; we do not currently anticipate paying dividends on our common stock. However, if we do make distributions
of cash or property on our common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated
as dividends for U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a&nbsp;Non-U.S.&nbsp;Holder&rsquo;s
adjusted tax basis in its common stock, but not below zero. Any excess will be treated as capital gain and will be treated as described
under the subsection titled &ldquo;&mdash;Sale or Other Taxable Disposition&rdquo; below.&nbsp;Because we may not know the extent to which
a distribution is a dividend for U.S. federal income tax purposes at the time it is made, for purposes of the withholding rules discussed
below we or the applicable withholding agent may treat the entire distribution as a dividend. Any such distributions will also be subject
to the discussions below under the heading &ldquo;<I>Additional Withholding Tax on Payments Made to Foreign Accounts</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Subject to the discussion
below regarding effectively connected income, dividends paid to a&nbsp;Non-U.S.&nbsp;Holder will be subject to U.S. federal withholding
tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the&nbsp;Non-U.S.&nbsp;Holder
furnishes a valid IRS Form&nbsp;W-8BEN&nbsp;or&nbsp;W-8BEN-E&nbsp;(or other applicable documentation) certifying qualification for the
lower treaty rate). A&nbsp;Non-U.S.&nbsp;Holder that does not timely furnish the required documentation, but that qualifies for a reduced
treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.&nbsp;Non-U.S.&nbsp;Holders
should consult their tax advisors regarding their entitlement to benefits under any applicable tax treaties.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">If dividends paid to a&nbsp;Non-U.S.&nbsp;Holder
are effectively connected with the&nbsp;Non-U.S.&nbsp;Holder&rsquo;s conduct of a trade or business within the United States (and, if
required by an applicable income tax treaty, the&nbsp;Non-U.S.&nbsp;Holder maintains a permanent establishment in the United States to
which such dividends are attributable), the&nbsp;Non-U.S.&nbsp;Holder will generally be exempt from the U.S. federal withholding tax described
above. To claim the exemption, the&nbsp;Non-U.S.&nbsp;Holder must furnish to the applicable withholding agent a valid IRS Form&nbsp;W-8ECI,&nbsp;certifying
that the dividends are effectively connected with the&nbsp;Non-U.S. Holder&rsquo;s conduct of a trade or business within the United States.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Any such effectively connected
dividends will be subject to U.S. federal income tax on a net income basis at the regular rates. A&nbsp;Non-U.S.&nbsp;Holder that is a
corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty)
on such effectively connected dividends, as adjusted for certain items.&nbsp;Non-U.S.&nbsp;Holders should consult their tax advisors regarding
any applicable tax treaties that may provide for different rules.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Sale or Other Taxable Disposition&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A&nbsp;Non-U.S.&nbsp;Holder
will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our common stock unless:&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the gain is effectively connected
with the Non-U.S. Holder&rsquo;s conduct of a trade or business within the United States (and, if required by an applicable income tax
treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is attributable);</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">the Non-U.S. Holder is a nonresident
alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements
are met; or</FONT></TD>
</TR></TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Our common stock constitutes
a U.S. real property interest (USRPI) by reason of our status as a U.S. real property holding corporation (USRPHC) for U.S. federal income
tax purposes at any time within the shorter of the five-year period preceding such disposition or such non-U.S. holder&rsquo;s holding
period of our common stock, and, provided that our common stock is regularly traded in an established securities market within the meaning
of applicable Treasury Regulations, the non-U.S. holder has held, directly, indirectly, or constructively, at any time during said period,
more than 5% of our common stock.</FONT></TD>
</TR></TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Gain described in the first
bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates applicable to U.S.
persons. A&nbsp;Non-U.S.&nbsp;Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower
rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">A&nbsp;Non-U.S.&nbsp;Holder
described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by
an applicable income tax treaty) on gain realized upon the sale or other taxable disposition of our common stock, which may be offset
by certain U.S. source capital losses of the&nbsp;Non-U.S.&nbsp;Holder (even though the individual is not considered a resident of the
United States), provided the&nbsp;Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">With respect to the third
bullet point above, we believe we may meet the definition of a USRPHC. Because the determination of whether we are a USRPHC depends, however,
on the fair market value of our USRPIs relative to the fair market value of our&nbsp;non-U.S.&nbsp;real property interests and our other
business assets, the analysis is constantly evolving. Even if we are a USRPHC, gain arising from the sale or other taxable disposition
of our common stock by a&nbsp;Non-U.S.&nbsp;Holder will not be subject to U.S. federal income tax unless such&nbsp;Non-U.S.&nbsp;Holder
owns, actually and constructively, greater than 5% of our common stock throughout the shorter of the&nbsp;five-year period ending on the
date of the sale or other taxable disposition or the&nbsp;Non-U.S.&nbsp;Holder&rsquo;s holding period.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Non-U.S.&nbsp;Holders should
consult their tax advisors regarding any applicable tax treaties that may provide for different rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>FATCA&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Withholding taxes may be imposed
under Sections 1471 to 1474 of the Code (such Sections commonly referred to as the Foreign Account Tax Compliance Act (FATCA)) on certain
types of payments made to&nbsp;non-U.S.&nbsp;financial institutions and certain other&nbsp;non-U.S.&nbsp;entities. Specifically, a 30%
withholding tax may be imposed on dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from
the sale or other disposition of, our common stock paid to a &ldquo;foreign financial institution&rdquo; or a&nbsp;&ldquo;non-financial&nbsp;foreign
entity&rdquo; (each as defined in the Code), unless (i)&nbsp;the foreign financial institution undertakes certain diligence and reporting
obligations, (ii)&nbsp;the&nbsp;non-financial&nbsp;foreign entity either certifies it does not have any &ldquo;substantial United States
owners&rdquo; (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (iii)&nbsp;the
foreign financial institution or&nbsp;non-financial&nbsp;foreign entity otherwise qualifies for an exemption from these rules. If the
payee is a foreign financial institution and is subject to the diligence and reporting requirements in (i)&nbsp;above, it must enter into
an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain
&ldquo;specified United States persons&rdquo; or &ldquo;United States owned foreign entities&rdquo; (each as defined in the Code), annually
report certain information about such accounts, and withhold 30% on certain payments to&nbsp;non-compliant foreign financial institutions
and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with
the United States governing FATCA may be subject to different rules.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Under applicable Treasury
Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our common stock. While
withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of our common stock beginning
on January&nbsp;1, 2020, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally
may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Prospective investors should
consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our common stock.&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Information Reporting and Backup Withholding&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">We
must report annually to the IRS and to each Non-U.S. Holder the amount of any distributions paid to, and the tax withheld with respect
to, each Non-U.S. Holder. These reporting requirements apply regardless of whether withholding was reduced or eliminated by an applicable
income tax treaty. Copies of this information reporting may also be made available under the provisions of a specific income tax treaty
or agreement with the tax authorities in the country in which the Non-U.S. Holder resides or is established.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">A
Non-U.S. Holder will generally be subject to backup withholding for dividends on our common stock paid to such holder unless such holder
certifies under penalties of perjury that, among other things, it is a Non-U.S. Holder (provided that the payor does not have actual knowledge
or reason to know that such holder is a U.S. person) by furnishing a valid IRS Form W-8BEN, W-8BEN-E, or W-8ECI, or otherwise establishes
an exemption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Information
reporting and backup withholding generally will apply to the proceeds of a disposition of our common stock by a Non-U.S. Holder effected
by or through the U.S. office of any broker, U.S. or non-U.S., unless the holder certifies its status as a Non-U.S. Holder and satisfies
certain other requirements, or otherwise establishes an exemption. Generally, information reporting and backup withholding will not apply
to a payment of disposition proceeds to a Non-U.S. Holder where the transaction is effected outside the United States through a non-U.S.
office of a broker. However, for information reporting purposes, dispositions effected through a non-U.S. office of a broker with substantial
U.S. ownership or operations generally will be treated in a manner similar to dispositions effected through a U.S. office of a broker.
Non-U.S. Holders should consult their tax advisors regarding the application of the information reporting and backup withholding rules
to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Backup
withholding is not an additional income tax. Any amounts withheld under the backup withholding rules from a payment to a Non-U.S. Holder
generally can be credited against the Non-U.S. Holder&rsquo;s U.S. federal income tax liability, if any, or refunded, provided that the
required information is furnished to the IRS in a timely manner. Non-U.S. Holders should consult their tax advisors regarding the application
of the information reporting and backup withholding rules to them.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="G_002"></A>PLAN OF DISTRIBUTION&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The Registered Stockholders,
and their pledgees, donees, transferees, assignees, or other successors in interest may sell their shares of common stock covered hereby
pursuant to brokerage transactions on Nasdaq, or other public exchanges or registered alternative trading venues, at prevailing market
prices at any time after the shares of common stock are listed for trading. We are not party to any arrangement with any Registered Stockholder
or any&nbsp;broker-dealer&nbsp;with respect to sales of shares of common stock by the Registered Stockholders. As such, we do not anticipate
receiving notice as to if and when any Registered Stockholder may, or may not, elect to sell their shares of common stock or the prices
at which any such sales may occur, and there can be no assurance that any Registered Stockholders will sell any or all of the shares of
common stock covered by this prospectus.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We will not receive any proceeds
from the sale of shares of common stock by the Registered Stockholders. We will recognize costs related to this Direct Listing and our
transition to a&nbsp;publicly-traded&nbsp;company consisting of professional fees and other expenses. We will expense these amounts in
the period incurred and not deduct these costs from net proceeds to the issuer as they would be in an initial public offering.&nbsp;We
will also bear all costs, expenses and fees in connection with the registration of these securities, including with regard to compliance
with state securities or &ldquo;blue sky&rdquo; laws. The&nbsp;Registered Stockholders will bear all commissions and discounts, if any,
attributable to their sale of shares of common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The shares of common stock
beneficially owned by the Registered Stockholders covered by this prospectus may be offered and sold from time to time by the Registered
Stockholders. The term &ldquo;Registered Stockholders&rdquo; includes donees, pledgees, transferees or other successors in interest selling
securities received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership distribution or other
transfer. The Registered Stockholders will act independently of us in making decisions with respect to the timing, manner and size of
each sale. Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms then
prevailing or at prices related to the then current market price or in negotiated transactions. The Registered Stockholders may sell their
shares of common stock by one or more of, or a combination of, the following methods:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">purchases by a broker-dealer as principal and resale by such
broker-dealer for its own account pursuant to this prospectus;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">ordinary brokerage transactions and transactions in which
the broker solicits purchasers;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">block trades in which the broker-dealer so engaged will attempt
to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">an over-the-counter distribution in accordance with the rules
of Nasdaq;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify"><P STYLE="margin: 0pt 0; font: 10pt Times New Roman, Times, Serif">through trading plans entered into by a Registered Stockholder pursuant
to Rule 10b5-1 under the Exchange Act, that are in place at the time of an offering pursuant to this prospectus and any applicable prospectus
supplement hereto that provide for periodic sales of their securities on the basis of parameters described in such trading plans;</P></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">to or through underwriters, agents or broker-dealers;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">&ldquo;at the market&rdquo; offerings, as defined in Rule
415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related to such prevailing
market prices, including sales made directly on a national securities exchange or sales made through a market maker other than on an
exchange or other similar offerings through sales agents;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">privately negotiated transactions;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">options transactions;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">through a combination of any of the above methods of sale;
or</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">&#9679;</TD><TD STYLE="text-align: justify">any other method permitted pursuant to applicable law.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In addition, any securities
that qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than pursuant to this prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">To the extent required, this
prospectus may be amended or supplemented from time to time to describe a specific plan of distribution. In connection with distributions
of the common stock or otherwise, the Registered Stockholders may enter into hedging transactions with broker-dealers or other financial
institutions. In connection with such transactions, broker-dealers or other financial institutions may engage in short sales of common
stock in the course of hedging the positions they assume with Registered Stockholders. The Registered Stockholders may also sell shares
of common stock short and redeliver the shares to close out such short positions. The Registered Stockholders may also enter into option
or other transactions with broker-dealers or other financial institutions which require the delivery to such broker-dealer or other financial
institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant
to this prospectus (as supplemented or amended to reflect such transaction). The Registered Stockholders may also pledge shares of common
stock to a broker-dealer or other financial institution, and, upon a default, such broker-dealer or other financial institution may effect
sales of the pledged securities pursuant to this prospectus (as supplemented or amended to reflect such transaction).&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In
effecting sales, broker-dealers or agents engaged by the Registered Stockholders may arrange for other broker-dealers to participate.
Broker-dealers or agents may receive commissions, discounts or concessions from the Registered Stockholders in amounts to be negotiated
immediately prior to the sale. In offering the securities covered by this prospectus, the Registered Stockholders and any broker-dealers
who execute sales for the Registered Stockholders may be deemed to be &ldquo;underwriters&rdquo; within the meaning of the Securities
Act in connection with such sales. Any profits realized by the Registered Stockholders and the compensation of any broker-dealer may be
deemed to be underwriting discounts and commissions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">In
order to comply with the securities laws of certain states, if applicable, the securities must be sold in such jurisdictions only through
registered or licensed brokers or dealers. In addition, in certain states the securities may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We
have advised the Registered Stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of
securities in the market and to the activities of the Registered Stockholders and their affiliates. In addition, we will make copies of
this prospectus available to the Registered Stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities
Act. The Registered Stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the securities
against certain liabilities, including liabilities arising under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">At
the time a particular offer of securities is made, if required, a prospectus supplement will be distributed that will set forth the number
of securities being offered and the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price
paid by any underwriter, any discount, commission and other item constituting compensation, any discount, commission or concession allowed
or reallowed or paid to any dealer, and the proposed selling price to the public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="a_014"></A><B>LEGAL MATTERS&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The
validity of the shares of common stock offered hereby will be passed upon for us by Mitchell Silberberg &amp; Knupp LLP. As of the date
of this prospectus, Mitchell Silberberg &amp; Knupp LLP beneficially owns an aggregate of 100,000 shares of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_015"></A>EXPERTS&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">The
consolidated financial statements of reAlpha Tech Corp. and subsidiaries as of April 30, 2022, and April 30, 2021, have been included
herein and in the registration statement of which this prospectus forms a part in reliance upon the report of GBQ Partners, LLC, an independent
registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As of the date of the Direct
Listing, Mitchell Silberberg &amp; Knupp LLP, our legal&nbsp;counsel, beneficially owns 100,000 shares of our common stock, which equity
securities were&nbsp;received&nbsp;as partial consideration for legal services provided to us in connection with the Direct Listing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><A NAME="a_016"></A>WHERE YOU CAN FIND ADDITIONAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have filed with the SEC
this Registration Statement on Form&nbsp;S-1&nbsp;under the Securities Act, with respect to the shares of our common stock covered by
this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set
forth in the registration statement or the exhibits and schedules to the registration statement. Please refer to the registration statement
and exhibits for further information with respect to the common stock covered by this prospectus. Statements contained in this prospectus
regarding the contents of any contract or other document are only summaries. With respect to any contract or document that is filed as
an exhibit to the registration statement, you should refer to the exhibit for a copy of the contract or document, and each statement in
this prospectus regarding that contract or document is qualified by reference to the exhibit. The SEC maintains a website that contains
reports, proxy and information statements, and other information regarding companies, like us, that file documents electronically with
the SEC. The address of that website is www.sec.gov.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Immediately upon the effectiveness
of this registration statement of which this prospectus forms a part, we will become subject to the information and reporting requirements
of the Exchange Act, and, in accordance with this law, will be required to file periodic reports, proxy statements, and other information
with the SEC. These periodic reports, proxy statements, and other information will be available at the website of the SEC referred to
above. We also maintain a website at www.podcastone.com, at which you may access these materials free of charge as soon as reasonably
practicable after they are electronically filed with, or furnished to, the SEC. The information contained on, or that can be accessed
through, these websites is not a part of this prospectus. We have included these website addresses in this prospectus solely as inactive
textual references.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>REALPHA TECH CORP.
(FKA REALPHA ASSET MANAGEMENT, INC.) AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>INDEX TO FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="background-color: white">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in; padding-bottom: 1.5pt; width: 92%">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: bottom; text-align: center; width: 8%"><FONT STYLE="font-size: 10pt"><B>Page</B></FONT></TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">Consolidated Financial Statements (audited) for the Years Ended April
30, 2022 and 2021</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_001"><FONT STYLE="font-size: 10pt">Report of Independent Registered Public Accounting Firm (PCAOB ID 1808)</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-2</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_002"><FONT STYLE="font-size: 10pt">Consolidated Balance Sheets as of April 30, 2022 and 2021</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-3</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_003"><FONT STYLE="font-size: 10pt">Consolidated Statements of Operations for the Years Ended April 30, 2022 and 2021</FONT></A></TD>
    <TD STYLE="text-align: center; vertical-align: bottom"><FONT STYLE="font-size: 10pt">F-4</FONT></TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_004"><FONT STYLE="font-size: 10pt">Consolidated Statements of Stockholders&rsquo; Deficit for the Years Ended April 30, 2022 and 2021</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-5</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_005"><FONT STYLE="font-size: 10pt">Consolidated Statements of Cash Flows for Years Ended April 30, 2022 and 2021</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-6</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_006"><FONT STYLE="font-size: 10pt">Notes to the Consolidated Financial Statements</FONT></A></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-7</TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-size: 10pt">Condensed Consolidated Financial Statements (unaudited) for the three and nine months ended January 31, 2023 and 2022</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_007"><FONT STYLE="font-size: 10pt">Condensed Consolidated Balance Sheets as of January 31, 2023 (Unaudited) and April 30, 2022 (audited)</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-15</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_008"><FONT STYLE="font-size: 10pt">Condensed Consolidated Statements of Operations for the Three and Nine Months Ended January 31, 2023 and 2022 (Unaudited)</FONT></A></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-16</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_009"><FONT STYLE="font-size: 10pt">Condensed Consolidated Statements of Stockholders&rsquo; Deficit for the Nine Months Ended January 31, 2023 and 2022 (Unaudited)</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-17</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_010"><FONT STYLE="font-size: 10pt">Condensed Consolidated Statements of Cash Flows for Nine Months Ended January 31, 2023 and 2022 (Unaudited)</FONT></A></TD>
    <TD STYLE="vertical-align: bottom; text-align: center">F-18</TD></TR>
  <TR STYLE="background-color: White">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: center">&nbsp;</TD></TR>
  <TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-indent: -0.125in"><A HREF="#f_011"><FONT STYLE="font-size: 10pt">Notes to the Condensed Consolidated Financial Statements (Unaudited)</FONT></A></TD>
    <TD STYLE="text-align: center; vertical-align: bottom">F-19</TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U STYLE="text-decoration: none">&nbsp;</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="f_001"></A><B><U>Report of Independent Registered Public Accounting
Firm</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Board of Directors and Stockholders</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">reAlpha Tech Corp. (f.k.a. ReAlpha Asset Management, Inc.) and Subsidiaries</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Opinion on the Financial Statements </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We have audited the accompanying balance sheets
of reAlpha Tech Corp. and Subsidiaries (f.k.a. ReAlpha Asset Management, Inc.) and Subsidiaries (the &ldquo;Company&rdquo;) as of April
30, 2022 and 2021, the related statements of operations, stockholders&rsquo; deficit, and cash flows for the years then ended, and related
notes (collectively referred to as the &ldquo;financial statements&rdquo;). In our opinion, the financial statements present fairly, in
all material respects, the financial position of the Company at April 30, 2022 and 2021, and the results of its operations and its cash
flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"><B>Going Concern</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">The accompanying consolidated
financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated
financial statements, the Company has experienced recurring losses from operations and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern. Management&rsquo;s plans in regard to these matters are also described
in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>Basis for Opinion</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These financial statements are the responsibility
of the Company&rsquo;s management. Our responsibility is to express an opinion on the Company&rsquo;s financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (&ldquo;PCAOB&rdquo;)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company&rsquo;s
internal control over financial reporting. Accordingly, we express no such opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">GBQ Partners LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We have served as the Company&rsquo;s auditor since 2021</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Columbus, Ohio</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">April 10, 2023</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_002"></A>REALPHA TECH
CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>Consolidated Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>April 30, 2022 and April 30, 2021</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold"></TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Apr 30,<BR>
 2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Apr 30,<BR>
 2021</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">(Audited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">(Audited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center"><B>ASSETS</B></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Investments in real estate, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,766,649</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,137,616</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,639,241</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,172</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,311</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">225,048</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">133,797</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Related party receivables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,718</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Prepaid expenses and other assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">110,114</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">5,670</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">TOTAL ASSETS</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,673,112</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,481,224</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: center">LIABILITIES AND EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Long-term debt, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,229,162</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,007,994</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Settling subscriptions, net of offering costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,273,097</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,972</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Related party payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,712,426</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accrued expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">35,210</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,643</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total liabilities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">8,304,867</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">1,009,637</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,010</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">509,990</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">410,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,193,380</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,342</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total stockholders&rsquo; equity (deficit)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(2,643,380</TD><TD STYLE="font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">446,658</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Non-controlling interests members&rsquo; equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">11,625</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">24,929</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Total stockholders&rsquo; (deficit) equity</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(2,631,755</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">471,587</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">TOTAL LIABILITIES AND EQUITY</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,673,112</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,481,224</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="f_003"></A><B>REALPHA TECH
CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>Consolidated Statements of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>For the Year Ended April 30, 2022
and for the Period from April 22, 2021 (inception) to April 30, 2021 (audited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold"></TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Apr&nbsp;30,&nbsp;<BR>
2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Apr&nbsp;30, <BR>
2021</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left; font-weight: bold">Particulars</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Income</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Rental Income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">229,672</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">784</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Real estate taxes and insurance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">109,704</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">556</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rental fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">76,483</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Repairs and maintenance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,907</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property management fees and utilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">67,260</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">General and administrative expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">687,232</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,500</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Advertising expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,939,607</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">146,295</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">832</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">189,967</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expense, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">178,559</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,309</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1.5pt">Total Expenses</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,433,014</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,197</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Net Loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,203,342</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,413</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Less: Net Loss Attributable to Non-Controlling Interests</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(13,304</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(71</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.)</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(3,190,038</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(3,342</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_004"></A>REALPHA TECH CORP.
(F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Consolidated Statements of Changes in Stockholders&rsquo;
Equity (Deficit)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>For the Year Ended April 30, 2022 and for the
Period from April 22, 2021 (inception) to April 30, 2021 (audited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Common <BR> Stock</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Additional<BR> Paid-in <BR>Capital</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Accumulated<BR> Deficit</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>ReAlpha Asset<BR> Management, Inc. &nbsp;and<BR>
 Subsidiaries
    <BR>Equity</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Non- <BR>Controlling <BR>Interest <BR>Member&rsquo;s
    Equity</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center"><B>Total <BR>Shareholder&rsquo;s <BR>Equity</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt"><B>Balance at April 22, 2021</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>&ndash;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>&ndash;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>&ndash;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>&ndash;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>&ndash;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>&ndash;</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; width: 28%; text-align: left">Net income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&ndash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&ndash;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,342</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,342</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(71</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,413</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in">Contributions</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">40,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">410,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&ndash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">450,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">25,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">475,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt"><B>Balance at April 30, 2021</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>40,000</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>410,000</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>(3,342</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>446,658</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>24,929</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>471,587</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Net income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&ndash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&ndash;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,190,038</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,190,038</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13,304</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,203,342</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt">Contributions</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">10</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">99,990</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&ndash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">&ndash;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100,000</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt"><B>Balance at April 30, 2022</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>40,010</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>509,990</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>(3,193,380</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>(2,643,380</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>11,625</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>(2,631,755</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>)</B></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="f_005"></A><B>REALPHA TECH
CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>Consolidated Statements of Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>For the Year Ended April 30, 2022
and for the Period from April 22, 2021 (inception) to April 30, 2021 (audited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Apr 30,<BR>
 2022</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Apr 30,<BR>
 2021</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Cash Flows from Operating Activities</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,203,342</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,413</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">146,295</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">832</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Gain on sale of real estate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(34,853</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0in; text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(133,797</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Related party Receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,718</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,718</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(104,444</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,670</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,972</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Related party payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,712,426</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; padding-bottom: 1.5pt; text-align: left">Accrued expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,643</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total adjustments</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,645,317</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(7,913</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash and restricted cash used in operating activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(1,558,025</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(11,326</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Investing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additions to real estate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,337,460</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(98,189</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Proceeds from sale of real estate Investment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,691,644</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash and restricted cash used in investing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(2,645,816</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(98,189</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Financing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from issuance of long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,673,351</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Payments of long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,420,987</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred financing costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(92,288</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Settling subscription stock contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,273,097</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">344,735</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash and restricted cash provided by&nbsp;&nbsp;financing
    activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">5,533,173</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">442,735</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net increase in cash and restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,329,332</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">333,220</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Cash and Restricted Cash - Beginning of Year</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">333,220</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Cash and Restricted Cash - End of Year</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,662,552</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">333,220</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Reconciliation of Cash and Restricted Cash:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in">Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,639,241</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">108,172</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; padding-left: 0.125in; text-align: left">Restricted cash</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">23,311</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">225,048</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">Total cash and restricted cash</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,662,552</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">333,220</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt; background-color: white">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="f_006"></A><B>NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>April 30, 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 4.05pt 0pt 3.9pt; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B>NOTE 1 &ndash; NATURE OF OPERATIONS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 11.45pt 0pt 5.95pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">reAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.) (RTC) (f.k.a. ReAlpha Asset Management, Inc.) and Subsidiaries, incorporated in Delaware on April 22, 2021, together with its subsidiaries
described below are collectively referred to as &ldquo;the Company&rdquo;. The Company is primarily engaged in the business of the identification,
acquisition, financing, marketing and management of short-term rental properties for the benefit of the Company&rsquo;s members and stockholders.
For details about the merger between reAlpha Tech Corp. and reAlpha Asset Management, Inc., please refer to &ldquo;Note 10 &ndash; Subsequent
Events&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt">As of April 30, 2022, the Company has
the following subsidiaries:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 31pt 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1.5pt solid">Name of Subsidiary</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">% of <BR> Ownership</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">reAlpha Series 1 LLC</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">75</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha 1011 Gallagher LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">reAlpha Acquisitions LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha Acquisitions WF LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">reAlpha Acquisitions Churchill LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha 503 North Patton LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">reAlpha 7 LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">reAlpha Series 2 LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.95pt; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>NOTE 2 &ndash; GOING CONCERN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company&rsquo;s consolidated financial
statements have been prepared assuming the Company will continue as a going concern. The Company commenced operations as of April 22,
2021, and has not yet realized its planned operations. The Company is dependent upon additional capital resources for full commencement
of its planned operations and is subject to significant risks and uncertainties, including failing to secure funding to commence the Company&rsquo;s
planned operations or failing to profitably operate the business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Management believes that the Company
will continue to incur losses for the foreseeable future and will need equity or debt financing or will need to generate additional revenues
from the property rental activity to sustain its operations until it can achieve profitability and positive cash flows. The Company intends
to raise funds through various potential sources, such as equity or debt financings; however, the Company can provide no assurance that
such financing will be available on acceptable terms, or at all. If adequate financing is not available, the Company may be required to
significantly curtail or cease its operations, and its business would be jeopardized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Management has determined that these
matters, among others, raise substantial doubt about the Company&rsquo;s ability to continue as a going concern for a period of at least one
year from the date these consolidated financial statements are issued. The accompanying consolidated financial statements do not include
any adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.95pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.95pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.95pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 3 &ndash; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Basis of Presentation</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company prepares its consolidated
financial statements under the accrual basis of accounting, in conformity with accounting principles generally accepted in the United
States of America (&ldquo;U.S. GAAP&rdquo;) and Article 8 of Regulation S-X of the rules and regulations of the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><B><U>Principles of Consolidation</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company consolidates entities when
the Company owns, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. The Company consolidates
variable interest entities (&ldquo;VIEs&rdquo;) in accordance with Accounting Standards Codification (&ldquo;ASC&rdquo;) 810, Consolidation,
if the Company is the primary beneficiary of the VIE as determined by the power to direct the VIE&rsquo;s activities and the obligation
to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an
entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity&rsquo;s
activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the
ability to make decisions about the entity&rsquo;s activities through voting or similar rights, (ii) the obligation to absorb the expected
losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting
rights that are not proportional to their economic interests, and substantially all of the entity&rsquo;s activities either involve, or
are conducted on behalf of, an investor that has disproportionately few voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><B><U>Cash, Cash Equivalents and Restricted
Cash</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company considers all the balances
in its bank accounts as cash equivalents &amp; the Holdbacks due to be receivable by the company are considered as Restricted Cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><B><U>Accounts Receivable and Allowance
for Doubtful Accounts</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">As of April 30, 2022 and 2021, the Company&rsquo;s
accounts receivable include Reg-A proceeds, &amp; Short Term Rental Revenues due from Property management companies. Management has evaluated
the receivables and believes they are collectable based on the nature of the receivables, historical experience of credit losses, and
all other currently available evidence. As of April 30, 2022 and 2021 the Company has no allowance for doubtful accounts or uncollectible
accounts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><B><U>Deferred
Offering Costs</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">The Company
complies with the requirements of FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering
costs are capitalized and recognized as a reduction to the settling subscriptions liability in the consolidated balance sheets. The deferred
offering costs are charged to member&rsquo;s equity upon the completion of an offering or to expense if the offering is not completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white"><B><U>Fair Value of Financial Instruments</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">The Financial
Accounting Standards Board (&ldquo;FASB&rdquo;) issued the Accounting Standards Codification (&ldquo;ASC&rdquo;) 820, Fair Value Measurement
and Disclosures, requires all entities to disclose the fair value of financial instruments, both assets and liabilities for which it is
practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged
in a current transaction between willing parties. As of April 30, 2022 and 2021 the recorded values of receivables, accounts payable and
other liabilities approximated their fair value due to the short-term nature of the instruments.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><B><U>Concentrations
of Credit Risk</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">The Company
maintains its cash with major financial institutions located in the United States of America, which it believes to be creditworthy. The
Federal Deposit Insurance Corporation insures balances up to $250,000. At times, the Company may maintain balances in excess of the federally
insured limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><B><U>Advertising
Costs</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">The Company
expenses advertising costs as and when they are incurred. Advertising expenses totaled $1,939,607 for the year ended April 30, 2022 and
there was no advertising expense for the year ended April 30, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white"><B><U>Use of Estimates</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">The preparation
of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white"><B><U>Noncontrolling Interests</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">Noncontrolling
interests represents minority owners&rsquo; share of net income or losses and equity in the Company&rsquo;s majority-owned consolidated
subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><B><U>Risks and Uncertainties</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company has a limited operating history.
The Company&rsquo;s business and operations are sensitive to general business and economic conditions in the United States. A host of
factors beyond the Company&rsquo;s control could cause fluctuations in these conditions. Adverse conditions may include recession, downturn
or otherwise, local competition or changes in consumer taste. These adverse conditions could affect the Company&rsquo;s financial condition
and the results of its operations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Investment in Real Estate and Depreciation and Amortization</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Real estate assets are carried at cost.
Depreciation is calculated on the straight-line method over the estimated lives of the assets (27.5 years for residential rental property
and 5 years for furniture and fixtures). Major additions and betterments are capitalized and depreciated. Maintenance and repairs, which
do not improve or extend the estimated useful lives, are expensed as incurred. Upon disposal of assets, the related cost and accumulated
depreciation are removed from the accounts, and any gain or loss resulting from the disposal is recorded in the period of disposition
in the accompanying consolidated statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Impairment Policy</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company applies FASB ASC 360-10, &ldquo;Property,
Plant &amp; Equipment,&rdquo; to measure impairment in real estate investments. Rental properties are individually evaluated for impairment
when conditions exist which may indicate that it is probable that the sum of expected future cash flows (on an undiscounted basis without
interest) from a rental property is less than the carrying value under its historical net cost basis. These expected future cash flows
consider factors such as future operating income, trends and prospects as well as the effects of leasing demand, competition and other
factors. Upon determination that a permanent impairment has occurred, rental properties are reduced to their fair value. For properties
to be disposed of, an impairment loss is recognized when the fair value of the property, less the estimated cost to sell, is less than
the carrying amount of the property measured at the time there is a commitment to sell the property and/or it is actively being marketed
for sale. A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell.
Subsequent to the date that a property is held for disposition, depreciation expense is not recorded. There were no such impairment adjustments
during the periods ended April 30, 2022 and 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Revenue Recognition</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Revenues primarily consist of short-term
rental revenues. Additionally, the Company records up to 25% of the gross revenues from the short-term rental properties towards the management
of the properties acquired. The Company has the following revenue sources and revenue recognition policies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Short-term rental revenues include revenues
from the rental of properties via Airbnb, Vacasa and such digital hospitality platforms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">For every property, which generates revenue
through short-term rental ReAlpha charges up to 20% of the gross revenue towards the up-keep, maintenance, upgrade, and related operating
cost.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">At this time, the Company is not collecting
an asset management fee related to its management of properties. In the future, that is an area that we anticipate being an area of Revenue
Recognition. No timeline, however, has yet been set for that change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Revenues are recognized in accordance
with Topic 606 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) for revenue recognition. The
Company recognizes revenues in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration
expected to be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when
all the five following criteria are met: (1) identification of the contract with a customer, (2) identification of the performance obligations
in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in
the contract, and (5) recognition of revenue when (or as) performance obligations are satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Deferred Financing Costs</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Deferred financing costs represent loan
fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction
from the carrying value of the associated debt. These costs are amortized to interest expense over the terms of the respective financing
agreements using the interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced
or repaid before maturity unless specific rules are met that would allow for the carryover of such costs. Costs incurred in seeking financing
transactions that do not close are expensed in the period in which it is determined that the financing will not close. As of April 30,
2022, deferred financing costs and accumulated amortization of deferred financing costs were $114,172 and $62,123 , respectively ($26,373
and $5,520, respectively as of April 30, 2021). Amortization expense of deferred financing costs was $61,092 and $668 in 2022 and 2021,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Recent Accounting Pronouncements</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">In June 2016, the FASB issued ASU No.
2016-13, &ldquo;Financial Instruments &ndash; Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.&rdquo;
ASU 2016-13 requires that entities use a new forward looking &ldquo;expected loss&rdquo; model that generally will result in the earlier
recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions,
and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for annual
reporting periods, including interim reporting periods within those periods, beginning after December 15, 2022. The Company is currently
evaluating the potential impact this standard may have on the consolidated financial statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Income Taxes</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company accounts for income taxes
under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax
consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets
and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted
tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax
assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets
to the extent that these assets are more likely than not to be realized. In making such a determination, the Company considers all available
positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income,
tax-planning strategies, and results of recent operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">If it is determined that the Company
would be able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to
the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions
in accordance with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the
tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not
recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon
ultimate settlement with the related tax authority. The Company recognizes and interest and penalties, if any, with income tax expense
in the accompanying consolidated statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B><U>Statements of Cash Flows</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<P STYLE="text-align: justify; font: 10pt Times New Roman, Times, Serif; margin: 0pt">For the purpose of reporting cash flows, cash and restricted
cash includes cash on hand and cash on deposit with financial institutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 7.4pt 0pt 5.95pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 4: Investment in Real Estate</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0pt"><B>Investment in real estate consisted of the
following as of April 30, 2022:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">1.</TD><TD STYLE="text-align: justify">Investments in real estate &ndash; Properties other than
held for sale:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Accumulated</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Depreciation<BR>
and</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Net</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Cost</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amortization</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Investment</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%">Land</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">218,557</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">218,557</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Buildings and building improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,713,265</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,058</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,703,207</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Appliances, Furniture and fixtures</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">46,952</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(520</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">46,432</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-align: left">Total investment in real estate</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,978,774</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(10,578</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,968,196</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">2.</TD><TD STYLE="text-align: justify">Investment in real estate &ndash; Properties held for sale:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Accumulated</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Depreciation<BR>
and</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Net</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Cost</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Amortization</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Investment</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%">Land</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">138,283</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">138,283</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Buildings and building improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,609,873</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39,999</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,569,874</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Appliances, Furniture and fixtures</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">106,530</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,234</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">90,296</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-align: left">Total investment in real estate</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,854,686</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(56,233</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,798,453</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investment in real estate &ndash; properties other than held for
sale consisted of the following as of April 30, 2021:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Accumulated</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">Net</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Cost</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">Investment</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%">Land</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">170,783</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">170,783</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Buildings and building improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">955,493</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(855</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">954,638</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Furniture and fixtures</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,367</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(172</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">12,195</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">Total investment in real estate</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,138,643</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(1,027</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,137,616</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Depreciation expense was $85,203 for the year
ended April 30, 2022 and $164 for the period from April 22, 2021 (inception) to April 30, 2021.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">All investments in real estate as of April 30,
2022 and 2021 were pledged as collateral for the Company&rsquo;s secured long-term debt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 5: Cash and Restricted Cash</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of April 30, 2022, the Company maintains its
cash in three separate accounts with two financial institutions, and cash balances may, at times, exceed federally insured limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the closing on an investment in rental
real estate property or real estate held for improvement transaction, the Company may place a cash deposit on the property being acquired
or fund amounts into escrow. These deposits are placed before the closing process of the property is complete.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 6: Long-Term Debt</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has issued promissory notes payable
to lenders related to the acquisition of properties. These promissory notes range from 8.49% to 12.0%, with 6 months to 1 year, as detailed
below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">Long-term debt consisted of the following as of April 30, 2022
and 2021:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">April 30,</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center; font-weight: bold">April 30,</TD><TD STYLE="text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-align: center">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2022</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; text-align: center; font-weight: bold">2021</TD><TD STYLE="padding-bottom: 1.5pt; text-align: center; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">217,500</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on July 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">110,250</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest&nbsp;&nbsp;payments. The note matures on May 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">226,737</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on August 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">228,750</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on October 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">177,974</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">177,974</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on November 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">98,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 5% + Prime with floor of 8.25% and provides for monthly interest payments. The note matures on February 10, 2023 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">880,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 4.75% + Prime with floor&nbsp;&nbsp;of 8.25% and provides for monthly interest&nbsp;&nbsp;payments. The note matures on April 15, 2023 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">342,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on February 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">150,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on May 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">226,737</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on January&nbsp;&nbsp;1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">152,136</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2021, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">126,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2021, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">-</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Total Long-term debt</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">2,281,211</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,028,847</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Deferred financing costs, net</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(52,048</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(20,853</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">Total Long-term debt, net</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,229,163</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,007,994</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Maturities of long-term debt as of April 30, 2022 are as follows:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">2022</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,059,211</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2023</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,222,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Less: unamortized costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(52,048</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">Total long-term debt, net</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,229,163</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><B>NOTE 7: Stockholders&rsquo; Equity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is authorized to issue up to 50,000,000
shares of Common Stock, par value $0.001 per share. As of April 30, 2022, there were 40,010,000 shares of Common Stock issued and outstanding
and as of April 30, 2021 there were no common stocks issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 31pt 0pt 23pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-indent: 0in"><B>NOTE 8: Related Party Transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.95pt; text-align: justify; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ReAlpha Tech Corp. (f.k.a. reAlpha Asset Management,
Inc.) had a Master Service Agreement with ReAlpha Tech Corp. for their patented technologies and platforms and will pay ReAlpha Tech Corp.
a management fee of 20% of rental income, however, this agreement is no longer effective post-merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ReAlpha Tech Corp. (f.k.a. reAlpha Asset Management,
Inc.) had a Payable to ReAlpha Tech Corp. totaling $ 1,712,426 as of April 30, 2022 and Receivable from ReAlpha Tech Corp $ 4,718 as of
April 30, 2021. The receivable &amp; payable do not accrue interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B>NOTE 9: Commitments, Contingencies and Concentrations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company may be subject to pending
legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with
certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse
effect on its business, financial condition or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">Massachusetts Consent Order</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">The Company entered into the Consent
Order with the Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts (the &ldquo;MSD&rdquo;) following
an investigation by the MSD into whether the Company had engaged in acts or practices that violated the Massachusetts Uniform Securities
Act (the &ldquo;Massachusetts Act&rdquo;) and the regulations promulgated thereunder (the &ldquo;Massachusetts Regulations&rdquo;). For
purposes of settlement, the Company did not admit or deny the findings of fact or law or allegations contained in the Consent Order. Under
the terms of the Consent Order, the Company is censured, barred from offering or selling securities in Massachusetts, and ordered to cease
and desist from committing future violations of the Massachusetts Act and the Massachusetts Regulations. Pursuant to the Consent Order,
the Company paid a $375,000 administrative fine on April 21, 2022 and offered to rescind the purchases of each of the 14 Massachusetts
investors who purchased the Company&rsquo;s common stock in its Regulation A offering. The $375,000 fine is included in general and administrative
expenses in the 2022 consolidated statements of operations. Those Massachusetts investors paid an aggregate amount of $19,500 to purchase
their shares. Seven of the fourteen Massachusetts investors elected to accept the offer of rescission and the Company has fully refunded
a total of $11,500 to such investors. The Company has fully complied with the terms of the Consent Order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B>Ohio Subpoena</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">On May 2, 2022, we received a subpoena duces tecum
and requests for depositions of three senior managers of the Company from the Ohio Division of Securities (the &ldquo;ODS&rdquo;), all
related to the Company&rsquo;s Regulation A+ securities offering in the State of Ohio, and based on Ohio Revised Code1707.23. The depositions
were taken in July 2022. The ODS has not asserted any securities violations by the Company other than a late notice filing for its offering.
The Company is fully cooperating with the ODS.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt"><B>NOTE 10: Subsequent Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Management has evaluated subsequent events through
the date of the Independent Auditor&rsquo;s Report, the date on which the financial statements were available to be issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">Subsequent to the date of financial statements,
the Company sold four properties for a total sale consideration of $1,164,900 and had gains on sale of $179,653. In connection with these
property sales, the Company paid off the related notes payable totaling $565,737.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">reAlpha Acquisitions
Churchill, LLC, a wholly owned subsidiary of reAlpha Asset Management Inc., closed a credit facility worth up to $200 million on August
18th, 2022. This credit facility allows a loan-to-cost ratio of up to 80% and is at a fixed rate of 12%. Access to this credit facility
will allow the Company to acquire properties with the intention of utilizing them as short-term rental properties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">The Reg A+ offering was
qualified by the SEC in September 2021 and requalified on August 3, 2022. Reg A+ allows sales up to $75 million exempt from state Blue
Sky registration requirements. Challenges with late Blue Sky notice filings led to a pause in the Reg A+ campaign in May, followed by
an SEC amendment disclosure and requalification. The campaign concluded on January 19, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white">Events after January 31, 2023</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">In March 2023, the Company
opened its first Regulation CF offering listed under reAlpha 612 Jasmine Lane Inc. where the subsidiary is completing its first syndication
through an initial public offering platform. The minimum offering amount is $388,639 and the maximum is $614,036, inclusive of investor
payment processing fees. The offering is selling shares of the company which owns the property at 612 Jasmine Lane, Davenport, FL 33897.
The minimum investment is $500 plus the 2.5% investor transaction fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">On March 21, 2023, reAlpha
Tech Corp merged with reAlpha Asset Management, Inc. in a short-form merger, resulting in reAlpha Asset Management, Inc. becoming the
surviving corporation and gaining access to reAlpha Tech Corp.&rsquo;s technology and intellectual property. Prior to the merger, the Parent
owned over 90% of the Subsidiary&rsquo;s shares. The merger enables reAlpha Asset Management, Inc. to provide customers with a broader range
of AI solutions for various industries and use cases. Following the merger, reAlpha Asset Management, Inc. changed its name to reAlpha
Tech Corp. on March 21, 2023,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white">On March 24, 2023, reAlpha
Tech Corp. acquired Roost Enterprises, Inc. (Rhove), a real estate technology solutions provider. The acquisition includes Rhove&rsquo;s Syndication
Platform and related intellectual property. The purchase price involved a $25,000 cash payment, 49,029 common stock shares to SVBB, 1,263,000
shares for sellers, and options for sellers to purchase 1,263,000 shares at $10 per share. Additionally, $50,000 was paid for Rhove&rsquo;s
transaction expenses. Drive Capital and its funds became investors of reAlpha, and Rhove&rsquo;s CEO, Calvin Cooper, joined reAlpha in an advisory
role.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><A NAME="f_007"></A><B>REALPHA TECH CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>Condensed Consolidated Balance Sheets</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>January 31, 2023 and April 30, 2022</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Jan&nbsp;31,<BR>
2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Apr&nbsp;30,<BR>
2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">(unaudited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">(Audited)</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center">ASSETS</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Investments in real estate, net</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,167,368</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">3,766,649</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,312,629</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,639,241</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">202,740</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,311</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,779</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">133,797</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Prepaid expenses and other assets</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">108,095</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">110,114</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL ASSETS</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,805,611</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,673,112</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: center">LIABILITIES AND EQUITY</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Long-term debt, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,452,961</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2,229,162</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Settling subscriptions, net of offering costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,409</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,273,097</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">191,185</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54,972</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Related party payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">314,096</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,712,426</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accrued expenses</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">232,831</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">35,210</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Total liabilities</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,224,482</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">8,304,867</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Equity</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,852</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,010</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Additional paid-in capital</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,882,989</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">509,990</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Accumulated deficit</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(6,342,712</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,193,380</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total stockholders' equity (deficit)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,581,129</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(2,643,380</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Non-controlling interests members' equity</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">11,625</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Total stockholders' equity (deficit)</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">2,581,129</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">(2,631,755</TD><TD STYLE="font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">TOTAL LIABILITIES AND EQUITY</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">4,805,611</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">5,673,112</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="f_008"></A><B>REALPHA TECH CORP. (F.K.A.
REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Condensed Consolidated Statements of Operations<BR>
For the Three and Nine Months Ended January 31, 2023 and 2022 (unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For&nbsp;the&nbsp;Three&nbsp;Months&nbsp;Ended</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the Nine Months Ended</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold">Particulars</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31,<BR> 2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">January 31,<BR> 2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD><B>Income</B></TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 52%; text-align: left">Rental Income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">37,070</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">95,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">96,860</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">168,771</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><B>Expenses</B></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Real estate taxes and insurance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,719</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">18,523</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">66,232</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">77,566</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Rental fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,818</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,747</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,508</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,033</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Repairs and maintenance</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,356</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,475</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,893</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21,351</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Property management fees and utilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,755</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">23,598</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,727</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,891</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">General and administrative expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">133,974</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">69,481</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,020,659</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">247,999</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Advertising expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,320,314</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,320,658</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,857,864</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,607,215</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,820</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,810</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107,342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,425</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Interest expense, net</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">41,500</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">42,785</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">125,968</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">100,922</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt"><B>Total Expenses</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>1,571,256</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>1,528,077</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>3,246,193</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><B>2,202,402</B></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>Net Loss</B></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,534,186</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,433,077</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(3,149,333</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,033,631</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left"><B>Less: Net Loss Attributable to Non-Controlling Interests</B></TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,211</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(8,082</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; text-align: left"><B>Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management , Inc.)</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>(1,534,186</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>(1,430,866</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>(3,149,333</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 4pt"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><B>(2,025,549</B></TD><TD STYLE="padding-bottom: 4pt; text-align: left"><B>)</B></TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><A NAME="f_009"></A><B>REALPHA TECH CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B></B></P>

<P STYLE="text-align: center; margin-top: 0pt; font: 10pt Times New Roman, Times, Serif; margin-bottom: 0pt"><B>Condensed Consolidated
Statements of Changes in Stockholder&rsquo;s Equity (Deficit)<BR>
For the Nine Months Ended January 31, 2023 and 2022 (unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: normal; font-style: normal; text-align: center"><B>ReAlpha<BR>
 Asseet<BR>
    Management,<BR>
Inc.</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"><B>Non-</B></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><B>Controlling</B></P></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>Additional</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>and</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><B>Interest</B></P></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>Total</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-indent: -0.125in; padding-left: 0.125in; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>Common</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>Paid-in</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>Accumulated</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>Subsidiaries</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><B>Members&rsquo;</B></P></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-weight: normal; font-style: normal; text-align: center"><B>Shareholders&rsquo;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: center"><B>Stock</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: center"><B>Capital</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: center"><B>Deficit</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: center"><B>Equity</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: center"><B>Equity</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: center"><B>Equity</B></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; width: 40%; font-weight: normal; font-style: normal; text-indent: -0.25in; padding-left: 0.25in"><B>Balance at January
    31, 2022</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 7%; font-weight: normal; font-style: normal; text-align: right"><B>40,010</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 7%; font-weight: normal; font-style: normal; text-align: right"><B>509,990</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 7%; font-weight: normal; font-style: normal; text-align: right"><B>(2,028,891</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 7%; font-weight: normal; font-style: normal; text-align: right"><B>(1,478,891</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 7%; font-weight: normal; font-style: normal; text-align: right"><B>16,847</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 1.5pt solid; width: 7%; font-weight: normal; font-style: normal; text-align: right"><B>(1,462,043</B></TD><TD STYLE="padding-bottom: 1.5pt; width: 1%; font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Net loss</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,164,489</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,164,489</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(5,222</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,169,711</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Issuance of Common Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-indent: -0.25in; padding-left: 0.25in"><B>Balance at January 31, 2022</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>40,010</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>509,990</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>(3,193,380</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>(2,643,380</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>11,625</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>(2,631,755</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Net loss</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(487,536</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(487,536</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(487,536</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Issuance of Common Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">(46,589</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">(46,589</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">(11,625</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">(58,214</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-indent: -0.25in; padding-left: 0.25in"><B>Balance at January 31, 2022</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>40,010</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>463,401</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>(3,680,915</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>(3,177,504</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B>(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)</B></FONT></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>(3,177,504</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Net loss</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,127,612</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,127,612</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,127,612</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Issuance of Common Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">463</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">4,629,177</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">4,629,640</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">4,629,640</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: normal; font-style: normal; text-indent: -0.25in; padding-left: 0.25in"><B>Balance at January 31, 2022</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>40,473</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>5,092,578</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>(4,808,527</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><B>324,524</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B>(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)</B></FONT></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(<B>324,524</B></TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Net loss</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,534,185</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,534,185</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: right">(1,534,185</TD><TD STYLE="font-weight: normal; font-style: normal; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left; text-indent: -0.25in; padding-left: 0.25in">Issuance of Common Stock</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">379</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">3,790,411</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">3,790,790,</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: normal; font-style: normal; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-weight: normal">3,790,790,</FONT></TD><TD STYLE="padding-bottom: 1.5pt; font-weight: normal; font-style: normal; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal; text-indent: -0.25in; padding-left: 0.25in"><B>Balance at
    January 31, 2022</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: right"><B>40,852</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: right"><B>8,882,989</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: right"><B>(6,342,712</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal; text-align: left"><B>)</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: right"><B>2,581,129</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B>(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)</B></FONT></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal"><B>&nbsp;</B></TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: left"><B>$</B></TD><TD STYLE="border-bottom: Black 4pt double; font-weight: normal; font-style: normal; text-align: right"><B>2,581,129</B></TD><TD STYLE="padding-bottom: 4pt; font-weight: normal; font-style: normal; text-align: left"><B>&nbsp;</B></TD></TR>
  </TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; white-space: nowrap; text-align: center"><B>ReAlpha</B> <B><BR>
Tech Corp.</B> <B><BR>
(f.k.a. ReAlpha<BR> Asset<BR> Management,<BR> Inc.)</B></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Non-<BR>
</B></FONT> <FONT STYLE="font-style: normal"><B>Controlling</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Additional</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>and</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Interest</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Total</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Common</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Paid-in</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Accumulated</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Subsidiaries</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Members&rsquo;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; text-align: center"><FONT STYLE="font-style: normal"><B>Shareholders&rsquo;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom">
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-indent: -0.125in; padding-left: 0.125in"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center"><B>Stock</B></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-style: normal"><B>Capital</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-style: normal"><B>Deficit</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-style: normal"><B>Equity</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-style: normal"><B>Equity</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="2" STYLE="font: normal 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: center"><FONT STYLE="font-style: normal"><B>Equity</B></FONT></TD>
    <TD STYLE="font: normal 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-style: normal"><B>Balance at April 22, 2021</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>-</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>-</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>-</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>&nbsp;-</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal">&nbsp;&nbsp;&nbsp;<B>-</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>-</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in; width: 40%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Net income</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 7%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 7%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 7%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(3,342</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 7%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(3,342</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 7%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(71</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 7%; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(3,413</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; width: 1%; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Issuance of Common Stock</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">40,000</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">410,000</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">450,000</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">25,000</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">$</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">475,000</FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-style: normal"><B>Balance at April 30, 2021</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>40,000</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>410,000</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(3,342</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>446,658</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>24,929</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>471,587</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Net income</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(116,308</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(116,308</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(564</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(116,872</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Issuance of Common Stock</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-style: normal"><B>Balance at July 31, 2021</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>40,000</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>410,000</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(119,650</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>330,350</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>24,365</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>354,715</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Net income</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(478,374</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(478,374</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(5,307</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(483,681</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Issuance of Common Stock</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-style: normal"><B>Balance at October 31, 2021</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>40,000</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>410,000</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(598,024</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(148,024</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>19,058</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(128,965</B></FONT></TD>
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Net income</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(1,430,867</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(1,430,867</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(2,211</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">(1,433,078</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">)</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; padding-left: 0.125in; text-indent: -0.125in; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">Issuance of Common Stock</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">10</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">99,990</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">100,000</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">-</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-style: normal; font-weight: normal">100,000</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1.5pt; text-align: left"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></TD></TR>
  <TR STYLE="font: 10pt Times New Roman, Times, Serif; vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; padding-left: 0.125in; text-indent: -0.125in"><FONT STYLE="font-style: normal"><B>Balance at January 31, 2021</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>40,010</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>509,990</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(2,028,891</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(1,478,891</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>16,847</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font: bold 10pt Times New Roman, Times, Serif"><FONT STYLE="font-style: normal"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-style: normal"><B>$</B></FONT></TD>
    <TD STYLE="border-bottom: Black 4pt double; font: bold 10pt Times New Roman, Times, Serif; text-align: right"><FONT STYLE="font-style: normal"><B>(1,462,043</B></FONT></TD>
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left"><FONT STYLE="font-style: normal"><B>)</B></FONT></TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_010"></A>REALPHA TECH CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES</B></P>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>Condensed Consolidated Statements
of Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 5.4pt; text-align: center"><B>For the Six Months Ended January 31,
2023 and 2022 (unaudited)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the<BR> Nine&nbsp;Months<BR> Ended<BR> Jan&nbsp;31,<BR> 2023<BR> (unaudited)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">For the<BR> Nine&nbsp;Months<BR> Ended <BR> Jan 31,<BR> 2022 (unaudited)</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">Cash Flows from Operating Activities</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(3,149,333</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">(2,033,630</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">107,342</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">46,425</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Gain on sale of real estate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21,683</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">48,315</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(29,955</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Related party Receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(477,355</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(407,494</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(107,673</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">145,013</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,758</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left">Related party payables</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,398,331</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,545,330</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in; text-align: left">Accrued expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">197,622</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,382</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Total adjustments</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(1,329,216</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">2,003,148</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash and restricted cash used in&#8239;operating activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(4,478,549</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(30,481</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Investing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Additions to real estate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14,312</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,322,374</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Proceeds from sale of real estate Investment</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">1,701,583</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">-</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Net cash and restricted cash used in investing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,687,271</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(2,322,374</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Cash Flows from Financing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Proceeds from issuance of long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">247,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,353,351</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Payments of long-term debt</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,059,211</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(152,136</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred financing costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,542</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(33,852</TD><TD STYLE="text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Proceeds from the issuance of common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,387,218</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Settling subscription stock contributions</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,918,371</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,217,819</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; padding-left: 0in">Net cash and restricted cash provided by&nbsp;financing activities</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">3,644,094</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">4,485,182</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net increase in cash and restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">852,816</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,132,327</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">Cash and Restricted Cash - Beginning of Year</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">1,662,552</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">333,220</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">Cash and Restricted Cash - End of Year</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,515,369</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,465,548</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Reconciliation of Cash and Restricted Cash:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 0.125in">Cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,312,629</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,303,567</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0.125in">Restricted cash</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">202,740</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">161,981</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left; padding-left: 0in">Total cash and restricted cash</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,515,369</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right">2,465,548</TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;<B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin: 0pt 0; background-color: white">The accompanying notes are an integral part
of these consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><A NAME="f_011"></A>Notes to Condensed Consolidated Financial Statements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Note 1. Nature of Operations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.) and Subsidiaries (RTC), incorporated in Delaware on April 22, 2021, together with its subsidiaries described below are collectively
referred to as &ldquo;the Company&rdquo;. The Company is primarily engaged in the business of the identification, acquisition, financing,
marketing, and management of short-term rental properties for the benefit of the Company&rsquo;s members and stockholders. For details
about the merger between reAlpha Tech Corp. and reAlpha Asset Management, Inc., please refer to &ldquo;Note 10 &ndash; Subsequent Events&rdquo;
below. As of January 31, 2023, the Company has the following subsidiaries:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; text-align: center">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center">Jan&nbsp;31,&nbsp;<BR>
2023</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; font-weight: bold; text-align: center">Apr&nbsp;30,&nbsp;<BR>
2022</TD><TD STYLE="white-space: nowrap; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">Company Name</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">%&nbsp;of&nbsp;Ownership</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="white-space: nowrap; border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">%&nbsp;of&nbsp;Ownership</TD><TD STYLE="white-space: nowrap; padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">reAlpha Series 1 LLC</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">100</TD><TD STYLE="width: 1%; text-align: left">%</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">75</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha 1011 Gallagher LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">reAlpha Acquisitions LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha 503 North Patton LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">reAlpha 7 LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">NA</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">reAlpha Acquisitions WF LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">reAlpha Realty LLC</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">100</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 2 &ndash; GOING CONCERN</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company&rsquo;s consolidated financial statements
have been prepared assuming the Company will continue as a going concern. The Company commenced operations on April 22, 2021, and has
not yet realized its planned operations. The Company is dependent upon additional capital resources for the full commencement of its planned
operations and is subject to significant risks and uncertainties, including failing to secure funding to commence the Company&rsquo;s
planned operations or failing to profitably operate the business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management believes that the Company will continue
to incur losses for the foreseeable future and will need equity or debt financing or will need to generate additional revenues from the
property rental activity to sustain its operations until it can achieve profitability and positive cash flows. The Company intends to
raise funds through various potential sources, such as equity or debt financings; however, the Company can provide no assurance that such
financing will be available on acceptable terms, or at all. If adequate financing is not available, the Company may be required to significantly
curtail or cease its operations, and its business would be jeopardized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management has determined that these matters,
among others, raise substantial doubt about the Company&rsquo;s ability to continue as a going concern for a period of at least one year
from the date these consolidated financial statements are issued. The accompanying consolidated financial statements do not include any
adjustments that might result from the outcome of this uncertainty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 3: Summary of Significant Accounting Policies</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Basis of Presentation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The accompanying unaudited financial statements
have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they
do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments considered necessary for fair presentation of the results of operations for the periods
presented have been included. The financial statements should be read in conjunction with the audited financial statements and the notes
thereto for the year ended April 30, 2022. Interim results are not necessarily indicative of results for the full year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Principles of Consolidation</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company consolidates entities when the Company
owns, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. The Company consolidates
variable interest entities (&ldquo;VIEs&rdquo;) in accordance with Accounting Standards Codification (&ldquo;ASC&rdquo;) 810, Consolidation
if the Company is the primary beneficiary of the VIE as determined by the power to direct the VIE&rsquo;s activities and the obligation
to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an
entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity&rsquo;s
activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the
ability to make decisions about the entity&rsquo;s activities through voting or similar rights, (ii) the obligation to absorb the expected
losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting
rights that are not proportional to their economic interests, and substantially all of the entity&rsquo;s activities either involve or
are conducted on behalf of, an investor that has disproportionately few voting rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Use of Estimates</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of consolidated financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Settling Subscriptions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Settling subscriptions presented on the consolidated
balance sheet represent equity subscriptions for which funds have been received but the common stock has not yet been issued. Under the
terms of the Offering Circular for our common stock, subscriptions will be accepted or rejected by us. Once a subscription agreement is
accepted, settlement of the shares will occur. We rely on our capital raising platform provider to notify us that funds have been settled
for this purpose, which may differ from the time that cash is posted to our bank statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investment in Real Estate and Depreciation and Amortization</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Real estate assets are carried at cost. Depreciation
is calculated on the straight-line method over the estimated lives of the assets (27.5 years for residential rental property and 5 years
for furniture and fixtures). Major additions and betterments are capitalized and depreciated. Maintenance and repairs, which do not improve
or extend the estimated useful lives, are expensed as incurred. Upon disposal of assets, the related cost and accumulated depreciation
are removed from the accounts, and any gain or loss resulting from the disposal is recorded in the period of disposition in the accompanying
consolidated statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Impairment Policy</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company applies FASB ASC 360-10, &ldquo;Property,
Plant &amp; Equipment,&rdquo; to measure impairment in real estate investments. Rental properties are individually evaluated for impairment
when conditions exist which may indicate that it is probable that the sum of expected future cash flows (on an undiscounted basis without
interest) from a rental property is less than the carrying value under its historical net cost basis. These expected future cash flows
consider factors such as future operating income, trends, and prospects as well as the effects of leasing demand, competition, and other
factors. Upon determination that a permanent impairment has occurred, rental properties are reduced to their fair value. For properties
to be disposed of, an impairment loss is recognized when the fair value of the property, less the estimated cost to sell, is less than
the carrying amount of the property measured at the time there is a commitment to sell the property and/or it is actively being marketed
for sale. A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell.
Subsequent to the date that a property is held for disposition, depreciation expense is not recorded. There were no such impairment adjustments
during the period ending January 31, 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Revenue Recognition</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues are recognized in accordance with the
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606 for revenue recognition. The Company recognizes
revenues in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to
be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when all the five
following criteria are met: (1) identification of the contract with a customer, (2) identification of the performance obligations in the
contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract
and (5) recognition of revenue when (or as) performance obligations are satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Revenues primarily consist of short-term rental
revenues, fees, and other income and gains generated by the sale of properties. The Company has the following revenue sources and revenue
recognition policies:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Short-term rental revenues include revenues from the rental of properties via Airbnb and similar digital
hospitality platforms.</TD></TR><TR STYLE="vertical-align: top">
<TD>&nbsp;</TD><TD STYLE="text-align: justify">&nbsp;</TD></TR>
                                </TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9679;</FONT></TD><TD STYLE="text-align: justify">Fee and other income include late fees, violation fees, and other revenue arising from contractual agreements
with third parties. This revenue is recognized as the services are transferred in accordance with ASC 606</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Deferred Financing Costs</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Deferred financing costs represent loan fees,
legal fees, and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction
from the carrying value of the associated debt. These costs are amortized to interest expense over the terms of the respective financing
agreements using the interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced
or repaid before maturity unless specific rules are met that would allow for the carryover of such costs. Costs incurred in seeking financing
transactions that do not close are expensed in the period in which it is determined that the financing will not close.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Income Taxes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company accounts for income taxes under the
asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities
on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in
effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities
is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that
these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and
negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning
strategies, and results of recent operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">If it is determined that the Company would be
able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred
tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance
with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the tax positions
will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not
recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon
ultimate settlement with the related tax authority. The Company recognizes interest and penalties, if any, with income tax expense in
the accompanying consolidated statement of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Statements of Cash Flows</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the purpose of reporting cash flows, cash
and restricted cash include cash on hand and cash on deposit with financial institutions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 4 &ndash; Investment in Real Estate</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>For the period ended January 31, 2023:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>Investments in real estate &ndash; Properties other than held for sale:</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Net</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Investment</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; padding-left: 0pt">Land</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">218,556</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">218,556</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Buildings and building improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,713,265</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57,167</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,656,098</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt">Furniture and fixtures</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">52,748</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(13,379</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">39,369</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0pt">Total investment in real estate</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,984,569</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(70,546</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,914,023</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>Investment in real estate &ndash; Properties held for sale:</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Net</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Investment</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2">&nbsp;</TD><TD>&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; padding-left: 0pt">Land</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">19,689</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">19,689</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Buildings and building improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">226,284</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6,169</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">220,115</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt">Furniture and fixtures</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,280</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(2,739</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">13,541</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0pt">Total investment in real estate</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">262,253</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(8,908</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">253,345</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Investment in real estate consisted of the following as of April
30, 2022:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>Investments in real estate &ndash; Properties other than held for sale:</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Net</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Investment</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; padding-left: 0pt">Land</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">218,557</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">218,557</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Buildings and building improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,713,265</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10,058</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1,703,207</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt">Furniture and fixtures</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">46,952</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(520</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">$</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">46,432</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0pt">Total investment in real estate</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,978,774</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(10,578</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,968,196</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>Investment in real estate &ndash; Properties held for sale:</TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Accumulated</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">Net</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-left: 0pt; padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Cost</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Depreciation</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">Investment</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 64%; padding-left: 0pt">Land</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">138,283</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">-</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">138,283</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 0pt">Buildings and building improvements</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,609,873</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(39,999</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,569,874</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left; padding-left: 0pt">Furniture and fixtures</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">106,530</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">(16,234</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">90,296</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt; padding-left: 0pt">Total investment in real estate</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,854,686</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">(56,233</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,798,453</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 5 &ndash; Cash and Restricted Cash</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of January 31, 2023, the Company maintains
its cash in four separate accounts with three financial institutions, and cash balances may, at times, exceed federally insured limits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the closing on an investment in rental
real estate property or real estate held for improvement transaction, the Company may place a cash deposit on the property being acquired
or fund amounts into escrow. These deposits are placed before the closing process of the property is complete.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 6: Long-Term Debt</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has issued promissory notes payable
to lenders related to the acquisition of properties. These promissory notes range from 8.25% to 14.0%, and are due within 1 year, as detailed
below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Long-term debt consisted of the following as of January 31, 2023 and
April 30, 2022:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">January 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-weight: bold; text-align: center">April 30,</TD><TD STYLE="font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2023</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: center">2022</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 76%; text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-weight: bold">&nbsp;</TD>
    <TD STYLE="width: 1%; font-weight: bold; text-align: left">$</TD><TD STYLE="width: 9%; font-weight: bold; text-align: right">217,500</TD><TD STYLE="width: 1%; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on July 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">110,250</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on May 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">226,737</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on August 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">228,750</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on October 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">177,974</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on November 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">98,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 5% + Prime with floor of 8.25% and provides for monthly interest payments. The note matures on February 10, 2024 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">880,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">880,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 4.75% + Prime with floor of 8.25% and provides for monthly interest payments. The note matures on April 15, 2024 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">342,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">342,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right"></TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Mortgage note with a bank. The note bears interest at a rate of 7.5% and provides for monthly interest payments. The note matures on January 1, 2053 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><B>247,000</B></TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">-</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Total Long-term debt</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">1,469,000</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">$</TD><TD STYLE="font-weight: bold; text-align: right">2,281,211</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt">Less: Deferred financing costs, net</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(16,039</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD><TD STYLE="font-weight: bold; padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; font-weight: bold; text-align: right">(52,048</TD><TD STYLE="padding-bottom: 1.5pt; font-weight: bold; text-align: left">)</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">Total Long-term debt, net</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,452,961</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">2,229,163</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Maturities of long-term debt as of January 31, 2023, are as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 88%; text-align: left">2024</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">1,222,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">2053</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">247,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1.5pt; text-align: left">Less: unamortized costs</TD><TD STYLE="padding-bottom: 1.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right">16,039</TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 4pt">Total long-term debt, net</TD><TD STYLE="font-weight: bold; padding-bottom: 4pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; font-weight: bold; text-align: right">1,452,961</TD><TD STYLE="padding-bottom: 4pt; font-weight: bold; text-align: left">&nbsp;</TD></TR>
  </TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 7: Stockholders&rsquo; Equity</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company is authorized to issue up to 50,000,000
shares of Common Stock, par value $0.001 per share. As of January 31, 2023, there were 40,852,050 shares of Common Stock issued for a
total consideration of $8,923,841 comprising Common Stock and Additional paid-in capital of $40,852 and $8,882,989 respectively. As of
January 31, 2022 there were 40,010,000 shares of Common Stock issued for a total consideration of $ 550,000 comprising Common Stock and
Additional paid-in capital of $40,010 and $509,990 respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 8: Related Party Transactions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ReAlpha AMI has a Master Service Agreement with
ReAlpha Tech Corp. for their patented technologies and platforms and will pay ReAlpha Tech Corp. a management fee of 20% of rental income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">ReAlpha AMI has a Payable to ReAlpha Tech Corp.
totaling $ 314,096 as of January 31, 2023 and $ 1,712,426 as of April 30 2022. The receivable &amp; payable do not accrue interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 9: Commitments, Contingencies, and Concentrations</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company may be subject to pending legal proceedings
and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the
Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse effect on its
business, financial condition, or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ohio Subpoena</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 2, 2022, the Company received a subpoena
and request for deposition from the Ohio Division of Securities, relating to the Company&rsquo;s communication with investors in the state
of Ohio. The Ohio Division of Securities has not asserted any written allegations. The Company is fully cooperating with the Ohio Division
of Securities. The Company cannot predict the eventual scope, duration, or outcome at this time. Accordingly, the Company is unable to
estimate the reasonably possible loss or range of reasonably possible loss arising from these investigations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>NOTE 10: Subsequent Events</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Management has evaluated subsequent events through
the date on which the financial statements were available to be issued.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In March 2023, the Company opened its first Regulation
CF offering listed under reAlpha 612 Jasmine Lane Inc. where the subsidiary iscompleting its first syndication through our initial public
offering platform. The minimum offering amount is $388,639 and the maximum is $614,036, inclusive of investor payment processing fees.
The offering is selling shares of the company which owns the property at 612 Jasmine Lane, Davenport, FL 33897. The minimum investment
is $500 plus the 2.5% investor transaction fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 21, 2023, reAlpha Tech Corp merged with
reAlpha Asset Management, Inc. in a short-form merger, resulting in reAlpha Asset Management, Inc. becoming the surviving corporation
and gaining access to reAlpha Tech Corp.'s technology and intellectual property. Prior to the merger, the Parent owned over 90% of the
Subsidiary's shares. The merger enables reAlpha Asset Management, Inc. to provide customers with a broader range of AI solutions for various
industries and use cases. Following the merger, reAlpha Asset Management, Inc. changed its name to reAlpha Tech Corp. on March 21, 2023,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On March 24, 2023, reAlpha Tech Corp. acquired
Roost Enterprises, Inc. (Rhove), a real estate technology solutions provider. The acquisition includes Rhove's Syndication Platform and
related intellectual property. The purchase price involved a $25,000 cash payment, 49,029 common stock shares to SVBB, 1,263,000 shares
for sellers, and options for sellers to purchase 1,263,000 shares at $10 per share. Additionally, $50,000 was paid for Rhove's transaction
expenses. Drive Capital and its funds became investors of reAlpha, and Rhove's CEO, Calvin Cooper, joined reAlpha in an advisory role.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in; text-align: center; background-color: white"><B>41,666,554 shares
of common stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.1in; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><IMG SRC="image_001.jpg" ALT=""><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>reAlpha Tech Corp.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Prospectus</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>April 17, 2023</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">Through and including&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2023 (the 25<SUP>th</SUP>&nbsp;day after the date of this Direct Listing), all dealers effecting transactions in these securities, whether
or not participating in this Direct Listing, may be required to deliver a prospectus. This is in addition to a dealer&rsquo;s obligation
to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>PART II</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>INFORMATION NOT REQUIRED
IN THE PROSPECTUS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Item&nbsp;13. Other expenses of issuance
and distribution</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">The
following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable in connection with the
sale of the securities being registered. All amounts shown are estimates, except the Securities and Exchange Commission registration fee,
the Financial Industry Regulatory Authority filing fee and the Exchange listing fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 89%; text-align: left; text-indent: -12pt; padding-left: 12pt">SEC registration fee</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">279.17</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Nasdaq listing fee</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">75,000</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Printing and engraving expenses</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Legal fees and expenses</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Accounting fees and expenses</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; text-indent: -12pt; padding-left: 12pt">Transfer agent fees and expenses</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1.5pt; text-indent: -12pt; padding-left: 12pt">Miscellaneous fees and expenses</TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1.5pt solid; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="padding-bottom: 1.5pt; text-align: left">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-left: 0.125in; text-align: left; padding-bottom: 4pt">Total</TD>
    <TD STYLE="border-bottom: Black 4pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 4pt double; text-align: right"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="padding-bottom: 4pt; text-align: left">&nbsp;</TD></TR>
  </TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-size: 10pt">*</FONT></TD><TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">To be filed by amendment</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"><B>Item 14.</B></FONT> <FONT STYLE="font-size: 10pt"><B>Indemnification of Directors and Officers</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">&nbsp; &nbsp; &nbsp; &nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As permitted by Section&nbsp;102
of the Delaware General Corporation Law (the &ldquo;DGCL&rdquo;), the Second Amended and Restated Certificate of Incorporation (the &ldquo;Certificate
of Incorporation&rdquo;) and Second Amended and Restated Bylaws (the &ldquo;Bylaws&rdquo;) that will be in effect immediately prior to
the effectiveness of this registration statement contain provisions that limit or eliminate the personal liability of our officers and
directors for a breach of their fiduciary duty as a director and/or officer, as applicable. For example, the fiduciary duty of care generally
requires that, when acting on behalf of the corporation, directors exercise an informed business judgment based on all material information
reasonably available to them. Consequently, a director will not be personally liable to us or our stockholders for monetary damages for
breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under
the DGCL.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">These limitations of liability
do not affect the availability of equitable remedies such as injunctive relief or rescission. Our Certificate of Incorporation will also
authorize us to indemnify our officers, directors, and other agents to the fullest extent permitted under Delaware law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">As permitted by Section&nbsp;145
of the DGCL, our Bylaws will provide that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR>
    <TD STYLE="vertical-align: bottom; width: 0.5in">&nbsp;</TD>
    <TD STYLE="vertical-align: top; width: 0.25in"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">we may indemnify our directors, officers, and employees to the fullest extent permitted by the DGCL, subject to limited exceptions;</FONT></TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; text-align: justify">&nbsp;</TD></TR>
  <TR>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">&#9679;</FONT></TD>
    <TD STYLE="vertical-align: bottom; text-align: justify"><FONT STYLE="font-size: 10pt">the rights provided in our Bylaws are not exclusive.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Our Certificate of Incorporation
and our Bylaws will provide for the indemnification provisions described above and elsewhere herein. We will enter into, and intend to
continue to enter into, separate indemnification agreements with our directors and officers that may be broader than the specific indemnification
provisions contained in the DGCL. These indemnification agreements generally require us, among other things, to indemnify our officers
and directors against certain liabilities that may arise by reason of their status or service as directors or officers, other than liabilities
arising from willful misconduct. These indemnification agreements also generally require us to advance any expenses incurred by the directors
or officers as a result of any proceeding against them as to which they could be indemnified. These indemnification provisions and the
indemnification agreements may be sufficiently broad to permit indemnification of our officers and directors for liabilities, including
reimbursement of expenses incurred, arising under the Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">We have purchased and currently
intend to maintain insurance on behalf of each and every person who is or was a director or officer of the company against any loss arising
from any claim asserted against him or her and incurred by him or her in any such capacity, subject to certain exclusions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Item&nbsp;15. Recent Sales of Unregistered
Securities.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">Since
April&nbsp;22, 2021, we have made the following sales of unregistered securities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
April 22, 2021, reAlpha Asset Management, Inc. (our previous name) issued 40,000,000 shares of common stock to reAlpha Tech Corp. (our
previous parent company) valued at $0.01125 per share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
March 21, 2023, in connection with our Downstream Merger (as defined above), each share of common stock of reAlpha Asset Management, Inc.
held by reAlpha Tech Corp. (our previous parent) was automatically cancelled and all of the shares of common stock owned by reAlpha Tech
Corp. (our previous parent) were converted into shares of the Company (f.k.a. reAlpha Asset Management, Inc.) post-merger. In accordance
with the foregoing, the surviving corporation of the Downstream Merger (reAlpha Tech Corp.) issued 40,050,000 shares of common stock,
which consisted of the previously issued 40,000,000 shares of common stock to our previous parent company, and 50,000 shares issued to
reAlpha Tech Corp. prior to the Downstream Merger pursuant to their participation in our Regulation A offering.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
March 24, 2023, in connection with the Roost Enterprises, Inc. (&ldquo;Rhove&rdquo;) acquisition, we issued 49,029 shares of common stock
to Silicon Valley Bridge Bank, N.A. (&ldquo;SVBB&rdquo;), 1,263,000 shares of common stock to the investor sellers of Rhove and the issuance
of option letters to purchase in aggregate (pro-rated per investor seller) 1,263,000 shares of our common stock for $10 per share, with
an expiration date of two (2) years from the date of issuance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
April 14, 2023, 100,000 shares of common stock were&nbsp;issued to Mitchell Silberberg &amp; Knupp LLP&nbsp;as partial consideration for
legal services provided to us in connection with the Direct Listing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">On
April 14, 2023, 204,529 shares of common stock were issued to Maxim Partners LLC as partial consideration for their engagement to provide
general financial advisory and investment banking services to the Company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">From April 22, 2021, through
January 31, 2023, we issued 855,537 shares of common stock at a per share price of $10, for total cash proceeds of $8,555,370, pursuant
to&nbsp;our Regulation A offering. This offering has concluded on January 31, 2023. These shares of common stock were issued in reliance
on the exemption provided by&nbsp;Regulation A under the&nbsp;Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in; background-color: white">The
foregoing issuances of shares, except for the shares issued pursuant to our Regulation A offering, <FONT STYLE="background-color: white">are
intended to be exempt from registration pursuant to Section 4(a)(2) and/or Rule 506 of Regulation D of the Securities Act of 1933, as
amended (the &ldquo;Securities Act&rdquo;), since the stockholders involved in such issuances represented that each was acquiring the
shares of common stock for investment purposes only, and not with a view towards distribution or resale except in compliance with applicable
securities laws. No general solicitation or advertising was used in connection with any transaction, and the certificate evidencing the
securities that were issued contained a legend restricting their transferability absent registration under the Securities Act of 1933,
as amended (the &ldquo;1933 Act&rdquo;), or the availability of an applicable exemption therefrom. There were less than 35 non-accredited
investors that have received shares of common stock pursuant to the Downstream Merger and Rhove acquisition transactions. Unless specifically
set forth below, no underwriter participated in the transaction and no commissions were paid in connection with the transactions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Item&nbsp;16. Exhibits and Financial Statement
Schedules.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%"><FONT STYLE="font-size: 10pt">(a)</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Exhibits</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white; text-indent: 0.5in">The following documents
are filed as exhibits to this registration statement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 9%; border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt"><B>Exhibit</B>&nbsp;<B>No.</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 90%; border-bottom: black 1.5pt solid"><FONT STYLE="font-size: 10pt"><B>Description of Exhibit</B></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">2.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390023022900/ea175753ex2-1_realphatech.htm">Certificate of Ownership and Merger, filed March 21, 2023 (previously filed as Exhibit 2.1 of Form 1-U filed with the SEC on March 24, 2023)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">3.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea176967ex3-1_realphatech.htm"><FONT STYLE="font-size: 10pt">Second Amended and Restated Certificate of Incorporation**</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">3.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="ea176967ex3-2_realphatech.htm"><FONT STYLE="font-size: 10pt">Second Amended and Restated Bylaws**</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">4.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390022077595/ea169652ex6-3_realphaasset.htm">Form of Warrant (For Share Repurchase Agreement included in Exhibit&nbsp;&nbsp;6.6 hereto) (previously filed as Exhibit 6.3 of Form 1-U filed with the SEC on December 5, 2022)*</A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">5.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Legal Opinion of Mitchell Silberberg &amp; Knupp LLP***</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390021031696/ea142415ex6-1_realpha.htm">Master Service Agreement dated April 28, 2021 by and between the Company and reAlpha Tech Corp. (previously filed as Exhibit 6.1 filed as part of Form 1-A/A filed on June 9, 2021)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390021031696/ea142415ex6-2_realpha.htm">Master Service Agreement dated April 28, 2021 by and between the Company and reAlpha Operations, Inc. (previously filed as Exhibit 6.2 of Form 1-A/A filed on June 9, 2021)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.3</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390021031696/ea142415ex6-3_realpha.htm">Technology License Agreement dated April 28, 2021 by and between the Company and reAlpha Tech Corp (Incorporated by reference from Exhibit 6.3 of Form 1-A/A filed on June 9, 2021)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.4</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390022054486/ea165345ex8-1_realpha.htm">Form of Tri-party Escrow Agreement, dated as of July 19, 2022 (previously filed as Exhibit 8.1 of Form 1-K/A filed on September 7, &nbsp;2022)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.5</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390022070187/ea168220ex4-1_realphaasset.htm">Form of Subscription Agreement (previously filed as Exhibit 4.1 to Form 1-U filed with the SEC on November 8, 2022)*</A></FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></P>

<P STYLE="margin: 0"></P>

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<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.6</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390022073695/ea168978ex1-1_realphaasset.htm"><FONT STYLE="font-size: 10pt">Joint Venture Binding Term Sheet by and between reAlpha Asset Management, Inc. and SAIML Pte. Ltd., dated as of November 17, 2022 (previously filed as Exhibit 1.1 to Form 1-U filed with the SEC on November 18, 2022)*</FONT></A></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.7</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390022077595/ea169652ex6-1_realphaasset.htm">Share Purchase by and among reAlpha Asset Management, Inc., GEM Global Yield LLC SCS and GEM Yield Bahamas Limited, dated as of December 1, 2022 (previously filed as Exhibit 6.1 of Form 1-U filed with the SEC on December 5, 2022)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.8</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="http://www.sec.gov/Archives/edgar/data/1859199/000121390022077595/ea169652ex6-2_realphaasset.htm">Registration Rights Agreement by and among reAlpha Asset Management, Inc., GEM Global Yield LLC SCS and GEM Yield Bahamas Limited, dated as of December 1, 2022 (previously filed as Exhibit 6.2 of Form 1-U filed with the SEC on December 5, 2022)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.9</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="https://www.sec.gov/Archives/edgar/data/1859199/000121390023022980/ea175784ex1-1_realphatech.htm">Stock Purchase Agreement by and Among Roost Enterprises, Inc. dba Rhove, the Sellers and reAlpha Tech Corp., dated March 24, 2023 (previously filed as Exhibit 1.1 of Form 1-U filed with the SEC on March 27, 2023)*</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.10</FONT></TD>
    <TD>&nbsp;</TD>
    <TD>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><A HREF="https://www.sec.gov/Archives/edgar/data/1859199/000121390023022980/ea175784ex1-2_realphatech.htm">Restricted Stock Purchase Agreement by and between reAlpha Tech Corp. and Silicon Valley Bridge Bank, N.A., dated as of March 24, 2023 (previously filed as Exhibit 1.2 of Form 1-U filed with the SEC on March 27, 2023)*</A></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P></TD></TR>

<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 9%"><FONT STYLE="font-size: 10pt">10.11+</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 90%"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex10-11_realphatech.htm">Employment Agreement of Giri Devanur, dated April 11, 2023**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.12+</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex10-12_realphatech.htm">Employment Agreement of Michael J. Logozzo, dated April 11, 2023**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.13+</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex10-13_realphatech.htm">Employment Agreement of Christine Currie, dated April 14, 2023**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.14+</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex10-14_realphatech.htm">Employment Agreement of Jorge Aldecoa, dated April 11, 2023**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.15+</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex10-15_realphatech.htm">reAlpha Tech Corp. 2022 Equity Incentive Plan**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.16</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex10-16_realphatech.htm">Form of 2022 Equity Incentive Plan Restricted Stock Award Agreement**</A></FONT></TD></TR>

<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.17</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Form of 2022 Equity Incentive
    Plan Stock Option Award Agreement***</FONT></TD></TR>

<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">10.18</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Form of Director and Officer Indemnification Agreement***</FONT></TD></TR>

<TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.19#</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea176967ex10-19_realphatech.htm">Master Credit Facility Agreement by and between reAlpha Tech Corp. (f.k.a. reAlpha Asset Management, Inc.) and reAlpha Acquisitions Churchill, LLC, dated as of August 18, 2022**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.20#</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea176967ex10-20_realphatech.htm">Form of Credit Facility Loan Agreement**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.21</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea176967ex10-21_realphatech.htm">Form of Credit Facility Promissory Note Agreement**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.22</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea176967ex10-22_realphatech.htm">Form of Credit Facility Guaranty of reAlpha Tech Corp. (f.k.a. reAlpha Asset Management, Inc.)**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">10.23</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="ea176967ex10-23_realphatech.htm">Form of Credit Facility Guaranty of Giri Devanur**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>

<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="width: 9%"><FONT STYLE="font-size: 10pt">14.1</FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: justify; width: 90%"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex14-1_realphatech.htm">Code of Conduct and Ethics**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">21.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex21-1_realphatech.htm">Subsidiaries of the Registrant**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">23.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex23-1_realphatech.htm">Consent of GBQ Partners, LLC, independent registered public accounting firm**</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">23.2</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt">Consent of Mitchell Silberberg &amp; Knupp LLP (included in Exhibit 5.1)***</FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">24.1</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="#p_001">Power of Attorney (included on signature page)</A></FONT></TD></TR>
  <TR STYLE="vertical-align: top; background-color: White">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
  <TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-size: 10pt">107</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: justify"><FONT STYLE="font-size: 10pt"><A HREF="ea176967ex-fee_realphatech.htm">Filing Fee Table**</A></FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD STYLE="width: 0.25in"><FONT STYLE="font-size: 10pt"><I>*</I></FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Previously filed</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">**</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">Filed herewith</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">***</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">To be filed by amendment</FONT></TD></TR>
  <TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt">+</FONT></TD>
    <TD>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Indicates management contract or compensatory plan or arrangement.</P></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 10pt; width: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">#</FONT></TD>
    <TD STYLE="text-align: justify; font-size: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon&nbsp;request.</FONT></TD></TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B></B>&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; background-color: white"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in">(b)</TD><TD>Financial statement exhibits.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.25in; text-indent: -0.25in; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">No
financial statement schedules are provided because the information called for is not required or is shown in the consolidated financial
statements or related notes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B>Item&nbsp;17. Undertakings</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The undersigned registrant hereby undertakes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(1)</TD><TD STYLE="text-align: justify">To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">To include any prospectus required by Section&nbsp;10(a)(3)&nbsp;of
the Securities Act&nbsp;of&nbsp;1933;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus
filed with the Securities and Exchange Commission pursuant to Rule&nbsp;424(b)&nbsp;if, in the aggregate, the changes in volume and price
represent no more than a 20% change in the maximum aggregate offering price set forth in the &ldquo;Calculation of Registration Fee&rdquo;
table in the effective registration statement; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(iii)</TD><TD STYLE="text-align: justify">To include any material information with respect to the plan
of distribution not previously disclosed in the registration statement or any material change to such information in the registration
statement;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(2)</TD><TD STYLE="text-align: justify">That, for the purpose of determining any liability under the
Securities Act&nbsp;of&nbsp;1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(3)</TD><TD STYLE="text-align: justify">To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of the offering.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(4)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability under the Securities
Act&nbsp;of&nbsp;1933 to any purchaser, each prospectus filed pursuant to Rule&nbsp;424(b)&nbsp;as part of a registration statement relating
to an offering, other than registration statements relying on Rule&nbsp;430B or other than prospectuses filed in reliance on Rule&nbsp;430A
(&sect;230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is
part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(5)</TD><TD STYLE="text-align: justify">That, for the purpose of determining liability of the registrant
under the Securities Act of&nbsp;1933 to any purchaser in the initial distribution of the securities:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left"></TD><TD STYLE="text-align: justify">The undersigned registrant undertakes that in a primary offering of securities of the undersigned
                                                                             registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the
                                                                             purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned
                                                                             registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">Any preliminary prospectus or prospectus of the undersigned
registrant relating to the offering required to be filed pursuant to Rule&nbsp;424;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">Any free writing prospectus relating to the offering prepared
by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(iii)</TD><TD STYLE="text-align: justify">The portion of any other free writing prospectus relating to
the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned
registrant; and</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(iv)</TD><TD STYLE="text-align: justify">Any other communication that is an offer in the offering made
by the undersigned registrant to the purchaser.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(6)</TD><TD STYLE="text-align: justify">Insofar as indemnification for liabilities arising under the
Securities Act&nbsp;of&nbsp;1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act&nbsp;of&nbsp;1933 and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Securities Act&nbsp;of&nbsp;1933 and will be governed by the final adjudication of
such issue.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(7)</TD><TD STYLE="text-align: justify">The undersigned registrant hereby undertakes to provide to the
underwriter at the closing specified in the underwriting agreements certificates in such denominations and registered in such names as
required by the underwriter to permit prompt delivery to each purchaser.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 48pt; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in; text-align: left">(8)</TD><TD STYLE="text-align: justify">The undersigned Registrant hereby undertakes that:</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(i)</TD><TD STYLE="text-align: justify">For purposes of determining any liability under the Securities
Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule&nbsp;430A
and contained in a form of prospectus filed by the registrant pursuant to Rule&nbsp;424(b)(1)&nbsp;or (4)&nbsp;or 497(h) under the Securities
Act shall be deemed to be part of this registration statement as of the time it was declared effective.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in; text-align: left">(ii)</TD><TD STYLE="text-align: justify">For the purpose of determining any liability under the Securities
Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering
thereof.</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt"></P>

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    <DIV STYLE="break-before: page; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify; text-indent: -24pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>SIGNATURES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Pursuant to the requirements of the Securities Act of 1933, as amended,
the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in
the city of Dublin, Ohio, on this 17th day of April, 2023.</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2"><FONT STYLE="font-size: 10pt">REALPHA TECH CORP. </FONT></TD>
    </TR>
  <TR>
    <TD STYLE="width: 60%">&nbsp;</TD>
    <TD STYLE="width: 4%">&nbsp;</TD>
    <TD STYLE="width: 36%">&nbsp;</TD>
    </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="border-bottom: Black 1.5pt solid; white-space: nowrap; vertical-align: bottom">/s/ Giri Devanur</TD>
    </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Giri Devanur</P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Chief Executive Officer, President and Director</I></P></TD>
    </TR>
  </TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; background-color: white"><B><A NAME="p_001"></A>POWER OF ATTORNEY</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Each
of the undersigned officers and directors of reAlpha Tech, Corp. hereby constitutes and appoints Giri Devanur and Michael J. Logozzo,
as the individual&rsquo;s true and lawful&nbsp;attorneys-in-fact&nbsp;and agents, with full power of substitution and re-substitution,
for the person and in his or her name, place and stead, in any and all capacities, to sign this registration statement of reAlpha Tech
Corp. on Form&nbsp;S-1,&nbsp;and any other registration statement relating to the same offering (including any registration statement,
or amendment thereto, that is to become effective upon filing pursuant to Rule 462(b) under the Securities Act of 1933, as amended), and
any and all amendments thereto (including post-effective amendments to the registration statement), and to file the same, with all exhibits
thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, granting unto said&nbsp;attorneys-in-fact&nbsp;and
agents, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith,
as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said&nbsp;attorneys-in-fact&nbsp;and
agents or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; background-color: white; text-indent: 0.5in">Pursuant
to the requirements of the Securities Act of 1933, as amended, this registration statement on Form&nbsp;S-1&nbsp;has been signed by the
following persons in the capacities set forth opposite their names and on the date indicated above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
  <TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1.5pt solid; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Signature</B></FONT></TD>
    <TD STYLE="padding-bottom: 1.5pt; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Title</B></FONT></TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; border-bottom: Black 1.5pt solid; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Date</B></FONT></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: top"><I>/s/ Giri Devanur</I></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">Chief Executive Officer, President and Director</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center">April 17<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">,&nbsp;2023</FONT></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Giri Devanur</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(principal executive officer)</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid"><I>/s/ Michael J. Logozzo</I></TD>
    <TD>&nbsp;</TD>
    <TD>Chief Financial Officer</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April 17, 2023</FONT></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Michael J. Logozzo</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(principal financial and accounting officer)</P></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid"><I>/s/ Dimitrios Angelis</I></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April 17, 2023</FONT></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Dimitrios Angelis</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid"><I>/s/ Brian Cole</I></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April 17, 2023</FONT></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Brian Cole</FONT></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: top"><I>/s/ Monaz Karkaria</I></TD>
    <TD STYLE="vertical-align: bottom">
    <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P></TD>

    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April 17, 2023</FONT></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Monaz Karkaria</FONT></TD>
    <TD STYLE="vertical-align: bottom"></TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center"></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center">&nbsp;</TD>
    </TR>
  <TR>
    <TD STYLE="border-bottom: Black 1.5pt solid; vertical-align: top"><I>/s/ Balaji Swaminathan</I></TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;Director</FONT></TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">April 17, 2023</FONT></TD>
    </TR>
  <TR>
    <TD STYLE="vertical-align: top">Balaji Swaminathan</TD>
    <TD STYLE="vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="vertical-align: top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center">&nbsp;</TD>
    </TR>
  </TABLE>

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<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt">II-6</P>

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[{"type": "S-1", "sequence": "1", "filename": "ea176967-s1_realphatech.htm", "description": "REGISTRATION STATEMENT", "secsgml_size_bytes": 1519108}]
{"company-data": {"conformed-name": "reAlpha Tech Corp.", "cik": "0001859199", "assigned-sic": "6500", "irs-number": "863425507", "state-of-incorporation": "DE", "fiscal-year-end": "0430"}, "filing-values": {"form-type": "S-1", "act": "33", "file-number": "333-271307", "film-number": "23825343"}, "business-address": {"street1": "6515 LONGSHORE LOOP #100", "city": "DUBLIN", "state": "OH", "zip": "43017", "phone": "6146337155"}, "mail-address": {"street1": "6515 LONGSHORE LOOP #100", "city": "DUBLIN", "state": "OH", "zip": "43017"}, "former-company": {"former-conformed-name": "ReAlpha Asset Management Inc", "date-changed": "20210427"}}
As
filed with the Securities and Exchange Commission on  April 17, 2023
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM S-1
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
reAlpha
Tech Corp.
(Exact
name of registrant as specified in its charter)
Delaware
6500
86-3425507
(State or other jurisdiction
    of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
6515
Longshore Loop, Suite 100
Dublin,
OH 43017
(707)
732-5742
(Address,
including zip code, and telephone number, including area code, of registrant's principal executive offices)
Giri
Devanur
Chief
Executive Officer
reAlpha
Tech Corp.
6515
Longshore Loop, Suite 100
Dublin,
OH 43017
Tel.:
(707) 732-5742
(Name, address, including zip code, and telephone number, including
area code, of agent for service)
With copies to:
Nimish
Patel, Esq.
Blake
Baron, Esq.
Mitchell
Silberberg & Knupp LLP
437
Madison Ave., 25th Floor
New
York, New York 10022
Tel.:
(212) 509-7239
Approximate
date of commencement of proposed sale to the public: As soon as practicable after this registration statement is declared effective.
If
any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to If any of the securities
being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act, check
the following box.  ☒
If
this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following
box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐
If
this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering.  ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer,"
"smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided to Section 7(a)(2)(B) of the Securities Act.  ☐
The
registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the
registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective
in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective
on such date as the Commission, acting pursuant to said Section 8(a), may determine.
The
information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration
statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities
and we are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
Preliminary Prospectus
Subject to Completion, dated April 17, 2023
41,666,554
shares of common stock
reAlpha
Tech Corp.
This
prospectus relates to the registration of the resale of up to 41,666,554 shares of our common stock, $0.001 par value per share (the
"common stock"), by our stockholders identified in this prospectus, or their permitted transferees (the "Registered
Stockholders"), in connection with our direct listing (the "Direct Listing") on the Nasdaq Capital Market ("Nasdaq").
Unlike
an initial public offering, the resale by the Registered Stockholders is not being underwritten by any investment bank. The Registered
Stockholders may, or may not, elect to sell their shares of common stock covered by this prospectus, as and to the extent they may determine.
The Registered Stockholders may offer, sell or distribute all or a portion of the securities hereby registered publicly or through
private transactions at prevailing market prices or at negotiated prices. We are required to pay certain costs, expenses and fees in
connection with the registration of these securities, including with regard to compliance with state securities or "blue sky"
laws. The Registered Stockholders will bear all commissions and discounts, if any, attributable to their sale of shares of common
stock (see the "
Plan of Distribution
" section). If the Registered Stockholders choose to sell or distribute, as applicable,
their shares of common stock, we will not receive any proceeds from the sale or distribution, as applicable, of shares of our common
stock by the Registered Stockholders.
Prior to this Direct Listing,
no public market has existed for our common stock. We intend to apply to have our common stock listed on Nasdaq under the symbol "[●]
"
.
If our application is not approved or we otherwise determine that we will not be able to secure the listing of our common stock on Nasdaq,
we will not complete this Direct Listing. This listing is a condition to the offering. No assurance can be given that our application
will be approved and that our common stock will ever be listed on Nasdaq. If our listing application is not approved by Nasdaq, we will
not be able to consummate the offering and will terminate this Direct Listing.
We
will be deemed to be a "controlled company" under the Nasdaq listing rules because Giri Devanur, our chief executive officer
and Chairman, owns 65.0% of our outstanding common stock. As a controlled company, we are not required to comply with certain of Nasdaq's
corporate governance requirements. We do not currently intend to take advantage of any of these exceptions. See "Prospectus Summary
— Controlled Company."
Investing
in our common stock involves a high degree of risk. Before buying any shares, you should carefully read the discussion of material risks
of investing in our common stock in "Risk Factors" beginning on page 13  of this prospectus.
We
are an "emerging growth company," as defined under U.S. federal securities laws and, as such, are eligible and have elected
to comply with certain reduced public company reporting requirements for this prospectus and for future filings.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus
is           , 2023.
INFORMATION
    REGARDING FORWARD-LOOKING STATEMENTS
This
    prospectus includes forward-looking statements, which involve risks and uncertainties. These forward-looking statements can be identified
    by the use of forward-looking terminology, including the terms "believe," "estimate," "project,"
    "anticipate," "expect," "seek," "predict," "continue," "possible,"
    "intend," "may," "might," "will," "could," would" or "should"
    or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters
    that are not historical facts. They appear in a number of places throughout this prospectus and include statements regarding our
    intentions, beliefs or current expectations concerning, among other things, our products, product development, prospects, strategies,
    the industry in which we operate and potential acquisitions. We derive many of our forward-looking statements from our operating
    budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, we caution
    that it is very difficult to predict the impact of known factors, and, of course, it is impossible for us to anticipate all factors
    that could affect our actual results. Forward-looking statements should not be read as a guarantee of future performance or results
    and may not be accurate indications of when such performance or results will be achieved. In light of these risks and uncertainties,
    the forward-looking events and circumstances discussed in this prospectus may not occur and actual results could differ materially
    from those anticipated or implied in the forward-looking statements.
Forward-looking
    statements speak only as of the date of this prospectus. You should not put undue reliance on any forward-looking statements. We
    assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors
    affecting forward-looking information, except to the extent required by applicable laws. If we update one or more forward-looking
    statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
You
    should read this prospectus and the documents that we reference in this prospectus and have filed with the SEC as exhibits to the
    registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity,
    performance and events and circumstances may be materially different from what we expect. All forward-looking statements are based
    upon information available to us on the date of this prospectus. Important factors that could cause our results to vary from expectations
    include, but are not limited to:
●
We
    are employing a business model with a limited track record, which makes our business difficult to evaluate;
●
We
    intend to utilize a significant amount of indebtedness in the operation of our business;
●
Our
    ability to retain our executive officers and other key personnel of our advisors and their affiliates;
●
Our
    investments are and will continue to be concentrated in certain markets and in the single-family properties sector of the real estate
    industry, thus, exposing us to risk concentrations, which, in turn, exposes us to risk caused by seasonal fluctuations in short-term
    rental demand and downturns in certain markets or in the single-family properties sector;
●
We
    face significant competition in the short-term rental market for guests, which may limit our ability to short-term rent our properties
    on favorable terms; and
●
The
    impact of laws and regulations regarding privacy, data protection, consumer protection, and other matters. Many of these laws and
    regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices, monetary
    penalties, or otherwise harm our business.
By
their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that
may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that
our actual results of operations, financial condition, business and prospects may differ materially from those made in or suggested by
the forward-looking statements contained in this prospectus. In addition, even if our results of operations, financial condition, business
and prospects are consistent with the forward-looking statements contained in this prospectus, those results may not be indicative of
results in subsequent periods.
The
foregoing does not represent an exhaustive list of matters that may be covered by the forward-looking statements contained herein or
risk factors that we are faced with. Forward-looking statements necessarily involve risks and uncertainties, and our actual results could
differ materially from those anticipated in the forward-looking statements due to a number of factors, including those set forth below
under "Risk Factors" and elsewhere in this prospectus. The factors set forth below under "Risk Factors" and other
cautionary statements made in this prospectus should be read and understood as being applicable to all related forward-looking statements
wherever they appear in this prospectus. The forward-looking statements contained in this prospectus represent our judgment as of the
date of this prospectus. We caution readers not to place undue reliance on such statements. Except as required by law, we undertake no
obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events
occur in the future. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are
expressly qualified in their entirety by the cautionary statements contained above and throughout this prospectus.
You
should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement
of which this prospectus is a part completely and with the understanding that our actual future results may be materially different from
what we expect. We qualify all of our forward-looking statements by these cautionary statements.
i
TABLE
OF CONTENTS
Page
Prospectus Summary
1
Information Regarding Forward-Looking Statements
i
Risk Factors
13
Trademarks, Service Marks, Copyrights and Tradenames
43
Use of Proceeds
44
Market Information for Securities and Dividend Policy
44
Management's Discussion and Analysis of Financial Condition and Results of Operations
45
Business
53
Management
68
Executive Compensation
74
Principal Stockholders
77
Certain Relationships and Related Party Transactions
78
Registered Stockholders
79
Description of Securities
84
Material U.S. Federal Income Tax Consequences to Non-U.S. Holders
88
Plan of Distribution
93
Legal Matters
95
Experts
95
Where You Can Find More Information
95
ii
About
this Prospectus
This
prospectus is part of a registration statement on Form S-1 that we filed with the SEC using a "shelf" registration
or continuous offering process. Under this process, the Registered Stockholders may, from time to time, sell the common stock covered
by this prospectus in the manner described in the section titled "Plan of Distribution." Additionally, we may provide a prospectus
supplement to add information to, or update or change information contained in, this prospectus, including the section titled "Plan
of Distribution." You may obtain this information without charge by following the instructions under the section titled "Where
You Can Find Additional Information" appearing elsewhere in this prospectus. You should read this prospectus and any prospectus
supplement before deciding to invest in our common stock.
As of April 17, 2023, we have
a total of 42,522,091 shares of our common stock issued and outstanding.
Certain amounts, percentages,
and other figures presented in this prospectus have been subject to rounding adjustments. Accordingly, figures shown as totals, dollars,
or percentage amounts of changes may not represent the arithmetic summation or calculation of the figures that precede them.
iii
PROSPECTUS
SUMMARY
This
prospectus summary highlights certain information contained elsewhere in this prospectus. As this is a summary, it does not contain all
of the information that you should consider in making an investment decision. You should read the entire prospectus carefully, including
the information under the sections entitled "Risk Factors," "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and our financial statements and the related notes thereto included in this prospectus, before
investing. This prospectus includes forward-looking statements that involve risks and uncertainties. See "Information Regarding
Forward-Looking Statements." Unless the context otherwise requires, we use the terms "reAlpha," the "Company,"
"we," "us" and "our" in this prospectus to refer to reAlpha Tech Corp. and any and all of our subsidiaries.
Overview
We are an early stage company with a mission to develop and utilize
our artificial intelligence focused technology stack to empower retail investor participation in short-term rental properties, which are
real estate units listed for a rental term of 31 days or less. People may use vacation rentals for a variety of reasons including, but
not limited to: vacation or travel, relocation for an upcoming move, a place to stay while their residence is going through renovations
or repairs, extended work trips, special events like weddings or family reunions, temporary work assignments, or seasonal activities.
We were founded on the belief that every person should have the access and the freedom to pursue wealth creation through real estate.
However, there are significant barriers to entry for the average individual and lucrative returns are currently mainly realized by private
equity firms and larger-scale developers. We intend to leverage technology to democratize access to short-term rental investments. To
support this goal, we intend to build what we believe would be a new model for property ownership and real estate investment. We believe
in simplified wealth creation, access to new markets, diversification, exceptional guest experiences, and community-building network effects.
Our
Business Model
Our business model is built around providing retail investors with
the opportunity to participate in short-term rental properties we will acquire by offering interest in each property portfolio. We intend
to make that opportunity available pursuant to exempt offerings directed at those retail investors through syndications, which investors
we call "Syndicate Members," as described below. We are focusing on the short term rental industry since it is highly fragmented
and is ideal for consolidation from both a real estate and technology and artificial intelligence perspective. According to public filings
from Airbnb, Inc. ("Airbnb"), the total market size is estimated to be $1.2T.
The
Company decided to focus on short-term rentals (vs. long term rentals) because of their profitability. We believe short-term rentals
can be more profitable than long-term rentals for three main reasons:
●
Higher
                                            rental rates
. Short-term rental rates are typically higher than long-term rental rates,
                                            especially in popular tourist destinations or during peak travel seasons.
●
Flexibility
.
                                            With short-term rentals, you have the flexibility to adjust your rental rates and availability
                                            based on demand.
●
More
                                            tax deductions
. Short-term rental owners may be able to deduct more expenses than long-term
                                            rental owners, such as cleaning fees, supplies, and utilities.
To
implement our business model, we plan to acquire properties that satisfy our internal Investment Criteria (as defined below) (the "Target
Properties"). Then, if needed, we renovate the Target Properties, prepare them for rent, list them on short-term rental sites and
arrange for the Target Properties to be managed, internally or through third-parties. Eventually, we expect such management of the Target
Properties will be beneficial for the Company as well as the investors that acquire minority interests through syndications (or through
a real estate investment trust, as applicable). We expect that in the future these investors will become Syndicate Members through the
purchasing of minority interests in our acquired properties. In addition to managing the property operations, whether internally or through
third-parties, we will also manage the financial performance of the asset, such as evaluating if the after-repair value or appreciated
value of the property is higher than the purchase price, or whether the property is ready to generate the expected profitability. At
this time, we started our first syndication of one of our Orlando properties.
1
The
    average person does not:
Proposed
    solution:
Have
    access to wholesale real-estate market prices.
As
    a bulk buyer, we will have access to the wholesale real estate market, which most people do not even know exists. This includes bulk
    portfolio acquisition strategy.
Have
    the cash for a 25% down payment.
reAlpha
    has strategic partnerships with lending institutions, which will allow us to close on property acquisitions within two to three weeks
    rather than the two to three months customary period for property acquisitions.
Have
    the time to buy, renovate and manage an investment property.
reAlpha
    handles the acquisition, renovation, onboarding and property management. Syndicate Members never have to answer a guest or pick up
    a paintbrush.
Want
    to deal with a complex mortgage process (personal guarantee, negotiation with lenders, personal credit checks).
reAlpha
    eliminates the entire process for Syndicate Members. Syndicate Members will never need to give a personal guarantee and their credit
    will never be checked when financing directly through reAlpha.
Qualification
    + Mortgage Lending Restrictions - Income determines how much an individual can leverage/borrow.
By
    fractionalizing the ownership process, we expect reAlpha Syndicate Members can own a smaller percentage of a home or group of homes
    rather than covering an entire down payment and being required to go through loan qualification requirements required by lenders.
Through
these property acquisition investments, our goal is to obtain: (i) consistent cash flow from short-term tenants; (ii) long-term capital
appreciation by leveraging our property's value after repair and/or renovations in appreciating markets; and (iii) favorable tax
treatment of long-term capital gains.
To
finance these property acquisition investments, we may engage in leverage financing to enhance total returns to our Syndicate Members
and investors through a combination of senior financing on our real estate acquisitions, secured facilities, and capital markets financing
transactions. We will seek to secure conservatively structured leverage that is long-term, non-recourse, non-mark-to-market financing
to the extent obtainable on a cost-effective basis. Our operating policies in respect to credit risk and interest rate risk we may face
in connection with these financings include:
Credit
Risk Management
.
We may be exposed to various levels of credit and special hazard risk depending on the nature of our assets.
We will review and monitor credit risk and other risks of loss associated with each investment and our overall credit risk and levels
of provision for loss.
Interest
Rate Risk Management
.
We will follow an interest rate risk management policy intended to mitigate the negative effects of
major interest rate changes. We intend to minimize our interest rate risk from borrowings by attempting to "match-fund,"
which means that we will seek to structure the key terms of our borrowings to generally correspond with the expected holding period of
our assets.
2
Syndicate
Member Exempt Offerings
To
implement our business model, we will purchase Target Properties, as described below, through wholly-owned LLCs that will be formed for
each property or group of related properties that are ready to be listed on short term rental sites (as described below in "
Business
- Business Process for Acquired Properties
" below). We expect to utilize a credit line to facilitate funding and acquisition
of Target Properties. As we grow and develop additional funding sources, we may set up additional subsidiaries to further facilitate
funding and credit opportunities available to us through each of these additional subsidiaries (for more information on our most recent
credit facility agreement, refer to the "
Recent Developments
" section below).
During
2023, we started to offer securities to Syndicate Members via a SEC registered broker-dealer managed process under Section 4(a)(6) of
the Securities Act, or directly by the issuer under Section 4(a)(2) of the Securities Act and/or Regulation D, where only accredited
investors are involved. As we transition from properties that have been placed in the market utilizing lines of credit or short-term
financing to long-term funding and syndicate membership, we may restructure our holdings. Specifically, we may refinance our property
holdings with different lenders that may offer better financing terms after the property has between 3 to 6 months of operation history.
However,
we expect reAlpha Acquisitions, LLC, one of our subsidiaries, will maintain management control of each of the LLCs. When this phase is
implemented, we expect Syndicate Members to collectively buy up to 100% of the newly formed LLC. The offerings by the LLCs of Syndicate
Membership will be made after the completion of this Direct Listing, pursuant to Securities and Exchange Commission Regulation A, Regulation
Crowdfunding, Regulation CF or Regulation D, all of which we believe would be available for such offerings and facilitate the utilization
of exemptions from registration under federal and state securities laws (see "
Recent Developments
-
First Syndication
of the Jasmine property
" for more details on our most recent Syndicate Member offering).
Our
Growth Strategy
Our
business and growth strategy consists of acquiring Target Properties through the use of our credit facilities, furnish, lightly renovate,
if needed, and rent them on the short-term rental market. We will manage, selectively leverage and sell homes located in markets that
satisfy our market selection requirements across the United States, as further described below. In the future, we may consider expanding
to other favorable global markets. We believe that these markets should offer investors a blend of attractive yields and a prospect for
long-term property value appreciation.
Market
Selection
We
intend to focus our business efforts on the markets in which Airbnb operates, which include some or all of the following characteristics:
●
Sufficient
    inventory to make it feasible to achieve scale in the local market (100 – 500 homes);
●
Large
    universities and skilled workforce;
●
Popular
    with Airbnb travelers;
●
Favorable
    competitive landscape with respect to other institutional residence buyers; and
●
Hotel
    room capacity and occupancy rates in given destinations.
During
our testing phase, we started acquiring properties in our initial geographic market of Dallas, Texas as a proof of concept. Now, we have
discontinued our Dallas operations by selling any properties we previously had in that market, and moved into the Orlando, Florida market.
We believe that this market offers strong growth in population, jobs, rental rates, and value appreciation. Additionally, we have selected
Tampa, Ft. Lauderdale, and Panhandle areas in Florida as our next markets.
3
We
will focus on acquiring properties we believe (i) are likely to generate stable cash flows in the short-term rental market and/or (ii)
have the potential for long-term capital appreciation, such as those located in neighborhoods with what we see as high growth potential
and those available from sellers who are distressed or face time-sensitive deadlines. As a result of the extended time to complete the
renovation of properties caused by the current supply chain issues, including labor, material, and furniture shortages, we have shifted
the focus of our acquisition strategy to rent-ready homes. This will help us to deploy the properties that we purchase to be onboarded
on Airbnb and start generating revenues more quickly as these rent-ready properties do not need any major upgrades. In the future, we
may revisit purchasing renovation heavy homes depending on the labor and supply availabilities.
We
expect to revisit market statistics and market selection criteria on a periodic basis. Selected markets may not necessarily meet every
single criterion. In the future, we may choose to enter additional markets such as Florida, California, Texas, New York, Illinois and,
eventually, we expect that will expand to other states in the U.S., and subsequently globally. At this time, we have not set a timeline
for expansion. We may also evaluate certain additional markets in the future.
Investment
Criteria
We
determine our Target Properties utilizing our investment criteria, which evaluates acquisition investments using our proprietary algorithms
(the "Investment Criteria"). Investment decisions made pursuant to our Investment Criteria may include single-family homes,
multifamily units, experiential properties, resorts, resort communities and others.
We
plan to have continuously assess property acquisition investments using our Investment Criteria and intend to purchase properties that
include, but are not limited to, the following primary characteristics:
●
Target Properties identified by our reAlpha Score algorithms
    (described below) are considered for acquisition;
●
Target Properties with an average of three (3) bedrooms
    and two (2) bathrooms per unit;
●
Target Properties with an average price range of $250,000
    - $600,000 and a repair/improvement budget requirement of less than 20% of the home purchase price; In select markets, this price
    range may significantly vary.
We
also intend to regularly consider acquiring properties outside of these ranges depending on market conditions, uniqueness, and condition
of the Target Property.
Investment
Decisions
While
we will employ our proprietary technology and our real estate professionals to identify suitable properties for acquisition, the Company
will be responsible for final decisions. We will use the methodology described below and our bespoke technologies to reach buy or sell
decisions. We have developed an investment approach that combines the experience of our management, the reAlpha Score and an approach
that emphasizes market research, underwriting standards and down-side analysis of the risks of each investment.
To
execute our disciplined investment approach, we plan to closely monitor the profit and loss of each investment.
4
The
following is a summary of our methodology for property acquisition:
●
Local
                                            Market Research.
We will research the acquisition and underwriting of each transaction.
                                            The research will focus on finding any "red flags" to acquire a property. These
                                            "red flags" include (i) heavy regulation on short-term rentals at a state, county,
                                            or homeowner's association ("HOA") level; (ii) homes that have been on
                                            the market for longer than a year, or (iii) areas where natural disasters are extremely common
                                            and damaging. Additionally, we consider things such as tourist numbers and market size, seasonality,
                                            walkability, proximity to airports, restaurants and entertainment and events that would attract
                                            renters.
●
Underwriting
                                            Discipline.
We will examine all elements of a potential investment, including, with respect
                                            to real property, its location, income-producing capacity, prospects for long-range appreciation,
                                            tax considerations and liquidity.
●
Risk
                                            Management.
Operating or performance risks generally arise at the investment level and
                                            often require real estate operating experience to cure, as described in the "
Risk
                                            Factors
" section below. We will review the current operating performance of property
                                            investments against our internal projections and provide the oversight necessary to detect
                                            and resolve issues as they arise.
●
Asset
                                            Management
. Prior to the purchase of a property, we will develop a property business
                                            strategy, which will be customized based on the acquisition and underwriting data. Our property
                                            business strategy is a forecast of the action items to be taken and the capital needed to
                                            achieve the targeted returns for a Target Property. The property business strategy includes:
                                            (i) offer amount and negotiations, (ii) financing structure, (iii) furniture and design,
                                            (iv) achieving the most beneficial holding period for the property, (v) tax strategy and
                                            (vi) exit strategy. These strategies will be customized based on data found during the due
                                            diligence process for each of Target Property to adapt to economic conditions, seasonality,
                                            and the unique factors of each market.
Business
Process for Acquired Properties
Once
we have decided to acquire a property using our Investment Criteria, we intend to use the following steps to maximize its value:
1.
A
                                            wholly-owned subsidiary (e.g. wholly-owned LLCs) buys the Target Property using short-term
                                            leverage provided by one of our lending partners.
2.
The
                                            wholly-owned subsidiary arranges for the renovation of the purchased Target Property, at
                                            the cost of that wholly-owned subsidiary, by one of our preselected national partners after
                                            transferring it to the new reAlpha LLC subsidiary.
3.
Within
                                            a period of 4-to-18-months, reAlpha will refinance the Target Property by swapping the short-term
                                            loan with a long-term loan from any one of our lending partners. If current market conditions
                                            or lending opportunities are poor, we may choose to not refinance or refinance out of the
                                            respective target time frame of 4-to-18 months.
4.
If
                                            the after-repair value or appreciated value (within 4 to 18 months after acquisition) of
                                            the Target Property is higher than the purchase price, then the remaining money from the
                                            equity may be used for purchasing additional properties in the same reAlpha LLC subsidiary
                                            for all owners.
5.
The
                                            new reAlpha LLC subsidiary will offer up to 100% of its membership interests for purchase
                                            through syndicate membership (or other investment vehicle such as real estate investment
                                            trust), as explained above.
6.
Our
                                            Syndicate Members may receive distributions proportional to their membership based on the
                                            free cash flows after taxes from the overall performance of the property on Airbnb.
7.
After
                                            the Target Property
has generated the target returns
the property may be sold to book the profit for the reAlpha LLC subsidiary.
8.
This
                                            profit, if any, may be used to purchase further properties in the same reAlpha LLC subsidiary
                                            for our benefit and the benefit of the Syndicate Members. The Syndicate Members may choose
                                            to invest further in new properties or redeem their investments.
5
Although
we may sell properties, we intend to hold and manage the properties we acquire for a period of one to six years. The reAlpha LLCs that
will manage these properties will receive a gross fee of 15% to 30% of the property's revenue. The 15-30% fee is of gross receipts
generated by the property. "Gross Receipts" means (i) receipts from the short-term or long-term rental of the property; (ii)
receipts from rental escalations, late charges and/or cancellation fees; (iii) receipts from tenants for reimbursable operating expenses;
(iv) receipts from concessions granted or goods or services provided in connection with the Property or to the tenants or prospective
tenants; (v) other miscellaneous operating receipts; and (vi) proceeds from rent or business interruption insurance, excluding (A) tenants'
security or damage deposits until the same are forfeited by the person making such deposits, (B) property damage insurance proceeds,
and (C) any award or payment made by any governmental authority in connection with the exercise of any right of eminent domain.
As
each of our properties reaches what we believe to be its appropriate disposition value, based on internal metrics, we will consider disposing
of the property. The determination of when a particular property should be sold or otherwise disposed of will be made after consideration
of relevant factors, including prevailing and projected economic conditions, whether the value of the property is anticipated to appreciate
or decline substantially, and how any existing leases on a property may impact the potential sales price. The Company will utilize the
reAlpha Score to measure properties against set key performance indexes and determine when to objectively dispose of a property. The
Company may determine that it is in the best interests of stockholders to sell a property earlier than one year or to hold a property
for more than six years. When we determine to sell a particular property, we intend to achieve a selling price that captures the capital
appreciation for investors based on then-current market conditions. We cannot assure you that this objective will be realized.
Each
property will be charged a market rate property disposition fee that are paid by the seller at the time of the sale, consisted of realtor
fees and closing costs (taxes and other related costs). This disposition fee should cover property sale expenses such as brokerage commissions,
and title, escrow and closing costs upon the disposition and sale of a property. It is expected that this disposition fee charged will
range from 6% to 8% of the property sale price. Following the sale of a property, the Company expects to re-invest the proceeds of such
sale, minus the property disposition fee described in this paragraph, into more properties for our portfolio and for the Syndicate Members
to have the opportunity to invest in.
Further,
the properties may be also managed by third-party property management firms at the Company's discretion. The services provided
by such third-party property manager would include (i) ensuring compliance with local and other applicable laws and regulations; (ii)
handling tenant access to properties; (iii) and any other action deemed necessary by the property manager or desirable for the performance
of any of the services under our respective management agreement. These management agreements are subject to an asset management fee
between 15% and 30% of the short-term rental gross revenue generated. As we achieve scale in the number of properties owned and operated,
we may seek to bring property management in-house. In the event we manage a property, such property management fees would then be retained
by us. If a short-term rental property is vacant and not producing rental income, the property management fee will not be paid during
any such period of vacancy, including properties managed by third-parties.
The
operating expenses that each reAlpha LLC will be responsible for, as described above, include, but is not limited to: (i) mortgage principal
and interest; (ii) property tax; (iii) homeowner insurance; (iv) utilities; (v) landscaping; (vi) pool maintenance costs; (vii) routine
maintenance and repairs; (viii) HOA fees; and (ix) pest control. We will share the expenses related to the short-term rental properties
with the Syndicate Members and will bear its own operating and management expenses in proportion to the ownership of the LLC.
Our
Platform and Technologies
reAlpha
App (Trademarked as reAlpha M3
TM
)
The
reAlpha App is a mobile application we are developing, which, when operational, will allow Syndicate Members to view live the financial
metrics and performance of properties they have invested in. Just as you may monitor your stock portfolio and performance on an app like
Robinhood, the reAlpha App will give Syndicate Members real-time visibility into their property asset portfolio and performance.
The
reAlpha App is being designed to support our mission to make real estate ownership accessible and user friendly. When operational, it
will fetch property listing data as well as data on short-term rental market trends from multiple third party API providers and display
the consolidated data for a particular property in an easily accessible format. The reAlpha app will be a broker-dealer managed marketplace
that our Syndicate Members will be able to utilize with ease.
6
reAlpha
HUMINT
TM
In addition to the artificial
intelligence ("AI") being utilized in our technologies, we added a human factor that analyzes the short-term rental profitability.
Qualitative features depend on human analysis and cannot be fetched automatically. That is why we will utilize both internal analysts
at reAlpha and freelance analysts.
The
reAlpha HUMINT app allows property analysts to analyze the property and provide the missing property features together with an estimated
reAlpha score. This is used as feedback to improve reAlpha BRAIN AI.
BnBGPT
BnBGPT
is a product that simplifies the process of generating personalized and effective home descriptions. The app is designed for both realtors
and hosts, with features that help them save time and money while creating descriptions that stand out in a crowded market. Our GPT powered
app for real estate is an essential tool for anyone looking to leave a mark in the real estate industry. By harnessing the power of AI,
our app ensures that each description is personalized and effective, giving users a competitive edge in the marketplace.
For
Realtors
. Our app will offer a feature that generates advertising content directly from uploaded images and they can be used by
realtors to advertise their properties, eliminating the need for professional copywriters and other costly marketing tools. This makes
it easy for realtors to create descriptions that truly capture the essence of a home and highlight its unique features and benefits.
For
Hosts
. Our app will offer features that simplify the process of creating descriptions for Airbnb, VRBO, and Booking.com listings.
Our app will automatically organize these descriptions into sections, making it easy to highlight key features of a space and provide
important information about guest access. Additionally, we will include the proximity data of attractions near the property (e.g., restaurants,
museums, areas of interest for tourists in the area and others), making it easier to highlight those for the host. This helps hosts spend
less time writing descriptions and more time focusing on providing a great guest experience.
Competition
and Competitive Strengths
We
face competition from different sources in our primary activity of acquiring properties. We believe our competitors in acquiring properties
for investment purposes are individual investors, small private investment partnerships looking for one-off acquisitions of investment
properties that can either be leased or restored and sold, and larger investors, including private equity funds and other REITs, that
are seeking to capitalize on the same market opportunity that we have identified. Our primary competitors in acquiring portfolios include
large and small private equity investors, public and private REITs, and other sizable private institutional investors. These same competitors
may also compete with us for investors. Competition may increase the prices for properties that we would like to purchase, reduce the
amount of rent we may charge for our properties, reduce the occupancy of our portfolio, and adversely impact our ability to achieve attractive
total returns. We also face competition from other real estate platform companies such as Roofstock, Inc., Fundrise LLC, Invitation Homes,
Pacaso, as well as a range of emerging new entrants. There are a number of established and emerging competitors in the real estate platform
market. The market is fragmented, rapidly evolving, competitive, and with relatively low barriers to entry.
Although
our competitors may be more established and better funded than we are, we believe that our acquisition platform, Investment Criteria,
extensive in-market property operations infrastructure, and local expertise in our markets provide us with competitive advantages. We
consider our competitive differentiators in our market to primarily be:
●
our
                                            focus on the short-term rental market, compared to other established players in the industry
                                            that focus on long-term rentals;
●
Syndicate
                                            Member rewards program that allows for utilization of properties when they are unoccupied,
                                            which is currently being developed;
●
consistent
                                            short-term rental income with use of optimum amounts of leverage;
●
our
                                            proprietary technology to make objective and strategic investments in property and market
                                            selection;
●
lower
                                            minimum investment amounts; and
●
favorable
                                            tax treatment associated with long-term capital gains.
7
Intellectual
Property
The
Company is currently developing four technologies. However, this is only part of our technology roadmap. We strive to continue innovating
for our benefit and for the benefit of our Syndicate Members by using better wealth-creation tools, as well as generating returns by
leveraging new technologies to optimize guest experience.
reAlpha
BRAIN
TM
& reAlpha Score*
*
Patent
applied
The
reAlpha BRAIN
TM
will bring machine learning ("ML") and AI to the world of short-term rental investment. This platform
will utilize a natural language processing ("NLP") program to scan through large quantities of data regarding properties
and ML algorithms to choose the properties that have higher than expected industry standard return on investment. For this, it will gather
and integrate a variety of data relevant to the properties from multiple sources including wholesalers, various multiple listing service
("MLS") data sources, realtors, small Airbnb "mom and pop" operators, and other larger property owners. For instance,
it will collect data on the properties' price, house structure and sale history from different MLS' listings in the U.S.
This data, combined with the information about the neighborhood appeal, accessibility and safety of the neighborhood surrounding the
properties enables the algorithm to learn the hidden patterns underlying high return short-term rental investments. This will allow reAlpha
to predict how likely a particular property will generate expected profitability. The platform will convey this knowledge by assigning
each property with a "reAlpha Score" ranging from 0-100. The higher the value, the more favorable a property is for investment.
Currently,
the process of analyzing a property as a potential investment typically begins with an email received from real-estate agent's
distribution list to which reAlpha has subscribed. However, we use multiple other sources outside of inbound emails to identify properties.
In the email scenario, the reAlpha BRAIN
TM
will include an AI email parser based on NLP that looks for the property of concern
within the unstructured email and extracts its street address. This address will then be used to query various data providers for a detailed
description of the property's structure, neighborhood and finances. This ML model, which is being built and will be hosted on the
Amazon Sagemaker platform provided by Amazon Web Services ("AWS"), will then calculate the reAlpha Score for that property.
The
model will also continuously improve and learns over time. As the Company makes its decision to invest in properties, the model will
check the effectiveness of its recommendations to reduce false positives and false negatives. As of April 2023, the reAlpha BRAIN has
analyzed over 1,500,000 homes.
Recent
Developments
Regulation
A Offering
We completed our Regulation A+ offering on January 19, 2022, and we
raised $8,555,370 as a result of that offering as of January 31, 2023.
reAlpha
Acquisitions Churchill, LLC
reAlpha
Acquisitions Churchill, LLC, a wholly-owned subsidiary of the Company was formed on May 17, 2022, to hold properties acquired and utilizing
financing provided by Churchill Finance I, LLC. reAlpha Acquisitions Churchill, LLC, executed a master credit facility worth up to $200
million on August 18, 2022. This credit facility allows a loan-to-cost ratio of up to 80% and is at a fixed rate of 12%. Access to this
credit facility will allow us to acquire properties with the intention of utilizing them as short-term rental properties.
reAlpha
Realty, LLC
We
have also formed an in-house brokerage, reAlpha Realty, LLC, a subsidiary of reAlpha Asset Management, Inc. (DBA reAlpha Homes) on September
12, 2022. reAlpha Realty, LLC operates out of a new office in Miramar, Florida, reAlpha Realty is led by Designated Broker Jorge Aldecoa,
who also serves as President of reAlpha Homes.
8
Tree
Houses Partnership
In
July 2022, we also signed a partnership with Free Spirit Spheres, a developer of tree houses that can be used for short-term rental.
We intend to utilize this partnership for the development of tree houses in the United States for short-term rental to allow guests unique
experiences consistent with our brand development strategy.
reAlpha Homes and
SAIML Capital Pte. Limited
On November 17, 2022, reAlpha Homes and SAIML Capital Pte. Limited,
a Singapore-based asset management firm, signed a binding term sheet to form a joint venture to invest $40.8 million in equity in rent-ready
short-term rental ("STR") properties. Balaji Swaminathan, who was appointed as a member of our board of directors in April
2023, is the Chief Executive Officer and director of SAIML Capital Pte. Limited. The joint venture, once formed, would have a 51% stake
held by reAlpha Homes and a 49% stake held by SAIML. The joint venture planned to make up to $200 million in investments across California,
Arizona, Florida, and Tennessee, leveraging the reAlphaBRAIN to identify properties that meet its investment criteria pursuant to the
terms and conditions of a definitive joint venture agreement to be entered into on or before January 31, 2023. This joint venture may
have also expanded its partnership by contributing an additional $61.2 million of equity, with the potential to invest up to $500 million
in STR properties through additional debt financing. As of the date hereof, the definitive joint venture agreement has not been entered
into and, therefore, this joint venture has not been formed. Mr. Swaminathan received no compensation under the term sheet while it was
outstanding.
GEM
Global Yield LLC Capital Commitment
On
December 1, 2022, reAlpha Homes entered into an agreement with GEM Global Yield LLC SCS ("GEM") a Luxembourg-based private
alternative investment group, for a $100 million capital commitment, which includes a share subscription facility of up to $100 million
for a 36-month term following a public listing by reAlpha Tech Corp. (the "GEM Agreement"). The Company will have control
in terms of timing and, within certain limits, the maximum amount of each individual drawdown. There is no minimum drawdown obligation.
Pursuant
to the GEM Agreement, the Company can issue a Draw Down Notice ("Draw Down Notice") at any time (the "Draw Down"),
which will trigger the commencement of a Pricing Period ("Pricing
Period").
The Pricing Period will last for the following thirty (30) consecutive trading days, and the Draw Down will close on the first trading
day following the end of the Pricing Period. GEM will honor Draw Down Notices from the Company based upon a per-share subscription price
equal to ninety percent (90%) of the average closing bid price during the Pricing Period ("Purchase Price").
If
ninety percent (90%) of the closing bid price on a given pricing period amount is less than the threshold price (or floor price) set
by the Company (the "Threshold Price"), then the Investor's payment obligation under the Draw Down will be reduced
by 1/30th, and the closing bid price for that day will not be factored into the Purchase Price calculation. The Threshold Price will
be set prior to using this facility. For each Draw Down, the Company may issue a Draw Down Notice for up to four hundred percent (400%)
of the average daily trading volume for the Pricing Period.
First
Syndication of the Jasmine property
In
March 2023, we opened our first Regulation CF offering listed under reAlpha 612 Jasmine Lane Inc. where we are completing our first syndication
through our initial public offering platform, whereby we offered to investors the opportunity to buy fractional minority interest in
our property. The minimum offering amount is $388,639 and the maximum is $614,036.50, inclusive of investor payment processing fees.
The offering is selling shares of the company which owns the property 612 Jasmine Lane, Davenport, FL 33897. The minimum investment is
$500 plus the 2.5% investor transaction fee. We have raised $323,600 as a result of this Regulation CF offering, and we expect it to
be concluded on or around June 30, 2023.
reAlpha
Asset Management Inc. merges with reAlpha Tech Corp
On
March 21, 2023 (the "Effective Time"), reAlpha Tech Corp. (the "Parent"), merged with and into reAlpha Asset
Management, Inc. (the "Subsidiary"), pursuant to a short-form merger in accordance with Section 253 of the Delaware General
Corporate Law ("DGCL") (the "Downstream Merger"), with the Subsidiary surviving the Merger (the "Surviving
Corporation"). This Downstream Merger has resulted in reAlpha Asset Management, Inc. gaining access to all of the technologies
and intellectual property owned by reAlpha Tech Corp.
Prior
to the Downstream Merger, the Parent owned more than 90% of the issued and outstanding shares of common stock of the Subsidiary. As of
the Effective Time, by virtue of the Downstream Merger and without any action on the part of the Parent, Subsidiary or Surviving Corporation,
each share of the Subsidiary's common stock issued and outstanding immediately prior to the Effective Time (other than shares of
the Subsidiary common stock that were cancelled, as described below) were automatically converted into one validly issued, fully paid
and nonassessable share of common stock of the Surviving Corporation. Further, each share of the Subsidiary's common stock issued
and outstanding immediately prior to the Effective Time that was held by the Parent or the Subsidiary (as treasury stock or otherwise)
was automatically cancelled and returned to the status of authorized but unissued shares of the Subsidiary. And, lastly, as of the Effective
Time, all of the shares of common stock of the Parent issued and outstanding immediately prior to the consummation of the Merger were
automatically converted into a number of shares of common stock of the Surviving Corporation, pro-rated for the number of shares of the
Subsidiary's common stock held by the Parent at such time.
9
The
Downstream Merger has resulted in the Company gaining ownership of a 25% stake in Naamche Inc., an artificial intelligence ("AI")
studio, and a 25% stake Carthagos Inc., a design and branding studio. Naamche, Inc. has assisted us in research and development of our
proprietary algorithms and other technologies (see "
Research and Development
" section below for more details). Carthagos
Inc. is a design and branding studio that the Company acquired for marketing purposes (see "Sales and
Marketing
" section
below for more details). This acquisition is expected to enhance our technological capabilities, broaden its portfolio of services, and
contribute towards cost savings, positioning them for growth and success in the future.
This
development is significant as it will enable reAlpha AMI to further enhance its offerings and provide customers with a broader range
of AI solutions. With access to reAlpha Tech Corp's advanced technologies and IPs, reAlpha AMI can now offer more comprehensive solutions
that cater to a wider range of industries and use cases.
reAlpha
Asset Management Inc. changes names to reAlpha Tech Corp
In
connection with the Downstream Merger, on March 21, 2023 reAlpha Asset Management Inc. changed its name to reAlpha Tech Corp. This development
reflects the company's evolution and expansion beyond asset management into broader areas of financial technology and innovation.
The
name change to reAlpha Tech Corp. is not just a cosmetic rebranding, but rather a strategic move that reflects the company's broader
focus on delivering cutting-edge solutions across a wider range of property management and financial services. The company's new name
highlights its commitment to leveraging advanced technologies, including artificial intelligence and machine learning, to deliver innovative
solutions to clients.
Overall,
the name change to reAlpha Inc. is a significant development that underscores the company's commitment to growth, innovation, and delivering
exceptional value to its clients.
For
additional information on recent developments, please see the discussion in "
Legal Proceedings
" below.
Rhove
Acquisition
On March 24, 2023, the Company acquired Roost Enterprises, Inc. ("Rhove"),
a leading provider of real estate technology solutions. The Rhove acquisition includes technology developed for the purpose of syndicating
real estate properties for investment by retail and institutional investors (the "Syndication Platform"). Pursuant to the
Stock Purchase Agreement entered into in connection with the Rhove acquisition (the "Stock Purchase Agreement") among the
Company, Rhove and certain investor sellers in Rhove (the "Sellers"), we acquired all the intellectual property related to
the Syndication Platform and other related intangible property and proprietary information of Rhove.
The
purchase price under the Stock Purchase Agreement for the Rhove acquisition includes: (1) payment to Silicon Valley Bridge Bank, N.A.
("SVBB"), of $25,000 in cash and the issuance of 49,029 shares of our common stock (collectively the "SVBB Consideration"),
(2) 1,263,000 shares of our for Sellers and the issuance of option letters to Sellers (on a pro rata basis) to purchase in aggregate
1,263,000 shares of our common stock for $10.00 per share with an expiration date of two years from the date of issuance; and (3) payment
of certain transaction expenses of Rhove totaling $50,000.
As
part of the transaction, Rhove's major investor, Drive Capital and certain of its funds, became investors of reAlpha. As of the
date of acquisition, Rhove has over 5,000 users that will join the reAlpha ecosystem. As part of the transaction, Calvin Cooper, the
CEO of Rhove, will join reAlpha in an advisory role. Calvin brings a wealth of knowledge, connections, and resources in the real estate
fractionalization space.
10
Rhove's
innovative platform will enhance reAlpha's capabilities and enable us to offer a more seamless and efficient real estate investment experience
to our clients. With Rhove's technology, we will be able to provide our clients with access to real estate investment opportunities and
manage their investments through a user-friendly platform. Rhove's platform also offers unique features such as the ability to earn rent
rewards, making real estate investing more accessible and rewarding.
We
believe that this acquisition will help us continue to innovate and deliver value to our clients, and we look forward to leveraging Rhove's
technology to drive the future of real estate investing.
Management
Changes
On
April 11, 2023, the Company entered into an employment agreement with Jorge Aldecoa to act as the Company's Chief Operating Officer,
replacing Michael J. Logozzo as interim Chief Operating Officer. Pursuant to Mr. Aldecoa's employment agreement, he will serve
as the Company's Chief Operating Officer until his agreement is terminated by either Mr. Aldecoa or the Company, and he will receive
a yearly salary of $200,000 for the fiscal year ended April 30, 2023 and a pro-rated amount of such base salary for the year ended April
30, 2022.
Mr.
Aldecoa's employment agreement also provides for a base salary adjustment to of $215,000 upon a successful follow-on offering of
the Company's securities for an amount of $8 million or more, subject to the compensation committee's approval. Further,
Mr. Aldecoa is entitled to
additional compensation in
the form of a discretionary bonus of up to $50,000 based on the achievement of certain established performance targets, which is payable
annually, and certain benefits such as unlimited vacation, health insurance and others. Further, Mr.
Aldecoa
is eligible to participate in the Plan (as defined below). Mr. Aldecoa or the Company may terminate the employment agreement at
any time upon written notice to the other party. Mr.
Aldecoa
's employment agreement
has a confidentiality provision and a non-compete for a period of two (2) years following the termination of his employment.
Controlled Company
A controlled company is a
company of which more than 50% of the voting power for the election of directors is held by an individual, a group or another company.
We are a controlled company because Mr. Giri Devanur, our Chief Executive Officer and Chairman, holds more than 50% of our voting power,
and we expect we will continue to be a controlled company upon the Direct Listing. For so long as we remain a controlled company, we are
exempt from the obligation to comply with certain Nasdaq corporate governance requirements, including:
●
our board of directors is not required to be
comprised of a majority of independent directors.
●
our board of directors is not subject to the
compensation committee requirement; and
●
we are not subject to the requirements that director
nominees be selected either by the independent directors or a nomination committee comprised solely of independent directors.
The controlled company exemptions
do not apply to the audit committee requirement or the requirement for executive sessions of independent directors. We are required to
disclose in our annual report that we are a controlled company and the basis for that determination. Although we do not plan to take advantage
of the exemptions provided to controlled companies, we may in the future take advantage of such exemptions.
Selected
Risks Associated with Our Business
Investing
in our common stock involves a high degree of risk. You should carefully consider all the information in this prospectus prior to investing
in our common stock. These risks are discussed more fully in the section entitled "Risk Factors" immediately following this
prospectus summary. These risks and uncertainties include, but are not limited to, the following:
●
We
                                            are employing a business model with a limited track record, which makes our business difficult
                                            to evaluate.
●
Our
                                            technology that is currently being developed may not yield expected results or be delivered
                                            on time.
●
We
                                            intend to utilize a significant amount of indebtedness in the operation of our business.
●
A
                                            significant portion of our portfolio properties' costs and expenses are fixed and we
                                            may not be able to adapt our cost structure to offset declines in our revenue.
●
Our
                                            ability to retain our executive officers and other key personnel of our advisors and their
                                            affiliates;
11
●
Global
                                            economic, political and market conditions and economic uncertainty caused by the recent outbreak
                                            of coronavirus (COVID-19) may adversely affect our business, results of operations and financial
                                            condition.
●
Our
                                            investments are and will continue to be concentrated in certain markets and in the single-family
                                            properties sector of the real estate industry, thus, exposing us to risk concentrations,
                                            which, in turn, exposes us to risk caused by seasonal fluctuations in short-term rental demand
                                            and downturns in certain markets or in the single-family properties sector.
●
Contingent
                                            or unknown liabilities could adversely affect our financial condition, cash flows and operating
                                            results.
●
We
                                            are subject to certain risks associated with bulk portfolio acquisitions and dispositions.
●
Availability
                                            of appropriate property acquisition targets;
●
Our
                                            dependence upon third parties for key services may have an adverse effect on our operating
                                            results or reputation if the third parties fail to perform.
●
We
                                            face significant competition in the short-term rental market for guests, which may limit
                                            our ability to short-term rent our properties on favorable terms.
●
Compliance
                                            with governmental laws, regulations and covenants that are applicable to our properties or
                                            that may be passed in the future, including permit, license and zoning requirements, may
                                            adversely affect our ability to make future acquisitions or renovations, result in significant
                                            costs or delays, and adversely affect our growth strategy.
●
Failure
                                            to integrate any acquisitions successfully.
●
Our
                                            business is subject to laws and regulations regarding privacy, data protection, consumer
                                            protection, and other matters. Many of these laws and regulations are subject to change and
                                            uncertain interpretation, and could result in claims, changes to our business practices,
                                            monetary penalties, or otherwise harm our business.
●
We
                                            may not be able to attract investors to invest in our portfolio properties.
●
If
                                            we fail to attract guests, or if we fail to provide high-quality stays and experiences, our
                                            business, results of operations, and financial condition would be materially adversely affected.
●
If
                                            we fail to retain guests or add new guests, our business, results of operations, and financial
                                            condition would be materially adversely affected.
Corporate
Information and Incorporation
reAlpha
Tech Corp. (previously reAlpha Asset Management, Inc.) is a Delaware corporation formed in April 2021 (the "Company," "reAlpha,"
"we," "our," or "us"). On March 21, 2023, we changed our name to reAlpha Tech Corp, following our
Downstream Merger (as defined above).
reAlpha
Acquisitions Churchill, LLC, a wholly-owned subsidiary of the Company was formed on May 17, 2022, to hold properties acquired and
utilizing financing provided by Churchill Finance I, LLC. reAlpha Acquisitions Churchill, LLC, executed a master credit facility
worth up to $200 million on August 18, 2022. This credit facility allows a loan-to-cost ratio of up to 80% and is at a fixed rate of
12%. Access to this credit facility will allow reAlpha to acquire properties with the intention of utilizing them as short-term
rental properties.
We
have also formed an in-house brokerage, reAlpha Realty, LLC, a subsidiary of the Company (DBA reAlpha Homes) on September 12, 2022. reAlpha
Realty, LLC operates out of a new office in Miramar, Florida, reAlpha Realty is led by Designated Broker Jorge Aldecoa, who also serves
as our Chief Operating Officer.
Our
principal executive office is located at 6515 Longshore Loop, Suite 100, Dublin, OH 43107. Our phone number is (707) 732-5742. Our corporate
website is located at www.realpha.com. Information on our website is not part of this prospectus.
12
RISK
FACTORS
An
investment in our shares of common stock involves significant risks. Before making an investment in our shares of common stock, you should
carefully consider the risks and uncertainties discussed below under "Information Regarding Forward-Looking Statements,"
and the specific risks set forth herein. Any of the following risks could have a material adverse effect on our business, financial condition
and results of operations. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may
also materially and adversely affect our business, prospects, financial condition, results of operations, cash flows and ability to pay
dividends. In any such case, the market price of our shares of common stock could decline, and you may lose all or part of your investment.
Risks
Related to Our Business
We
have a limited operating history and may not be able to operate our business successfully or generate sufficient cash flows to accomplish
our business objectives.
We
have a limited operating history. As a result, an investment in our common stock entails more risk than an investment in the common stock
of a company with a substantial operating history. If we are unable to operate our business successfully, you could lose all or a portion
of your investment in our common stock. Our ability to successfully operate our business and implement our operating policies and investment
strategy depends on many factors, including:
●
our
ability to obtain additional capital;
●
our
ability to effectively manage renovation, maintenance, marketing and other operating costs for our properties;
●
economic
conditions in the markets which we operate in or hold an interest in real estate in ("our markets"), including changes in
employment and household earnings and expenses, as well as the condition of the financial and real estate markets and the economy, in
general;
●
our
ability to maintain high occupancy rates and target rent levels;
●
the
availability of, and our ability to identify, attractive acquisition opportunities consistent with our investment strategy;
●
our
ability to compete with other investors entering the sector for short-term Target Properties;
●
costs
that are beyond our control, including title litigation, litigation with guests, legal compliance, real estate taxes, HOA fees and insurance;
●
judicial
and regulatory developments affecting landlord-guest relations that may affect or delay our ability to dispose of our properties, evict
occupants or increase rental rates;
●
population,
employment or homeownership trends in our markets; and
●
interest
rate levels and volatility, such as the accessibility of short-term and long-term financing on desirable terms.
Our
audited financial statements indicate that there is a substantial doubt about our ability to continue as a going concern.
Our
audited financial statements as of and for the period ended April 30, 2022 were prepared on the assumption that we would continue as
a going concern. Those financial statements and the accompanying opinion of our auditor expressed a substantial doubt about our ability
to continue as a going concern. Those audited financial statements did not include any adjustments that might result from the outcome
of this uncertainty. We will need additional capital for full commencement of our planned operations and we are subject to significant
risks and uncertainties, including failing to secure funding to commence our planned operations or failing to profitably operate the
business. We intend to raise funds through various potential sources, such as equity or debt financings; however, we can provide no assurance
that such financing will be available on acceptable terms, or at all. If adequate financing is not available, we may be required to significantly
curtail or cease our operations, and our business would be jeopardized.
13
We
have minimal operating capital and minimal revenue from operations.
We
have minimal operating capital and for the foreseeable future will be dependent upon our ability to finance our operations from the sale
of equity or other financing alternatives. There can be no assurance that we will be able to successfully raise operating capital. The
failure to successfully raise operating capital, and the failure to attract qualified real estate companies and sufficient investor purchase
commitments, could result in our bankruptcy or other event which would have a material adverse effect on us and our stockholders.
We
are employing a business model with a limited track record, which makes our business difficult to evaluate.
Until
recently, the short-term rental business consisted primarily of private and individual investors in local markets and was managed individually
or by small, non-institutional owners and property managers. Our business strategy involves purchasing, renovating, maintaining and managing
a large number of residential properties and renting them short-term to guests. Entry into this market by large, well-capitalized investors
is a relatively recent trend, so few peer companies exist and none have yet established long-term track records that might assist us
in predicting whether our business model and investment strategy can be implemented and sustained over an extended period of time. It
may be difficult for you to evaluate our potential future performance without the benefit of established long-term track records from
companies implementing a similar business model. We may encounter unanticipated problems as we continue to refine our business model,
which may adversely affect our results of operations and ability to make distributions to our stockholders and cause our share price
to decline significantly.
We
may not be able to attract investors to invest in our portfolio properties.
The
success of our business model is dependent upon our ability to attract investors to co-invest in the portfolio properties we have acquired
and those we intend to acquire in the future. There is no assurance that we will be able to obtain investors to invest in our portfolio
properties upon terms acceptable to us, if at all.
We
may not be able to effectively manage our growth, and any failure to do so may have an adverse effect on our business and operating results.
Our
future operating results may depend on our ability to effectively manage our potential growth, which is dependent, in part, upon our
ability to:
●
stabilize
and manage an increasing number of properties and guest relationships across a geographically dispersed portfolio while maintaining a
high level of guest satisfaction, and building and enhancing our brand;
●
identify
and supervise a number of suitable third parties on which we rely to provide certain services outside of property management to our properties;
●
attract,
integrate and retain new management and operations personnel; and
●
continue
to improve our operational and financial controls and reporting procedures and systems.
14
We
can provide no assurance that we will be able to manage our properties or grow our business efficiently or effectively, or without incurring
significant additional expenses. Any failure to do so may have an adverse effect on our business and operating results.
The
acquisition of homes may be costly and unsuccessful, and, when acquiring portfolios of homes we may acquire some assets that we would
not otherwise purchase.
Our
business model involves acquiring homes through a variety of channels, renovating these homes to the extent necessary and leasing them
to guests. When acquiring homes on an individual basis through foreclosure sales or other transactions, these acquisitions of homes may
be costly and may be less efficient than acquisitions of portfolios of homes. Alternatively, portfolio acquisitions are more complex
than single-home acquisitions, and we may not be able to implement this strategy successfully. The costs involved in locating and performing
due diligence (when feasible) on portfolios of homes as well as negotiating and entering into transactions with potential portfolio sellers
could be significant, and there is a risk that either the seller may withdraw from the entire transaction for failure to come to an agreement
or the seller may not be willing to sell us the portfolio on terms that we view as favorable. In addition, a seller may require that
a group of homes be purchased as a package even though we may not want to purchase certain individual assets in the portfolio.
If
we acquire a portfolio of leased homes, to the extent the management and leasing of such homes has not been consistent with our property
management and leasing standards, we may be subject to a variety of risks, including risks relating to the condition of the properties,
the credit quality and employment stability of the residents and compliance with applicable laws, among others. In addition, financial
and other information provided to us regarding such portfolios during our due diligence may be inaccurate, and we may not discover such
inaccuracies until it is too late to seek remedies against such sellers. To the extent we timely pursue such remedies, we may not be
able to successfully prevail against the seller in an action seeking damages for such inaccuracies. If we conclude that certain assets
purchased in bulk portfolios do not fit our target investment criteria, we may decide to sell these assets, which could take an extended
period of time and may not result in a sale at an attractive price.
Properties
that are being sold through short sales or foreclosure sales are subject to risks of theft, mold, infestation, vandalism, deterioration
or other damage that could require extensive renovation prior to renting and adversely impact operating results.
When
a property is put into foreclosure due to a default by the owner on its mortgage obligations or the value of the property is substantially
below the outstanding principal balance on the mortgage and the owner decides to seek a short sale, the owner may abandon the home or
cease to maintain the home as rigorously as the owner normally would. Neglected and vacant properties are subject to increased risks
of theft, mold, infestation, vandalism, general deterioration and other maintenance problems that may persist without appropriate attention
and remediation. If we begin to purchase a large volume of properties in bulk sales and are not able to inspect them immediately before
closing on the purchase, we may purchase properties that may be subject to these problems, which may result in maintenance and renovation
costs and time frames that far exceed our estimates. These circumstances could substantially impair our ability to quickly renovate and
lease such homes in a cost efficient manner or at all, which would adversely impact our operating results.
We
are subject to certain risks associated with bulk portfolio acquisitions and dispositions.
We
may acquire and dispose of properties we acquire or sell in bulk from or to other owners of single-family homes, banks and loan servicers.
When we acquire a portfolio of properties we may not be permitted, or it may not be feasible for us, to perform on-site inspections of
all or any of the properties in the portfolio (or, if applicable, underlying the loans in the portfolio) prior to our acquisition of
the portfolio. Such inspection processes may fail to reveal major defects associated with such properties, which may cause the amount
of time and cost required to renovate and/or maintain such properties to substantially exceed our estimates. Moreover, to the extent
the management and short-term renting of such properties has not been consistent with our property management and leasing standards,
we may be subject to a variety of risks, including risks relating to the condition of the properties, the credit quality and employment
stability of the residents and compliance with applicable laws, among others. In addition, financial and other information provided to
us regarding such portfolios during our due diligence may be inaccurate and we may not discover such inaccuracies until it is too late
to seek remedies against such sellers. To the extent we pursue such remedies, we may not be able to successfully prevail against the
seller in an action seeking damages for such inaccuracies. As a result, the value of any such properties could be lower than we anticipated
at the time of acquisition, and/or such properties could require substantial and unanticipated renovations prior to their conversion
into rental homes.
15
Our
evaluation of homes involves a number of assumptions that may prove inaccurate, which could result in us paying too much for any such
assets we acquire or overvaluing such assets or such assets failing to perform as we expect.
In
determining whether particular homes meet our Investment Criteria, we make a number of assumptions, including, in the case of homes,
assumptions related to estimated time of possession and estimated renovation costs and time frames, annual operating costs, market rental
rates and potential rent amounts, time from purchase to leasing and resident default rates. These assumptions may prove inaccurate. As
a result, we may pay too much for homes we acquire or overvalue such assets, or our homes may fail to perform as we expect. Adjustments
to the assumptions we make in evaluating potential purchases may result in fewer homes qualifying under our Investment Criteria, including
assumptions related to our ability to lease homes we have purchased. Reductions in the supply of homes that meet our investment criteria
may adversely affect our ability to implement our investment strategy and operating results.
Furthermore,
the homes that we will acquire may vary materially in terms of time to possession, renovation, quality and type of construction, location
and hazards. Our success will depend on our ability to acquire homes that can be quickly possessed, renovated, repaired, upgraded and
rented with minimal expense and maintained in rentable condition. Our ability to identify and acquire such homes is fundamental to our
success. In addition, the recent market and regulatory environments relating to homes and residential mortgage loans have been changing
rapidly, making future trends difficult to forecast. For example, an increasing number of homeowners now wait for an eviction notice
or eviction proceedings to commence before vacating foreclosed premises, which significantly increases the time period between the acquisition
of, and the leasing of, a home. Such changes affect the accuracy of our assumptions and, in turn, may adversely affect us.
A
significant portion of our portfolio properties' costs and expenses are fixed and we may not be able to adapt our cost structure
to offset declines in our revenue.
Many
of the expenses associated with our portfolio properties, such as real estate taxes, HOA fees, personal and property taxes, insurance,
utilities, acquisition, renovation and maintenance costs, and other general corporate expenses are relatively inflexible and will not
necessarily decrease with a reduction in revenues. Some components of our fixed assets will depreciate more rapidly and require ongoing
capital expenditures. Our expenses and ongoing capital expenditures will also be affected by inflationary increases and certain of our
cost increases may exceed the rate of inflation in any given period or market. By contrast, short-term rental income will be affected
by many factors beyond our control, such as the availability of alternative short-term rental housing and economic conditions in our
markets. In addition, state and local regulations may require the properties that we own, even if the cost of maintenance is greater
than the value of the property or any potential benefit from renting the property, or pass regulations that limit our ability to increase
short-term rental rates. As a result, we may not be able to fully offset rising costs and capital spending by increasing short-term rental
rates, which could have a material adverse effect on our results of operations and cash available for distribution.
If
we overestimate the value or income-producing ability or incorrectly price the risks of our investments, we may experience losses.
Analysis
of the value or income-producing ability of a property is highly subjective and may be subject to error. We value potential investments
based on yields and risks, taking into account estimated future losses on the commercial real estate loans and the mortgaged property
included in the securitization's pools or select commercial real estate equity investments, and the estimated impact of these losses
on expected future cash flows and returns. In the event that we underestimate the risks relative to the price we pay for a particular
investment, we may experience losses with respect to such investment.
16
Increasing
property taxes, HOA fees and insurance costs may negatively affect our financial results.
The
cost of property taxes and insuring our properties is a significant component of our expenses. Our properties are subject to real and
personal property taxes that may increase as tax rates change and as the real properties are assessed or reassessed by taxing authorities.
As the owner of our properties, we are ultimately responsible for payment of the taxes to the applicable government authorities. If real
property taxes increase, our expenses will increase. If we fail to pay any such taxes, the applicable taxing authority may place a lien
on the real property and the real property may be subject to a tax sale.
In
addition, a significant portion of our properties may be located within HOAs and we are subject to HOA rules and regulations. HOAs have
the power to increase monthly charges and make assessments for capital improvements and common area repairs and maintenance. Property
taxes, HOA fees, and insurance premiums are subject to significant increases, which can be outside of our control. If the costs associated
with property taxes, HOA fees and assessments or insurance rise significantly and we are unable to increase rental rates due to rent
control laws or other regulations to offset such increases, our results of operations would be negatively affected.
We
intend to utilize a significant amount of indebtedness in the operation of our business.
We
intend to employ prudent leverage, to the extent available, to fund the acquisition of residential assets, refinancing existing debt
and for other corporate and business purposes deemed advisable by us. In determining to use leverage, we assess a variety of factors,
including without limitation the anticipated liquidity and price volatility of the assets in our investment portfolio, the cash flow
generation capability of our assets, the availability of credit on favorable terms, any prepayment penalties and restrictions on refinancing,
the credit quality of our assets and our outlook for borrowing costs relative to the unlevered yields on our assets. We may continue
to employ portfolio financing and expect to utilize credit facilities or other bank or capital markets debt financing, if available.
We may consider seller or in-place financing, if available, from sellers of portfolios of residential assets and potentially financing
from government sponsored enterprises if attractive programs are available. We may also utilize other financing alternatives such as
securitizations, depending upon market conditions, and other capital raising alternatives such as follow-on offerings of our common shares,
preferred shares and hybrid equity, among others. We have no limitation under our organizational documents or any contract on the amount
of funds that we may borrow for any single investment or that may be outstanding at any one time in the aggregate. We may significantly
increase the amount of leverage we utilize at any time without approval of our board of trustees.
Incurring
substantial debt could subject us to many risks that, if realized, would adversely affect us, including the risk that: (i) our cash flow
from operations may be insufficient to make required payments of principal and interest on the debt, which is likely to result in acceleration
of such debt; (ii) our debt may increase our vulnerability to adverse economic and industry conditions with no assurance that investment
yields will increase with higher financing cost; (iii) we may be required to dedicate a portion of our cash flow from operations to payments
on our debt, thereby reducing funds available for distributions to our stockholders, operations and capital expenditures, future acquisition
opportunities, or other purposes; and, (iv) the terms of any refinancing may not be as favorable as the terms of the debt being refinanced.
If
we do not have sufficient funds to repay our debt at maturity, it may be necessary to refinance the debt through additional debt financings
or additional capital raising. If, at the time of any refinancing, prevailing interest rates or other factors result in higher interest
rates on refinancing, increases in interest expense could adversely affect our cash flows, and, consequently, cash available for distribution
to our stockholders. If we are unable to refinance our debt on acceptable terms, we may be forced to dispose of substantial numbers of
homes on disadvantageous terms, potentially resulting in losses. To the extent we cannot meet any future debt service obligations, we
will risk losing some or all of our homes that may be pledged to secure our obligations to foreclosure. Any unsecured debt agreements
we enter into may contain specific cross-default provisions with respect to specified other indebtedness, giving the unsecured lenders
the right to declare a default if we are in default under other loans in some circumstances. Defaults under our debt agreements could
materially and adversely affect us and cause the value of our common shares to decline.
17
Our
cash flows and operating results could be adversely affected by required payments of debt or related interest and other risks of our
debt financing.
We
are generally subject to risks associated with debt financing. These risks include: (1) our cash flow may not be sufficient to satisfy
required payments of principal and interest; (2) we may not be able to refinance existing indebtedness or the terms of the refinancing
may be less favorable to us than the terms of existing debt; (3) required debt payments are not reduced if the economic performance of
any property declines; (4) debt service obligations could reduce funds available for distribution to our stockholders and funds available
for capital investment; (5) any default on our indebtedness could result in acceleration of those obligations and possible loss of property
to foreclosure; and (6) the risk that necessary capital expenditures cannot be financed on favorable terms. If a property is pledged
to secure payment of indebtedness and we cannot make the applicable debt payments, we may have to surrender the property to the lender
with a consequent loss of any prospective income and equity value from such property. Any of these risks could place strains on our cash
flows, reduce our ability to grow and adversely affect our results of operations.
We
may be unable to obtain financing through the debt and equity markets, which would have a material adverse effect on our growth strategy
and our financial condition and results of operations.
We
cannot assure you that we will be able to access the capital and credit markets to obtain additional debt or equity financing or that
we will be able to obtain financing on terms favorable to us. Our inability to obtain financing could have negative effects on our business.
Among other things, we could have great difficulty acquiring, re-developing or maintaining our properties, which would materially and
adversely affect our business strategy and portfolio, and may result in our: (1) liquidity being adversely affected; (2) inability to
repay or refinance our indebtedness on or before its maturity; (3) making higher interest and principal payments or selling some of our
assets on terms unfavorable to us to service our indebtedness; or (4) issuing additional capital stock, which could further dilute the
ownership of our existing stockholders.
Secured
indebtedness exposes us to the possibility of foreclosure on our ownership interests in our short-term rental homes.
Incurring
mortgage and other secured indebtedness increases our risk of loss of our ownership interests in our rental homes because defaults thereunder,
and the inability to refinance such indebtedness, may result in foreclosure action initiated by lenders. For tax purposes, a foreclosure
of any of our short-term rental homes would be treated as a sale of the home for a purchase price equal to the outstanding balance of
the indebtedness secured by such rental home. If the outstanding balance of the indebtedness secured by such short-term rental home exceeds
our tax basis in the short-term rental home, we would recognize taxable income on foreclosure without receiving any cash proceeds.
Covenants
in our debt agreements may restrict our operating activities and adversely affect our financial condition.
The
financing arrangements that we have entered into contain (and those we may enter into in the future likely will contain) covenants affecting
our ability to incur additional debt, make certain investments, reduce liquidity below certain levels, make distributions to our stockholders
and otherwise affect our distribution and operating policies.
If
we fail to meet or satisfy any of these covenants in our debt agreements, we will be in default under these agreements, which could result
in a cross-default under other debt agreements, and our lenders could elect to declare outstanding amounts due and payable, terminate
their commitments, require the posting of additional collateral and enforce their respective interests against existing collateral. Additionally,
borrowing base requirements associated with our financing arrangements may prevent us from drawing upon our total maximum capacity under
these financing arrangements if sufficient collateral, in accordance with our facility agreements, is not available. Further, debt agreements
entered into in the future may contain specific cross-default provisions with respect to other specified indebtedness, giving the lenders
the right to declare a default if we are in default under other loans in some circumstances. A default also could limit significantly
our financing alternatives, which could cause us to curtail our investment activities and/or dispose of assets when we otherwise would
not choose to do so. If we default on several of our debt agreements or any single significant debt agreement, we could be materially
and adversely affected.
18
Aspects
of our business are subject to privacy, data use and data security regulations, which may impact the way we use data to target customers.
Privacy
and security laws and regulations may limit the use and disclosure of certain information and require us to adopt certain cybersecurity
and data handling practices that may affect our ability to effectively market our manufacturing capabilities to current, past or prospective
customers. In many jurisdictions consumers must be notified in the event of a data security breach, and such notification requirements
continue to increase in scope and cost. The changing privacy laws in the U.S., Europe and elsewhere, including the General Data Protection
Regulation ("GDPR") in the European Union, which became effective May 25, 2018, and the California Consumer Privacy Act of
2018, which was enacted on June 28, 2018 and became effective on January 1, 2020, create new individual privacy rights and impose increased
obligations, including disclosure obligations, on companies handling personal data. . In addition, the California Consumer Privacy Act
of 2018 ("CCPA") took effect on January 1, 2020, which broadly defines personal information, gives California residents expanded
privacy rights and protections, and provides for civil penalties for certain violations. Furthermore, in November 2020, California voters
passed the California Privacy Rights and Enforcement Act of 2020 ("CPRA"), which amends and expands CCPA with additional
data privacy compliance requirements and establishes a regulatory agency dedicated to enforcing those requirements. Additional countries
and states, including Nevada, Virginia, Colorado, Utah, and Connecticut, have also passed comprehensive privacy laws with additional
obligations and requirements on businesses. These laws and regulations are increasing in severity, complexity and number, change frequently,
and increasingly conflict among the various jurisdictions in which we operate, which has resulted in greater compliance risk and cost
for us. In addition, we are also subject to the possibility of security breaches and other incidents, which themselves may result in
a violation of these laws. The impact of these continuously evolving laws and regulations could have a material adverse effect on the
way we use data to digitally market and pursue our customers.
Global
economic, political and market conditions and economic uncertainty caused by the recent outbreak of coronavirus (COVID-19) may adversely
affect our business, results of operations and financial condition.
The
current worldwide volatility of financial markets, domestic inflationary pressures, various social and political tensions in the United
States and around the world, and public health crises, such as the one caused by COVID-19, may continue to contribute to increased market
volatility, may have long-term effects on the United States and worldwide financial markets, and may cause further economic uncertainties
or deterioration in the United States and worldwide. Economic uncertainty can have a negative impact on our business through changing
spreads, structures and purchase multiples, as well as the overall supply of investment capital. Since 2010, several European Union,
or EU, countries, including Greece, Ireland, Italy, Spain, and Portugal, have faced budget issues, some of which may have negative long-term
effects for the economies of those countries and other EU countries. Further, there is continued concern about national-level support
for the Euro and the accompanying coordination of fiscal and wage policy among European Economic and Monetary Union member countries.
In addition, the fiscal policy of foreign nations, such as China, may have a severe impact on the worldwide and United States financial
markets. Finally, public health crises, pandemics and epidemics, such as those caused by new strains of viruses such as H5N1 (avian flu),
severe acute respiratory syndrome (SARS) and, most recently, COVID-19, are expected to increase as international travel continues to
rise and could adversely impact our business by interrupting business, supply chains and transactional activities, disrupting travel,
and negatively impacting local, national or global economies. We do not know how long the financial markets will continue to be affected
by these events and cannot predict the effects of these or similar events in the future on the United States economy and securities markets
or on our investments. As a result of these factors, there can be no assurance that we will be able to successfully monitor developments
and manage our investments in a manner consistent with achieving our investment objectives.
The
ongoing COVID-19 pandemic and measures intended to prevent its spread could have a material adverse effect on our business, results of
operations, cash flows and financial condition.
The
COVID-19 pandemic has caused, and is likely to continue to cause, severe economic, market and other disruptions worldwide. We cannot
assure you that conditions in the bank lending, capital and other financial markets will not continue to deteriorate as a result of the
pandemic, or that our access to capital and other sources of funding will not become constrained, which could adversely affect the availability
and terms of future borrowings, renewals or refinancings. In addition, the deterioration of global economic conditions as a result of
the pandemic may ultimately decrease occupancy levels and pricing across our portfolio and may cause one or more of our tenants to be
unable to meet their rent obligations to us in full, or at all, or to otherwise seek modifications of such obligations. In addition,
governmental authorities may enact laws that will prevent us from taking action against tenants who do not pay rent.
19
The
extent of the COVID-19 pandemic's effect on our operational and financial performance will depend on future developments, including
the duration, spread and intensity of the outbreak, all of which are uncertain and difficult to predict. Due to the speed with which
the situation is developing, we are not able at this time to estimate the effect of these factors on our business, but the adverse impact
on our business, results of operations, financial condition and cash flows could be material.
Maintenance
of our Investment Company Act exemption imposes limits on our operations, which may adversely affect our operations.
We
intend to conduct our operations so that neither we nor any of our subsidiaries is required to register as an investment company under
the Investment Company Act. We anticipate that we will hold real estate and real estate-related assets described below (i) directly,
(ii) through wholly-owned subsidiaries, (iii) through majority-owned joint venture subsidiaries, and, (iv) to a lesser extent, through
minority-owned joint venture subsidiaries.
In
connection with the Section 3(a)(1)(C) analysis, the determination of whether an entity is a majority-owned subsidiary of our Company
is made by us. The Investment Company Act defines a majority-owned subsidiary of a person as a company 50% or more of the outstanding
voting securities of which are owned by such person, or by another company that is a majority-owned subsidiary of such person. The Investment
Company Act further defines voting security as any security presently entitling the owner or holder thereof to vote for the election
of directors of a company. We treat companies in which we own at least a majority of the outstanding voting securities as majority-owned
subsidiaries. We also treat subsidiaries of which we or our wholly-owned or majority-owned subsidiary is the manager (in a manager-managed
entity) or managing member (in a member-managed entity) or in which our agreement or the agreement of our wholly-owned or majority-owned
subsidiary is required for all major decisions affecting the subsidiaries (referred to herein as "Controlled Subsidiaries"),
as majority-owned subsidiaries even though none of the interests issued by such Controlled Subsidiaries meets the definition of voting
securities under the Investment Company Act. We reached our conclusion on the basis that the interests issued by the Controlled Subsidiaries
are the functional equivalent of voting securities. We have not asked the SEC staff for concurrence of our analysis, our treatment of
such interests as voting securities, or whether the Controlled Subsidiaries, or any other of our subsidiaries, may be treated in the
manner in which we intend, and it is possible that the SEC staff could disagree with any of our determinations. If the SEC staff were
to disagree with our treatment of one or more companies as majority-owned subsidiaries, we would need to adjust our strategy and our
assets. Any such adjustment in our strategy could have a material adverse effect on us.
Certain
of our subsidiaries may rely on the exclusion provided by Section 3(c)(5)(C) under the Investment Company Act. Section 3(c)(5)(C) of
the Investment Company Act is designed for entities "primarily engaged in the business of purchasing or otherwise acquiring mortgages
and other liens on and interests in real estate". This exclusion generally requires that at least 55% of the entity's assets
on an unconsolidated basis consist of qualifying real estate interests and at least 80% of the entity's assets consist of qualifying
real estate interests or real estate-related assets. These requirements limit the assets those subsidiaries can own and the timing of
sales and purchases of those assets.
To
classify the assets held by our subsidiaries as qualifying real estate interests or real estate-related assets, we rely on no-action
letters and other guidance published by the SEC staff regarding those kinds of assets, as well as upon our analyses (in consultation
with counsel) of guidance published with respect to other types of assets. There can be no assurance that the laws and regulations governing
the Investment Company Act status of companies similar to ours, or the guidance from the SEC or its staff regarding the treatment of
assets as qualifying real estate interests or real estate-related assets, will not change in a manner that adversely affects our operations.
In fact, in August 2011, the SEC published a concept release in which it asked for comments on this exclusion from regulation. To the
extent that the SEC staff provides more specific guidance regarding any of the matters bearing upon our exemption from the need to register
or exclusion under the Investment Company Act, we may be required to adjust our strategy accordingly. Any additional guidance from the
SEC staff could further inhibit our ability to pursue the strategies that we have chosen.
20
Furthermore,
although we intend to monitor the assets of our subsidiaries regularly, there can be no assurance that our subsidiaries will be able
to maintain their exclusion from registration. Any of the foregoing could require us to adjust our strategy, which could limit our ability
to make certain investments or require us to sell assets in a manner, at a price or at a time that we otherwise would not have chosen.
This could negatively affect the value of our common shares, the sustainability of our business model and our ability to make distributions.
Registration
under the Investment Company Act would require us to comply with a variety of substantive requirements that impose, among other things:
●
limitations
                                            on capital structure;
●
restrictions
                                            on specified investments;
●
restrictions
                                            on leverage or senior securities;
●
restrictions
                                            on unsecured borrowings;
●
prohibitions
                                            on transactions with affiliates; and
●
compliance
                                            with reporting, record keeping, voting, proxy disclosure and other rules and regulations
                                            that would significantly increase our operating expenses.
If
we were required to register as an investment company but failed to do so, we could be prohibited from engaging in our business, and
criminal and civil actions could be brought against us.
Registration
with the SEC as an investment company would be costly, would subject us to a host of complex regulations and would divert attention from
the conduct of our business, which could materially and adversely affect us.
Our board of directors may change significant
corporate policies without stockholder approval.
Our
investment, financing, borrowing and dividend policies and our policies with respect to all other activities, including growth, debt,
capitalization and operations, will be determined by our board of directors. These policies may be amended or revised at any time and
from time to time at the discretion of our board of directors without a vote of our stockholders. In addition, our board of directors
may change our policies with respect to conflicts of interest provided that such changes are consistent with applicable legal requirements.
The
rights of our stockholders to take action against our directors and officers are limited.
Our
Second Amended and Restated Certificate of Incorporation (the "Certificate of Incorporation") provides for indemnification
of our directors and officers to the fullest extent authorized or permitted under Delaware law, except to the extent such exemption from
liability or limitation thereof is not permitted under the DGCL as the same exists or hereafter may be amended.
Our
Second Amended and Restated Bylaws (the "Bylaws") will obligate us to indemnify each of our directors or officers who is
or is threatened to be made a party to or witness in a proceeding by reason of his or her service in those or certain other capacities,
to the maximum extent permitted by Delaware law, from and against any claim or liability to which such person may become subject or which
such person may incur by reason of his or her status as a present or former director or officer of us or serving in such other capacities.
In addition, we may be obligated to reimburse the expenses reasonably incurred by our present and former directors and officers in connection
with such proceedings. As a result, we and our stockholders may have more limited rights to recover money damages from our directors
and officers than might otherwise exist absent these provisions in our Bylaws or that might exist with other companies, which could limit
your recourse in the event of actions that are not in our best interests.
21
Our
technology that is currently being developed may not yield expected results or be delivered on time.
We
could face delays, bugs, or crashes during and after the development process of any of our technologies that could cause adverse results
on our timelines and ability to perform. We rely on our technology for our business model and scalability. Should the technology not
yield the expected results, we may not be able to achieve scalability on the time-line or at all that we have forecasted. We rely on
the ability of our employees to develop our technologies to achieve desired results.
We
may incur significant transaction and acquisition-related costs in connection with company acquisitions and such expenditures may create
significant liquidity and cash flow risks for us.
We
could incur significant, nonrecurring, and recurring costs associated with potential related company acquisition(s), including costs
associated with the continued integration of the businesses. In addition, we may continue to incur additional significant, nonrecurring
costs in connection with completing a Private Placement. While we have assumed that this level of expense will be incurred, there are
factors beyond our control that could affect the total amount, including other integration expenses. Moreover, many of the expenses that
will be incurred are, by their nature, difficult to estimate accurately. To the extent any acquisition and integration expenses are higher
than anticipated and we do not have sufficient cash, including the additional capital raised in any exempt or private placement offering,
then we may experience liquidity or cash flow issues.
Failing
to successfully execute and integrate acquisitions could materially adversely affect our business, results of operations, and financial
condition.
We
have acquired Roost Enterprises, Inc. (d/b/a Rhove) recently, and may acquire more business, as we continue to evaluate potential acquisitions.
We may expend significant cash or incur substantial debt to finance such acquisitions, which indebtedness could result in restrictions
on our business and significant use of available cash to make payments of interest and principal. In addition, we may finance acquisitions
by issuing equity or convertible debt securities, which could result in further dilution to our existing stockholders. We may enter into
negotiations for acquisitions that are not ultimately consummated. Those negotiations could result in diversion of management time and
significant out-of-pocket costs. If we fail to evaluate and execute acquisitions successfully, our business, results of operations, and
financial condition could be materially adversely affected.
In
addition, we may not be successful in integrating acquisitions or the businesses we acquire may not perform as well as we expect. Any
future failure to manage and successfully integrate acquired businesses could materially adversely affect our business, results of operations,
and financial condition. Acquisitions involve numerous risks, including the following:
●
difficulties
in integrating and managing the combined operations, technology platforms and realizing the anticipated economic, operational, and other
benefits in a timely manner, which could result in substantial costs and delays, and failure to execute on the intended strategy and
synergies;
●
failure
of the acquired businesses to achieve anticipated revenue, earnings, or cash flow;
●
diversion
of management's attention or other resources from our existing business;
●
our
inability to maintain the key customers, business relationships, suppliers, and brand potential of acquired businesses;
●
uncertainty
of entry into businesses or geographies in which we have limited or no prior experience or in which competitors have stronger positions;
22
●
unanticipated
                                            costs associated with pursuing acquisitions or greater than expected costs in integrating
                                            the acquired businesses;
●
responsibility
                                            for the liabilities of acquired businesses, including those that were not disclosed to us
                                            or exceed our estimates, such as liabilities arising out of the failure to maintain effective
                                            data protection and privacy controls, and liabilities arising out of the failure to comply
                                            with applicable laws and regulations, including tax laws;
●
difficulties
                                            in or costs associated with assigning or transferring to us or our subsidiaries the acquired
                                            companies' intellectual property or its licenses to third-party intellectual property;
●
inability
                                            to maintain our culture and values, ethical standards, controls, procedures, and policies;
●
challenges
                                            in integrating the workforce of acquired companies and the potential loss of key employees
                                            of the acquired companies;
●
challenges
                                            in integrating and auditing the financial statements of acquired companies that have not
                                            historically prepared financial statements in accordance with GAAP; and
●
potential
                                            accounting charges to the extent goodwill and intangible assets recorded in connection with
                                            an acquisition, such as trademarks, customer relationships, or intellectual property, are
                                            later determined to be impaired and written down in value.
We
depend on our executive officers and dedicated personnel and the departure of any of our key personnel could materially and adversely
affect us. We face intense competition for the employment of highly skilled managerial, investment, financial and operational personnel.
Our
success is largely dependent on the efforts and abilities of our senior executive group and other key personnel. The loss of the services
of one or more of our executive officers or personnel could adversely impact our financial and operational performance and our ability
to execute our strategies.
In
addition, our future success depends on our ability to attract, train, manage and retain qualified personnel. Competition for highly
skilled managerial, investment, financial and operational personnel is intense. As additional large real estate investors enter into
and expand their scale within the short-term rental business, we will faced increased challenges in hiring and retaining personnel, and
we cannot assure our stockholders that we will be successful in attracting and retaining such skilled personnel. If we are unable to
hire and retain qualified personnel as required, our growth and operating results could be adversely affected.
Our
ability to meet our labor needs while controlling our labor costs is subject to numerous external factors, including unemployment levels,
prevailing wage rates, changing demographics and changes in employment legislation. If we are unable to retain qualified personnel or
our labor costs increase significantly, our business operations and our financial performance could be adversely impacted.
Our
dependence upon our business partners and their key personnel whose continued service is not guaranteed.
Our
business operations are dependent upon our relationships with key business partners, including vendors, suppliers, service providers,
and other strategic partners. The loss of one or more of these key business partners, or a significant change in the terms of our relationship
with them, could disrupt our business operations and negatively impact our financial performance. Furthermore, the success of our partnerships
depends on the continued service and expertise of key personnel at these companies, and we cannot guarantee that these individuals will
remain with their respective companies or continue to provide the same level of service or expertise to us. If these individuals leave
or are unable to continue providing their services, our ability to maintain and grow our business relationships could be negatively impacted,
which could harm our financial results.
23
Our
dependence upon third parties for key services may have an adverse effect on our operating results or reputation if the third parties
fail to perform.
Though
we are internally managed, we use third-party vendors and service providers to provide certain services for our properties or subcontract
for such services. For example, we typically engage third-party home improvement professionals with respect to certain maintenance and
specialty services, such as HVAC, roofing, painting and floor installations.
Selecting,
managing and supervising these third-party service providers requires significant resources and expertise, and because our portfolio
consists of geographically dispersed properties, our ability to adequately select, manage and supervise such third parties may be more
limited or subject to greater inefficiencies than if our properties were more geographically concentrated. We generally do not have exclusive,
direct or long-term contractual relationships with the third-party providers performing the ultimate services, and we can provide no
assurance that we will have uninterrupted or unlimited access to their services. If we do not select, manage and supervise appropriate
third parties to provide these services, our reputation and financial results may suffer. Notwithstanding our efforts to implement and
enforce strong policies and practices regarding service providers, we may not successfully detect and prevent fraud, misconduct, incompetence
or theft by our third-party service providers, including our general contractors. In addition, any removal or termination of third-party
service providers would require us to seek new vendors or providers, which would create delays and adversely affect our operations. Poor
performance by such third-party service providers will reflect poorly on us and could significantly damage our reputation among desirable
residents. In the event of fraud or misconduct by a third party, we could also be exposed to material liability and be held responsible
for damages, fines or penalties and our reputation may suffer. In the event of failure by our general contractors to pay their subcontractors,
our properties may be subject to filings of mechanics or materialmen liens, which we may need to resolve to remain in compliance with
certain debt covenants, and for which indemnification from the general contractors may not be available.
The
implementation of artificial intelligence ("AI") into our technologies may prove to be more difficult than anticipated.
Our
business relies on the use of AI to improve our product development and business operations, including through the usage of our reAlpha
Score. However, the implementation of AI poses certain risks that need to be carefully considered. The use of AI can potentially lead
to unintended consequences, ethical concerns, and data privacy issues. Additionally, reliance on AI can lead to a lack of human oversight
and control, which can have negative implications for our organization.
The
inability to protect our intellectual property rights could harm our reputation, damage our business or interfere with our competitive
position.
Our
intellectual property is valuable and provides us with certain competitive advantages. Copyrights, patents, trademarks, service marks,
trade secrets, technology licensing agreements, nondisclosure agreements and contracts are used to protect these proprietary rights.
Despite these precautions, it may be possible for third parties to copy aspects of our products or, without authorization, to obtain
and use information that we regard as trade secrets. Our pending patents may be denied, and our patents may be circumvented by our competitors.
In addition, the laws of some foreign countries do not protect our proprietary rights as fully as do the laws of the United States. There
can be no assurance that our means of protecting our proprietary rights in the United States or abroad will be adequate or that competing
companies will not independently develop similar technologies. Our failure to adequately protect our proprietary rights could have a
material adverse effect on our competitive position and our business.
24
Risks
Related to the Real Estate Industry
Our
operating results are subject to general economic conditions and risks associated with the subsidiary's real estate assets.
Our
operating results are subject to risks generally incident to the ownership and rental of residential real estate, many of which are beyond
our control, including, without limitation:
●
changes
                                            in global, national, regional or local economic, demographic or real estate market conditions;
●
changes
                                            in job markets and employment levels on a national, regional and local basis;
●
declines
                                            in the value of residential real estate;
●
overall
                                            conditions in the housing market, including:
●
macroeconomic
                                            shifts in demand for rental homes;
●
inability
                                            to lease or re-lease short-term rent homes to guests on a timely basis, on attractive terms,
                                            or at all;
●
failure
                                            of guests to pay rent when due or otherwise perform their short-term rental obligations;
●
unanticipated
                                            repairs, capital expenditures, weather events and possible damages from them, or other costs;
●
uninsured
                                            damages;
●
increases
                                            in property taxes, homeowners' association (HOA) fees and insurance costs;
●
level
                                            of competition for suitable short-term rental homes;
●
terms
                                            and conditions of purchase contracts;
●
costs
                                            and time period required to convert acquisitions to short-term rental homes;
●
changes
                                            in interest rates and availability of financing that may render the acquisition of any homes
                                            difficult or unattractive;
●
the
                                            illiquidity of real estate investments, generally;
●
the
                                            short-term nature of most or all guest stays and the costs and potential delays in re-renting;
●
changes
                                            in laws, including those that increase operating expenses or limit our ability to increase
                                            short-term rental rates;
●
the
                                            impact of potential reforms relating to government-sponsored enterprises involved in the
                                            home finance and mortgage markets;
●
rules,
                                            regulations and/or policy initiatives by government and private actors, including HOAs, to
                                            discourage or deter the purchase of single-family properties by entities owned or controlled
                                            by institutional investors;
25
●
disputes
                                            and potential negative publicity in connection with guest stays;
●
costs
                                            resulting from the clean-up of, and liability to third parties for damages resulting from,
                                            environmental problems, such as indoor mold;
●
casualty
                                            or condemnation losses;
●
the
                                            geographic mix of our properties;
●
the
                                            cost, quality and condition of the properties we are able to acquire; and
●
our
                                            ability to provide adequate management, maintenance and insurance.
Any one or more of these factors could adversely affect
our business, financial condition and results of operations.
Inflation
may adversely affect us by increasing costs beyond what we can recover through price increases.
Inflation
can adversely affect us by increasing costs of property, materials and labor. In addition, significant inflation is often accompanied
by higher interest rates, which have a negative impact on demand for our homes. In an inflationary environment, depending on homebuilding
industry and other economic conditions, we may be precluded from raising home prices enough to keep up with the rate of inflation, which
would reduce our profit margins. Although the rate of inflation has been low for the last several years, there has recently been increases
in the prices of labor and materials above the general inflation rate.
Our
investments are and will continue to be concentrated in certain markets and in the single-family properties sector of the real estate
industry, thus, exposing us to risk concentrations, which, in turn, exposes us to risk caused by seasonal fluctuations in short-term
rental demand and downturns in certain markets or in the single-family properties sector.
Our
investments in real estate assets are and will continue to be concentrated in certain markets and in the single-family properties sector
of the real estate industry. This makes our investments exposed to concentrations of risk as a result. For example, a downturn or slowdown
in the short-term rental demand for single-family housing caused by adverse economic, regulatory or environmental conditions, or other
events, in our markets may have a greater impact on the value of our properties or our operating results than if we had more fully diversified
our investments. Likewise, there are seasonal fluctuations in short-term rental demand. The aforementioned risk concentrations expose
us to greater fluctuation risk in our operating results, which, in turn can affect our actual results and ability to achieve our business
plan.
In
addition to general, regional, national and international economic conditions, our operating performance will be impacted by the economic
conditions in our markets. We base a substantial part of our business plan on our belief that property values and operating fundamentals
for single-family properties in our markets will continue to increase. However, these markets have experienced substantial economic downturns
in the past and could experience similar or worse economic downturns in the future. We can provide no assurance as to the extent property
values and operating fundamentals in these markets will increase if at all. If economic downturn in these markets return or if we fail
to accurately predict the timing of the economic performance of these markets, the value of our properties could decline and our ability
to execute our business plan may be adversely affected to a greater extent than if we owned a real estate portfolio that was more geographically
diversified, which could adversely affect our financial condition, operating results and our ability to make distributions to our stockholders
and cause the value of our common shares to decline.
26
If
our techniques for managing risk are ineffective, we may be exposed to unanticipated losses.
In
order to manage the significant risks inherent in our business, we must maintain effective policies, procedures and systems that enable
us to identify, monitor and control our exposure to market, operational, legal and reputational risks. Our risk management methods may
prove to be ineffective due to their design or implementation or as a result of the lack of adequate, accurate or timely information.
If our risk management efforts are ineffective, we could suffer losses or face litigation, particularly from our clients, and sanctions
or fines from regulators.
Our
techniques for managing risks may not fully mitigate the risk exposure in all economic or market environments, or against all types of
risk, including risks that we might fail to identify or anticipate. Any failures in our risk management techniques and strategies to
accurately quantify such risk exposure could limit our ability to manage risks or to seek positive, risk-adjusted returns. In addition,
any risk management failures could cause fund losses to be significantly greater than historical measures predict. Our more qualitative
approach to managing those risks could prove insufficient, exposing us to unanticipated losses in our net asset value and therefore a
reduction in our revenues.
Hedging
against interest rate exposure may adversely affect our earnings, limit our gains or result in losses, which could adversely affect cash
available for distribution to our stockholders.
We
may enter into interest rate swap agreements or pursue other interest rate hedging strategies. Our hedging activity, if any, will vary
in scope based on the level of interest rates, the type of portfolio investments held, and other changing market conditions. Interest
rate hedging may fail to protect or could adversely affect us because, among other things:
●
interest
                                            rate hedging can be expensive, particularly during periods of rising and volatile interest
                                            rates;
●
available
                                            interest rate hedging may not correspond directly with the interest rate risk for which protection
                                            is sought;
●
the
                                            duration of the hedge may not match the duration of the related liability or asset;
●
the
                                            credit quality of the party owing money on the hedge may be downgraded to such an extent
                                            that it impairs our ability to sell or assign our side of the hedging transaction;
●
the
                                            party owing money in the hedging transaction may default on its obligation to pay; and
●
we
                                            may purchase a hedge that turns out not to be necessary, i.e., a hedge that is out of the
                                            money.
Any
hedging activity we engage in may adversely affect our earnings, which could adversely affect cash available for distribution to our
stockholders. Therefore, while we may enter into such transactions to seek to reduce interest rate risks, unanticipated changes in interest
rates may result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the
degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions
being hedged or liabilities being hedged may vary materially. Moreover, for a variety of reasons, we may not seek to establish a perfect
correlation between such hedging instruments and the portfolio holdings being hedged. Any such imperfect correlation may prevent us from
achieving the intended hedge and expose us to risk of loss.
Our
investments will be illiquid and we may not be able to vary our portfolio in response to changes in economic and other conditions.
Many
factors that are beyond our control affect the real estate market and could affect our ability to sell properties and other investments
for the price, on the terms or within the time frame that we desire. These factors include general economic conditions, the availability
of financing, interest rates and other factors, including supply and demand. Because real estate investments are relatively illiquid,
we have a limited ability to vary our portfolio in response to changes in economic or other conditions. Further, before we can sell a
property on the terms we want, it may be necessary to expend funds to correct defects or to make improvements. However, we can give no
assurance that we will have the funds available to correct such defects or to make such improvements. Moreover, the senior mortgage loans,
subordinated loans, mezzanine loans and other loans and investments we may originate or purchase will be particularly illiquid investments
due to their short life and the greater difficulty of recoupment in the event of a borrower's default. As a result, we expect many
of our investments will be illiquid, and if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly
less than the value at which we have previously recorded our investments and our ability to vary our portfolio in response to changes
in economic and other conditions may be relatively limited, which could adversely affect our results of operations and financial condition.
27
We
may not be able to effectively control the timing and costs arising from renovation our properties, and the cost of maintaining rental
properties is generally higher than the cost of maintaining owner-occupied homes, which may adversely affect our operating results and
ability to make distributions to our stockholders.
Our
properties often require some level of renovation either immediately upon their acquisition or in the future. While our focus is on rent-ready
homes, we may acquire properties that we plan to extensively renovate. We may also acquire properties that we expect to be in good condition
only to discover unforeseen defects and problems that require extensive renovation and capital expenditures. In addition, from time to
time, we may perform ongoing maintenance or make ongoing capital improvements and replacements and perform significant renovations and
repairs that insurance may not cover. Because our portfolio may consist of geographically dispersed properties, our ability to adequately
monitor or manage any such renovations or maintenance may be more limited or subject to greater inefficiencies than if our properties
were more geographically concentrated.
Our
properties may have infrastructure and appliances of varying ages and conditions. Consequently, we will retain independent contractors
and trade professionals to perform physical repair work and are exposed to all of the risks inherent in property renovation and maintenance,
including potential cost overruns, increases in labor and materials costs, delays by contractors in completing work, delays in the timing
of receiving necessary work permits, supply-chain challenges for material required to complete work timely and cost effectively, and
poor workmanship. If our assumptions regarding the costs or timing of renovation and maintenance across our properties prove to be materially
inaccurate, our operating results and ability to make distributions to our stockholders may be adversely affected.
Further,
renters impose additional risks to owning real property. Renters do not have the same interest as an owner in maintaining a property
and its contents and generally do not participate in any appreciation of the property. Accordingly, renters may damage a property and
its contents, and may not be forthright in reporting damages or amenable to repairing them completely or at all. A rental property may
need repairs and/or improvements after each resident vacates the premises, the costs of which may exceed any security deposit provided
to us by the resident when the rental property was originally leased. Accordingly, the cost of maintaining rental properties can be higher
than the cost of maintaining owner-occupied homes, which will affect our costs of operations and may adversely impact our ability to
make distributions to our stockholders.
Our
leases are relatively short-term in nature, typically a few days or weeks, which exposes us to the risk that we may have to re-lease
our properties frequently and we may be unable to do so on attractive terms, on a timely basis or at all.
Because
these leases generally permit the residents to leave at the end of the lease term without penalty, our rental revenues may be impacted
by declines in market rental rates more quickly than if our leases were for longer terms. Short-term leases may result in high turnover,
which involves costs such as restoring the properties, marketing costs and lower occupancy levels. Our resident turnover rate and related
cost estimates may be less accurate than if we had more operating data upon which to base such estimates. In addition, to the extent
that a potential resident is represented by a leasing agent, we may need to pay all or a portion of any related agent commissions, which
will reduce the revenue from a particular rental home. Alternatively, to the extent that a lease term exceeds one year, we may miss out
on the ability to raise rents in an appreciating market and be locked into a lower rent until such lease expires. If the rental rates
for our properties decrease or our residents do not renew their leases, our operating results and ability to make distributions to our
stockholders could be adversely affected.
28
We
face significant competition in the short-term rental market for guests, which may limit our ability to short-term rent our properties
on favorable terms.
We
believe that our competitors include:
●
Here.co,
                                            Arrived Homes, Pacaso, Invitation Homes, real estate developers with short-term rentals,
                                            and mom-and-pop hosts; and
●
Hotel
                                            chains, such as Marriott, Hilton, Accor, Wyndham, InterContinental, and Huazhu, as well as
                                            boutique hotel chains and independent hotels.
We
depend on short-term rental income from guests to cover our operating costs. As a result, our success depends in large part upon our
ability to attract guests for our properties. We face competition for guests from other lessors of single-family properties, apartment
buildings and condominium units. Competing properties may be newer, better located and more attractive to residents. Potential competitors
may have lower rates of occupancy than we do or may have superior access to capital and other resources, which may result in competing
owners more easily locating residents and leasing available housing at lower rental rates than we might offer at our homes. Many of these
competitors may successfully attract residents with better incentives and amenities, which could adversely affect our ability to obtain
quality residents and lease our single-family properties on favorable terms. This competition may affect our ability to attract and retain
guests and may reduce the short-term rental rates we are able to charge.
In
addition, we could also be adversely affected by high vacancy rates of short-term rentals in our markets, which could result in an excess
supply of short-term rental homes and reduce occupancy and rental rates. Continuing development of apartment buildings and condominium
units in many of our markets will increase the supply of housing and exacerbate competition for residents.
No
assurance can be given that we will be able to attract guests. If we are unable to short-term rent our homes to suitable guests, we would
be adversely affected and the value of our common stock could decline.
We
may acquire alternative property types that may have less appreciation and could be more difficult to dispose.
While
our acquisition strategy focuses on rent-ready single-family homes, we may in the future acquire multifamily vacation rentals, experimental
homes, experiential homes, or other vacation rental viable properties. These homes may add liquidity risk and could be harder to sell
at optimal prices with proper timing.
We
intend to continue to acquire properties, from time to time, consistent with our investment strategy even if the short-term rental and
housing markets are not as favorable as they have been in the recent past, which could adversely impact anticipated yields.
We
intend to continue to acquire properties, from time to time, consistent with our investment strategy, even if the rental and housing
markets are not as favorable as they have been in the recent past. Future acquisitions of properties may be more costly than those we
have acquired previously. The following factors, among others, may make acquisitions more expensive:
●
improvements
                                            in the overall economy and employment levels;
●
changes
                                            in the economy affecting demand or supply of real estate properties in our markets;
●
changes
                                            in the economy affecting the money supply and interest rates in our markets;
●
changes
                                            in the economy affecting the availability of credit in our markets;
29
●
greater
                                            availability of consumer credit;
●
improvements
                                            in the pricing and terms of mortgages;
●
the
                                            emergence of increased competition for single-family properties from private investors and
                                            entities with similar investment objectives to ours; and
●
tax
                                            or other government incentives that encourage homeownership.
We
plan to continue acquiring properties as long as we believe such properties offer an attractive total return opportunity. Accordingly,
future acquisitions may have lower yield characteristics than recent past and present opportunities and, if such future acquisitions
are funded through equity issuances, the yield and distributable cash per share will be reduced, and the value of our common stock may
decline.
Competition
in identifying and acquiring our properties could adversely affect our ability to implement our business and growth strategies, which
could materially and adversely affect us.
In
acquiring our properties, we compete with a variety of institutional investors, including REITs, specialty finance companies, public
and private funds, savings and loan associations, banks, mortgage bankers, insurance companies, institutional investors, investment banking
firms, financial institutions, governmental bodies and other entities. We also compete with individual private home buyers and small-scale
investors. Certain of our competitors may be larger in certain of our markets and may have greater financial or other resources than
we do. Some competitors may have a lower cost of funds and access to funding sources that may not be available to us. In addition, any
potential competitor may have higher risk tolerances or different risk, which could allow them to consider a wider variety of investments.
Competition may result in fewer investments, higher prices, a broadly dispersed portfolio of properties that does not lend itself to
efficiencies of concentration, acceptance of greater risk, lower yields and a narrower spread of yields over our financing costs. In
addition, competition for desirable investments could delay the investment of our capital, which could adversely affect our results of
operations and cash flows. As a result, there can be no assurance that we will be able to identify and finance investments that are consistent
with our investment objectives or to achieve positive investment results, and our failure to accomplish any of the foregoing could have
a material adverse effect on us and cause the value of our common stock to decline.
Compliance
with governmental laws, regulations and covenants that are applicable to our properties or that may be passed in the future, including
permit, license and zoning requirements, may adversely affect our ability to make future acquisitions or renovations, result in significant
costs or delays, and adversely affect our growth strategy.
Short-term
rental homes are subject to various covenants and local laws and regulatory requirements, including permitting, licensing and zoning
requirements. Local regulations, including municipal or local ordinances, restrictions and restrictive covenants imposed by community
developers may restrict our use of our properties and may require us to obtain approval from local officials or community standards organizations
at any time with respect to our properties, including prior to acquiring any of our properties or when undertaking renovations of any
of our existing properties. Among other things, these restrictions may relate to fire and safety, seismic, asbestos-cleanup or hazardous
material abatement requirements. Additionally, such local regulations may cause us to incur additional costs to renovate or maintain
our properties in accordance with the particular rules and regulations. We cannot assure you that existing regulatory policies will not
adversely affect our ability to achieve results in terms of adherence to our forecasted plans and achieved in service rental properties
on our projected timeline. Likewise, regulatory policies may adversely affect the timing or cost of our future acquisitions or renovations
Additional regulations may be adopted that will increase delays or result in additional costs. Our business and growth strategies may
be materially and adversely affected by our ability to obtain permits, licenses and approvals. Our failure to obtain such permits, licenses
and approvals could have a material adverse effect on us and cause the value of our common stock to decline.
30
We
may become a target of legal demands, litigation (including class actions), and negative publicity by tenant and consumer rights organizations,
which could directly limit and constrain our operations and may result in significant litigation expenses and reputational harm.
Numerous
tenant rights and consumer rights organizations exist throughout the country and operate in our markets. We may attract attention from
some of these organizations and become a target of legal demands, litigation, and negative publicity. Many consumer organizations have
become more active and better funded in connection with mortgage foreclosure-related issues and with the increased market for homes arising
from displaced homeownership. Some of these organizations may shift their litigation, lobbying, fundraising, and grass roots organizing
activities to focus on landlord-resident issues. While we intend to conduct our business lawfully and in compliance with applicable landlord-tenant
and consumer laws, such organizations might work in conjunction with trial and pro bono lawyers in one or multiple states to attempt
to bring claims against us on a class action basis for damages or injunctive relief and to seek to publicize our activities in a negative
light. We cannot anticipate what form such legal actions might take or what remedies they may seek.
Additionally,
such organizations may lobby local county and municipal attorneys or state attorneys general to pursue enforcement or litigation against
us, may lobby state and local legislatures to pass new laws and regulations to constrain or limit our business operations, adversely
impact our business, or may generate negative publicity for our business and harm our reputation. If they are successful in any such
endeavors, they could directly limit and constrain our operations and may impose on us significant litigation expenses, including settlements
to avoid continued litigation or judgments for damages or injunctions.
Our
business is subject to laws and regulations regarding privacy, data protection, consumer protection, and other matters. Many of these
laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our business practices,
monetary penalties, or otherwise harm our business.
We
are subject to a variety of laws and regulations that involve matters such as: privacy; data protection; personal information; rights
of publicity; content; marketing; distribution; data security; data retention and deletion; electronic contracts and other communications;
consumer protection; and online payment services. These laws and regulations are constantly evolving and can be subject to significant
change. As a result, the application, interpretation, and enforcement of these laws and regulations are often uncertain and may be interpreted
and applied inconsistently. 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, and other matters relating to our customers.
There
are a number of legislative proposals at both the federal and state level, as well as other jurisdictions that could impose new obligations
in areas affecting our business. We are subject to numerous, complex, and frequently changing laws, regulations, and contractual obligations
designed to protect personal information. Various federal and state privacy and data security laws and regulatory standards create data
privacy rights for users, including more ability to control how their data is shared with third parties. These laws and regulations,
as well as any associated inquiries or investigations or any other government actions, may be costly to comply with, result in negative
publicity, require significant management time and attention, and subject us to remedies that may harm our business, including fines
or demands or orders that we modify or cease existing business practices.
We
may not successfully detect and prevent fraud, misconduct, incompetence or theft by our third-party service providers. In addition, any
removal or termination of third-party service providers would require us to seek new vendors or providers, which would create delays
and adversely affect our operations. Poor performance by such third-party service providers will reflect poorly on us and could significantly
damage our reputation among guests. In the event of fraud or misconduct by a third party, we could also be exposed to material liability
and be held responsible for damages, fines or penalties and our reputation may suffer.
31
We
may from time to time in the future acquire some of our homes through the auction process, which could subject us to significant risks
that could adversely affect us.
We
may from time to time in the future acquire some of our homes through the auction process, including auctions of homes that have been
foreclosed upon by third party lenders. Such auctions may occur simultaneously in a number of markets, including monthly auctions on
the same day of the month in certain markets. As a result, we may only be able to visually inspect properties from the street and will
purchase these homes without a contingency period and in "as is" condition with the risk that unknown defects in the property
may exist. Upon acquiring a new home, we may have to evict residents who are in unlawful possession before we can secure possession and
control of the home. The holdover occupants may be the former owners or residents of a property, or they may be squatters or others who
are illegally in possession. Securing control and possession from these occupants can be both costly and time-consuming or generate negative
publicity for our business and harm our reputation.
Title
defects could lead to material losses on our investments in our properties.
Our
title to a property may be challenged for a variety of reasons, and in such instances title insurance may not prove adequate. We may,
from time to time, in the future, acquire a number of our properties on an "as is" basis, at auctions or otherwise. When
acquiring properties on an "as is" basis, title commitments are often not available prior to purchase and title reports or
title information may not reflect all senior liens, which may increase the possibility of acquiring houses outside predetermined acquisition
and price parameters, purchasing residences with title defects and deed restrictions, HOA restrictions on short-term renting, or purchasing
the wrong residence without the benefit of title insurance prior to closing. This could lead to a material if not complete loss on our
investment in such properties.
For
properties we acquire at auction, we similarly do not obtain title insurance prior to purchase, and we are not able to perform the type
of title review that is customary in acquisitions of real property. As a result, our knowledge of potential title issues will be limited,
and no title insurance protection will be in place. This lack of title knowledge and insurance protection may result in third parties
having claims against our title to such properties that may materially and adversely affect the values of the properties or call into
question the validity of our title to such properties. Without title insurance, we are fully exposed to, and would have to defend ourselves
against, such claims. Further, if any such claims are superior to our title to the property we acquired, we risk loss of the property
purchased.
Increased
scrutiny of title matters could lead to legal challenges with respect to the validity of the sale. In the absence of title insurance,
the sale may be rescinded and we may be unable to recover our purchase price, resulting in a complete loss. Title insurance obtained
subsequent to purchase offers little protection against discoverable defects because they are typically excluded from such policies.
In addition, any title insurance on a property, even if acquired, may not cover all defects or the significant legal costs associated
with obtaining clear title.
Any
of these risks could adversely affect our operating results, cash flows, and ability to make distributions to our stockholders.
Our
lack of a long operating history could adversely impact us.
As
a start-up business, we do not have a long operating history. Accordingly, recent events, including the securities regulatory matters,
could have a greater impact upon us than a company that has a long operating history. For example, it may make it more difficult for
us to bind coverage with insurance carriers or to achieve better rates from other service providers or lenders due to these recent events
due to a higher risk profile.
Contingent
or unknown liabilities could adversely affect our financial condition, cash flows and operating results.
Assets
and entities that we have acquired or may acquire in the future may be subject to unknown or contingent liabilities for which we may
have limited or no recourse against the sellers. Unknown or contingent liabilities might include liabilities for or with respect to liens
attached to properties, unpaid real estate tax, utilities, or HOA charges for which a subsequent owner remains liable, clean-up or remediation
of environmental conditions or code violations, claims of customers, vendors, or other persons dealing with the acquired entities, and
tax liabilities. Purchases of single-family properties acquired at auction, in short sales, from lenders, or in portfolio purchases typically
involve few or no representations or warranties with respect to the properties and may allow us limited or no recourse against the sellers.
Such properties also often have unpaid tax, utility, and HOA liabilities for which we may be obligated but fail to anticipate. As a result,
the total amount of costs and expenses that we may incur with respect to liabilities associated with acquired properties and entities
may exceed our expectations, which may adversely affect our operating results and financial condition. Additionally, such properties
may be subject to covenants, conditions, or restrictions that restrict the use or ownership of such properties, including prohibitions
on short-term renting. We may not discover such restrictions during the acquisition process and such restrictions may adversely affect
our ability to operate such properties as we intend.
32
Environmentally
hazardous conditions may adversely affect us.
Under
various federal, state and local environmental laws, a current or previous owner or operator of real property may be liable for the cost
of removing or remediating hazardous or toxic substances on such property. Such laws often impose liability whether or not the owner
or operator knew of, or was responsible for, the presence of such hazardous or toxic substances. Even if more than one person may have
been responsible for the contamination, each person covered by applicable environmental laws may be held responsible for all of the clean-up
costs incurred. In addition, third parties may sue the owner or operator of a site for damages based on personal injury, natural resources
or property damage or other costs, including investigation and clean-up costs, resulting from the environmental contamination. The presence
of hazardous or toxic substances on one of our properties, or the failure to properly remediate a contaminated property, could give rise
to a lien in favor of the government for costs it may incur to address the contamination or otherwise adversely affect our ability to
sell or short-term rent the property or borrow using the property as collateral. Environmental laws also may impose restrictions on the
manner in which property may be used or businesses may be operated. A property owner who violates environmental laws may be subject to
sanctions which may be enforced by governmental agencies or, in certain circumstances, private parties. In connection with the acquisition
and ownership of our properties, we may be exposed to such costs. The cost of defending against environmental claims, of compliance with
environmental regulatory requirements or of remediating any contaminated property could materially and adversely affect us.
Compliance
with new or more stringent environmental laws or regulations or stricter interpretation of existing laws may require material expenditures
by us. We may be subject to environmental laws or regulations relating to our properties, such as those concerning lead-based paint,
mold, asbestos, and proximity to power lines or other issues. We cannot assure you that future laws, ordinances or regulations will not
impose any material environmental liability or that the current environmental condition of our properties will not be affected by the
activities of residents, existing conditions of the land, operations in the vicinity of the properties or the activities of unrelated
third parties. In addition, we may be required to comply with various local, state and federal fire, health, life-safety and similar
regulations. Failure to comply with applicable laws and regulations could result in fines and/or damages, suspension of personnel, civil
liability or other sanctions.
If
we fail to attract guests, or if we fail to provide high-quality stays and experiences, our business, results of operations, and financial
condition would be materially adversely affected.
Our
business depends on our ability to maintain our properties and engage in practices that encourage guests to book those properties, including
increasing the number of nights that are available to book, providing timely responses to inquiries from guests, offering a variety of
desirable and differentiated listings at competitive prices that meet the expectations of guests, and offering hospitality, services,
and experiences that satisfy guests and which prospective guests view as valuable. If we do not establish or maintain a sufficient number
of listings and availability for listings, or if the number of nights booked declines for a particular period, or the prices we are able
to charge declines, our revenue would decline and our business, results of operations, and financial condition would be materially adversely
affected.
Additional
reasons for our financial performance may be affected by economic, social, and political factors; perceptions of trust and safety in
our properties; negative experiences with guests, including guests who damage our property, throw unauthorized parties, or engage in
violent and unlawful acts; and our decision to remove guests for not adhering to our guest standards or other factors we deem detrimental
to our community. Our business, results of operations, and financial condition could be materially adversely affected if our guests are
unable to return to normal travel in the near to immediate term.
33
If
we fail to retain guests or add new guests, our business, results of operations, and financial condition would be materially adversely
affected.
Our
success depends significantly on existing guests continuing to book and attracting new guests to book our properties. Our ability to
attract and retain guests could be materially adversely affected by a number of factors discussed elsewhere in these "Risk Factors,"
including:
●
events
                                            beyond our control, such as the COVID-19 pandemic, other pandemics and health concerns, increased
                                            or continuing restrictions on travel, immigration, trade disputes, economic downturns, and
                                            the impact of climate change on travel, including fires, floods, severe weather and other
                                            natural disasters, and the impact of climate change on seasonal destinations;
●
failing
                                            to meet guests' expectations, including increased expectations for cleanliness in light
                                            of the COVID-19 pandemic;
●
increased
                                            competition and use of our competitors' properties;
●
failing
                                            to provide differentiated, high-quality, and an adequate supply of stays or experiences at
                                            competitive prices;
●
guests
                                            not receiving timely and adequate support from us;
●
our
                                            failure to provide new or enhanced offerings, tiers, or features that guests value;
●
declines
                                            or inefficiencies in our marketing efforts;
●
negative
                                            associations with, or reduced awareness of, our brand;
●
negative
                                            perceptions of the trust and safety in our properties; and
●
macroeconomic
                                            and other conditions outside of our control affecting travel and hospitality industries generally.
In
addition, if our listings and other content provided are not displayed effectively to guests, we are not effective in engaging guests
across our various offerings, we fail to provide an experience in a manner that meets rapidly changing demand, or guests have unsatisfactory
search, booking, or payment experiences, we could fail to convert first-time guests and fail to engage with existing guests, which would
materially adversely affect our business, results of operations, and financial condition.
Properties
could be difficult to short-term rent, which could adversely affect our revenues.
The
properties we acquire are vacant at the time of closing and we may not be successful in attracting guests to short-term rent the individual
properties that we acquire as quickly as we had expected or at all. Rental revenues may be affected by declines in market rental rates
more quickly than if our leases were for longer terms. Even if we are able to find guests as quickly as we had expected, we may incur
vacancies and may not be able to re-short-term rent those properties without longer-than-assumed delays, which may result in increased
renovation and maintenance costs. In addition, the value of a vacant property could be substantially impaired. Vacant homes may also
be at risk for fraudulent activity which could impact our ability to lease a home. As a result, if vacancies continue for a longer period
of time than we expect or indefinitely, we may suffer reduced revenues, which may have a material adverse effect on us.
34
Declining
real estate valuations and impairment charges could adversely affect our financial condition and operating results.
We
periodically review the value of our properties to determine whether their value, based on market factors, projected income and generally
accepted accounting principles, has permanently decreased such that it is necessary or appropriate to take an impairment loss in the
relevant accounting period. Such a loss would cause an immediate reduction of net income in the applicable accounting period and would
be reflected in a decrease in our balance sheet assets. The reduction of net income from impairment losses could lead to a reduction
in our dividends, both in the relevant accounting period and in future periods. Even if we do not determine that it is necessary or appropriate
to record an impairment loss, a reduction in the intrinsic value of a property would become manifest over time through reduced income
from the property and would therefore affect our earnings and financial condition.
We
are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively
affect us and the value of our common stock.
Our
operations are dependent upon our internal operating systems, and property management platforms, as well as external short-term rental
platforms, like Airbnb, which include certain automated processes that require access to telecommunications or the internet, each of
which is subject to system security risks. Certain critical components are dependent upon third party service providers and a significant
portion of our business operations are conducted over the internet. As a result, we could be severely impacted by a catastrophic occurrence,
such as a natural disaster or a terrorist attack, or a circumstance that disrupted access to telecommunications, the internet or operations
at our third-party service providers, including viruses or experienced computer programmers that could penetrate network security defenses
and cause system failures and disruptions of operations. Even though we believe we utilize appropriate duplication and back-up procedures,
a significant outage in telecommunications, the internet or at our third-party service providers could negatively impact our operations.
Security
breaches and other disruptions could compromise our information systems and expose us to liability, which would cause our business and
reputation to suffer.
Information
security risks have generally increased in recent years due to the rise in new technologies and the increased sophistication and activities
of perpetrators of cyberattacks. In the ordinary course of our business, we acquire and store sensitive data, including intellectual
property, our proprietary business information and personally identifiable information of our prospective and current residents, employees
and third-party service providers. The secure processing and maintenance of such information is critical to our operations and business
strategy. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached
due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored therein
could be accessed, publicly disclosed, misused, lost or stolen. Any such access, disclosure or other loss of information could result
in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, disruption
to our operations and the services we provide to customers or damage our reputation, any of which could adversely affect our results
of operations, reputation and competitive position.
We
rely upon Amazon Web Services to operate certain aspects of our service and any disruption of or interference with our use of the Amazon
Web Services operation would impact our operations and our business would be adversely impacted.
Amazon
Web Services ("AWS") provides a distributed computing infrastructure platform for business operations, or what is commonly
referred to as a "cloud" computing service. Our software and computer systems have been designed to utilize data processing,
storage capabilities and other services provided by AWS. Currently, we run the vast majority of our computing on AWS. Given this, along
with the fact that we cannot easily switch our AWS operations to another cloud provider, any disruption of or interference with our use
of AWS would impact our operations and our business would be adversely impacted.
35
We
may be involved in a variety of litigation.
We
may be involved in a range of legal actions in the ordinary course of business. These actions may include, among others, challenges to
title and ownership rights, disputes arising over potential violations of HOA rules and regulations, issues with local housing officials
arising from the condition or maintenance of the property, outside vendor disputes and trademark infringement and other intellectual
property claims. These actions can be time-consuming and expensive, and may adversely affect our reputation. Although we are not currently
involved in any legal or regulatory proceedings that we expect would have a material adverse effect on our business, results of operations
or financial condition, and such proceedings may arise in the future.
We
may suffer losses that are not covered by insurance.
We
attempt to ensure that our properties are adequately insured to cover casualty losses. However, there are certain losses, including losses
from floods, fires, earthquakes, wind, pollution, acts of war, acts of terrorism or riots, for which we may self-insure or which may
not always or generally be insured against because it may not be deemed economically feasible or prudent to do so. Changes in the cost
or availability of insurance could expose us to uninsured casualty losses. In particular, a number of our properties may be located in
areas that are known to be subject to increased earthquake activity, fires, or wind and/or flood risk. While we may have policies for
earthquakes and hurricane and/or flood risk, our properties may nonetheless incur a casualty loss that is not fully covered by insurance.
In such an event, the value of the affected properties would be reduced by the amount of any such uninsured loss, and we could experience
a significant loss of capital invested and potential revenues in such properties and could potentially remain obligated under any recourse
debt associated with such properties. Inflation, changes in building codes and ordinances, environmental considerations and other factors
might also keep us from using insurance proceeds to replace or renovate a particular property after it has been damaged or destroyed.
Under those circumstances, the insurance proceeds we receive might be inadequate to restore our economic position on the damaged or destroyed
property. Any such losses could adversely affect us and cause the value of our common stock to decline. In addition, we may have no source
of funding to repair or reconstruct the damaged home, and we cannot assure that any such sources of funding will be available to us for
such purposes in the future.
We
face possible risks associated with natural disasters and extreme weather events (the frequency and severity of which may be impacted
by climate change), which may include more frequent or severe storms, extreme temperatures and ambient temperature increases, hurricanes,
flooding, rising sea levels, shortages of water, droughts, and wildfires, any of which could have a material adverse effect on our business,
results of operations, and financial condition.
We
are subject to the risks associated with natural disasters and the physical effects of climate change, which may include more frequent
or severe storms, extreme temperatures and ambient temperature increases, hurricanes, flooding, rising sea levels, shortages of water,
droughts, and wildfires (although it is currently impossible to accurately predict the impact of climate change on the frequency or severity
of these events), any of which could have a material adverse effect on our business, results of operations, and financial condition.
We will operate in certain areas where the risk of natural or climate-related disaster or other catastrophic losses exists, and the occasional
incidence of such an event could cause substantial damage to our properties or the surrounding area. For example, to the extent climate
change causes changes in weather patterns or an increase in extreme weather events, our coastal destinations could experience increases
in storm intensity and rising sea-levels causing damage to our properties and result in a reduced number of listings in these areas.
Other destinations could experience extreme temperatures and ambient temperature increases, shortages of water, droughts, wildfires,
and other extreme weather events that make those destinations less desirable. Climate change may also affect our business by increasing
the cost of, or making unavailable, property insurance on terms we find acceptable in areas most vulnerable to such events, increasing
operating costs, including the availability and cost of water or energy, and requiring us to expend funds as we seek to repair and protect
our properties in connection with such events. As a result of the foregoing and other climate-related issues, we may decide to remove
such listings from our platform. If we are unable to provide listings in certain areas due to climate change, we may lose guests, which
could have a material adverse effect on our business, results of operations, and financial condition.
36
Eminent
domain could lead to material losses on our investments in our properties.
Governmental
authorities may exercise eminent domain to acquire the land on which our properties are built in order to build roads and other infrastructure.
Any such exercise of eminent domain would allow us to recover only the fair value of the affected properties. In addition, "fair
value" could be substantially less than the real market value of the property for a number of years, and we could effectively have
no profit potential from properties acquired by the government through eminent domain.
We
may have difficulty selling our real estate investments and our ability to distribute all or a portion of the net proceeds from any such
sale to our stockholders may be limited.
Real
estate investments are relatively illiquid and, as a result, we may have a limited ability to sell our properties. When we sell any of
our properties, we may recognize a loss on such sale. We may elect not to distribute any proceeds from the sale of properties to our
stockholders. Instead, we may use such proceeds for other purposes, including:
●
purchasing
                                            additional properties;
●
repaying
                                            debt or buying back shares
●
creating
                                            working capital reserves; or
●
making
                                            repairs, maintenance or other capital improvements or expenditures to our remaining properties.
Laws,
regulations, and rules that affect the short-term rental may limit our ability to offer short-term rentals and could expose us to significant
penalties, which could have a material adverse effect on our business, results of operations, and financial condition.
Hotels
and groups affiliated with hotels, neighborhoods, and communities have engaged and will likely continue to engage in various lobbying
and political efforts for stricter regulations governing short-term rentals with both local and national jurisdictions. These groups
and others cite concerns around affordable housing and over-tourism in major cities, and some state and local governments have implemented
or considered implementing rules, ordinances, or regulations governing the short-term rental of properties and/or home sharing. Such
regulations include ordinances that restrict or ban short-term rentals, set annual caps on the number of days we can rent our homes for
short-term rental, require us to register with the municipality or city, or require us to obtain permission before offering short-term
rentals. In addition, some jurisdictions regard short-term rental as "hotel use" and claim that such use constitutes a conversion
of a residential property to a commercial property requiring a permitting process. Macroeconomic pressures and public policy concerns
could continue to lead to new laws and regulations, or interpretations of existing laws and regulations, which limit the ability of hosts
to share their spaces. If laws, regulations, rules, or agreements significantly restrict or discourage short-term rentals in certain
jurisdictions, it would have a material adverse effect on our business, results of operations, and financial condition.
37
Guest,
or third-party actions that are criminal, violent, inappropriate, or dangerous, or fraudulent activity, may undermine the safety or the
perception of safety of our properties and our ability to attract and retain guests and materially adversely affect our reputation, business,
results of operations, and financial condition.
We
have no control over or ability to predict the actions of our guests and other third parties, such as neighbors or invitees, either during
the guest's stay, experience, or otherwise, and therefore, we cannot guarantee the safety of our guests, and third parties. The
actions of guests and other third parties can result in fatalities, injuries, other bodily harm, fraud, invasion of privacy, property
damage, discrimination and brand and reputational damage, which could create potential legal or other substantial liabilities for us.
We do not verify the identity of our guests nor do we verify or screen third parties who may be present during a reservation. We rely
on the booking sites' ability to validate the guests' information. The verification processes used by the booking sites are
beneficial but not exhaustive and have limitations due to a variety of factors, including laws and regulations that prohibit or limit
their ability to conduct effective background checks in some jurisdictions, the unavailability of information, and the inability of their
systems to detect all suspicious activity. There can be no assurances that these measures will significantly reduce criminal or fraudulent
activity.
If
guests, or third parties engage in criminal activity, misconduct, fraudulent, negligent, or inappropriate conduct or use our properties
as a conduit for criminal activity, consumers may not consider our listings safe, and we may receive negative media coverage, or be subject
to involvement in a government investigation concerning such activity, which could adversely impact our brand and reputation –
thereby impacting our operating results.
The
methods used by perpetrators of fraud and other misconduct are complex and constantly evolving, and our trust and security measures may
currently or in the future be insufficient to detect and help prevent all fraudulent activity and other misconduct.
In
addition, certain regions where we are planning to operate have higher rates of violent crime or more relaxed safety standards, which
can lead to more safety and security incidents, and may adversely impact the bookings of our properties in those regions and elsewhere.
If
criminal, inappropriate, fraudulent, or other negative incidents occur due to the conduct of guests or third parties, our ability to
attract and retain guests would be harmed, and our business, results of operations, and financial condition would be materially adversely
affected – thereby impacting other guests. Such incidents may in the future prompt stricter home short-term rental regulations
or regulatory inquiries into our policies and business practices.
Measures
that we are planning to take to ensure the trust and safety of our properties may cause us to incur significant expenditures and may
not be successful.
We
are planning to take measures to ensure the trust and safety of our properties, to combat fraudulent activities and other misconduct
and improve trust, such as using smart locks, noise monitoring systems, and potentially use identity scanners at each property. These
measures are long-term investments in our business to promote the trust and safety of our properties; however, some of these measures
increase friction by increasing the number of steps required to be able to rent one of our properties, which could reduce Guest activity,
and could materially and adversely affect our business, results of operations, and financial condition. The timing and implementation
of these measures will vary across geographies. There can be no assurances that our plans to invest in the trust and safety of our properties
will be successful, significantly reduce criminal or fraudulent activity on or off our properties, or be sufficient to protect our reputation
in the event of such activity.
In
the future, we may have operations in countries known to experience high levels of corruption and any violation of anti-corruption laws
could subject us to penalties and other adverse consequences.
We
are subject to the U.S. Foreign Corrupt Practices Act ("FCPA") and other laws in the United States and elsewhere that prohibit
improper payments or offers of payments to foreign governments and their officials, political parties, state-owned or controlled enterprises,
and/or private entities and individuals for the purpose of obtaining or retaining business. We may have operations in, and that otherwise
deal with countries known to experience corruption. Our activities in these countries create the risk of unauthorized payments or offers
of payments by one of our employees, contractors, agents, or users that could be in violation of various laws, including the FCPA and
anti-bribery laws in these countries. Failure to comply with any of these laws and regulations may result in extensive internal or external
investigations as well as significant financial penalties and reputational harm, which could materially adversely affect our business,
results of operations, and financial condition.
38
Risks
Related to this Direct Listing and Ownership of Our Common Stock
We
will control the direction of our business and its ownership of our common stock will prevent you and other stockholders from influencing
significant decisions.
As long as our Company's
major stockholders continue to hold those shares, it will be able to significantly influence or effectively control the composition of
our board of directors and the approval of actions requiring stockholder approval through its voting power. Accordingly, for such period
of time, Giri Devanur, our Chief Executive Officer, will have significant influence with respect to our management, business plans and
policies. In particular, for so long our company continues to hold its shares, it may be able to cause or prevent a change of control
of our Company or a change in the composition of our board of directors, and could preclude any unsolicited acquisition of our Company.
The concentration of ownership could deprive you of an opportunity to receive a premium for your shares of common stock as part of a sale
of our Company and ultimately might affect the value of your common stock.
There
is no assurance that we will successfully list on Nasdaq.
There
can be no assurance that our company will be able to list on Nasdaq, or that such a listing will be maintained even if achieved. Our
ability to list on Nasdaq is subject to a number of conditions, including meeting certain financial and corporate governance requirements.
While we believe we currently satisfy these requirements, there is no guarantee that we will continue to do so in the future. Additionally,
Nasdaq may reject our application for listing or we may encounter delays or other issues that prevent or delay our listing. If we are
unable to list on Nasdaq, or if we are delisted after listing, we may be forced to seek alternative listing arrangements or operate on
an over-the-counter market, which could negatively impact our ability to raise capital, our liquidity, and the marketability of our securities.
Our inability to list on Nasdaq could also have a negative impact on our reputation, business prospects, and financial condition. Therefore,
investors should carefully consider the risks and uncertainties related to our ability to list on Nasdaq before making an investment
decision.
Because we are a "controlled company"
as defined in the Nasdaq Stock Market Rules, you may not have protection of certain corporate governance requirements which otherwise
are required by Nasdaq's rules.
Under Nasdaq's rules,
a controlled company is a company of which more than 50% of the voting power for the election of directors is held by an individual, group
or another company. We are a controlled company because Mr. Giri Devanur, our chief executive officer and Chairman, holds more than 50%
of our voting power, and we expect we will continue to be a controlled company upon the Direct Listing. For so long as we remain a controlled
company, we are not required to comply with the following permitted to elect to rely, and may rely, on certain exemptions from the obligation
to comply with certain corporate governance requirements, including:
●
our
                                            board of directors is not required to be comprised of a majority of independent directors;
●
our
                                            board of directors is not subject to the compensation committee requirement; and
●
we
                                            are not subject to the requirements that director nominees be selected either by the independent
                                            directors or a nomina
tion
                                            committee comprised solely of independent directors.
We have not taken advantage of these exemptions. As a result, to the
extent that we take advantage of these exemptions, you will not have the same protections afforded to stockholders of companies that are
subject to all of the Nasdaq corporate governance requirements. Although we do not currently intend to take advantage of the controlled
company exemptions, we cannot assure you that, in the future, we will not seek to take advantage of these exemptions.
Our
failure to meet the continued listing requirements of the Nasdaq could result in a delisting of our common stock and could make it more
difficult to raise capital in the future.
Nasdaq
has listing requirements for inclusion of securities for trading on the Nasdaq, including minimum levels of stockholders' equity,
market value of publicly held shares, number of public stockholders and stock price. There can be no assurance that we will be successful
in maintaining our listing on the Nasdaq as it is possible that we may fail to satisfy the continued listing requirements, such as the
corporate governance requirements or the minimum stock price requirement. If we fail to satisfy the continued listing requirements, the
Nasdaq may take steps to delist our common stock. Such a delisting, or the announcement of such delisting, will have a negative effect
on the price of our common stock and would impair your ability to sell or purchase our common stock when you wish to do so. In the event
of a delisting, we may attempt to take actions to restore our compliance with the Nasdaq listing requirements, but we can provide no
assurance that any such action taken by us would allow our common stock to become listed again, stabilize the market price or improve
the liquidity of our common stock, prevent our common stock from dropping below the Nasdaq minimum listing requirements or prevent future
non-compliance with the Nasdaq listing requirements. If we do not maintain the listing of our common stock on the Nasdaq, it could make
it harder for us to raise additional capital in the long-term. If we are unable to raise capital when needed in the future, we may have
to cease or reduce operations.
39
Our
financial situation creates doubt whether we will continue as a going concern.
There
can be no assurances that we will ever be able to achieve a level of revenues adequate to generate sufficient cash fflow from operations
or obtain additional financing through private placements, public offerings and/or bank financing necessary to support our working capital
requirements. To the extent that funds generated from any private placements, public offerings and/or bank financing are insufficient,
we will have to raise additional working capital and no assurance can be given that additional financing will be available, or, if available,
will be on acceptable terms. The recent interest rate hikes and the present conditions and state of the United States and global economies
make it difficult to predict whether and/or when and to what extent a recession has occurred or will occur in the near future. These
conditions potentially raise substantial doubt about our ability to continue as a going concern. If adequate working capital is not available,
we may be forced to discontinue operations, which would cause investors to lose their entire investment.
The
price of our common stock may be volatile and fluctuate substantially, which could result in substantial losses for purchasers of our
common stock in this offering.
Our
common stock price is likely to be volatile. The stock market has experienced extreme volatility that has often been unrelated to the
operating performance of particular companies. As a result of this volatility, you may not be able to sell your common stock at or above
the initial public offering price. The market price for our common stock may be influenced by many factors, including:
●
the
                                            success of competitive products or technologies;
●
regulatory
                                            or legal developments in the United States,
●
the
                                            recruitment or departure of key personnel;
●
actual
                                            or anticipated changes in our development timelines;
●
our
                                            ability to raise additional capital;
●
disputes
                                            or other developments relating to proprietary rights, litigation matters and our ability
                                            to obtain patent protection for our product candidates in the future should we choose to
                                            do so;
●
significant
                                            lawsuits, including stockholder litigation;
●
variations
                                            in our financial results or those of companies that are perceived to be similar to us;
●
general
                                            economic, industry and market conditions; and
●
the
                                            other factors described in this "Risk Factors" section.
If
our quarterly operating results fall below the expectations of investors or securities analysts, the price of our common stock could
decline substantially. Furthermore, any quarterly fluctuations in our operating results may, in turn, cause the price of our stock to
fluctuate substantially. We believe that quarterly comparisons of our financial results are not necessarily meaningful and should not
be relied upon as an indication of our future performance.
In
the past, following periods of volatility in the market price of a company's securities, securities class-action litigation often
has been instituted against that company. Such litigation, if instituted against us, could cause us to incur substantial costs to defend
such claims and divert management's attention and resources.
Because
we do not expect to pay dividends for the foreseeable future, investors seeking cash dividends should not purchase shares of common stock.
We
have never declared or paid any cash dividends on our common stock. We currently intend to retain future earnings, if any, to finance
the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future. Our payment of
any future dividends will be at the discretion of our board of directors of Directors after taking into account various factors, including
but not limited to our financial condition, operating results, cash needs, growth plans and the terms of any credit agreements that we
may be a party to at the time. Accordingly, investors must rely on sales of their common stock after price appreciation, which may never
occur, as the only way to realize any future gains on their investments. Furthermore, our Credit Agreement contains negative covenants
that limit our ability to pay dividends. For more information, see the section titled "Management's Discussion and Analysis
of Financial Condition and Results of Operations - Liquidity and Capital Resources."
40
Although
we intend to apply to list our common stock on Nasdaq, an active trading market for our common stock may not develop.
Prior
to this offering, no public market has existed for our common stock. Further, we intend to apply to list our common stock on Nasdaq,
and there can be no assurance that we will be approved. Although this offering will not commence without the approval for the trading
of our common stock on Nasdaq, an active trading market for our shares may never develop or be sustained following this offering. If
an active market for our common stock does not develop, it may be difficult for you to sell shares you purchase in this offering without
depressing the market price for the shares, or at all.  An inactive market may also impair our ability to raise capital by selling
our common stock and may impair our ability to expand our business by using our common stock as consideration in an acquisition.
We
will be subject to additional regulatory burdens resulting from our public listing.
We
are working with our legal, accounting and financial advisors to identify those areas in which changes should be made to our financial
management control systems to manage our obligations as a public company listed on the Nasdaq. These areas include corporate governance,
corporate controls, disclosure controls and procedures and financial reporting and accounting systems. We have made, and will continue
to make, changes in these and other areas, including our internal controls over financial reporting. However, we cannot assure holders
of our common stock that these and other measures that we might take will be sufficient to allow us to satisfy our obligations as a public
company listed on the Nasdaq on a timely basis. In addition, compliance with reporting and other requirements applicable to public companies
listed on the Nasdaq will create additional costs for us and will require the time and attention of management. We cannot predict the
amount of the additional costs that we might incur, the timing of such costs or the impact that management's attention to these
matters will have on our business.
We
may sell additional common stock or other securities that are convertible or exchangeable into common stock in subsequent offerings or
may issue additional common stock or other securities to finance future acquisitions.
We
cannot predict the size or nature of future sales or issuances of securities or the effect, if any, that such future sales and issuances
will have on the market price of the common stock. Sales or issuances of substantial numbers of common stock or other securities that
are convertible or exchangeable into common stock, or the perception that such sales or issuances could occur, may adversely affect prevailing
market prices of the common stock. With any additional sale or issuance of common stock or other securities that are convertible or exchangeable
into common stock, investors will suffer dilution to their voting power and economic interest in our company. Furthermore, to the extent
holders of any stock options or other convertible securities convert or exercise their securities and sell the common stock they receive,
the trading price of the common stock may decrease due to the additional amount of common stock available in the market.
To
the extent we may issue additional equity interests, our stockholders' percentage ownership interest in our Company would be diluted.
In addition, depending upon the terms and pricing of any additional offerings, the use of the proceeds and the value of our real estate
investments, you may also experience dilution in the value of your shares and in the earnings and dividends per share.
Upon its effectiveness, our Certificate
of Incorporation will provide that the Court of Chancery of the State of Delaware will be the exclusive forum for certain disputes between
us and our stockholders, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us
or our directors, officers or employees.
Upon its effectiveness, our
Certificate of Incorporation will provide that, with certain limited exceptions, the Court of Chancery of the State of Delaware will
be the exclusive forum for:
●
any
                                            derivative action or proceeding brought on our behalf;
●
any
                                            action asserting a claim of breach of fiduciary duty owed by any director, officer or stockholder;
41
●
any action asserting a claim against us arising under the Delaware General Corporation Law ("DGCL"), or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware;
●
any action arising pursuant to any provision of our Bylaws or Certificate of Incorporation; and
●
any action asserting a claim against us or any current or former director, officer or stockholder that is governed by the internal-affairs doctrine.
This exclusive-forum provisions
may limit a stockholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors,
officers or other employees, which may discourage lawsuits against us and our directors, officers and other employees. Any person or entity
purchasing or otherwise acquiring any interest in any of our securities shall be deemed to have notice of and consented to this provision.
There is no certainty that a court located outside of Delaware would give effect to this provision in any given case. If a court were
to find this exclusive-forum provision in our Certificate of Incorporation to be inapplicable or unenforceable in an action, we may incur
additional costs associated with resolving the dispute in other jurisdictions.
We are an emerging growth
company and a smaller reporting company and intend to take advantage of reduced disclosure requirements applicable to emerging growth
companies, which could make the common stock less attractive to investors.
We are an "emerging
growth company" ("EGC") as defined in the Jumpstart Our Business Startups Act of 2012. we will remain an EGC until the
earliest to occur of (i) the last day of the fiscal year in which it has total annual gross revenue of $1.235 billion or more; (ii) the
last day of the fiscal year following the fifth anniversary of the date of the first sale of common stock pursuant to this registration
statement; (iii) the date on which it has issued more than $1.0 billion in non-convertible debt securities during the prior three-year
period; or (iv) the date it qualifies as a "large accelerated filer" under the rules of the SEC, which means the market value
of the common stock held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal
quarter after it has been a reporting company in the United States for at least 12 months. For so long as we remain an EGC, it is permitted
to and intends to rely upon exemptions from certain disclosure requirements that are applicable to other public companies that are not
EGCs. These exemptions include not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley
Act ("SOX").
We may take advantage of some,
but not all, of the available exemptions available to EGCs. We cannot predict whether investors will find the common stock less attractive
if it relies on these exemptions. If some investors find the common stock less attractive as a result, there may be a less active trading
market for the common stock and the price of the common stock may be more volatile.
We are also a smaller reporting
company, as defined in Rule 405 promulgated under the Securities Act ("SRC"). As an SRC, our company intends to utilize certain
reduced disclosure requirements, including publishing two years of audited financial statements instead of three years, as required for
companies that do not qualify as an SRC. Our company will remain an SRC until the last day of the fiscal year in which it had
(i) a public float that exceeded $250 million or (ii) annual revenues of more than $100 million and a public float that exceeded $700
million. To the extent our company takes advantage of such reduced disclosure obligations, it may make comparison of its financial statements
to those of other public companies difficult or impossible.
After our company ceases to
be an SRC, it is expected to incur additional management time and cost to comply with the more stringent reporting requirements applicable
to companies that are accelerated filers or large accelerated filers, including complying with the auditor attestation requirements of
Section 404 of SOX.
42
TRADEMARKS, SERVICE MARKS, COPYRIGHTS AND TRADENAMES
We own or otherwise have rights
to the trademarks, service marks, and copyrights, including those mentioned in this prospectus, used in conjunction with the operation
of our business. This prospectus includes our own trademarks, which are protected under applicable intellectual property laws, as well
as trademarks, service marks, copyrights, and tradenames of other companies, which are the property of their respective owners. We do
not intend our use or display of other companies' trademarks, service marks, copyrights, or tradenames to imply a relationship with,
or endorsement or sponsorship of us by, any other companies. Solely for convenience, trademarks and tradenames referred to in this prospectus
may appear without the
®
,
™
, or SM symbols, but such references are not intended to indicate,
in any way, that we will not assert, to the fullest extent under applicable law, our rights to these trademarks and tradenames.
As of the date of this prospectus,
we have applied for 2 trademarks and has filed a provisional patent application for the reAlpha Score. As of the date of this prospectus,
the Company has the following pending applications for federal trademarks and a license to use the following federal trademark in the
United States:
Mark Name
International
Classes
Application
Number
Filed Date
Owner
reAlpha M
3 TM
035
90670058
2021-04-25
reAlpha Tech Corp
reAlpha HUMINT
TM
035
90670061
2021-04-25
reAlpha Tech Corp
reAlpha BRAIN
TM
035
90670577
2021-04-25
reAlpha Tech Corp
reAlpha Hub
TM
035
90670055
2021-04-25
reAlpha Tech Corp
IPO – Investment Property Offering
042
97603076
2022-09-22
reAlpha Tech Corp
Vacation Capitalist
036
97703446
2022-12-05
reAlpha Tech Corp
43
USE OF PROCEEDS
Registered
Stockholders may, or may not, elect to sell or distribution, as applicable, shares of our common stock covered by this prospectus. To
the extent any Registered Stockholder chooses to sell or distribution, as applicable, shares of our common stock covered by this prospectus,
we will not receive any proceeds from any such sales of our common stock. See "Principal and Registered Stockholders."
MARKET INFORMATION FOR SECURITIES AND DIVIDEND
POLICY
Market Price and
Ticker Symbols
There is currently no market
for our common stock. We intend to apply to list on Nasdaq under the symbol "[●]".
Holders
On April 17, 2023, there were
3,123 holders of record of the Company's common stock.
Dividend Policy
We
have never declared or paid any cash dividend on our capital stock. We do not anticipate paying any cash dividends in the foreseeable
future and we intend to retain all of our earnings, if any, to finance our growth and operations and to fund the expansion of our business.
Payment of any dividends will be made in the discretion of our board of directors. Our board of directors may take into account general
and economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs,
capital requirements, contractual, legal, tax and regulatory restrictions and implications on the payment of dividends by us to our stockholders
or by our subsidiaries to us and such other factors as our board of directors may deem relevant. In addition, our ability to pay dividends
is limited by our credit facilities and may be limited by covenants of other indebtedness we or our subsidiaries incur in the future.
44
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The
following discussion and analysis of our financial condition and results of operations should be read in conjunction with the information
presented in our historical combined financial statements and the related notes included elsewhere in this prospectus. In addition to
historical information, the following discussion contains forward-looking statements, such as statements regarding our expectation for
future performance, liquidity and capital resources, which involve risks, uncertainties and assumptions that could cause actual results
to differ materially from our expectations. Our actual results may differ materially from those contained in or implied by any forward-looking
statements. Factors that could cause such differences include those identified below and those described in "Information Regarding
Forward-Looking Statements," "Risk Factors" and "Financial Information."
Business Overview
Our business model is built
around acquiring short-term rental properties that meet its internal investment criteria, which it calls Target Properties. Once acquired,
we plan to renovate these properties to prepare them for rent and list them on short-term rental sites. We also plan to manage the financial
performance of these assets, which includes evaluating the property's after-repair value and profitability.
To make this business model
available to retail investors, we plan to offer interest in each property portfolio through exempt offerings directed at those investors.
The investors who participate in these offerings are called Syndicate Members. We expect that in the future, these Syndicate Members will
purchase minority interests in the Company's acquired properties.
Our goal is to achieve consistent
cash flow from short-term tenants, long-term capital appreciation, favorable tax treatment of long-term capital gains, and capital preservation.
To finance these property acquisition investments, the company may engage in leverage financing. This involves a combination of senior
financing on its real estate acquisitions, secured facilities, and capital markets financing transactions.
We plan to secure conservatively
structured leverage that is long-term, non-recourse, and non-mark-to-market financing. It intends to manage credit risk and interest rate
risk associated with these financings by monitoring credit risk and other risks of loss associated with each investment and its overall
credit risk and levels of provision for loss. Additionally, we will follow an interest rate risk management policy intended to mitigate
the negative effects of major interest rate changes. This includes attempting to "match-fund," which means that it will structure
the key terms of its borrowings to generally correspond with the expected holding period of its assets. We have already started its first
syndication of one of its Orlando properties.
Results of Operations
The three months ended January 31, 2023,
compared to the three months ended January 31, 2022
Three months
ended
January 31,
2023
Three months
ended
January 31,
2022
Amount
Amount
Rental Income
$
37,070
$
95,000
Cost of sales
$
(7,785
)
$
(24,781
)
Gross profit
$
29,285
$
70,219
General, Administrative & Other Non-Operating Expenses
$
(1,495,788
)
$
(1,432,924
)
Total operating expenses
$
(67,683
)
$
(70,372
)
Provision for income taxes
$
-
$
-
Net loss
$
(1,534,186
)
$
(1,433,077
)
Less: Net Loss Attributable to Non-Controlling Interests
$
-
$
2,211
Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.)
$
(1,534,186
)
$
(1,430,866
)
Three months ended
January 31,
2023
2022
%  Change
Gross Profit
$
29,285
$
70,372
(58.3
)%
Gross Margin %
78.9
%
73.9
%
5.00
%
45
Revenues.
Total
revenues were $37,070 for the three months ended January 31, 2023 compared to $95,000 for the three months ended January 31,
2022. Our revenues consist of short-term rental revenue that we receive from our listed properties. The decline in revenue for the period
ending January 31, 2023, can be attributed to a decrease in the number of properties listed compared to January 31, 2022, as we are in
the process of discontinuing our Dallas, Texas operations by selling most of the properties we previously had in that market.
Cost
of Sales.
Total cost of sales was $7,785 for the three months ended January 31, 2023 compared to $24,781 for the three months
ended January 31, 2022. The decrease in the cost of sales for the three months ended January 31, 2023, is attributed to a reduction in
the property management fee. This fee is charged based on the revenue earned, and since the revenue declined for the three months ended
January 31, 2023, due to a decrease in the number of properties listed as compared to January 31, 2022, it resulted in a decline in the
cost of sales.
Gross Profit
.
Gross profit was $29,285 for the three months ended January 31, 2023, compared to $70,219 for the same period of 2022. The decrease in
gross profit is mainly attributed to a decline in revenue resulting from a decrease in property management fees and host charges associated
with our listed properties compared to the three months ended January 31, 2022.
Gross Margin.
Gross
margin was 78.9% for the three months ended January 31, 2023, compared to 73.9% for the same period of 2022. The increase in gross margins
of 5% during the three months ended January 31, 2023, is mainly due to the decrease in property management fees and host charges associated
with our listed properties, which had been charged to us by Airbnb for hosting our properties during three months ended January 31, 2022.
General, Administrative
and other Non-Operating Expenses
. General administrative and other non-operating expenses were $1,495,788 for the three months
ended January 31, 2023 compared to $1,432,924 for the three months ended January 31, 2022. This increase in general administrative
and other non-operating expenses can be attributed to a minor rise in legal expenses.
Operating
Expense.
We recognized operating expense of $67,683 for the three months ended January 31, 2023, compared to $70,372
for the three months ended January 31, 2022. The reduction in expenses is attributable to a lower number of properties compared to
January 31, 2022. Operating expenses includes utilities, repairs, maintenance, property insurance costs, property taxes, depreciation,
amortization and others.
Net
Loss.
Net loss was $1,534,186 for the three months ended January 31, 2023, compared to $1,430,866 in the prior year
comparable period. This increase in net loss is attributable to a decline in revenues due to decrease in the number of properties listed
compared to January 31, 2022, and an increase in our non-operating expenses due to our increased legal expenses during such period.
46
The nine months ended January 31, 2022,
compared to the nine months ended January 31, 2021
Nine months ended
January 31,
2023
Nine months ended
January 31,
2022
Amount
Amount
Rental Income
$
96,860
$
168,771
Cost of sales
$
(20,336
)
$
(37,758
)
Gross profit
$
76,524
$
131,013
General, Administrative & Other Non-Operating Expenses
$
(3,004,491
)
$
(1,956,136
)
Total operating expenses
$
(221,366
)
$
(208,508
)
Provision for income taxes
$
-
$
-
Net loss
$
(3,149,333
)
$
(2,033,631
)
Less: Net Loss Attributable to Non-Controlling Interests
$
-
$
(8,082
)
Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management, Inc.)
$
(3,149,333
)
$
(2,025,549
)
Nine months ended
January 31,
2023
2022
% Change
Gross Profit
$
76,524
$
131,013
(41.6
)%
Gross Margin %
79.0
%
77.6
%
1.4
%
Revenues.
Total
revenues were $96,860 for the nine months ended January 31, 2023 compared to $168,771 for the nine months ended January 31, 2022.
The decline in revenue for the nine months ended January 31, 2023, can be attributed to a decrease in the number of properties listed
compared to January 31, 2022, as we disposed of certain properties, including most of the properties we previously had in the Dallas,
Texas market. Our revenues consist of short-term rental revenue that we receive from our listed properties.
Cost
of Sales.
Total cost of sales was $20,336 for the nine months ended January 31, 2023 compared to $37,758 for the nine months ended
January 31, 2022. The decrease in the cost of sales for the nine months ended January 31, 2023, is attributed to a reduction in the property
management fee. This fee is charged based on the revenue earned, and since the revenue declined for the nine months ended January 31,
2023, due to a decrease in the number of properties listed as compared to January 31, 2022, it resulted in a decline in the cost of sales.
Gross Profit
.
Gross profit was $76,524 for the nine months ended January 31, 2023, compared to $131,103 for the same period of 2022. The revenue is
not inclusive of the sale amount from these disposed properties. It included only the short-term rentals amount generated from the properties
during their listing period.
Gross
Margin.
Gross margin was 79.0% for the nine months ended January 31, 2023, compared to 77.6% for the same period of
2022. The increase in gross margins of 1.4% during the nine months ended January 31, 2023, is mainly due to the decrease in property management
fees and host charges associated with our listed properties, which had been charged to us by Airbnb for hosting our properties during
nine months ended January 31, 2022.
General, Administrative
and other Non-Operating Expenses.
General administrative and other non-operating expenses were $3,004,491 for the nine months
ended January 31, 2023, compared to $1,956,136 for the nine months ended January 31, 2022. The Increase can be attributed to a rise in
legal expenses in connection with our Regulation A offering and general business operations.
Operating Expense.
We
recognized operating expenses of $211,366 for the nine months ended January 31, 2023 compared to $208,508 for the nine months ended
January 31, 2022. Operating expenses includes utilities, repairs, maintenance, property insurance costs, property taxes, depreciation,
amortization and others. The rise in expenses is attributable to an increase in depreciation and amortization costs compared to January
31, 2022.
Net Loss
. Net loss was $3,149,333
for the nine months ended January 31, 2023, compared to $2,025,549 in the prior year comparable period. This increase in net loss
was due to a decline in revenue, which was due to a decrease in the number of properties listed compared to the nine months ended January
31, 2022 period, and increase in the non-operating expenses, such as increased legal expenses.
47
The fiscal year ended April
30, 2022, compared to the fiscal year ended April 30, 2021
Fiscal year ended
April 30,
2022
Fiscal year ended
April 30,
2021
Amount
Amount
Rental Income
$
229,672
$
784
Cost of sales
$
(55,717
)
$
(199
)
Gross profit
$
173,955
$
585
General, Administrative & Other Non-Operating Expenses
$
(2,995,365
)
$
(2,809
)
Total operating expenses
$
(381,932
)
$
(1,189
)
Provision for income taxes
$
-
$
-
Net loss
$
(3,203,342
)
$
(3,413
)
Less: Net Loss Attributable to Non-Controlling Interests
$
(13,304
)
$
(71
)
Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management, Inc.)
$
(3,190,038
)
$
(3,342
)
Year ended
April 30,
2022
2021
% Change
Gross Profit
$
173,955
$
585
29,636
%
Gross Margin %
75.7
%
74.6
%
1.1
%
Revenues.
Total
revenues were $229,672 for the fiscal year ended April 30, 2022, compared to $784 for the fiscal year ended April 30, 2021. The revenue
increase for the period ending April 30, 2022, is due to the fact that we were formed on April 22, 2021, and the fiscal year ended on
April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30, 2022 (i.e. 365 days). Our revenues
consist of short-term rental revenue that we receive from our listed properties.
Cost of Sales.
Total cost of sales was $55,717 for the fiscal year ended April 30, 2022, compared to $199 for the fiscal year ended April 30, 2021. The
increase in the cost of sales for the fiscal year ended April 30, 2022, is attributed to the fact that our operations began on April 22,
2021, and the fiscal year ended on April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30,
2022 (i.e. 365 days).
Gross Profit
.
Gross profit was $173,955 for the fiscal year ended April 30, 2022, compared to $585 for the same period of 2021. The increase for the
period ending April 30, 2022, is due to the fact that we were formed on April 22, 2021, and our fiscal year ended on April 30, 2021, hence
it only reflected 8 days of operations, compared to the year ending April 30, 2022 (i.e. 365 days).
Gross Margin.
Gross
margin was 75.7% for the fiscal year ended April 30, 2022, compared to 74.6% for the same period of 2021. The increase in gross margins
during the fiscal year ended April 30, 2022, is mainly due to the fact that we were formed on April 22, 2021, and the fiscal year ended
on April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30, 2022 (i.e. 365 days).
General, Administrative
and other Non-Operating Expenses.
General administrative and other non-operating expenses were $2,995,365 for the fiscal year
ended April 30, 2022 compared to $2,809 for the fiscal year ended April 30, 2021. The increase for the fiscal year ended April 30, 2022,
is due to the fact that we were formed on April 22, 2021, and the fiscal year ended on April 30, 2021, hence it only reflected 8 days
of operations, compared to the year ended April 30, 2022 (i.e. 365 days).
48
Operating Expense.
We
recognized operating expense of $381,932 for the fiscal year ended April 30, 2022 compared to $1,189 for the fiscal year ended April 30,
2021. Operating expenses includes utilities, repairs, maintenance, property insurance costs, property taxes, depreciation, amortization
and others. The operating expenses increase for the period ended April 30, 2022, is due to the fact that we were formed on April 22, 2021,
and the fiscal year ended on April 30, 2021, hence it only reflected 8 days of operations, compared to the year ended April 30, 2022 (i.e.
365 days).
Net Loss.
Net
loss was $3,190,038 for the fiscal year ended April 30, 2022, compared to $3,342 for the fiscal year ended April 30, 2021. The decrease
in net loss for the period ended April 30, 2022, is due to the fact that we were formed on April 22, 2021, and the fiscal year ended on
April 30, 2021, hence it only reflected 8 days of operations, compared to the year ending April 30, 2022 (i.e. 365 days).
Liquidity and Capital
Resources
Liquidity
describes the ability of a company to generate sufficient cash flows to meet the cash requirements of its business operations, including
working capital needs, debt services, acquisitions, contractual obligations and other commitments. As of the date of this prospectus,
we have yet to generate meaningful revenue from our business operations and have funded acquisitions, capital expenditure and working
capital requirement through equity and debt financing.
Our
liquidity and capital resources are critical to our ability to execute on our business plan and achieve our strategic objectives. We anticipate
that we will require working capital in the next 12 months to finance our growth and support our operations. Accordingly, we will need
to raise additional capital by securing additional financing. The timing, size, and terms of any such offering have not yet been determined.
To the extent the Company requires additional funds more than 12 months from the date hereof, and
collections from our short-term rentals cannot fund our needs, the Company may utilize equity offerings to raise these funds.
We
cannot provide any assurance that we will be able to raise additional funds on acceptable terms, if at all. Our ability to raise additional
capital will depend on various factors, including market conditions, investor demand, and our financial performance.
Our
business model requires significant capital expenditures to build and maintain the infrastructure and technology required to support our
operations. In addition, we may incur additional costs associated with research and development of new products and services, expansion
into new markets or geographies, and general corporate overhead. As a result, we may require additional financing in the future to fund
these initiatives, which may include additional equity or debt financing or strategic partnerships. We currently do not have any commitments
or arrangements for additional financing, and there can be no assurance that we will be able to obtain additional financing on terms acceptable
to us, or at all. If we are unable to obtain additional financing when required, we may be forced to reduce the scope of our operations,
delay the launch of new products or services, or take other actions that could adversely affect our business, financial condition, and
results of operations. We may also be required to seek additional financing on terms that are unfavorable to us, which could result in
the dilution of our stockholders' ownership interests or the imposition of burdensome terms and restrictions.
Cash Flows
The
following table summarizes our cash flows from operating, investing and financing activities for the periods presented.
Nine Months Ended
Year Ended
Particulars
January 31,
2023
January 31,
2022
April 30,
2022
April 30,
2021
Net cash used in operating activities
$
(4,478,549
)
$
(30,482
)
$
(1,558,025
)
$
(11,326
)
Net cash used in investing activities
$
1,687,271
$
(2,322,374
)
$
(2,645,816
)
$
(98,189
)
Net cash provided by financing activities
$
3,644,095
$
4,485,184
$
5,533,173
$
442,735
49
Cash flows from operating
activities
Net
cash used in operating activities was $(4,478,549) and $(30,482) for the nine months ended January 31, 2023 and 2022, respectively. The
increase in net cash flows used in operating activities as compared to the same period in 2022 was primarily driven by general, administrative
and legal expenses in relation with Regulation A fund raising and other related activities.
Net
cash used in operating activities was $(1,558,025) for the year ended April 30, 2022, compared to $(11,326) for the year ended April 30,
2021. The difference in net cash flows used in operating activities as compared to the same period in 2022 is primarily due to the business
was operating for a significantly shorter duration (i.e., 8 days since April 22, 2021 inception date) during the period ended April 30,
2021 compared to the year ending April 30, 2022, which operated for the whole year (i.e. 365 days).
Cash flows from investing
activities
Our
cash flows from investing activities have been comprised primarily of purchases and sales of real estate properties and improvements to
those properties.
Net
cash used in investing activities was $1,687,271 and $(2,322,374) for the nine months ended January 31, 2023 and 2022, respectively. The
increase in inflow from investing was primarily due to the sale of real estate properties during the nine months ended January 31, 2023.
Net
cash used in investing activities was $(2,645,816) for the year ended April 30, 2022, compared to $(98,189) for the year ended April 30,
2021. The increase was primarily due to purchases of new properties during the year ended April 30, 2022 and also due to the business
was operating for a significantly shorter duration (i.e., 8 days) during the period ended April 30, 2021 compared to the year ending April
30, 2022 (i.e. 365 Days). As the company got incorporated on 22
nd
April, 2021.
Cash flows from financing
activities
We
have financed our operations primarily through sales of equity securities, loans and advances.
Net
cash provided by financing activities was $3,644,095 and $4,485,184 for the nine months ended January 31, 2023 and 2022, respectively.
The increase in net outflow is primarily consists of mortgage loan payment.
Net
cash provided by financing activities was $5,533,173 and $442,735 for the year ended April 30, 2022 and 2021, respectively. The increase
in net inflow is primarily consists of mortgage loan receipts and Regulation A Settlement stock subscription during the year end April
30, 2022.
Contractual and Obligations
and Commitments
Our
contractual obligations as of April 30, 2022 include existing mortgage loans of the 5 properties currently owned by the Company. Monthly
mortgage interest amounts will vary due to interest rate fluctuation, and as of April 30, 2022 they were approximately as follows:
Properties
City & State
Mortgage
Loan
Amount
506 West Parnell Street
Denison, Texas
$
98,000
503 North Patton Avenue
Dallas, Texas
$
177,974
3121 Fieldview Drive
Garland, Texas
$
228,750
Joaquin
Dallas, Texas
$
226,737
606 West Acheson Street
Denison, Texas
$
110,250
746 Greenland Way
Grand Praire, Texas
$
217,500
790 Pebble Beach Drive
Champions Gate, Florida
$
276,553
612 Jasmine Lane
Davenport, Florida
$
337,242
7676 Amazonas Street
Kissimmee, Florida
$
266,204
2540 Hamlet Lane
Kissimmee, Florida
$
342,000
Total
$
2,281,211
50
Off-Balance Sheet
Arrangements
As of January 31, 2023,
we had no off-balance sheet arrangements.
Critical Accounting
Policies and Estimates
This
discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which
have been prepared in accordance with GAAP. The preparation of these statements requires management to make estimates and judgments that
affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities
at the date of our consolidated financial statements. Actual results may differ from these estimates under different assumptions or conditions.
Critical
accounting policies are defined as those that involve significant judgment and potentially could result in materially different results
under different assumptions and conditions. Management believes the following critical accounting policies are affected by our more significant
judgments and estimates used in the preparation of our consolidated financial statements.
Revenue Recognition:
Our revenues primarily consist of short-term rental revenues. We have the following revenue sources and revenue recognition policies:
●
Short-term rental revenues include revenues from the rental
of our properties via Airbnb and such digital hospitality platforms.
●
Fee and other income include late fees, violation fees, and
other revenue arising from contractual agreements with third parties. This revenue is recognized as the services are transferred in accordance
with ASC 606.
Investment Property
and Equipment and Depreciation
: Property and equipment are carried at cost. Depreciation for buildings is computed principally on
the straight-line method over the estimated useful lives of the assets (27.5 years). Depreciation of improvements to buildings, rental
homes and equipment, and vehicles is computed principally on the straight-line method over the estimated useful lives of the assets (ranging
from 3 to 27.5 years). Land & its development costs are not depreciated but are capitalized as Land and land improvements. Interest
expenses, Maintenance, and repairs are charged to expenses as incurred and improvements are capitalized. The costs and related accumulated
depreciation of property sold or otherwise disposed of are removed from the financial statements and any gain or loss is reflected in
the current year's results of operations.
Impairment Policy:
The Company applies FASB ASC 360-10, "Property, Plant and Equipment," to measure impairment in real estate investments. Rental
properties are individually evaluated for impairment when conditions exist which may indicate that it is probable that the sum of expected
future cash flows (on an undiscounted basis without interest) from a rental property is less than the carrying value under its historical
net cost basis. These calculations of expected future cash flows consider factors such as future operating income, trends, and prospects,
as well as the effects of leasing demand, competition, and other factors. Upon determination that a permanent impairment has occurred,
rental properties are reduced to their fair value. For properties to be disposed of, an impairment loss is recognized when the fair value
of the property (less the estimated cost to sell) is less than the carrying amount of the property measured at the time there is a commitment
to sell the property and/or it is actively being marketed for sale. A property to be disposed of will be reported at the lower end of
the carrying amount or its estimated fair value, less its cost to sell. Subsequent to the date that a property is held for disposition,
depreciation expense is not recorded.
51
Income Taxes:
We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities
for the expected future tax consequences of events that have been included in the financial statements. Under this method, we determine
deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities
by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates
on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax
assets to the extent that we believe that these assets are more likely than not to be realized. In making such a determination, we consider
all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable
income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets
in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which
would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process
in which (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits
of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount
of tax benefit that is more than 50 percent likely to be realized upon the ultimate settlement with the related tax authority. We recognize
interest and penalties, if any, with income tax expense in the accompanying consolidated statement of operations.
Recent Accounting
Pronouncements
In
June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses
on Financial Instruments." ASU 2016-13 requires that entities use a new forward looking "expected loss" model that generally
will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical
experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No.
2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December
15, 2022. The Company is currently evaluating the potential impact this standard may have on the consolidated financial statements.
Emerging Growth Company
Status
The JOBS Act permits an emerging
growth company such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable
to public companies until those standards would otherwise apply to private companies. We have irrevocably elected to apply this extended
transition period and, as a result, we will not adopt new or revised accounting standards on the relevant dates on which adoption of such
standards is required for public entities. Accordingly, our financial statements may not be comparable to other public companies that
do not elect the extended transition period.
52
BUSINESS
Overview
We are an early stage company
with a mission to develop and utilize our artificial intelligence focused technology stack to empower retail investor participation in
short-term rental properties, which are real estate units listed for a rental term of 31 days or less. People may use vacation rentals
for a variety of reasons including, but not limited to: vacation or travel, relocation for an upcoming move, a place to stay while their
residence is going through renovations or repairs, extended work trips, special events like weddings or family reunions, temporary work
assignments, or seasonal activities. We were founded on the belief that every person should have the access and the freedom to pursue
wealth creation through real estate. However, there are significant barriers to entry for the average individual and lucrative returns
are currently mainly realized by private equity firms and larger-scale developers. We intend to leverage technology to democratize access
to short-term rental investments. To support this goal, we intend to build what we believe would be a new model for property ownership
and real estate investment. We believe in simplified wealth creation, access to new markets, diversification, exceptional guest experiences,
and community-building network effects.
Our Business Model
Our business model is built
around providing retail investors with the opportunity to participate in short-term rental properties we will acquire by offering interest
in each property portfolio. We intend to make that opportunity available pursuant to exempt offerings directed at those retail investors
through syndications, which investors we call "Syndicate Members," as described below. We are focusing on the short term rental
industry since it is highly fragmented and is ideal for consolidation from both a real estate, technology and artificial intelligence
perspective. According to public filings from Airbnb, Inc. ("Airbnb"), the total market size is estimated to be $1.2T.
The Company decided to focus
on short-term rentals (vs. long term rentals) because of their profitability. We believe short-term rentals can be more profitable than
long-term rentals for three main reasons:
●
Higher rental rates
. Short-term rental rates are typically higher than long-term rental rates, especially in popular tourist
destinations or during peak travel seasons.
●
Flexibility
. With short-term rentals, you have the flexibility to adjust your rental rates and availability based on demand.
●
More tax deductions
. Short-term rental owners may be able to deduct more expenses than long-term rental owners, such as cleaning
fees, supplies, and utilities.
To implement our business
model, we plan to acquire properties that satisfy our internal Investment Criteria (as defined below) (the "Target Properties").
Then, if needed, we renovate the Target Properties, prepare them for rent, list them on short-term rental sites and arrange for the Target
Properties to be managed, internally or through third-parties. Eventually, we expect such management of the Target Properties will be
beneficial for the Company as well as the investors that acquire minority interests through syndications (or through a real estate investment
trust, as applicable). We expect that in the future these investors will become Syndicate Members through the purchasing of minority interests
in our acquired properties. In addition to managing the property operations, whether internally or through third-parties, we will also
manage the financial performance of the asset, such as evaluating if the after-repair value or appreciated value of the property is higher
than the purchase price, or whether the property is ready to generate the expected profitability. At this time, we started our first syndication
of one of our Orlando properties.
53
The average person does not:
Proposed solution:
Have access to wholesale real-estate market prices.
As a bulk buyer, we will have access to the wholesale real estate market, which most people do not even know exists. This includes bulk portfolio acquisition strategy.
Have the cash for a 25% down payment.
reAlpha has strategic partnerships with lending institutions, which will allow us to close on property acquisitions within two to three weeks rather than the two to three months customary period for property acquisitions.
Have the time to buy, renovate and manage an investment property.
reAlpha handles the acquisition, renovation, onboarding and property management. Syndicate Members never have to answer a guest or pick up a paintbrush.
Want to deal with a complex mortgage process (personal guarantee, negotiation with lenders, personal credit checks).
reAlpha eliminates the entire process for Syndicate Members. Syndicate Members will never need to give a personal guarantee and their credit will never be checked when financing directly through reAlpha.
Qualification + Mortgage Lending Restrictions - Income determines how much an individual can leverage/borrow.
By fractionalizing the ownership process, we expect reAlpha Syndicate Members can own a smaller percentage of a home or group of homes rather than covering an entire down payment and being required to go through loan qualification requirements required by lenders.
Through these property acquisition
investments, our goal is to obtain: (i) consistent cash flow from short-term tenants; (ii) long-term capital appreciation by leveraging
our property's value after repair and/or renovations in appreciating markets; and (iii) favorable tax treatment of long-term capital
gains.
To finance these property
acquisition investments, we may engage in leverage financing to enhance total returns to our Syndicate Members and investors through a
combination of senior financing on our real estate acquisitions, secured facilities, and capital markets financing transactions. We will
seek to secure conservatively structured leverage that is long-term, non-recourse, non-mark-to-market financing to the extent obtainable
on a cost-effective basis. Our operating policies in respect to credit risk and interest rate risk we may face in connection with these
financings include:
Credit Risk Management
.
We may be exposed to various levels of credit and special hazard risk depending on the nature of our assets. We will review and monitor
credit risk and other risks of loss associated with each investment and our overall credit risk and levels of provision for loss.
Interest Rate Risk Management
.
We will follow an interest rate risk management policy intended to mitigate the negative effects of major interest rate changes. We
intend to minimize our interest rate risk from borrowings by attempting to "match-fund," which means that we will seek to
structure the key terms of our borrowings to generally correspond with the expected holding period of our assets.
Syndicate Member Exempt Offerings
To implement our business
model, we will purchase Target Properties, as described below, through wholly-owned LLCs that will be formed for each property or group
of related properties that are ready to be listed on short term rental sites (as described below in "
Business - Business Process
for Acquired Properties
" below). We expect to utilize a credit line to facilitate funding and acquisition of Target Properties.
As we grow and develop additional funding sources, we may set up additional subsidiaries to further facilitate funding and credit opportunities
available to us through each of these additional subsidiaries (for more information on our most recent credit facility agreement, refer
to the "
Recent Developments
" section below).
54
During
2023, we started to offer securities to Syndicate Members via a SEC registered broker-dealer managed process under Section 4(a)(6) of
the Securities Act, or directly by the issuer under Section 4(a)(2) of the Securities Act and/or Regulation D, where only accredited investors
are involved. As we transition from properties that have been placed in the market utilizing lines of credit or short-term financing to
long-term funding and syndicate membership, we may restructure our holdings. Specifically, we may refinance our property holdings with
different lenders that may offer better financing terms after the property has a between 3 to 6 months of operation history.
However,
we expect reAlpha Acquisitions, LLC, one of our subsidiaries, will maintain management control of each of the LLCs. When this phase is
implemented, we expect Syndicate Members to collectively buy up to 100% of the newly formed LLC. The offerings by the LLCs of Syndicate
Membership will be made after the completion of this Direct Listing, pursuant to Securities and Exchange Commission Regulation A, Regulation
Crowdfunding, Regulation CF or Regulation D, all of which we believe would be available for such offerings and facilitate the utilization
of exemptions from registration under federal and state securities laws (see "
Recent Developments
-
First Syndication
of the Jasmine property
" for more details on our most recent Syndicate Member offering).
Our Growth Strategy
Our business and growth strategy
consists of acquiring Target Properties through the use of our credit facilities, furnish, lightly renovate, if needed, and rent them
on the short-term rental market. We will manage, selectively leverage and sell homes located in markets that satisfy our market selection
requirements across the United States, as further described below. In the future, we may consider expanding to other favorable global
markets. We believe that these markets should offer investors a blend of attractive yields and a prospect for long-term property value
appreciation.
Market Selection
We intend to focus our business
efforts on the markets in which Airbnb operates, which include some or all of the following characteristics:
●
Sufficient inventory to make it
feasible to achieve scale in the local market (100 – 500 homes);
●
Large universities and skilled
workforce;
●
Popular with Airbnb travelers;
●
Favorable competitive landscape
with respect to other institutional residence buyers; and
●
Hotel room capacity and occupancy
rates in given destinations.
During our testing phase,
we started acquiring properties in our initial geographic market of Dallas, Texas as a proof of concept. Now, we have moved into the Orlando,
Florida market. We believe that this market offers strong growth in population, jobs, rental rates, and value appreciation. Additionally,
we have selected Tampa, Ft. Lauderdale, and Panhandle areas in Florida as our next markets.
We will focus on acquiring
properties we believe (i) are likely to generate stable cash flows in the short-term rental market and/or (ii) have the potential for
long-term capital appreciation, such as those located in neighborhoods with what we see as high growth potential and those available from
sellers who are distressed or face time-sensitive deadlines. As a result of the extended time to complete the renovation of properties
caused by the current supply chain issues, including labor, material, and furniture shortages, we have shifted the focus of our acquisition
strategy to rent-ready homes. This will help us to deploy the properties that we purchase to be onboarded on Airbnb and start generating
revenues more quickly as these rent-ready properties do not need any major upgrades. In the future, we may revisit purchasing renovation
heavy homes depending on the labor and supply availabilities.
55
We expect to revisit market
statistics and market selection criteria on a periodic basis. Selected markets may not necessarily meet every single criterion. In the
future, we may choose to enter additional markets such as Florida, California, Texas, New York, Illinois and, eventually, we expect that
will expand to other states in the U.S., and subsequently globally. At this time, we have not set a timeline for expansion. We may also
evaluate certain additional markets in the future.
Investment Criteria
We determine our Target Properties
utilizing our investment criteria, which evaluates acquisition investments using our proprietary algorithms (the "Investment Criteria").
Investment decisions made pursuant to our Investment Criteria may include single-family homes, multifamily units, experiential properties,
resorts, resort communities and others.
We plan to have continuously
assess property acquisition investments using our Investment Criteria and intend to purchase properties that include, but are not limited
to, the following primary characteristics:
●
Target Properties identified by
our reAlpha Score algorithms (described below) are considered for acquisition;
●
Target Properties with an average
of three (3) bedrooms and two (2) bathrooms per unit;
●
Target Properties with an average
price range of $250,000 - $600,000 and a repair/improvement budget requirement of less than 20% of the home purchase price; In select
markets, this price range may significantly vary.
We also intend to regularly
consider acquiring properties outside of these ranges depending on market conditions, uniqueness, and condition of the Target Property.
Investment Decisions
While we will employ our proprietary
artificial intelligence technology and our real estate professionals to identify suitable properties for acquisition, the Company will
be responsible for final decisions. We will use the methodology described below and our bespoke technologies to reach buy or sell decisions.
We have developed an investment approach that combines the experience of our management, the reAlpha Score and an approach that emphasizes
market research, underwriting standards and down-side analysis of the risks of each investment.
To execute our disciplined
investment approach, we plan to closely monitor the profit and loss of each investment.
The following is a summary
of our methodology for property acquisition:
Local Market Research
We will research the acquisition
and underwriting of each transaction. The research will focus on finding any "red flags" to acquire a property. These "red
flags" include (i) heavy regulation on short-term rentals at a state, county, or homeowner's association ("HOA")
level; (ii) homes that have been on the market for longer than a year, or (iii) areas where natural disasters are extremely common and
damaging. Additionally, we consider things such as tourist numbers and market size, seasonality, walkability, proximity to airports, restaurants
and entertainment and events that would attract renters.
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Market Analysis
. When entering a market
that we do not currently own property. We first determine what the demographic and real estate relate trends have been. More specifically,
we look to see positive trends in statistics such as, but not limited to:
i.
Historical and projected population growth;
ii.
Historical and projected median income/median income growth;
iii.
Historical real estate property appreciation;
iv.
Historical rental rate growth;
v.
Laws, ordinances, restrictions related to short term rentals;
vi.
Residential inventory supply; and
vii.
Annual tourism demand.
Submarket Analysis
. In our submarket analysis,
we look for all the same stats/trends as completed at the market level but for a smaller geographical area such as a specific city and/or
zip code. Additionally, we will look to see positive trends in statistics such as, but not limited to:
i.
Total short term rental demand in the submarket;
ii.
Active short term rental listings in the submarket;
iii.
Average submarket daily rates based on seasonality;
iv.
Average submarket occupancy; and
v.
Licensing requirements.
Property Analysis
. In our property analysis,
we look to analyze the subject property or properties to determine:
i.
Age and construction type, including roof, doors and windows;
ii.
Property condition;
iii.
Level and finesse of finishes in the property;
iv.
Is there any deferred maintenance to be done in the property
before putting it in the market;
v.
Age/condition of major mechanical components including roof,
plumbing and appliances;
vi.
Upcoming capital expenditures; and
vii.
Reoccurring maintenance.
Underwriting Analysis
We will examine all elements
of a potential investment, including, with respect to real property, its location, income-producing capacity, prospects for long-range
appreciation, tax considerations and liquidity. Utilizing the market, submarket and property analysis, we develop a complete pro forma
calculation from acquisition through projected sale is completed for each property or portfolio of properties acquired. Each pro forma
calculation must meet the required minimum metrics threshold set by the company prior to making a formal investment.
Risk Management
Operating or performance risks
generally arise at the investment level and often require real estate operating experience to cure, as described in the "
Risk
Factors
" section below. We will review the current operating performance of property investments against our internal projections
and provide the oversight necessary to detect and resolve issues as they arise.
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Asset Management
Prior to the purchase of a
property, we will develop a property business strategy, which will be customized based on the acquisition and underwriting data. Our property
business strategy is a forecast of the action items to be taken and the capital needed to achieve the targeted returns for a Target Property.
The property business strategy includes: (i) offer amount and negotiations, (ii) financing structure, (iii) furniture and design, (iv)
achieving the most beneficial holding period for the property, (v) tax strategy and (vi) exit strategy. These strategies will be customized
based on data found during the due diligence process for each of Target Property to adapt to economic conditions, seasonality, and the
unique factors of each market.
Properties and/or portfolios
of acquired properties will have annual budgets completed prior to the commencement of any given operating year. Quarterly financials
will include variance to pro forma calculations and budget reports. Variances greater than 15% for any line item that exceeds an amount
equal to $10,000 shall include an explanation of said variance.
Business Process for Acquired Properties
Once we have decided to acquire
a property using our Investment Criteria, we intend to use the following steps to maximize its value:
1.
A wholly-owned subsidiary (e.g. wholly-owned LLCs) buys the
Target Property using short-term leverage provided by one of our lending partners.
2.
The wholly-owned subsidiary arranges for the renovation of
the purchased Target Property, at the cost of that wholly-owned subsidiary, by one of our preselected national partners after transferring
it to the new reAlpha LLC subsidiary.
3.
Within a period of 4-to-18-months, reAlpha will refinance
the Target Property by swapping the short-term loan with a long-term loan from any one of our lending partners. If current market conditions
or lending opportunities are poor, we may choose to not refinance or refinance out of the respective target time frame of 4-to-18 months.
4.
If the after-repair value or appreciated value (within 4 to
18 months after acquisition) of the Target Property is higher than the purchase price, then the remaining money from the equity may be
used for purchasing additional properties in the same reAlpha LLC subsidiary for all owners.
5.
The new reAlpha LLC subsidiary will offer up to 100% of its
membership interests for purchase through syndicate membership (or other investment vehicle such as real estate investment trust), as
explained above.
6.
Our Syndicate Members may receive distributions proportional
to their membership based on the free cash flows after taxes from the overall performance of the property on Airbnb.
7.
After the Target Property has generated the target returns
the property may be sold to book the profit for the reAlpha LLC subsidiary.
8.
This profit, if any, may be used to purchase further properties
in the same reAlpha LLC subsidiary for our benefit and the benefit of the Syndicate Members. The Syndicate Members may choose to invest
further in new properties or redeem their investments.
Although we may sell properties,
we intend to hold and manage the properties we acquire for a period of one to six years. The reAlpha LLCs that will manage these properties
will receive a gross fee of 15% to 30% of the property's revenue. The 15-30% fee is of gross receipts generated by the property.
"Gross Receipts" means (i) receipts from the short-term or long-term rental of the property; (ii) receipts from rental escalations,
late charges and/or cancellation fees; (iii) receipts from tenants for reimbursable operating expenses; (iv) receipts from concessions
granted or goods or services provided in connection with the Property or to the tenants or prospective tenants; (v) other miscellaneous
operating receipts; and (vi) proceeds from rent or business interruption insurance, excluding (A) tenants' security or damage deposits
until the same are forfeited by the person making such deposits, (B) property damage insurance proceeds, and (C) any award or payment
made by any governmental authority in connection with the exercise of any right of eminent domain.
As each of our properties
reaches what we believe to be its appropriate disposition value, based on internal metrics, we will consider disposing of the property.
The determination of when a particular property should be sold or otherwise disposed of will be made after consideration of relevant factors,
including prevailing and projected economic conditions, whether the value of the property is anticipated to appreciate or decline substantially,
and how any existing leases on a property may impact the potential sales price. The Company will utilize the reAlpha Score to measure
properties against set key performance indexes and determine when to objectively dispose of a property. The Company may determine that
it is in the best interests of stockholders to sell a property earlier than one year or to hold a property for more than six years. When
we determine to sell a particular property, we intend to achieve a selling price that captures the capital appreciation for investors
based on then-current market conditions. We cannot assure you that this objective will be realized.
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Each property will be charged
a market rate property disposition fee that are paid by the seller at the time of the sale, consisted of realtor fees and closing costs
(taxes and other related costs). This disposition fee should cover property sale expenses such as brokerage commissions, and title, escrow
and closing costs upon the disposition and sale of a property. It is expected that this disposition fee charged will range from 6% to
8% of the property sale price. Following the sale of a property, the Company expects to re-invest the proceeds of such sale, minus the
property disposition fee described in this paragraph, into more properties for our portfolio and for the Syndicate Members to have the
opportunity to invest in.
Further, the properties may
be also managed by third-party property management firms at the Company's discretion. The services provided by such third-party
property manager would include (i) ensuring compliance with local and other applicable laws and regulations; (ii) handling tenant access
to properties; (iii) and any other action deemed necessary by the property manager or desirable for the performance of any of the services
under our respective management agreement. These management agreements are subject to an asset management fee between 15% and 30% of the
short-term rental gross revenue generated. As we achieve scale in the number of properties owned and operated, we may seek to bring property
management in-house. In the event we manage a property, such property management fees would then be retained by us. If a short-term rental
property is vacant and not producing rental income, the property management fee will not be paid during any such period of vacancy, including
properties managed by third-parties.
The operating expenses that
each reAlpha LLC will be responsible for, as described above, include, but is not limited to: (i) mortgage principal and interest; (ii)
property tax; (iii) homeowner insurance; (iv) utilities; (v) landscaping; (vi) pool maintenance costs; (vii) routine maintenance and repairs;
(viii) HOA fees; and (ix) pest control. We will share the expenses related to the short-term rental properties with the Syndicate Members
and will bear its own operating and management expenses in proportion to the ownership of the LLC.
Our Platform and Technologies
reAlpha App (Trademarked as reAlpha M3
TM
)
The reAlpha App is a mobile
application we are developing, which, when operational, will allow Syndicate Members to view live the financial metrics and performance
of properties they have invested in. Just as you may monitor your stock portfolio and performance on an app like Robinhood, the reAlpha
App will give Syndicate Members real-time visibility into their property asset portfolio and performance.
The reAlpha App is being designed
to support our mission to make real estate ownership accessible and user friendly. When operational, it will fetch property listing data
as well as data on short-term rental market trends from multiple third party API providers and display the consolidated data for a particular
property in an easily accessible format. The reAlpha app will be a broker-dealer managed marketplace that our Syndicate Members will be
able to utilize with ease.
reAlpha HUMINT
TM
In addition to the artificial
intelligence ("AI") being utilized in our technologies, we added a human factor that analyzes the short-term rental profitability.
Qualitative features depend on human analysis and cannot be fetched automatically. That is why we will utilize both internal analysts
at reAlpha and freelance analysts.
The reAlpha HUMINT app allows
property analysts to analyze the property and provide the missing property features together with an estimated reAlpha score. This is
used as feedback to improve reAlpha BRAIN AI.
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BnBGPT
BnBGPT is a product that simplifies
the process of generating personalized and effective home descriptions. The app is designed for both realtors and hosts, with features
that help them save time and money while creating descriptions that stand out in a crowded market. Our GPT powered app for real estate
is an essential tool for anyone looking to leave a mark in the real estate industry. By harnessing the power of AI, our app ensures that
each description is personalized and effective, giving users a competitive edge in the marketplace.
For
Realtors
. Our app
will offer a feature that generates advertising content directly from uploaded images and they can be used by realtors to advertise their
properties, eliminating the need for professional copywriters and other costly marketing tools. This makes it easy for realtors to create
descriptions that truly capture the essence of a home and highlight its unique features and benefits.
For
Hosts
. Our app
will offer features that simplify the process of creating descriptions for Airbnb, VRBO, and Booking.com listings. Our app will automatically
organize these descriptions into sections, making it easy to highlight key features of a space and provide important information about
guest access. Additionally, we will include the proximity data of attractions near the property (e.g., restaurants, museums, areas of
interest for tourists in the area and others), making it easier to highlight those for the host. This helps hosts spend less time writing
descriptions and more time focusing on providing a great guest experience.
Our Industry
Our business model is based
on a digital marketplace with design and functions incorporating elements of multiple growing markets more fully described below:
The Airbnb Effect
Airbnb is an online community
marketplace for people to list, discover, book and rent accommodations through easy-to-use technology. Platforms like Airbnb have increased
traveler accommodation by enabling "home-sharing" on a global scale. Because of its scale and brand recognition, Airbnb has
been chosen as the platform to market and operate our short-term rental properties.
We intend to offer standardized
and personalized experiences like those provided by individual hosts within the Airbnb system but at the scale and efficiency of professional
hosts. Airbnb continues to grow its host community in size and quality though consistent investment. According to Airbnb's public
filings, about 90% of Airbnb's hosts are individual hosts with the majority having just a single listing. Professional hosts, such
as property management companies, serviced apartment providers, and boutique hotels comprise only 10% of the host community.
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The Robinhood Effect
According to Market Insider,
retail investors still remain very active in the United States making up nearly 10% of US equity trading in the Russell 3000 (Jun 30,
2021; Retail trading has cooled from its pandemic peak, but still makes up 10% of stock trading volume in the US, Morgan Stanley says).
The barrier-to-entry for brokerage applications has decreased, which in turn, has created easier access to the market. Simultaneously,
the emerging demographic of first-time investors is typically young people. Evidence has shown that approximately 78% of Robinhood users
are under the age of 35, according to Fast & Company (August 14, 2017; How Brokerage App Robinhood Got Millennials to Love the Market).
Furthermore, due to the COVID-19 pandemic, there has been a substantial increase of 3 million retail investors on Robinhood in Q1 2020.
As of December 2022, Robinhood has 11.4M monthly active users on their platform. A remarkable 83% of those who received stimulus checks
in May 2020 invested half into the market, according to Mirae Assets (October, 15, 2020; The Renewed Rise of The Retail Investor). These
macro trends are important to note because they signify the rapidly expanding growth of Millennial and Fintech investing.
We are expanding the democratization
of inaccessible markets, which will revolutionize personal finances through the adoption of fractionalized ownership. A Company like ours
will allow individuals with less capital and less direct involvement to invest in real estate projects.
The Stripe Effect
Integration of disconnected
technology ecosystems refers to disruption created by companies like Stripe, which is a provider of payments infrastructure for the internet.
Millions of businesses use Stripe's software and APIs to accept payments, send payouts, and manage their businesses online. Stripe
took a fragmented industry and created a fully integrated suite of payments products that bring together everything that is required to
build websites and apps that accept payments and send payouts globally. There is an opportunity to utilize our core technological capabilities
to unite the fragmented ecosystem currently serving markets like Airbnb.
INVH Effect
The consolidation of single-family
homes backed by institutional capital is a relatively recent phenomenon that has become standard in the industry today. The single-family
rental market was previously composed of a small percentage of institutionally owned rental homes. Companies like Invitation Homes entered
the market and stepped in front of non-permanent capital investors that were looking to liquidate their portfolios.
This paved the way for longer-term,
permanent capital entities with more established operating scale, providing growth opportunities beyond the underlying market growth.
With increasing scale brought about by companies like Invitation Homes, the single-family rental sector has been able to deliver better
operating efficiency.
COVID-19 Impact
The travel industry has been
grappling with the impacts of the COVID-19 pandemic for over two years now. However, according to Airbnb CEO Brian Chesky, the company
is poised for its best quarter yet, despite concerns over the economic slowdown. In a recent interview with Bloomberg Television, Chesky
expressed confidence in the future of the travel industry, stating that regardless of the macroeconomic environment, people will continue
to want to live on Airbnb and travel.
Despite rising inflation levels,
consumers have continued to splurge on travel rentals, suggesting a strong demand for vacation accommodation. With vaccination rates increasing
and travel restrictions easing, it is likely that the demand for travel rentals will continue to grow, providing opportunities for Airbnb
and other companies in the industry. As the pandemic situation continues to evolve, it is important for travel industry players to stay
agile and adapt to changing consumer needs and safety protocols to ensure they can meet the demands of travelers in this new environment.
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COVID-19 Impact on Travel
Resurgence of the travel market
is expected to happen once the COVID-19 pandemic wanes. This will likely increase the demand for hosts' multi-fold. In an interview
aired by CNBC "TechCheck", Airbnb CEO, Brian Chesky expects that more guests will flock to Airbnb than the platform's
four million hosts can accommodate due to expected resurging travel not seen in recent times.
According to a survey of a
census-balanced sample of 1,994 U.S. adults conducted by the payments and commerce content platform, PYMNTS.com, about 65% of surveyed
consumers want to re-engage in the physical world for fun and leisure activities, such as seeing friends and family and attending sporting
events and concerts. According to the survey, about 60% of surveyed consumers said they want to be able to travel within the U.S. again.
COVID-19 Impact on Real Estate
New home sales continue to
be buoyant. Sales of new single-family houses in the US increased 1.1% month-over-month to a seasonally adjusted annual rate of 640,000
units in February 2023, according to estimates released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development,
which is the highest level since August of the previous year.
According
to the National Association of Home Builders (NAHB) estimates, the total count of second homes, vacation homes, and investment properties
was 7.5 million, accounting for 5.5% of the total housing stock. These second homes account for 15% of new single-family home sales. Nearly
50% of those second homes are rented out using professional management companies.
Competition and Competitive Strengths
We
face competition from different sources in our primary activity of acquiring properties. We believe our competitors in acquiring properties
for investment purposes are individual investors, small private investment partnerships looking for one-off acquisitions of investment
properties that can either be leased or restored and sold, and larger investors, including private equity funds and other REITs, that
are seeking to capitalize on the same market opportunity that we have identified. Our primary competitors in acquiring portfolios include
large and small private equity investors, public and private REITs, and other sizable private institutional investors. These same competitors
may also compete with us for investors. Competition may increase the prices for properties that we would like to purchase, reduce the
amount of rent we may charge for our properties, reduce the occupancy of our portfolio, and adversely impact our ability to achieve attractive
total returns. We also face competition from other real estate platform companies such as Roofstock, Inc., Fundrise LLC, Invitation Homes,
Pacaso, as well as a range of emerging new entrants. There are a number of established and emerging competitors in the real estate platform
market. The market is fragmented, rapidly evolving, competitive, and with relatively low barriers to entry.
Although
our competitors may be more established and better funded than we are, we believe that our acquisition platform, Investment Criteria,
extensive in-market property operations infrastructure, and local expertise in our markets provide us with competitive advantages. We
consider our competitive differentiators in our market to primarily be:
●
our focus on the short-term rental market, compared to other established players in the industry that focus on long-term rentals;
●
Syndicate Member rewards program
that allows for utilization of properties when they are unoccupied, which is currently being developed;
●
consistent short-term rental income
with use of optimum amounts of leverage;
●
our proprietary technology to
make objective and strategic investments in property and market selection;
62
●
lower minimum investment amounts;
and
●
favorable tax treatment associated
with long-term capital gains.
Intellectual Property
The company is currently developing
four technologies. However, this is only part of our technology roadmap. We strive to continue innovating for our benefit and for the
benefit of our Syndicate Members by using better wealth-creation tools, as well as generating returns by leveraging new technologies to
optimize guest experience.
reAlpha BRAIN
TM
& reAlpha Score*
*
Patent applied
The reAlpha BRAIN
TM
will
bring machine learning ("ML") and AI to the world of short-term rental investment. This platform will utilize a natural language
processing ("NLP") program to scan through large quantities of data regarding properties and ML algorithms to choose the properties
that have higher than expected industry standard return on investment. For this, it will gather and integrate a variety of data relevant
to the properties from multiple sources including wholesalers, various multiple listing service ("MLS") data sources, realtors,
small Airbnb "mom and pop" operators, and other larger property owners. For instance, it will collect data on the properties'
price, house structure and sale history from different MLS' listings in the U.S. This data, combined with the information about
the neighborhood appeal, accessibility and safety of the neighborhood surrounding the properties enables the algorithm to learn the hidden
patterns underlying high return short-term rental investments. This will allow reAlpha to predict how likely a particular property will
generate expected profitability. The platform will convey this knowledge by assigning each property with a "reAlpha Score"
ranging from 0-100. The higher the value, the more favorable a property is for investment.
Currently, the process of
analyzing a property as a potential investment typically begins with an email received from real-estate agent's distribution list
to which reAlpha has subscribed. However, we use multiple other sources outside of inbound emails to identify properties. In the email
scenario, the reAlpha BRAIN
TM
will include an AI email parser based on NLP that looks for the property of concern within the
unstructured email and extracts its street address. This address will then be used to query various data providers for a detailed description
of the property's structure, neighborhood and finances. This ML model, which is being built and will be hosted on the Amazon Sagemaker
platform provided by Amazon Web Services ("AWS"), will then calculate the reAlpha Score for that property.
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The model will also continuously
improve and learns over time. As the Company makes its decision to invest in properties, the model will check the effectiveness of its
recommendations to reduce false positives and false negatives. As of April 2023, the reAlpha BRAIN has analyzed over 1,500,000 homes.
Research and Development
The industry in which we plan
to operate and compete is subject to rapid technological developments, evolving industry standards, changes in customer requirements and
competitive new products and features. As a result, we believe our success, in part, will depend on our ability to build and enhance our
technology and artificial intelligence capabilities in a timely and efficient manner and to develop and introduce those technologies while
reducing total cost of ownership. To achieve these objectives, we have made research and development investments through third-party acquisitions
to facilitate the development of our technologies, and we may explore in the future third-party licensing agreements.
An
example of our third-party acquisitions include our ownership of a 25% stake in Naamche Inc., an artificial intelligence ("AI")
studio, and a 25% stake Carthagos Inc., a design studio ("Carthagos"). Naamche, Inc. has assisted us in research and development
of our proprietary algorithms and other technologies. This acquisition is expected to enhance our technological capabilities, broaden
its portfolio of services, and contribute towards cost savings, positioning them for growth and success in the future.
Sales and Marketing
We have a dedicated marketing department responsible
for various aspects of the company's marketing initiatives and strategies. The department's primary responsibilities include:
1.
Managing all advertising and content creation efforts, including
the development and execution of targeted marketing campaigns. The marketing department works closely with internal teams and external
agencies to create engaging and informative content that showcases our value proposition, products, and services. This content is distributed
through various channels, such as social media, email marketing, and paid advertising, to reach a wide audience.
2.
Collaborating with the technology team to ensure optimal product
design and user experience, tailoring the products and services to effectively meet customer needs and expectations.
3.
Manage and maintain our corporate website, ensuring a seamless
digital experience for users.
4.
Oversee the press team and lead efforts to build and strengthen
our brand. This includes crafting compelling narratives, managing media relations, and generating positive coverage for the company.
Our marketing department collaborates
with Carthagos, a design agency that we partially own. Carthagos is responsible for visual content creation and design such as UI/UX design,
social media visuals, and advertising collateral.
Governmental Regulation
General
Our
business operations and properties are subject to various covenants, laws, ordinances, and rules. We believe that we are in material compliance
with such covenants, laws, ordinances, and rules, and we also require that our residents agree to comply with such covenants, laws, ordinances,
and rules in their leases with us.
Fair Housing Act
The
Fair Housing Act ("FHA") and its state law counterparts, and the regulations promulgated by the United States Department of
Housing and Urban Development and various state agencies, prohibit discrimination in housing on the basis of race or color, national origin,
religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people
in the process of adopting a child or securing custody of children under the age of 18), disability or, in some states, financial capability.
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Municipal Regulations and Homeowners'
Associations
Our
properties are subject to various municipal regulations and orders, and county and city ordinances, including without limitation, use,
operation and maintenance of our properties. Certain of our properties are subject to the rules of the various HOAs where such properties
are located. HOA rules and regulations are commonly referred to as "covenants, conditions and restrictions," or CC&Rs,
and typically consist of various restrictions or guidelines regarding use and maintenance of the property, including, among others, noise
restrictions or guidelines as to how many cars may be parked on the property.
Broker Licensure
We
own an in-house brokerage to serve our investors and utilize in-market leasing experience specialists to drive an end-to-end resident
experience that achieves our occupancy, revenue, and retention goals while facilitating enjoyment of a worry-free leasing lifestyle. Our
in-house brokerage is subject to numerous federal, state, and local laws and regulations that govern the licensure of real estate brokers
and affiliate brokers and set forth standards for, and prohibitions on, the conduct of real estate brokers. Such standards and prohibitions
include, among others, those relating to fiduciary and agency duties, administration of trust funds, collection of commissions, and advertising
and consumer disclosures, as well as compliance with federal, state, and local laws and programs for providing housing to low-income families.
Under applicable state law, we generally have a duty to supervise and are responsible for the conduct of our in-house brokerage.
Environmental Matters
As
a current or prior owner of real estate, we are subject to various federal, state, and local environmental laws, regulations, and ordinances,
and we could be liable to third parties as a result of environmental contamination or noncompliance at our properties, even if we no longer
own such properties. We are not aware of any environmental matters that would have a material adverse effect on our financial position
(see "
Risk Factors — Risks Related to Our Business and Industry
").
Laws and Regulations Regarding Privacy
and Data Protection
Data privacy laws and regulations
in the U.S. and foreign countries apply to the access, collection, transfer, use, storage, and destruction of personal information in
connection with our services. In the U.S., our financial institution customers are required to comply with privacy regulations imposed
under the Gramm-Leach-Bliley Act, in addition to other regulations. As a processor of personal information in our role as a provider of
services to financial institutions, we are bound by similar limitations on disclosure of the information received from our customers as
apply to the financial institutions themselves. In addition, federal and state privacy and information security laws, and consumer protection
laws, which apply to businesses that collect or process personal information, may also apply to our businesses.
There has been increased
public attention regarding the use of personal information and data transfer, accompanied by legislation and regulations intended to
strengthen data protection, information security and consumer and personal privacy. The law in these areas continues to develop and the
changing nature of privacy laws in the U.S., the European Union ("E.U.") and elsewhere could impact our processing of personal
information of our employees and on behalf of our customers. In the E.U. the comprehensive General Data Privacy Regulation (the "GDPR")
went into effect in May 2018. The GDPR has introduced significant privacy-related changes for companies operating both in and outside
the E.U. In the U.S., California has adopted the California Consumer Privacy Act, and Nevada has adopted the Nevada Privacy Law, both
of which went into effect on January 2020, and several states are considering adopting similar laws imposing obligations regarding the
handling of personal information. While we believe that we are compliant with our regulatory responsibilities, information security threats
continue to evolve resulting in increased risk and exposure. In addition, legislation, regulation, litigation, court rulings, or other
events could expose us to increased costs, liability, and possible damage to our reputation.
65
Human Capital
As of January 31, 2023, we
had 9 full-time employees. We believe that we maintain good relations with our employees.
Properties
As
of April 10, 2023, we owned and operated 5 properties located in Dallas, Texas, Kissimmee, Davenport, and Champions Gate in Florida. These
5 properties were renovated. Below are details of existing mortgage loans of the 5 properties. Monthly mortgage interest amounts will
vary due to interest rate fluctuation. As of January 31, 2023, we paid monthly mortgage interest of $1,544 for 825 Austrian Road property,
$9,472 for 790 Pebble Beach Drive, 612 Jasmine Lane and Amazonas Street Property and $3,608 for 2540 Hamlet Lane Property.
Properties
City & State
Mortgage
Loan
Amount
825 Austrian Road
Grand Prairie, Texas
$
247,000
790 Pebble Beach Drive
Champions Gate, Florida
276,553
612 Jasmine Lane
Davenport, Florida
337,242
7676 Amazonas Street
Kissimmee, Florida
266,204
2540 Hamlet Lane
Kissimmee, Florida
342,000
Total
$
1,469,000
Legal Proceedings
Ohio Subpoena
On May 2, 2022, we received
a subpoena duces tecum and requests for depositions of three senior managers of the Company from the Ohio Division of Securities (the
"ODS"), all related to the Company's Regulation A+ securities offering in the State of Ohio, and based on Ohio Revised
Code1707.23. The depositions were taken in July 2022. The ODS has not asserted any securities violations by the Company other than a late
notice filing for its offering. The Company is fully cooperating with the ODS.
Massachusetts 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 (the "MSD") following an investigation by the MSD into whether the Company had engaged in acts or practices
that violated the Massachusetts Uniform Securities Act (the "Massachusetts Act") and the regulations promulgated thereunder
(the "Massachusetts Regulations"). For purposes of the Consent Order, the Company did not admit or deny the findings of fact
or law or any of the allegations contained therein. The Consent Order provides that it is not intended to form the basis of any disqualification
under Section 3(a)(39) of the Securities Exchange Act of 1934, or Rules 504(b)(3) and 506(d)(i) of Regulation D, Rule 262(a) of Regulation
A and Rule 503(a) of Regulation CF under the Securities Act of 1933. Likewise, the Consent Order provides that it is not intended to form
a basis of a disqualification under Section 204(a)(2) of the Uniform Securities Act of 1956 or Section 412(d) of the Uniform Securities
Act of 2002. MSD alleged in the Consent Order that the Company
initially
failed to disclose an ongoing "criminal" proceeding
taking place in India against the Company's CEO that involves allegations of fraud and forgery. MSD also alleged that the Company
posted sample stock images of properties on its website, along with corresponding property "scores," purchase dates, and addresses,
despite not actually owning these properties. MSD further alleged that the Company failed to disclose a potential conflict of interest
in connection with the Company's real estate acquisitions. The MSD finally alleged that the Company failed to notice file with the
MSD and submit a consent for service of process before marketing and selling shares to investors in Massachusetts. In the Consent Order
the MSD noted that "[e]xcept in any action by the Division to enforce the obligations of the Consent Order, any acts performed or
documents executed in settlement of this matter: (A) may not be deemed or used as an admission of, or evidence of, the validity of any
alleged wrongdoing, liability, or lack of any wrongdoing or liability; and (B) may not be deemed or used as an admission of, or evidence
of, any such alleged fault or omission of the Company in any civil, criminal, arbitral, or administrative proceeding in any court, administrative
agency, or tribunal."
66
Under the terms of the Consent
Order, the Company is censured, barred from offering or selling securities in Massachusetts, and ordered to cease and desist from committing
future violations of the Massachusetts Act and the Massachusetts Regulations. Pursuant to the Consent Order, on April 21, 2022, the Company
paid a $375,000 administrative fine and offered to rescind the purchases of each of the fourteen Massachusetts investors who acquired
the Company's common stock in its Regulation A offering. Such investors paid an aggregate amount of $19,500 to purchase the Company's
common stock. Seven out of the fourteen Massachusetts investors elected to rescind the purchase and the Company has already refunded them
a total of $11,500. The Company has fully complied with the terms of the Consent Order.
The Company engaged counsel
to make all the necessary securities filings. However, the Company's then-counsel did not make any blue sky filings until MSD informed
of such irregularity to the Company.
A copy of the Consent Order
was filed on Form 1-U on April 15, 2022, as Exhibit 6.5 thereto, and is Exhibit 99.1 to the Offering Statement. For additional information
on the Consent Order, we refer you to Exhibit 99.1. As of the date of this filing, we have sold $4.468 million of shares to investors
other than our former parent company, reAlpha Tech Corp. (which as of the date of this Direct Listing no longer exists, as further described
on "
Business – Recent Developments
" above), and $500,000 to our former parent company, for aggregate sales of
$4.968 million. The holdings that belonged to our former parent company have been assigned to reAlpha Tech Corp. post the Downstream Merger
(as defined above). For additional information on the India proceeding involving Mr. Devanur see "
India Proceeding Involving
Giri Devanur
" section below.
Parent Company Litigation
On December 27, 2021, Ms.
Valentina Isakina, a former board advisor of reAlpha Tech Corp., our former parent company, filed a lawsuit in the Southern District of
Ohio against, reAlpha Tech Corp. in connection with her termination package. After three months of service, our then-parent company discontinued
her services as she was not the right fit for the company's needs. reAlpha Tech Corp. contends that pursuant to the terms of her
employment agreement, she was offered 12,500 shares of reAlpha Tech Corp., which was supposed to vest over a period of time, however she
never accepted the shares.
Ms. Isakina, however, contends
she is owed up to 5% from reAlpha Tech Corp. for an alleged agreement to serve on the board of directors, which reAlpha Tech Corp. has
denied of its existence. The parties are in the process of completing discovery. There is no trial set, and we believe the matter will
be resolved in late 2023 or in 2024.
India Proceeding Involving Giri Devanur
Mr. Devanur was previously
the CEO of a company named Gandhi City Research Park, Pvt. Ltd ("Gandhi City Research Park"), which was financially impacted
and liquidated as a result of the Lehman Brothers collapse. In 2010, an investor in Gandhi City Research Park filed a fraud complaint
with the Cubbon Park Police in Bengaluru, India, against, among others, Mr. Devanur. In 2014, the Cubbon Park Police dismissed all claims
and concluded that no case had been made out by the investor. In 2015, the investor appealed the Cubbon Park Police's decision.
As a result, a summons for a criminal proceeding was issued to, among others, Mr. Devanur in 2018. As of today, no charges have been brought
against Mr. Devanur. Based on the Petition filed by Giri Devanur in 2019, the High Court of Karnataka has stayed the entire trial before
the Magistrate Court.
67
MANAGEMENT
Executive Officers and Directors
The following table provides
information regarding our executive officers, significant employees and directors as of April 17, 2023.
Name
Age
Position
Term of Office
Board Members
Brian Cole (1)(2)(3)
43
Independent Director
Since Inception
Monaz Karkaria
49
Director
(formerly COO from Inception until resignation in January 2022)
Since January 2022
Dimitrios Angelis (1)(2)(3)
53
Independent Director
Since April 2023
Balaji Swaminathan (1)(2)(3)
58
Independent Director
Since April 2023
Executive Officers
Giri Devanur
52
Chief Executive Officer, President and
Chairman of the Board of Directors
Since Inception Since April 2023
Michael J. Logozzo
50
Chief Financial Officer
Since Inception
Jorge Aldecoa
38
Chief Operating Officer
Since April 2023
Christie Currie
26
Chief Marketing Officer
Since Inception
(1)
Member of the audit committee of the board of directors.
(2)
Member of the compensation committee of the board of directors.
(3)
Member of the nominating and corporate governance committee
of the board of directors.
Executive Officers
Giri Devanur
is our Chief Executive
Officer, President and Chairman of the board of directors. Mr. Devanur became a member of our board of directors in April 2021 and Chairman
of the board of directors in April 2023. He is a serial business entrepreneur and an experienced chief executive officer who has been
involved in capital planning and investor presentations as an executive officer for various issuers, all of which are now private. He
has more than 25 years of experience in the information technology industry. Earlier, he served as the CEO of AMERI Holdings, Inc., a
global SAP consulting company becoming its CEO and a member of its board of directors in May 2015. AMERI Holdings, Inc. was listed on
Nasdaq during Mr. Devanur's tenure as CEO in November 2017. Following Mr. Devanur's departure from AMERI Holdings, Inc., the
company went private in January 2020, and, therefore, is no longer listed on NASDAQ. Previously, he founded WinHire Inc., a company in
India, 2010, an innovative company building software products through technology and human capital management experts and combining them
with professional services. Mr. Devanur has a master's degree in Technology Management from Columbia University and a bachelor's
degree in computer engineering from the University of Mysore, India. He has attended Executive Education programs at the Massachusetts
Institute of Technology and Harvard Law School.
68
Michael J. Logozzo
is the Chief
Financial Officer of reAlpha Tech Corp., and he was our interim Chief Operating Officer from January 2022 until April 2023. Prior to his
current role at the Company, Mr. Logozzo was Managing Director of the Americas Region for L Marks, covering the U.S., Canada, and Latin
America from May 2019 to February 2021. He was also a strategic and transformation leader at BMW Financial Services from 2001 to 2019.
During his 18-year tenure, Mr. Logozzo was responsible for finance operations, innovation, and best practices integration at the automotive
company's Americas Regional Services Center in Columbus, Ohio and the headquarters in Munich, Germany. Mr. Logozzo holds a Management
Information Systems Bachelor of Science (B.S.) from Youngstown State University, and a Business Administration, Management and Operations
Masters of Business Administration (MBA) from Franklin University.
Christie Currie
is our Chief Marketing
Officer of reAlpha Tech Corp. During her college career Christie launched her own business in the MedTech space, winning multiple venture
pitch competitions. Ms. Currie worked at a London-based corporate innovation firm, L Marks from December 2019 to June 2021, where she
led corporate organizations to identify strategic areas of need and successfully engage industry disrupting startups. Further, from December
2017 to April 2021, Ms. Currie was the Founder and Chief Executive Officer of Zandaland LLC. Ms. Currie is also a board member of Carthagos,
Inc., a marketing studio that does the branding and marketing for the Company. Ms. Currie has an Entrepreneurship Studies and Marketing
Bachelor of Arts (B.A.) from Miami University, and a Technology Management Masters from Columbia University.
Jorge Aldecoa
is the Chief Operating
Officer of the Company. Mr. Aldecoa brings over 12 years of experience in residential and commercial real estate and is an expert in acquisition,
disposition, and asset management. Most recently he has served as Vice President of Operations for Transcendent Electra and Managing Broker
of Transcendent Electra Realty & BUSB Realty from 2018 to 2022. He brings experience in successfully leading the creation and implementation
of a property management platform to facilitate the acquisition and management of 2,200 newly constructed single-family rental homes.
He also gained experience as Chief Investment Officer of Firm Capital American Realty Partners and Interim Chief Operating Officer for
its predecessor from 2014 to 2017. Mr. Aldecoa holds a Residential Development and Property Management Bachelor's degree of Science
(B.S.) from Florida State University.
Non-Employee Directors
Brian Cole
has been a member of
our board of directors since April 2021. Mr. Cole has also acted as the managing member of Baird's Technology and Services Investment
Banking Group since March 2010. In that role, Mr. Cole leads merger and acquisition and capital raising transactions, advising premier
tech-enabled outsourcing companies. Prior to joining Baird's Technology Services Investment Banking Group, Mr. Cole was a manager
in PricewaterhouseCoopers' Transaction Services practice where he led mergers and acquisitions advisory and financial due diligence
engagements for private equity and corporate clients including leveraged buyouts, mergers, carve-out divestitures, take-privates, and
joint ventures. Brian received his M.B.A. from Indiana University's Kelley School of Business and a Bachelor's of Science
(B.S.) in business from the same institution with honors.
Monaz Karkaria
was
our Chief Operating Officer from inception until her resignation from those roles in January 2022. In January 2022, she became a member
of our board of directors. Ms. Karkaria has been investing in rental properties since 1999 and has been a part of over 100 real-estate
transactions. Ms. Karkaria is the owner and founder of Ben Zen Investments LLC and Ben Zen Properties LLC since 2013. Ms. Karkaria was
also a social director at ZANT a non-profit organization from 2015 to 2017. Further, Ms. Karkaria was a business consultant in Brazil
from 2006 to 2008. Ms. Karkaria holds a Bachelor's degree from the All India Institute of Physical Medicine and Rehabilitation.
The board of directors believes that Ms. Karkaria's substantial experience in the real estate industry will enable her to bring
real estate business insights to the board of directors.
69
Dimitrios Angelis
became a member of our board of directors in April 2023. Mr. Angelis is an accomplished business strategist who brings over two decades
of experience as general counsel from several multinational companies. Since July 2016, he has been the managing member of Pharma Tech
Law LLC, a law firm that specializes in the life sciences field. Further, since November 2018, he has acted as the President, co-founder
and chairman of the board of directors of Sparta Biomedical Inc., a privately-held developer of orthopedic solutions. Mr. Angelis has
also been a member of the board of directors of The One Group (NASDAQ: STKS) since March 2018. Mr. Angelis has a Bachelor of Arts (B.A.)
in Philosophy and English from Boston College, a Master of Arts (M.A.) in Behavioral Science from California State University and a Juris
Doctor (J.D.) from NYU School of Law. Our board of directors believes that Mr. Angelis' substantial experience as an accomplished
attorney, negotiator and general counsel to public and private companies in the healthcare field will enable him to bring a wealth of
strategic, legal and business acumen to the board of directors.
Balaji Swaminathan
became a member
of our board of directors in April 2023. Mr. Swaminathan is an accomplished business leader with extensive experience in financial services
and entrepreneurship. Since 2018, Mr. Swaminathan has been the founder, Chief Executive Officer and a member of the board of directors
of SAIML Pte Ltd, a Singapore-based Capital Markets Services licensed company that provides personalized wealth management solutions for
ultra-high net worth customers. Prior to his entrepreneurial pursuits, Mr. Swaminathan also held several key leadership roles in major
financial institutions, including serving as President of Westpac International from 2012 to 2019. Mr. Swaminathan also holds multiple
directorships with Singapore-based private companies in the finance industry, including S Cube Digilytics Venture Pte Ltd., Turbo Tech
Ltd. and Allied Blenders and Distillers Liimited since 2022; AT Holdings Pte Ltd. Since 2019; and Vigbyor Realty & Investments Private
Limited since 2018. Mr. Swaminathan has a Bachelor's of Commerce (B.C.) in Finance from St. Xavier's College, a Finance degree
from The Institute of Chartered Accountants of India, a Finance Cost & Works degree from The Institute of Cost & Works Accountants
of India and an Advanced Management Program from Harvard Business School. With his extensive experience and knowledge in the financial
services industry, the board of directors believes that Mr. Swaminathan will be a valuable asset to our Company.
Family Relationships
There are no family relationships
among any of our executive officers or directors.
Involvement in Certain Legal Proceedings
None of our directors or executive
officers has, during the past ten years:
●
been convicted in a criminal proceeding or been subject to
a pending criminal proceeding (excluding traffic violations and other minor offences);
●
had any bankruptcy petition filed by or against the business
or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive
officer, either at the time of the bankruptcy filing or within two years prior to that time;
●
been subject to any order, judgment, or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction or federal or state authority, permanently or temporarily enjoining,
barring, suspending or otherwise limiting, his involvement in any type of business, securities, futures, commodities, investment, banking,
savings and loan, or insurance activities, or to be associated with persons engaged in any such activity;
●
been found by a court of competent jurisdiction in a civil
action or by the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities
or commodities law, and the judgment has not been reversed, suspended, or vacated;
●
been the subject of, or a party to, any federal or state judicial
or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement
of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law
or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary
or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order,
or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity;
or
70
●
been the subject of, or a party to, any sanction or order,
not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange
Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))),
or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated
with a member.
Composition of Our Board of Directors
Upon
the effectiveness of this registration statement, our board will consist of five members, each of whom serves as a director pursuant to
the board composition provisions of our Certificate of Incorporation and Bylaws.
Our Status as a Controlled Company
Mr.
Giri Devanur, who owns 65.0% of the voting power of our outstanding common stock, will have the ability to control the outcome of matters
submitted to our stockholders for approval, including the election of our directors, as well as the overall management and direction of
our company. In the event of his death, the shares of our common stock that Mr. Devanur owns will be transferred to the persons or entities
that he designates.
Because
Mr. Devanur controls a majority of our outstanding voting power, we are a "controlled company" under the corporate governance
rules for publicly-listed companies. For so long as we remain a controlled company, we are exempt from the obligatio
n
to comply with certain Nasdaq corporate governance requirements, including:
●
our
                                            board of directors is not required to be comprised of a majority of independent directors.
●
our
                                            board of directors is not subject to the compensation committee requirement; and
●
we
                                            are not subject to the requirements that director nominees be selected either by the independent
                                            directors or a nomination committee comprised solely of independent directors.
The
controlled company exemptions do not apply to the audit committee requirement or the requirement for executive sessions of independent
directors. We are required to disclose in our annual report that we are a controlled company and the basis for that determination. Although
we do not plan to take advantage of the exemptions provided to controlled companies, we may in the future take advantage of such exemptions.
Director Independence
We intend to apply to list
our common stock on the Nasdaq Capital Market. Subject to the controlled company exemption described above, the listing rules of Nasdaq
generally require that a majority of the members of a listed company's board of directors be independent. In addition, the listing
rules generally require that, subject to specified exceptions, each member of a listed company's audit, compensation, and governance
committees be independent subject to the controlled company exemptions described above, as applicable to the compensation and governance
committees.
Audit committee members must
also satisfy the independence criteria set forth in Rule 10A-3 under the Securities Exchange Act of 1934, as amended (Exchange Act). In
order to be considered independent for purposes of Rule 10A-3, a member of an audit committee of a listed company may not, other than
in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: accept, directly or indirectly,
any consulting, advisory, or other compensatory fee from the listed company or any of its subsidiaries; or be an affiliated person of
the listed company or any of its subsidiaries.
Our board of directors undertook
a review of its composition, the composition of its committees and the independence of our directors and considered whether any director
has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her
responsibilities. Based upon information requested from and provided by each non-employee director concerning his or her background,
employment and affiliations, including family relationships, our board of directors has determined that none of our directors have relationships
that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these
directors is "independent" as that term is defined under the rules of Nasdaq and Rule 10A-3 and Rule 10C-1 under
the Exchange Act. Only Monaz Karkaria and Giri Devanur are not independent under Nasdaq's independence standards.
71
Board Committees
Upon the effectiveness of
this registration statement, our board of directors will establish an audit committee, a compensation committee, and a nominating and
corporate governance committee, each of which will operate pursuant to a charter to be adopted by our board of directors and will be in
place upon the effectiveness of this registration statement. Upon the effectiveness of this registration statement, the composition and
functioning of all of our committees will comply with all applicable requirements of the Sarbanes-Oxley Act of 2002, Nasdaq, and
SEC rules and regulations.
Audit Committee
Upon the effectiveness of
this registration statement, our board of directors will establish an audit committee of the board of directors. Under the national exchange
listing standards and applicable SEC rules, we are required to have at least three members of the audit committee, all of whom must be
independent, subject to certain phase-in provisions. Balaji Swaminathan, Brian Cole and Dimitrios Angelis meet the independent director
standard under national exchange listing standards and under Rule 10-A-3(b)(1) of the Exchange Act. Balaji Swaminathan will serve as chairman
of our audit committee. Each member of the audit committee is financially literate and our board of directors has determined that Balaji
Swaminathan qualifies as an "audit committee financial expert" as defined in applicable SEC rules.
We will adopt an audit committee
charter, which will detail the purpose and principal functions of the audit committee, including:
●
appoint, compensate, and oversee the work of any registered public accounting firm employed by us;
●
resolve any disagreements between management and the auditor regarding financial reporting;
●
pre-approve all auditing and non-audit services;
●
retain independent counsel, accountants, or others to advise the audit committee or assist in the conduct of an investigation;
●
seek any information it requires from employees, all of whom are directed to cooperate with the audit committee's requests-or external parties;
●
oversee and report to the board of directors regarding the Company's major financial risk exposures, as well as areas including cybersecurity, information technology and data security risks;
●
meet with our officers, external auditors, or outside counsel, as necessary; and
●
oversee that management has established and maintained processes to assure our compliance with all applicable laws, regulations and corporate policy.
Compensation Committee
Upon the effectiveness of
this registration statement, our board of directors will establish a compensation committee of the board of directors. Balaji Swaminathan,
Brian Cole and Dimitrios Angelis will serve as members of our compensation committee. Under the national exchange listing standards and
applicable SEC rules, we are required to have at least two members of the compensation committee, all of whom must be independent, subject
to certain phase-in provisions. Each of Balaji Swaminathan, Brian Cole and Dimitrios Angelis meet the independent director standard under
national exchange listing standards applicable to members of the compensation committee.
72
We will adopt a compensation
committee charter, which will detail the purpose and responsibility of the compensation committee, including:
●
discharge the responsibilities relating to
certain disclosures in public filings of the Company, including, but not limited to, in the Company's proxy statement, Annual Report
on Form 10-K and Quarterly Report on Form 10-Q;
●
discharge the responsibilities of the board of directors relating to compensation of the our directors, executive officers and other key employees;
●
review and make recommendations to the board of directors in establishing appropriate incentive compensation and equity-based plans;
●
oversee the annual process of evaluation of the performance of our management; and
●
perform such other duties and responsibilities as enumerated in and consistent with compensation committee's charter.
The charter will permit the
committee to retain or receive advice from a compensation consultant and will outline certain requirements to ensure the consultants independence
or certain circumstances under which the consultant need not be independent. We have not retained such a consultant.
Nominating and Governance Committee
Upon the effectiveness of
this registration statement, our board of directors will establish a nominating and governance committee of the board of directors that
will be comprised of independent directors. Balaji Swaminathan, Brian Cole and Dimitrios Angelis will serve as members of our nominating
and governance. We will adopt a nominating and governance committee charter, which will detail the purpose and responsibilities of the
nominating and governance committee, including:
●
assist the board of directors by identifying qualified candidates for director nominees, including through search firms to assist in identifying qualified director nominees, and to recommend to the board of directors the director nominees for the next annual meeting of stockholders;
●
establish procedures to be followed by stockholders in submitting recommendations for director candidates to the nominating and governance committee;
●
lead the board of directors and board of directors committees in their annual review of their performance;
●
recommend to the board director nominees for each committee of the board of directors; and
●
develop and recommend to the board of directors corporate governance guidelines applicable to us.
Risk Oversight
Our
audit committee will be responsible for overseeing our risk management process. Our audit committee will focus on our general risk management
policies and strategy, the most significant risks facing us, and oversees the implementation of risk mitigation strategies by management.
Our board of directors is also apprised of particular risk management matters in connection with its general oversight and approval of
corporate matters and significant transactions.
Code of Business Conduct and Ethics
Upon
the effectiveness of this registration statement, our board of directors will adopt a Code of Business Conduct and Ethics, or the "Code
of Conduct," applicable to all directors, executive officers and employees. The Code of Conduct will be available on the Investor
Relations portion of our website at www.realpha.com. The nominating and corporate governance committee of our board of directors will
be responsible for overseeing the Code of Conduct and must approve any waivers of the Code of Conduct for employees, executive officers
and directors. In addition, we intend to post on our website all disclosures that are required by law or Nasdaq's listing standards
concerning any amendments to, or waivers of, any provision of the Code of Conduct.
73
EXECUTIVE COMPENSATION
Named Executive Officers
Our named executive officers
for the years ended April 30, 2022 and 2021 were as follows
:
●
Giri Devanur, Chief Executive Officer;
●
Michael J. Logozzo, Chief Financial Officer; and
●
Christine Currie, Chief Marketing Officer.
Summary Compensation
Table
Prior
to the consummation of the Downstream Merger (as defined above), the compensation for each of our named executive officers was paid by
our previous parent company, reAlpha Tech Corp. Since March 21, 2023, the compensation of our named executive officers has been paid by
the Company (f.k.a. reAlpha Asset Management, Inc.). The following table contains information about the compensation paid to or earned
by each of our named executive officers during the years ended April 30, 2022 and 2021.
Name and Principal Position
Year
Salary ($)
Stock Awards ($)
Bonus (1)
All other compensation ($)
Total Compensation ($)
Giri Devanur
2022
100,000
(2)
-
64,500
12,500
(4)
177,000
Chief Executive Officer and President
2021
-
(3)
-
-
-
-
Michael J. Logozzo
2022
140,000
-
55,000
-
195,000
Chief Financial Officer and Interim Chief Operating Officer
2021
26,250
-
-
-
26,650
Christine Currie
2022
92,243
-
32,250
42,288
(5)
166,781
Chief Marketing Officer
2021
3,333
-
-
-
3,333
(1)
2022 amounts reflect
                                            the payment of a year-end discretionary bonus earned and paid in the year ended April 30,
                                            2022 pursuant to the named executive officer's employment agreements. These year-end
                                            bonuses were approved by the board of directors on December 19, 2021.
(2)
Reflects the pro-rated
                                            amount for Mr. Devanur's annual salary of $150,000 from September 1, 2021 until April
                                            30, 2022.
(3)
Mr. Devanur received
                                            no compensation for the fiscal year ended April 30, 2021.
(4)
"All
    other compensation" for Mr. Devanur is comprised of his compensation for services as a member of our board of directors for
    the year ended April 30, 2022.
(5)
"All
    other compensation" for Ms. Currie is comprised of tuition payments for a Technology Management Master's degree from
    Columbia University as part of her professional development.
Employment Agreements with Executive Officers
Employment Agreement with Giri Devanur
The Company entered into an
employment agreement with Giri Devanur on September 1, 2021. Pursuant to Mr. Devanur's employment agreement, he will serve as the
Company's Chief Executive Officer until his agreement is terminated by either Mr. Devanur or the Company, and he received a yearly
salary of $150,000, pro-rated for the fiscal year ended April 30, 2022, and an additional discretionary bonus of $50,000 per year, subject
to the discretion of the board of directors.
74
By
letter agreement, dated April 11, 2023, the Company entered into an updated employment agreement with Mr.
Devanur
,
which provides for a base salary of $150,000, which may be adjusted to $250,000 upon a successful follow-on offering of the Company's
securities for an amount of $8 million or more, subject to the compensation committee's approval. Further, Mr.
Devanur
is
entitled to
additional compensation in the form of a discretionary bonus of up to $75,000 based on the achievement of certain established
performance targets, which is payable annually, and certain benefits such as unlimited vacation, health insurance and others. In addition,
Mr. Devanur is eligible to participate in the Plan (as defined below). Mr. Devanur or the Company may terminate the employment agreement
at any time upon written notice to the other party. Mr. Devanur's employment agreement has a confidentiality provision and a non-compete
for a period of two (2) years following the termination of his employment.
Employment Agreement with Michael J. Logozzo
The Company entered into an
employment agreement with Michael J. Logozzo on February 21, 2021. Pursuant to Mr. Logozzo's employment agreement, he will serve
as the Company's Chief Financial Officer until his agreement is terminated by either Mr. Logozzo or the Company, and he received
a yearly salary of $140,000 for the fiscal year ended April 30, 2022 and a pro-rated amount of such base salary for the year ended April
30, 2021.
By
letter agreement, dated April 11, 2023, the Company entered into an updated employment agreement with Mr. Logozzo, which provides for
a base salary of $140,000, which may be adjusted to $250,000 upon a successful follow-on offering of the Company's securities for
an amount of $8 million or more, subject to the compensation committee's approval. Further, Mr. Logozzo is entitled to
additional
compensation in the form of a discretionary bonus of up to $75,000 based on the achievement of certain established performance targets,
which is payable annually, and certain benefits such as unlimited vacation, health insurance and others. Further, Mr. Logozzo is eligible
to participate in the Plan (as defined below). Mr. Logozzo or the Company may terminate the employment agreement at any time upon written
notice to the other party. Mr. Logozzo's employment agreement has a confidentiality provision and a non-compete for a period of
two (2) years following the termination of his employment.
Employment Agreement with Christine Currie
The Company entered into an
employment agreement with Christine Currie on March 2, 2021 as Vice President of Innovation for the Company. Pursuant to Ms. Currie's
employment agreement, she served as the Vice President of Innovation until her agreement is terminated by either Ms. Currie or the Company,
and she received a yearly salary of $80,000 for the fiscal year ended April 30, 2022 and a pro-rated amount of such base salary for the
year ended April 30, 2021. Ms. Currie was promoted to Chief Marketing Officer in April 2021, and the board of directors approved an increase
to her base annual salary from $80,000 to $100,000 on September 16, 2021, with no changes to her other benefits.
By
letter agreement, dated April 11, 2023, the Company entered into an updated employment agreement with
Ms. Currie for her to serve
as the Company's Chief Marketing Officer
, which provides for a base salary of $100,000, which
may be adjusted to $175,000 upon a successful follow-on offering of the Company's securities for an amount of $8 million or more,
subject to the compensation committee's approval. Further,
Ms. Currie
is entitled to
additional compensation in the form of a discretionary bonus of up to $25,000 based on the achievement of certain established performance
targets, which is payable annually, and certain benefits such as unlimited vacation, health insurance and others. Ms. Currie or the Company
may terminate the employment agreement at any time upon written notice to the other party. Further, Ms. Currie is eligible to participate
in the Plan (as defined below). Ms. Currie's employment agreement has a confidentiality provision and a non-compete for a period
of two (2) years following the termination of his employment.
Outstanding Equity
Awards at April 30, 2022
The
Company has no outstanding equity awards as of April 30, 2022.
Equity Incentive Plan
We
maintain the reAlpha Tech Corp. 2022 Equity Incentive Plan (the "Plan"), under which we may grant awards to our employees,
officers and directors and certain other service providers. Our board of directors administers the Plan. The board of directors is authorized
to grant awards to eligible employees, consultants and other service providers. The aggregate number of shares of common stock that may
be issued under the Plan may not exceed 4,000,000 shares of common stock. All of our current employees, consultants and other service
providers are eligible to be granted awards under the Plan. Eligibility for awards under the Plan is determined by the board of directors
at its discretion.
75
The Plan permits the discretionary
award of incentive stock options ("ISOs"), non-statutory stock options ("NQSOs"), stock awards (which may have
varying vesting schedules and be subject to lock-up periods at the board of directors' discretion) and other equity awards to selected
participants. Unless sooner terminated, no ISO may be granted under the Plan on or after the 10
th
anniversary of the effective
date of the Plan.
The plan administrator has
the sole discretion in setting the vesting period and, if applicable, exercise schedule of an award, determining that an award may not
vest for a specified period after it is granted and accelerating the vesting period of an award. The plan administrator determines the
exercise or purchase price of each award, to the extent applicable. The Plan does not allow for the assignment, transfer or exercise of
awards other than by will or the laws of descent and distribution.
Unless otherwise provided by the participant's
Option Award Agreement or Stock Award Agreement issued pursuant to the Plan, upon the participant's termination for any reason,
including but not limited to death, Disability (as defined in the Plan), voluntary termination nor involuntary termination with or without
Cause (as defined in the Plan), all unvested equity awards in the form of options or shares shall be forfeited. Vested options, unless
otherwise provided, will remain exercisable for three (3) months following termination of the participant if such termination is for any
reason other than death, Disability or termination for Cause. In case the participant's separation from service is due to death
or Disability, then the vested options will be exercisable for a period of twelve (12) months thereafter. In case the participant's
termination is for Cause, the participant will immediately forfeit any and all options issued to such participant under the Plan.
The Plan also provides the
Company with a right of repurchase all or portion of the shares awarded to the participant under the Plan, which may be exercised in case
a participant separates from service for any reason, at a price equal to the fair market value, as determined by the board of directors.
In the event of a Change in Control (as defined in the Plan), the board of directors will have the sole discretion to address the treatment
of a participant's unvested awards in connection with such Change in Control in the participant's award agreement.
The board of directors may
modify, amend or terminate the plan at any time, provided that no such modification, amendment or termination of the Plan materially affects
the rights of a participant under a previously granted award without that participant's consent. Further, the board of directors
cannot, without the approval of the Company's stockholders, amend this plan: (i) increase the number of common stock with respect
to the ISOs that may be granted under the Plan; (ii) make any changes in the class of employees eligible to receive the ISOs under the
plan; (iii) without stockholder approval if required by applicable law.
Director Compensation
The
following table presents the total compensation earned and paid to non-employee and employee member directors of our board of directors
during the year ended April 30, 2022, which is payable quarterly. Our non-executive directors are entitled to an annual compensation of
$25,000, payable in cash in quarterly installments of $6,250, plus reimbursements for reasonable travel expenses, and out-of-pocket costs
incurred in attending meetings of our board of directors or events attended on behalf of the Company.
Mr. Giri
Devanur, our Chief Executive Officer, President and member of the board of directors, received a total of $12,500 for his service as a
member of our board of directors during the period presented below. Mr. Devanur's total compensation for service as an employee
and as a member of our board of directors is presented under the heading "
Summary Compensation Table
" above.
Name
Year
Fees Earned
and Paid in
Cash ($)
Option Awards ($)
Stock Awards ($)
Total
($)
Giri Devanur
2022
12,500
-
-
12,500
Monaz Karkaria
2022
6,250
-
-
6,250
Brian Cole
2022
12,500
-
-
12,500
Brent Crawford
2022
12,500
-
-
12,500
Dr, Art Langer
2022
12,500
-
-
12,500
76
PRINCIPAL STOCKHOLDERS
The following table sets forth information regarding the beneficial
ownership of our common stock by (i) each stockholder known by us to be the beneficial owner of more than 5% of our outstanding shares
of common stock , (ii) each of our directors, (iii) each of our named executive officers and (iv) all of our directors and executive
officers as a group. Unless otherwise indicated, the address of each executive officer and director is c/o reAlpha Tech Corp. at 6515
Longshore Loop, Suite 100, Dublin, OH 43017. Applicable percentage ownership is based on 42,522,091 shares of common stock outstanding
at April 17, 2023.
The
number of shares of common stock beneficially owned by each stockholder is determined under rules issued by the SEC regarding the beneficial
ownership of securities. This information is not necessarily indicative of beneficial ownership for any other purpose. Under these rules,
beneficial ownership of shares of our common stock includes (1) any shares as to which the person or entity has sole or shared voting
power or investment power and (2) any shares as to which the person or entity has the right to acquire beneficial ownership within 60
days after the date hereof. Each holder's percentage ownership after this Direct Listing is based on shares of common stock to be
outstanding immediately after the consummation of this Direct Listing.
Name of Beneficial Owner
Number of Shares
Beneficially
Owned
Percentage of
Shares
Beneficially
Owned Before
Offering
Percentage of
Shares
Beneficially
Owned After
Offering
5% Stockholders
Brent Crawford (1)
2,370,995
5.6
%
5.6
%
Directors and Named Executive Officers
Monaz Karkaria
2,947,991
6.9
%
6.9
%
Brian Cole
368,499
*
*
Dimitrios Angelis
-
*
*
Balaji Swaminathan
-
*
*
Giri Devanur
27,637,410
65.0
%
65.0
%
Mike Logozzo
2,199,938
5.1
%
5.1
%
Christie Currie
1,473,995
3.5
%
3.5
%
All executive officers and directors as a group (8 persons)
37,367,327
87.8
%
87.8
%
*
Less than one percent of outstanding shares.
(1)
Includes (i) 368,499 shares of common stock; (ii) 1,001,248
shares of common stock held by CH REAlpha Investments, LLC
; and (iii) 1,001,248 shares of common
stock held by
CH REAlpha Investments II, LLC
. Mr. Crawford has the sole voting and dispositive
control over the shares held by
CH REAlpha Investments, LLC
and
CH REAlpha Investments
II, LLC
.
77
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Except as disclosed herein,
no director, executive officer, stockholder holding at least 5% of shares of our common stock, or any family member thereof, had any material
interest, direct or indirect, in any transaction, or proposed transaction since May 1, 2020, in which the amount involved in the transaction
exceeds the lesser of $120,000 or one percent of the average of our total assets at the year-end for the last two completed fiscal years.
Related Party Transactions
myAlphie LLC
The Company, by means of a
merger, owns (a) subsidiary named myAlphie LLC with all of its technology and intellectual property and (b) two on demand promissory notes
of $975,000 and $4,875,000 payable to CH REAlpha Investments, LLC, and CH REAlpha Investments II, LLC, respectively. The promissory notes
carry an Interest rate of Prime Rate plus one percent (1%).
Master Service Agreement
The Company (f.k.a. reAlpha
Asset Management Inc) had a Master Service Agreement with ReAlpha Tech Corp. (our previous parent company) for their patented technologies
and platforms and agreed to pay ReAlpha Tech Corp. a management fee of 20% of rental income, however, this agreement is no longer effective
post-Downstream Merger (as defined above).
reAlpha Homes and
SAIML Capital Pte. Limited
On
November 17, 2022, reAlpha Homes and SAIML Capital Pte. Limited, a Singapore-based asset management firm, signed a binding term sheet
to form a joint venture to invest $40.8 million in equity in rent-ready short-term rental ("STR") properties. Balaji Swaminathan,
who was appointed as a member of our board of directors in April 2023, is the Chief Executive Officer and director of SAIML Capital Pte.
Limited. The joint venture, once formed, would have a 51% stake held by reAlpha Homes and a 49% stake held by SAIML. The joint venture
planned to make up to $200 million in investments across California, Arizona, Florida, and Tennessee, leveraging the reAlphaBRAIN to identify
properties that meet its investment criteria pursuant to the terms and conditions of a definitive joint venture agreement to be entered
into on or before January 31, 2023. This joint venture may have also expanded its partnership by contributing an additional $61.2 million
of equity, with the potential to invest up to $500 million in STR properties through additional debt financing. As of the date hereof,
the definitive joint venture agreement has not been entered into and, therefore, this joint venture has not been formed. Mr. Swaminathan
received no compensation under the term sheet while it was outstanding.
Policy for approval
of related-person transactions
Prior to this Direct Listing,
we have not had a formal policy regarding approval of transactions with related persons. In connection with this Direct Listing, our board
of directors has adopted a related-person transaction policy that sets forth our procedures for the identification, review, consideration
and approval or ratification for the review of any transaction, arrangement or relationship in which we are a participant, the amount
involved exceeds $120,000 and one of our executive officers, directors, director nominees or each person whom we know to beneficially
own more than 5% of our outstanding shares of common stock (a "5% stockholder") (or their immediate family members), each
of whom we refer to as a "related person," has a direct or indirect material interest.
If
a related person proposes to enter into such a transaction, arrangement or relationship, which we refer to as a "related-person
transaction," the related person must report the proposed related-person transaction to the Company's general counsel. The
policy calls for the proposed related-person transaction to be reviewed by and if deemed appropriate approved by, the audit committee
of our board of directors after full disclosure of the related-person interest in the transaction. Whenever practicable, the reporting,
review and approval will occur prior to entry into the transaction. If advance review and approval is not practicable, the audit committee
will review and, in its discretion, may ratify the related-person transaction. The policy also permits the chair of the audit committee
to review, and if deemed appropriate approve, proposed related-person transactions that arise between audit committee meetings, subject
to ratification by the audit committee at its next meeting. Any related-person transactions that are ongoing in nature will be reviewed
annually.
A
related-person transaction reviewed under the policy will be considered approved or ratified if it is authorized by the audit committee
after full disclosure of the related person's interest in the transaction. As appropriate for the circumstances, the committee will
review and consider:
●
the related person's interest in the related-person transaction;
●
the approximate dollar amount involved in the related-person transaction;
●
the approximate dollar amount of the related person's interest in the transaction without regard to the amount of any profit or loss;
●
whether the transaction was undertaken in the ordinary course of our business;
●
whether the terms of the transaction are no less favorable to us than terms that could have been reached with an unrelated third party;
●
the purpose of, and the potential benefits to us of, the related-person transaction; and
●
any other information regarding the related-person transaction or the related person in the context of the proposed transaction that would be material to investors in light of the circumstances of the particular transaction.
The
audit committee may approve or ratify the transaction only if the audit committee determines that, under all of the circumstances, the
transaction is not inconsistent with our best interests. The audit committee may impose any conditions on the related-person transaction
that it deems appropriate.
The
policy provides that transactions involving compensation of executive officers shall be reviewed and approved by the compensation committee
of our board of directors in the manner specified in its charter.
78
REGISTERED STOCKHOLDERS
The following table sets forth
the number of shares of our common stock held by the Registered Stockholders and registered as common stock for resale by means of this
prospectus.
This prospectus registers
for resale shares of our common stock that are held by certain Registered Stockholders that include our officers, directors, affiliates
and certain other stockholders with "restricted" securities under the applicable securities laws and regulations who, because
of their status as affiliates of us pursuant to Rule 144 or because they acquired their capital stock from an affiliate or from us within
the prior 12 months from the date of any proposed sale, would otherwise be unable to sell their securities pursuant to Rule 144 until
we have been subject to the reporting requirements of Section 13 or Section 15(d) of the Exchange Act for a period of at least
90 days. See "Shares Eligible for Future Sale" for further information regarding sales of such "restricted" securities
if not sold pursuant to this prospectus.
Information concerning the
Registered Stockholders may change from time to time and any changed information will be set forth in supplements to this prospectus,
if and when necessary. Because the Registered Stockholders may sell all, some, or none of the shares of our common stock covered by this
prospectus, we cannot determine the number of such shares of our common stock that will be sold by the Registered Stockholders, or the
amount or percentage of shares of our common stock that will be held by the Registered Stockholders upon consummation of any particular
sale. In addition, the Registered Stockholders listed in the table below may have sold, transferred or otherwise disposed of, or may sell,
transfer or otherwise dispose of, at any time and from time to time, our shares of common stock in transactions exempt from the registration
requirements of the Securities Act, after the date on which they provided the information set forth in the table below. See "Management"
and "Certain Relationships and Related Party Transactions" for further information regarding the Registered Stockholders.
We currently intend to use
our reasonable efforts to keep the registration statement of which this prospectus forms a part effective for a period of 90 days after
the effectiveness of the registration statement. We are not party to any arrangement with any Registered Stockholder or any broker-dealer with
respect to sales of shares of our common stock by the Registered Stockholders (see "
Plan of Distribution
" section below).
We have determined beneficial
ownership in accordance with the rules of the SEC, and thus it represents sole or shared voting or investment power with respect to our
securities. Unless otherwise indicated below, to our knowledge, the persons and entities named in the table have sole voting and sole
investment power with respect to all shares that they beneficially owned, subject to community property laws where applicable. The information
does not necessarily indicate beneficial ownership for any other purpose, including for purposes of Sections 13(d) and 13(g) of the Exchange
Act.
79
We have based percentage ownership of our common stock based on 42,522,091
shares of our common stock issued and outstanding as of April 17, 2023.
These amounts are based
upon information available to the Company as of the date of this filing.
Beneficial Ownership Prior to the Effectiveness
of the Registration Statement
Number of
Shares of
Common
Stock
Beneficially
Owned+
Total
Number of
Shares of Common
Stock Being Registered
Pursuant
to this
Prospectus
Percentage
Ownership of
Common
Stock+
Name of Selling Stockholders:
Giri Devanur (1)
27,637,409
27,637,409
65.0
%
Monaz Karkaria (2)
2,947,991
2,947,991
6.93
%
Michael J. Logozzo (3)
2,199,938
2,199,938
5.17
%
Christine Currie (4)
1,473,996
1,473,996
3.47
%
Jorge Aldecoa (5)
368,499
368,499
*
Bhaargav Kosuri (6)
460,623
460,623
*
Saching Garg (7)
368,499
368,499
*
Ravi Srinivas (8)
368,499
368,499
*
Dr. Art Langer (9)
368,499
368,499
*
Brian Cole (10)
368,499
368,499
*
Brent Crawford (11)
2,370,995
2,370,995
5.58
%
Rakesh Prasad Hosur Rama Prasad (12)
276,374
276,374
*
Jonas Meyer (13)
276,374
276,374
*
Plato Ghinos (14)
92,125
92,125
*
Paul Cecil (15)
92,125
92,125
*
Michael Haring (16)
92,125
92,125
*
Dru Rai (17)
92,125
92,125
*
Viktor Boskovski (18)
55,275
55,275
*
Srinidhi Kuruvadi Anantharaju (19)
18,425
18,425
*
Ram Prasanna Kharvi (20)
18,425
18,425
*
Gabby Bajorek (21)
18,425
18,425
*
Austin Knisley (22)
18,425
18,425
*
Tejas Gupta (23)
11,055
11,055
*
Prem Kumar Dayyala (24)
11,055
11,055
*
Nikhil Besta (25)
11,055
11,055
*
Nagaraj Kharvi (26)
11,055
11,055
*
Holly Scholl (27)
11,055
11,055
*
80
Beneficial Ownership Prior to the Effectiveness
of the Registration Statement
Number of
Shares of
Common
Stock
Beneficially
Owned+
Total
Number of
Shares of Common
Stock Being Registered
Pursuant
to this
Prospectus
Percentage
Ownership of
Common
Stock+
Bharathinagar Chandru Chethan (28)
11,055
11,055
*
Drive Capital Fund II, L.P. (29)
539,412
539,412
1.27
%
Drive Capital Fund II (TE), L.P. (30)
465,177
465,177
1.10
%
Drive Capital Ignition Fund II, L.P. (31)
16,660
16,660
*
K-Roost, LLC (32)
18,042
18,042
*
K-Roost 2, LLC (33)
43,867
43,867
*
NCT Ventures Fund II LP (34)
18,042
18,042
*
Dwight Smith (35)
9,972
9,972
*
Scott Griffin (36)
8,171
8,171
*
JumpStart Inc. (37)
16,162
16,162
*
Robert Weiler (38)
16,114
16,114
*
Alan R. Weiler (39)
32,190
32,190
*
RH Fund I (40)
15,955
15,955
*
David Marcinkowski (41)
31,680
31,680
*
SBJM Investment LLC (42)
15,799
15,799
*
Mark A. Pentella (43)
15,753
15,753
*
Maxim Partners LLC (44)
204,529
204,529
*
Mitchell Silberberg & Knupp LLP (45)
100,000
100,000
*
Silicon Valley Bank (46)
49,029
49,029
*
Total
41,666,554
41,666,554
*
Indicates beneficial ownership of less than 1% of the outstanding
shares of our common stock.
+
Beneficial ownership is determined in accordance with SEC
rules and generally includes voting or investment power with respect to shares of common stock. Shares of common stock subject to options,
warrants and convertible debentures currently exercisable or convertible, or exercisable or convertible within 60 days, are counted as
outstanding.
81
(1)
The address of Giri Devanur is 6683 Dale Drive, Dublin, OH 43017.
(2)
The address of Mona Karkaria is 5911 Chatham Drive, Frisco, TX 75036.
(3)
The address of Michael J. Logozzo is 5083 Green Vista Crossing, Powell, OH 43065.
(4)
The address of Christine Currie is 3113 Carriage Lane, Columbus, OH 43221.
(5)
The address of Jorge Aldecoa is 14808 SW 54th Street, Miramar, FL 33027.
(6)
The address of Bhaargav Kosuri is 109 Wayne Street, Apartment 4, Jersey City, NJ 07302.
(7)
The address of Saching Garg is C2-113, SNN Raj Etternia, Silver County Road, Bangalore, India 560076.
(8)
The address of Ravi Srinivas is Villa 112, Confident Bellatrix, Billapura Cross, Sarjapur, Bangalore, Karnataka, India 562125.
(9)
The address of Dr. Art Langer is 8 Perth Lane, New City, NY 10956.
(10)
The address of Brian Cole is 915 E Lancaster Avenue, Whitefish Bay, WI 53217.
(11)
Consists of: (i) 368,499 shares of common stock; (ii) 1,001,248 shares of common stock held by CH REAlpha Investments, LLC; and (iii) 1,001,248 shares of common stock held by CH REAlpha Investments II, LLC. Brent Crawford has the sole voting and dispositive control over the shares held by CH REAlpha Investments, LLC and CH REAlpha Investments II, LLC. The address of Mr. Crawford, CH REAlpha Investments, LLC and REAlpha Investments II, LLC is 6640 Riverside Drive, Suite 500, Dublin, OH 43017.
(12)
The address of Rakesh Prasad Hosur Rama Prasad is 6663 Rush Street, Apartment A, Dublin, OH, 43017.
(13)
The address of Jonas Meyer is 3113 Carriage Lane, Columbus, OH 43221.
(14)
The address of Plato Ghinos is 2359 Nantucket Circle, State College, PA 16803.
(15)
The address of Paul Cecil is 2981 Angelo Joseph Lane, Columbus, OH 43202.
(16)
The address of Michael Haring is 9649 Fair Oaks Drive, Powell, OH 43065.
(17)
The address of Dru Rai is 101 Clover Leaf Lane, North Wales, PA 19454.
(18)
The address of Viktor Boskovski is 700 Culpepper Drive, Reynoldsburg, OH 43068.
(19)
The address of Srinidhi Kuruvadi Anantharaju is No 10, 4th Main Road, NR Colony, Bangalore, India 560019.
(20)
The address of Ram Prasanna is Kharvi Janani, Siddanbhavi, Muroor Road, Kumta, Uttara Kannada, Karnataka, India 581343.
(21)
The address of Gabby Bajorek is 2970 Sandhurst Drive, Lewis Center, OH 43035.
(22)
The address of Austin Knisley is 2278 Siskin Avenue, Columbus, OH 43228.
(23)
The address of Tejas Gupta is 20/1 Krishna Nilaya, Reservoir Street, Basavangudi, Bangalore, India 560004.
(24)
The address of Prem Kumar Dayyala is 13-9-26/2, near Krishnudi Cheruvu, Ramchandra Rao Peta, Tadepalligudem, West Godavari, Andhra
Pradesh , 534102 India.
82
(25)
The address of Nikhil Besta is No 1/132c Palasamudram, Gorantla, Pincode 515241, India.
(26)
The address of Nagaraj Kharvi is Kuidanamane Bunder Bhatkal, Mavinakurve, Bhatkal, Uttrakannda, India.
(27)
The address of Holly Scholl is 5312 Shannon Park Drive, Dublin, OH 43017.
(28)
The address of Bharathinagar Chandru Chethan is No. 27, Samyojitha Nilaya, Last House, 2nd Cross, Sagar Layout, Devarachikkana Halli,
BG Road, Bengaluru, India 560076.
(29)
The address of Drive Capital Fund II, L.P. is 629 North High Street, 6th Floor Columbus, OH 43215. Chris Olsen has the sole power
to vote or dispose of the securities held by Drive Capital Fund II, L.P.
(30)
The address of Drive Capital Fund II (TE), L.P. is 629 North High Street, 6th Floor, Columbus, OH 43215. Chris Olsen has the sole
power to vote or dispose of the securities held by Drive Capital Fund II (TE), L.P.
(31)
The address of Drive Capital Ignition Fund II, L.P. is 629 North High Street, 6th Floor, Columbus, OH 43215. Chris Olsen has the sole
power to vote or dispose of the securities held by Drive Capital Ignition Fund II, L.P.
(32)
The address of K-Roost, LLC is 393 North Columbia Avenue, Columbus, OH 43209. Brett Kaufman is a member of K-Roost, LLC and may therefore
be deemed to hold voting and dispositive power with respect to such shares.
(33)
The address of K-Roost 2, LLC is 393 North Columbia Avenue, Columbus, OH 43209. Brett Kaufman is a member of K-Roost 2, LLC and may
therefore be deemed to hold voting and dispositive power with respect to such shares.
(34)
The address of NCT Ventures Fund II, L.P. is 421 West State Street, Columbus, OH 43215-4008. William J. Frank is an authorized representative
of NCT Ventures Fund II, L.P. and may therefore be deemed to hold voting and dispositive power with respect to such shares.
(35)
The address of Dwight Smith is 3099 Big Timber Loop, Lewis Center, OH 43035.
(36)
The address of Scott Griffin is 13611 Fernlace Ct., Pickerington, OH 43147.
(37)
The address of JumpStart Inc. is 6701 Carnegie Avenue, Suite 100, Cleveland, OH 44103. Hardik Desai is the managing partner of JumpStart
Inc. and may therefore be deemed to hold voting and dispositive power with respect to such shares.
(38)
The address of Robert Weiler is 10 North High Street, Suite 410, Columbus, OH 43215.
(39)
The address of Alan R. Weiler is 9000 Rivers End, Powel, OH 43065.
(40)
The address of RH Fund I is 119 South Main Street, Suite 220, Seattle, WA 98104. Peyton Dalton is an authorized representative of
RH Fund I and may therefore be deemed to hold voting and dispositive power with respect to such shares.
(41)
The address of David Marcinkowski is 4011 111th Street, Lubbock, TX 79423.
(42)
The address of SBJM Investment, LLC is 2506 Colts Neck Road, Blacklick, OH. 43004. Steven P Balaloski is a member of SBJM Investment,
LLC and may therefore be deemed to hold voting and dispositive power with respect to such shares.
(43)
The address of Mark A. Pentella Revocable Trust UA DTD is 3070 Forest Ridge Ct., Fairlawn, OH 44333. Mark A. Pentella is the trustee
of the Mark A. Pentella Revocable Trust UA DTD and holds sole power to vote or dispose of such shares.
(44)
Maxim Partners LLC is the parent of registered broker-dealer Maxim
Group LLC. The address of Maxim Partners, LLC is 300 Park Avenue, 16th Floor, New York, NY 1002. Anthony Di
                                                       Clemente is the Chief Administrative Officer of Maxim Partners, LLC and may therefore be deemed to hold voting and dispositive power
                                                       with respect to such shares.
(45)
The address of Mitchell Silberberg & Knupp, LLP is 437 Madison Avenue, 25th Floor, New York, NY 10022. Douglas Gold is the Chief
Operating Officer of Mitchell Silberberg & Knupp LLP and may therefore be deemed to hold voting and dispositive power with respect
to such shares.
(46)
The address of Silicon Valley Bank is Bank & Trust Company 3003 Tasman Drive, Santa Clara, CA 95054. Sam Simas is the Vice President
of Silicon Valley Bank and may therefore be deemed to hold voting and dispositive power with respect to such shares.
83
DESCRIPTION OF SECURITIES
The
following description summarizes important terms of the classes of our capital stock based on our Certificate of Incorporation and Bylaws
that will be in effect immediately prior to the effectiveness of this registration statement. This summary does not purport to be complete
and is qualified in its entirety by the provisions of our Certificate of Incorporation and our Bylaws, which have been filed as exhibits
to the registration statement of which this prospectus is a part.
Our authorized capital stock
currently consists of 200,000,000 shares of common stock, par value $0.001 per share, and 5,000,000 shares of "blank check"
preferred stock, par value $0.001 per share.
As of the date hereof, there were 42,522,091 issued and outstanding
shares of our common stock held by 3,123 stockholders of record. No shares of preferred stock are currently issued or outstanding.
Common Stock
Voting Rights.
The
holders of shares of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders.
Any action at a meeting at which a quorum is present will be decided by a majority of the votes cast by the stockholders present in person
or represented by proxy at the meeting and entitled to vote thereon, except in the case of any election of directors, which will be decided
by a plurality of votes cast. There is no cumulative voting.
Dividends.
The Company
has never declared or paid cash dividends on any of its capital stock and currently does not anticipate paying any cash dividends after
the Direct Listing or in the foreseeable future. The holders of our common stock are entitled to receive dividends as may be declared
from time to time by our board of directors out of legally available funds. Any dividend declared by the board of directors must be equal,
on a per share basis.
Liquidation Rights.
In
the event of a voluntary or involuntary liquidation, dissolution, or winding up of the Company, the holders of common stock are entitled
to share ratably in the net assets legally available for distribution to stockholders after the payment of debts and other liabilities
of the Company.
Blank Check Preferred
Stock
Our
board of directors has the authority to issue undesignated shares of "blank check" preferred stock in one or more series and
to fix the designation, relative powers, preferences and rights and qualifications, limitations or restrictions of all shares of each
such series, including, without limitation, dividend rates, conversion rights, voting rights, redemption and sinking fund provisions,
liquidation preferences and the number of shares constituting each such series, without any further vote or action by the stockholders.
The issuance of additional preferred stock could decrease the amount of earnings and assets available for distribution to holders of our
common stock or adversely affect the rights and powers, including voting rights, of the holders of our common stock and could, among other
things, have the effect of delaying, deferring or preventing a change in control of our company without further action by the stockholders.
We have no present plans to issue any shares of preferred stock.
Anti-Takeover Effects of the Certificate of
Incorporation and Bylaws and Certain Provisions of Delaware Law
Our Certificate of Incorporation
and the DGCL contain provisions that are summarized in the following paragraphs and that are intended to enhance the likelihood of continuity
and stability in the composition of our board of directors. These provisions are intended to avoid costly takeover battles, reduce our
vulnerability to a hostile or abusive change of control and enhance the ability of our board of directors to maximize stockholder value
in connection with any unsolicited offer to acquire us. However, these provisions may have an anti-takeover effect and may delay,
deter or prevent a merger or acquisition of the Company by means of a tender offer, a proxy contest or other takeover attempt that a stockholder
might consider in its best interest, including those attempts that might result in a premium over the prevailing market price for the
Shares of common stock held by stockholders.
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Authorized but Unissued Capital Stock
Delaware law does not require
stockholder approval for any issuance of shares that are authorized and available for issuance. However, the listing requirements of Nasdaq,
which would apply so long as the shares of common stock remain listed on Nasdaq, require stockholder approval of certain issuances equal
to or exceeding 20% of the then outstanding voting power or the then outstanding number of shares of common stock. These additional shares
may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.
Additionally, the number of authorized shares of any series of common stock or preferred stock may be increased or decreased (but not
below the number of shares thereof outstanding) by the affirmative vote of the holders of a majority in voting power, irrespective of
the provisions of Section 242(b)(2) of the DGCL.
Vacancies and Newly Created Directorships
The Certificate of Incorporation
provides that, subject to the rights granted to one or more series of preferred stock then outstanding, any newly-created directorship
on the board of directors that results from an increase in the number of directors and any vacancies on our board of directors will be
filled solely only by the affirmative vote of a majority of the remaining directors, even if less than a quorum, by a sole remaining director
or by the stockholders.
Special Stockholder Meetings
The Certificate of Incorporation
provides that special meetings of our stockholders may be called at any time only by the board of directors, the chairman of the board
of directors or our Chief Executive Officer acting pursuant to a resolution approved by the affirmative vote of a majority of the directors
then in office, subject to the rights of holders of any series of preferred stock then outstanding
Stockholder Action by Written Consent
Pursuant to Section 228 of
the DGCL, any action required to be taken at any annual or special meeting of the stockholders may be taken without a meeting, without
prior notice, and without a vote if a consent or consents in writing, setting forth the action so taken, is or are signed by the holders
of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting
at which all shares of our stock entitled to vote thereon were present and voted, the Certificate of Incorporation provides otherwise.
In accordance with Section 228, our Bylaws allows for action by written consent.
Section 203 of the DGCL
We have opted out of Section 203 of the DGCL under
our Certificate of Incorporation. As a result, pursuant to our Certificate of Incorporation, we are prohibited from engaging in any business
combination with any stockholder for a period of three years following the time that such stockholder (the "interested stockholder")
came to own at least 15% of our outstanding voting stock (the "acquisition"), except if:
●
our board of directors approved the acquisition prior to its consummation;
●
the interested stockholder owned at least 85% of the outstanding voting stock upon consummation of the acquisition; or
●
the acquisition is approved by our board of directors, and by the affirmative vote of at least two-thirds vote of the non-interested stockholders in a meeting.
The restrictions described
above will apply subject to certain exceptions, including if a stockholder becomes an interested stockholder inadvertently and, as soon
as practicable, divests itself of ownership of such shares so that the stockholder ceases to be an interest stockholder, and, within the
three (3) year period, that stockholder has not become an interested stockholder but for such inadvertent acquisition of ownership. Generally,
a "business combination" or "acquisition" includes any merger, consolidation, asset or stock sale or certain other
transactions resulting in a financial benefit to the interested stockholder. Subject to certain exceptions, an "interested stockholder"
is a person who, together with that person's affiliates and associates, owns, or within the previous three years owned, 15% or more
of our outstanding voting stock.
Our
Certificate of Incorporation provisions that elect to opt out of Section 203 of the DGCL may make it more difficult for a person who
would be an "interested stockholder" to effect various business combinations with us for a three-year period. This may encourage
companies interested in acquiring us to negotiate in advance with our board of directors because the stockholder approval requirement
would be avoided if our board of directors approves the acquisition which results in the stockholder becoming an interested stockholder.
This may also have the effect of preventing changes in our board of directors and may make it more difficult to accomplish transactions
which stockholders may otherwise deem to be in their best interests.
85
Dissenters' Rights of Appraisal and Payment
Under the DGCL, with certain
exceptions, our stockholders will have appraisal rights in connection with a merger or consolidation in which we are a constituent entity.
Pursuant to the DGCL, stockholders who properly demand and perfect appraisal rights in connection with such merger or consolidation will
have the right to receive payment of the fair value of their shares as determined by the Court of Chancery of the State of Delaware, plus
interest, if any, on the amount determined to be the fair value, from the effective time of the merger or consolidation through the date
of payment of the judgment.
Stockholders' Derivative Actions
Under the DGCL, any of our
stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the
stockholder bringing the action is a holder of our shares at the time of the transaction to which the action relates or such stockholder's
stock thereafter devolved by operation of law. To bring such an action, the stockholder must otherwise comply with Delaware law regarding
derivative actions.
Exclusive forum for certain lawsuits
Our Certificate of Incorporation
provides that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will
be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim of
breach of fiduciary duty owed by any director, officer or other employee to us or to our stockholders, (iii) any action asserting a claim
against us, our directors, officers or employees arising pursuant to any provision of the DGCL or our Certificate of Incorporation or
Bylaws or (iv) any action asserting a claim against use, our directors, officers or employees governed by the internal affairs doctrine.
Under our Charter, this exclusive
form provision will not apply to claims which are vested in the exclusive jurisdiction of a court or forum other than the Court of Chancery
of the State of Delaware, for which the Court of Chancery of the State of Delaware does not have subject matter jurisdiction, or for which
the Court of Chancery determines there is an indispensable party not subject to its jurisdiction. For instance, the provision would not
apply to actions arising under federal securities laws, including suits brought to enforce any liability or duty created by the Securities
Act, the Exchange Act, or the rules and regulations thereunder.
Limitations on Liability and Indemnification
of Officers and Directors
The DGCL authorizes corporations
to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of
directors' fiduciary duties, subject to certain exceptions. The Certificate of Incorporation includes a provision that eliminates
the personal liability of directors for monetary damages to the corporation or its stockholders for any breach of fiduciary duty as a
director, except to the extent such exemption from liability or limitation thereof is not permitted under the DGCL. The effect of these
provisions is to eliminate the rights of us and our stockholders, through stockholders' derivative suits on our behalf, to recover
monetary damages from a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior.
However, exculpation does not apply to any director if the director has breached such director's duty of loyalty, acted in bad faith,
knowingly or intentionally violated the law, authorized illegal dividends, redemptions or repurchases or derived an improper benefit from
his or her actions as a director.
The limitation of liability
provision in our Certificate of Incorporation may discourage stockholders from bringing a lawsuit against directors for breach of their
fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers,
even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely
affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification
provisions.
There is currently no pending
material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought.
Listing
We intend to apply to list
our common stock on Nasdaq under the symbol "[●]."
Prior to the proposed listing
of our common stock on the Nasdaq, there has been no public market for our common stock, and we cannot predict the effect, if any, that
sales of shares of our common stock or the availability of shares of our common stock for sale will have on the market price of our common
stock prevailing from time to time. Future sales of our common stock in the public market, or the availability of such shares for sale
in the public market, could adversely affect market prices prevailing from time to time. Sales of substantial amounts of our common stock
in the public market following our listing on the Nasdaq, or the perception that such sales could occur, could adversely affect the public
price of our common stock and may make it more difficult for you to sell your common stock at a time and price that you deem appropriate.
We will have no input if and when any Registered Stockholder may, or may not, elect to sell its shares of common stock or the prices at
which any such sales may occur. Future sales of our common stock in the public market, or the availability of such shares for sale in
the public market, could adversely affect the trading prices of shares of our common stock prevailing from time to time.
86
Transfer Agent and Registrar
The transfer agent and registrar
for our common stock is VStock Transfer, LLC.
SHARES
ELIGIBLE FOR FUTURE SALE
Before our Direct Listing,
there has not been a public market for shares of our common stock. Future sales of substantial amounts of shares of our common stock in
the public market after our Direct Listing, or the possibility of these sales occurring, could cause the prevailing market price for our
common stock to fall or impair our ability to raise equity capital in the future.
After our Direct Listing,
we will have outstanding 42,522,091 shares of our common stock, based on the number of shares outstanding as of April 17, 2023. This includes
41,462,025 shares that the Registered Stockholders may resell in the public market immediately following our Direct Listing.
Shares of our common stock
will be deemed "restricted securities" (as defined in Rule 144 under the Securities Act). Restricted securities may be sold
in the public market only if they are registered or if they qualify for an exemption from registration under Rule 144 or Rule 701 under
the Securities Act, which rules are summarized below. Following the listing of our common stock on Nasdaq, shares of our common stock
may be sold either by the Registered Stockholders pursuant to this prospectus or by our other existing stockholders in accordance with
Rule 144 of the Securities Act.
The 855,537 shares of common stock that were issued
pursuant to our Regulation A offering will be freely tradable without restrictions or further registration under the Securities Act
of 1933 in the public market immediately following our Direct Listing.
The 204,529 shares of our common stock issued to
Maxim Partners LLC are subject to a lock-up restriction until the earlier of (i) one (1) year from the date of their initial engagement,
or (ii) six (6) months after the date in which the Company gets listed on Nasdaq.
Further, certain Registered
Stockholders listed above beneficially own in the aggregate 6,469,011 shares of our common stock, or 15.21%, all of such shares were granted
pursuant to our Plan, and which shares may be subject to a lock-up restrictions under our Plan's restricted stock award agreement
(the "Lock-Up"). The Lock-Up will become applicable to the extent that there is an initial underwritten public offering of
the Company's securities. The Lock-Up, if and when applicable, will expire one hundred and eighty (180) days after the effectiveness
of a registration statement of the Company's initial underwritten public offering of the Company's securities. The shares
may be resold for so long as the registration statement, of which this prospectus forms a part, is available for use and any applicable
restrictions are expired or waived. The sale of all securities being offered in this prospectus could result in a significant decline
in the public trading price of our common stock upon effectiveness of an underwritten public offering of the Company's securities.
Rule 144
In general, under Rule 144
as currently in effect, once we have been subject to the public company reporting requirements of Section 13 or Section 15(d)
of the Exchange Act for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities
Act at any time during the 90 days preceding a sale and who has beneficially owned the shares proposed to be sold for at least six months,
including the holding period of any prior owner other than our affiliates, is entitled to sell those shares without complying with the
manner of sale, volume limitation, or notice provisions of Rule 144, subject to compliance with the public information requirements of
Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of
any prior owner other than our affiliates, then that person would be entitled to sell those shares without complying with any of the requirements
of Rule 144.
In general, under Rule 144,
as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled to sell, within any three-month period,
a number of shares of common stock that does not exceed the greater of:
●
1% of the number of shares
of our common stock then outstanding; and
●
the average weekly trading
volume of our common stock on Nasdaq during the four calendar weeks preceding the filing of a notice on Form 144 with respect to that
sale.
Sales under Rule 144 by our
affiliates or persons selling shares of our common stock on behalf of our affiliates are also subject to certain manner-of-sale provisions
and notice requirements and to the availability of current public information about us.
Rule 701
In general, under Rule 701,
any of our employees, directors, officers, consultants, or advisors who purchase shares of capital stock from us in connection with a
compensatory stock option plan or other written agreement before the effective date of the registration statement of which this prospectus
forms a part is entitled to sell such shares 90 days after such effective date in reliance on Rule 144.
Registration Statement on Form S-8
We intend to file one or more
registration statements on Form S-8 under the Securities Act to register shares of our common stock subject to any outstanding
equity awards, as well as shares of our common stock reserved for future issuance under our Plan (as defined above). We expect to file
these registration statements as soon as permitted under the Securities Act. However, the shares registered on Form S-8 may
be subject to the volume limitations and the manner of sale, notice, and public information requirements of Rule 144. See "Executive
Compensation — Equity Incentive Plan" for a description of our Plan.
87
MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
TO NON-U.S. HOLDERS
The following discussion is
a general summary of the material U.S. federal income tax consequences to U.S. Holders and Non-U.S. Holders (as defined below)
generally applicable to the ownership and disposition of our common stock by a U.S. Holder or Non-U.S. Holder that acquires
our common stock and holds our common stock as a capital asset within the meaning of Section 1221 of the U.S. Internal Revenue Code of
1986, as amended (the "Code") (generally, property held for investment), but does not purport to be a complete analysis of
all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local,
or non-U.S. tax laws are not discussed. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial
decisions, and published rulings and administrative pronouncements of the IRS, in each case in effect as of the date hereof. These authorities
may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner
that could adversely affect a U.S. Holder or Non-U.S. Holder. We have not sought and will not seek any rulings from the IRS
regarding the matters discussed below. There can be no assurance that the IRS or a court will not take a contrary position to that discussed
below regarding the tax consequences of the ownership and disposition of our common stock.
This discussion does not address
all U.S. federal income tax consequences relevant to a U.S. Holder's or Non-U.S. Holder's particular circumstances,
including the impact of the Medicare contribution tax on net investment income and the alternative minimum tax or subject to special rules,
including, without limitation:
●
U.S. expatriates and former citizens or long-term residents of the United States;
●
persons holding our common stock as part of a hedge, straddle, or other risk reduction strategy or as part of a conversion transaction or other integrated investment;
●
banks, insurance companies, and other financial institutions;
●
brokers, dealers, or traders in securities;
●
"controlled foreign corporations," "passive foreign investment companies," and corporations that accumulate earnings to avoid U.S. federal income tax;
●
partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);
●
tax-exempt organizations or governmental organizations;
●
persons deemed to sell our common stock under the constructive sale provisions of the Code;
●
persons who hold or receive our common stock pursuant to the exercise of any employee stock option or otherwise as compensation;
●
tax-qualified retirement plans; and
●
"qualified foreign pension funds" as defined in Section 897(l)(2) of the Code and entities all of the interests of which are held by qualified foreign pension funds.
88
If an entity treated as a
partnership for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in the partnership will depend
on the status of the partner, the activities of the partnership, and certain determinations made at the partner level. Accordingly, partnerships
holding our common stock and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax
consequences to them.
THIS DISCUSSION IS FOR
INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE
U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR
COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL, OR NON-U.S. TAXING
JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.
Definition of a U.S. Holder
For purposes of this
discussion, a "U.S. Holder" means a beneficial owner of our common stock (other than an entity or arrangement that is treated
as a partnership for U.S. federal income tax purposes) that is, for U.S. federal income tax purposes, any of the following:
●
an individual who is a citizen or resident of the United States;
●
a corporation (or entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;
●
an estate, the income of which is includable in gross income for U.S. federal income tax purposes regardless of its source; or
●
a trust if (i) a court within the United States is able to exercise primary supervision over the administration of the trust and one or more "United States persons," as defined under the Code, ("U.S. persons") have the authority to control all substantial decisions of the trust or (ii) such trust has made a valid election to be treated as a U.S. person for U.S. federal income tax purposes.
Definition of a Non-U.S. Holder
For purposes of this discussion, a "Non-U.S. Holder"
is any beneficial owner of our common stock that is neither a "U.S. Holder" nor an entity treated as a partnership for U.S.
federal income tax purposes.
Taxation of U.S. Holders
Distributions
If
we pay distributions in cash or other property (other than certain distributions of our stock or rights to acquire our stock) to U.S.
Holders of shares of our common stock, such distributions generally will constitute dividends for U.S. federal income tax purposes to
the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions
in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce
(but not below zero) the U.S. Holder's adjusted tax basis in our common stock. Any remaining excess will be treated as gain realized
on the sale or other disposition of the common stock and will be treated as described under "U.S. Holders - Gain or Loss on Sale,
Taxable Exchange or Other Taxable Disposition of Common Stock" below.
Dividends
we pay to a U.S. Holder that is a taxable corporation generally will qualify for the dividends received deduction if the requisite holding
period is satisfied. With certain exceptions (including, but not limited to, dividends treated as investment income for purposes of investment
interest deduction limitations), and provided certain holding period requirements are met, dividends we pay to a non-corporate U.S. Holder
may constitute "qualified dividends" that will be subject to tax at the maximum tax rate accorded to long-term capital gains.
89
Gain or Loss on Sale,
Taxable Exchange or Other Taxable Disposition of Common Stock
Upon
a sale or other taxable disposition of our common stock, a U.S. Holder generally will recognize capital gain or loss in an amount equal
to the difference between the amount realized and the U.S. Holder's adjusted tax basis in the common stock. Any such capital gain
or loss generally will be long-term capital gain or loss if the U.S. Holder's holding period for the common stock so disposed of
exceeds one year. Long-term capital gains recognized by non-corporate U.S. Holders will be eligible to be taxed at reduced rates. The
deductibility of capital losses is subject to limitations.
Generally,
the amount of gain or loss recognized by a U.S. Holder is an amount equal to the difference between (i) the sum of the amount of cash
and the fair market value of any property received in such disposition and (ii) the U.S. Holder's adjusted tax basis in its common
stock so disposed of. A U.S. Holder's adjusted tax basis in its common stock generally will equal the U.S. Holder's acquisition
cost less any prior distributions treated as a return of capital.
Information Reporting
and Backup Withholding
In
general, information reporting requirements may apply to dividends paid to a U.S. Holder and to the proceeds of the sale or other disposition
of our shares of common stock, unless the U.S. Holder is an exempt recipient. Backup withholding may apply to such payments if the U.S.
Holder fails to provide a taxpayer identification number, a certification of exempt status or has been notified by the IRS that it is
subject to backup withholding (and such notification has not been withdrawn).
Backup withholding is
not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a U.S.
Holder's U.S. federal income tax liability provided the required information is timely furnished to the IRS. All U.S. Holders should
consult their tax advisors regarding the application of information reporting and backup withholding to them.
Taxation of Non-U.S.
Holders
Distributions
As described in the section
titled "Dividend Policy," we do not currently anticipate paying dividends on our common stock. However, if we do make distributions
of cash or property on our common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent
paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated
as dividends for U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a Non-U.S. Holder's
adjusted tax basis in its common stock, but not below zero. Any excess will be treated as capital gain and will be treated as described
under the subsection titled "—Sale or Other Taxable Disposition" below. Because we may not know the extent to which
a distribution is a dividend for U.S. federal income tax purposes at the time it is made, for purposes of the withholding rules discussed
below we or the applicable withholding agent may treat the entire distribution as a dividend. Any such distributions will also be subject
to the discussions below under the heading "
Additional Withholding Tax on Payments Made to Foreign Accounts
."
90
Subject to the discussion
below regarding effectively connected income, dividends paid to a Non-U.S. Holder will be subject to U.S. federal withholding
tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder
furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the
lower treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced
treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders
should consult their tax advisors regarding their entitlement to benefits under any applicable tax treaties.
If dividends paid to a Non-U.S. Holder
are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if
required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to
which such dividends are attributable), the Non-U.S. Holder will generally be exempt from the U.S. federal withholding tax described
above. To claim the exemption, the Non-U.S. Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying
that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the United States.
Any such effectively connected
dividends will be subject to U.S. federal income tax on a net income basis at the regular rates. A Non-U.S. Holder that is a
corporation also may be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty)
on such effectively connected dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding
any applicable tax treaties that may provide for different rules.
Sale or Other Taxable Disposition
A Non-U.S. Holder
will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our common stock unless:
●
the gain is effectively connected
with the Non-U.S. Holder's conduct of a trade or business within the United States (and, if required by an applicable income tax
treaty, the Non-U.S. Holder maintains a permanent establishment in the United States to which such gain is attributable);
●
the Non-U.S. Holder is a nonresident
alien individual present in the United States for 183 days or more during the taxable year of the disposition and certain other requirements
are met; or
●
Our common stock constitutes
a U.S. real property interest (USRPI) by reason of our status as a U.S. real property holding corporation (USRPHC) for U.S. federal income
tax purposes at any time within the shorter of the five-year period preceding such disposition or such non-U.S. holder's holding
period of our common stock, and, provided that our common stock is regularly traded in an established securities market within the meaning
of applicable Treasury Regulations, the non-U.S. holder has held, directly, indirectly, or constructively, at any time during said period,
more than 5% of our common stock.
Gain described in the first
bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular rates applicable to U.S.
persons. A Non-U.S. Holder that is a corporation also may be subject to a branch profits tax at a rate of 30% (or such lower
rate specified by an applicable income tax treaty) on such effectively connected gain, as adjusted for certain items.
A Non-U.S. Holder
described in the second bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by
an applicable income tax treaty) on gain realized upon the sale or other taxable disposition of our common stock, which may be offset
by certain U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the
United States), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.
With respect to the third
bullet point above, we believe we may meet the definition of a USRPHC. Because the determination of whether we are a USRPHC depends, however,
on the fair market value of our USRPIs relative to the fair market value of our non-U.S. real property interests and our other
business assets, the analysis is constantly evolving. Even if we are a USRPHC, gain arising from the sale or other taxable disposition
of our common stock by a Non-U.S. Holder will not be subject to U.S. federal income tax unless such Non-U.S. Holder
owns, actually and constructively, greater than 5% of our common stock throughout the shorter of the five-year period ending on the
date of the sale or other taxable disposition or the Non-U.S. Holder's holding period.
Non-U.S. Holders should
consult their tax advisors regarding any applicable tax treaties that may provide for different rules.
91
FATCA
Withholding taxes may be imposed
under Sections 1471 to 1474 of the Code (such Sections commonly referred to as the Foreign Account Tax Compliance Act (FATCA)) on certain
types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30%
withholding tax may be imposed on dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from
the sale or other disposition of, our common stock paid to a "foreign financial institution" or a "non-financial foreign
entity" (each as defined in the Code), unless (i) the foreign financial institution undertakes certain diligence and reporting
obligations, (ii) the non-financial foreign entity either certifies it does not have any "substantial United States
owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner, or (iii) the
foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the
payee is a foreign financial institution and is subject to the diligence and reporting requirements in (i) above, it must enter into
an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertake to identify accounts held by certain
"specified United States persons" or "United States owned foreign entities" (each as defined in the Code), annually
report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions
and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with
the United States governing FATCA may be subject to different rules.
Under applicable Treasury
Regulations and administrative guidance, withholding under FATCA generally applies to payments of dividends on our common stock. While
withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of our common stock beginning
on January 1, 2020, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally
may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.
Prospective investors should
consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our common stock.
Information Reporting and Backup Withholding
We
must report annually to the IRS and to each Non-U.S. Holder the amount of any distributions paid to, and the tax withheld with respect
to, each Non-U.S. Holder. These reporting requirements apply regardless of whether withholding was reduced or eliminated by an applicable
income tax treaty. Copies of this information reporting may also be made available under the provisions of a specific income tax treaty
or agreement with the tax authorities in the country in which the Non-U.S. Holder resides or is established.
A
Non-U.S. Holder will generally be subject to backup withholding for dividends on our common stock paid to such holder unless such holder
certifies under penalties of perjury that, among other things, it is a Non-U.S. Holder (provided that the payor does not have actual knowledge
or reason to know that such holder is a U.S. person) by furnishing a valid IRS Form W-8BEN, W-8BEN-E, or W-8ECI, or otherwise establishes
an exemption.
Information
reporting and backup withholding generally will apply to the proceeds of a disposition of our common stock by a Non-U.S. Holder effected
by or through the U.S. office of any broker, U.S. or non-U.S., unless the holder certifies its status as a Non-U.S. Holder and satisfies
certain other requirements, or otherwise establishes an exemption. Generally, information reporting and backup withholding will not apply
to a payment of disposition proceeds to a Non-U.S. Holder where the transaction is effected outside the United States through a non-U.S.
office of a broker. However, for information reporting purposes, dispositions effected through a non-U.S. office of a broker with substantial
U.S. ownership or operations generally will be treated in a manner similar to dispositions effected through a U.S. office of a broker.
Non-U.S. Holders should consult their tax advisors regarding the application of the information reporting and backup withholding rules
to them.
Backup
withholding is not an additional income tax. Any amounts withheld under the backup withholding rules from a payment to a Non-U.S. Holder
generally can be credited against the Non-U.S. Holder's U.S. federal income tax liability, if any, or refunded, provided that the
required information is furnished to the IRS in a timely manner. Non-U.S. Holders should consult their tax advisors regarding the application
of the information reporting and backup withholding rules to them.
92
PLAN OF DISTRIBUTION
The Registered Stockholders,
and their pledgees, donees, transferees, assignees, or other successors in interest may sell their shares of common stock covered hereby
pursuant to brokerage transactions on Nasdaq, or other public exchanges or registered alternative trading venues, at prevailing market
prices at any time after the shares of common stock are listed for trading. We are not party to any arrangement with any Registered Stockholder
or any broker-dealer with respect to sales of shares of common stock by the Registered Stockholders. As such, we do not anticipate
receiving notice as to if and when any Registered Stockholder may, or may not, elect to sell their shares of common stock or the prices
at which any such sales may occur, and there can be no assurance that any Registered Stockholders will sell any or all of the shares of
common stock covered by this prospectus.
We will not receive any proceeds
from the sale of shares of common stock by the Registered Stockholders. We will recognize costs related to this Direct Listing and our
transition to a publicly-traded company consisting of professional fees and other expenses. We will expense these amounts in
the period incurred and not deduct these costs from net proceeds to the issuer as they would be in an initial public offering. We
will also bear all costs, expenses and fees in connection with the registration of these securities, including with regard to compliance
with state securities or "blue sky" laws. The Registered Stockholders will bear all commissions and discounts, if any,
attributable to their sale of shares of common stock.
The shares of common stock
beneficially owned by the Registered Stockholders covered by this prospectus may be offered and sold from time to time by the Registered
Stockholders. The term "Registered Stockholders" includes donees, pledgees, transferees or other successors in interest selling
securities received after the date of this prospectus from a selling stockholder as a gift, pledge, partnership distribution or other
transfer. The Registered Stockholders will act independently of us in making decisions with respect to the timing, manner and size of
each sale. Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and under terms then
prevailing or at prices related to the then current market price or in negotiated transactions. The Registered Stockholders may sell their
shares of common stock by one or more of, or a combination of, the following methods:
●
purchases by a broker-dealer as principal and resale by such
broker-dealer for its own account pursuant to this prospectus;
●
ordinary brokerage transactions and transactions in which
the broker solicits purchasers;
●
block trades in which the broker-dealer so engaged will attempt
to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;
●
an over-the-counter distribution in accordance with the rules
of Nasdaq;
●
through trading plans entered into by a Registered Stockholder pursuant
to Rule 10b5-1 under the Exchange Act, that are in place at the time of an offering pursuant to this prospectus and any applicable prospectus
supplement hereto that provide for periodic sales of their securities on the basis of parameters described in such trading plans;
●
to or through underwriters, agents or broker-dealers;
●
"at the market" offerings, as defined in Rule
415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related to such prevailing
market prices, including sales made directly on a national securities exchange or sales made through a market maker other than on an
exchange or other similar offerings through sales agents;
●
privately negotiated transactions;
●
options transactions;
●
through a combination of any of the above methods of sale;
or
●
any other method permitted pursuant to applicable law.
93
In addition, any securities
that qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than pursuant to this prospectus.
To the extent required, this
prospectus may be amended or supplemented from time to time to describe a specific plan of distribution. In connection with distributions
of the common stock or otherwise, the Registered Stockholders may enter into hedging transactions with broker-dealers or other financial
institutions. In connection with such transactions, broker-dealers or other financial institutions may engage in short sales of common
stock in the course of hedging the positions they assume with Registered Stockholders. The Registered Stockholders may also sell shares
of common stock short and redeliver the shares to close out such short positions. The Registered Stockholders may also enter into option
or other transactions with broker-dealers or other financial institutions which require the delivery to such broker-dealer or other financial
institution of securities offered by this prospectus, which securities such broker-dealer or other financial institution may resell pursuant
to this prospectus (as supplemented or amended to reflect such transaction). The Registered Stockholders may also pledge shares of common
stock to a broker-dealer or other financial institution, and, upon a default, such broker-dealer or other financial institution may effect
sales of the pledged securities pursuant to this prospectus (as supplemented or amended to reflect such transaction).
In
effecting sales, broker-dealers or agents engaged by the Registered Stockholders may arrange for other broker-dealers to participate.
Broker-dealers or agents may receive commissions, discounts or concessions from the Registered Stockholders in amounts to be negotiated
immediately prior to the sale. In offering the securities covered by this prospectus, the Registered Stockholders and any broker-dealers
who execute sales for the Registered Stockholders may be deemed to be "underwriters" within the meaning of the Securities
Act in connection with such sales. Any profits realized by the Registered Stockholders and the compensation of any broker-dealer may be
deemed to be underwriting discounts and commissions.
In
order to comply with the securities laws of certain states, if applicable, the securities must be sold in such jurisdictions only through
registered or licensed brokers or dealers. In addition, in certain states the securities may not be sold unless they have been registered
or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied
with.
We
have advised the Registered Stockholders that the anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of
securities in the market and to the activities of the Registered Stockholders and their affiliates. In addition, we will make copies of
this prospectus available to the Registered Stockholders for the purpose of satisfying the prospectus delivery requirements of the Securities
Act. The Registered Stockholders may indemnify any broker-dealer that participates in transactions involving the sale of the securities
against certain liabilities, including liabilities arising under the Securities Act.
At
the time a particular offer of securities is made, if required, a prospectus supplement will be distributed that will set forth the number
of securities being offered and the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price
paid by any underwriter, any discount, commission and other item constituting compensation, any discount, commission or concession allowed
or reallowed or paid to any dealer, and the proposed selling price to the public.
94
LEGAL MATTERS
The
validity of the shares of common stock offered hereby will be passed upon for us by Mitchell Silberberg & Knupp LLP. As of the date
of this prospectus, Mitchell Silberberg & Knupp LLP beneficially owns an aggregate of 100,000 shares of our common stock.
EXPERTS
The
consolidated financial statements of reAlpha Tech Corp. and subsidiaries as of April 30, 2022, and April 30, 2021, have been included
herein and in the registration statement of which this prospectus forms a part in reliance upon the report of GBQ Partners, LLC, an independent
registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.
As of the date of the Direct
Listing, Mitchell Silberberg & Knupp LLP, our legal counsel, beneficially owns 100,000 shares of our common stock, which equity
securities were received as partial consideration for legal services provided to us in connection with the Direct Listing.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed with the SEC
this Registration Statement on Form S-1 under the Securities Act, with respect to the shares of our common stock covered by
this prospectus. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set
forth in the registration statement or the exhibits and schedules to the registration statement. Please refer to the registration statement
and exhibits for further information with respect to the common stock covered by this prospectus. Statements contained in this prospectus
regarding the contents of any contract or other document are only summaries. With respect to any contract or document that is filed as
an exhibit to the registration statement, you should refer to the exhibit for a copy of the contract or document, and each statement in
this prospectus regarding that contract or document is qualified by reference to the exhibit. The SEC maintains a website that contains
reports, proxy and information statements, and other information regarding companies, like us, that file documents electronically with
the SEC. The address of that website is www.sec.gov.
Immediately upon the effectiveness
of this registration statement of which this prospectus forms a part, we will become subject to the information and reporting requirements
of the Exchange Act, and, in accordance with this law, will be required to file periodic reports, proxy statements, and other information
with the SEC. These periodic reports, proxy statements, and other information will be available at the website of the SEC referred to
above. We also maintain a website at www.podcastone.com, at which you may access these materials free of charge as soon as reasonably
practicable after they are electronically filed with, or furnished to, the SEC. The information contained on, or that can be accessed
through, these websites is not a part of this prospectus. We have included these website addresses in this prospectus solely as inactive
textual references.
95
FINANCIAL STATEMENTS
REALPHA TECH CORP.
(FKA REALPHA ASSET MANAGEMENT, INC.) AND SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS
Page
Consolidated Financial Statements (audited) for the Years Ended April
30, 2022 and 2021
Report of Independent Registered Public Accounting Firm (PCAOB ID 1808)
F-2
Consolidated Balance Sheets as of April 30, 2022 and 2021
F-3
Consolidated Statements of Operations for the Years Ended April 30, 2022 and 2021
F-4
Consolidated Statements of Stockholders' Deficit for the Years Ended April 30, 2022 and 2021
F-5
Consolidated Statements of Cash Flows for Years Ended April 30, 2022 and 2021
F-6
Notes to the Consolidated Financial Statements
F-7
Condensed Consolidated Financial Statements (unaudited) for the three and nine months ended January 31, 2023 and 2022
Condensed Consolidated Balance Sheets as of January 31, 2023 (Unaudited) and April 30, 2022 (audited)
F-15
Condensed Consolidated Statements of Operations for the Three and Nine Months Ended January 31, 2023 and 2022 (Unaudited)
F-16
Condensed Consolidated Statements of Stockholders' Deficit for the Nine Months Ended January 31, 2023 and 2022 (Unaudited)
F-17
Condensed Consolidated Statements of Cash Flows for Nine Months Ended January 31, 2023 and 2022 (Unaudited)
F-18
Notes to the Condensed Consolidated Financial Statements (Unaudited)
F-19
F-
1
Report of Independent Registered Public Accounting
Firm
To the Board of Directors and Stockholders
reAlpha Tech Corp. (f.k.a. ReAlpha Asset Management, Inc.) and Subsidiaries
Opinion on the Financial Statements
We have audited the accompanying balance sheets
of reAlpha Tech Corp. and Subsidiaries (f.k.a. ReAlpha Asset Management, Inc.) and Subsidiaries (the "Company") as of April
30, 2022 and 2021, the related statements of operations, stockholders' deficit, and cash flows for the years then ended, and related
notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in
all material respects, the financial position of the Company at April 30, 2022 and 2021, and the results of its operations and its cash
flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying consolidated
financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated
financial statements, the Company has experienced recurring losses from operations and negative cash flows from operations that raise
substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described
in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our
audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB")
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding
of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess
the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
GBQ Partners LLC
We have served as the Company's auditor since 2021
Columbus, Ohio
April 10, 2023
F-
2
REALPHA TECH
CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Consolidated Balance Sheets
April 30, 2022 and April 30, 2021
Apr 30,
2022
Apr 30,
2021
(Audited)
(Audited)
ASSETS
Investments in real estate, net
$
3,766,649
$
1,137,616
Cash
1,639,241
108,172
Restricted cash
23,311
225,048
Accounts receivable
133,797
-
Related party receivables
-
4,718
Prepaid expenses and other assets
110,114
5,670
TOTAL ASSETS
$
5,673,112
$
1,481,224
LIABILITIES AND EQUITY
Liabilities
Long-term debt, net
$
2,229,162
$
1,007,994
Settling subscriptions, net of offering costs
4,273,097
-
Accounts payable
54,972
Related party payables
1,712,426
-
Accrued expenses
35,210
1,643
Total liabilities
8,304,867
1,009,637
Equity
Common stock
40,010
40,000
Additional paid-in capital
509,990
410,000
Accumulated deficit
(3,193,380
)
(3,342
)
Total stockholders' equity (deficit)
(2,643,380
)
446,658
Non-controlling interests members' equity
11,625
24,929
Total stockholders' (deficit) equity
(2,631,755
)
471,587
TOTAL LIABILITIES AND EQUITY
$
5,673,112
$
1,481,224
The accompanying notes are an integral part
of these consolidated financial statements.
F-
3
REALPHA TECH
CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Consolidated Statements of Operations
For the Year Ended April 30, 2022
and for the Period from April 22, 2021 (inception) to April 30, 2021 (audited)
Apr 30,
2022
Apr 30,
2021
Particulars
Income
Rental Income
$
229,672
$
784
Expenses
Real estate taxes and insurance
109,704
556
Rental fees
76,483
-
Repairs and maintenance
37,907
-
Property management fees and utilities
67,260
-
General and administrative expenses
687,232
1,500
Advertising expense
1,939,607
-
Depreciation and amortization
146,295
832
Other expense
189,967
-
Interest expense, net
178,559
1,309
Total Expenses
3,433,014
4,197
Net Loss
(3,203,342
)
(3,413
)
Less: Net Loss Attributable to Non-Controlling Interests
(13,304
)
(71
)
Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.)
$
(3,190,038
)
$
(3,342
)
The accompanying notes are an integral part
of these consolidated financial statements.
F-
4
REALPHA TECH CORP.
(F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders'
Equity (Deficit)
For the Year Ended April 30, 2022 and for the
Period from April 22, 2021 (inception) to April 30, 2021 (audited)
Common
Stock
Additional
Paid-in
Capital
Accumulated
Deficit
ReAlpha Asset
Management, Inc.  and
Subsidiaries
Equity
Non-
Controlling
Interest
Member's
    Equity
Total
Shareholder's
Equity
Balance at April 22, 2021
$
–
$
–
$
–
$
–
$
–
$
–
Net income
$
–
$
–
$
(3,342
)
$
(3,342
)
$
(71
)
$
(3,413
)
Contributions
$
40,000
$
410,000
$
–
$
450,000
$
25,000
$
475,000
Balance at April 30, 2021
$
40,000
$
410,000
$
(3,342
)
$
446,658
$
24,929
$
471,587
Net income
–
–
(3,190,038
)
(3,190,038
)
(13,304
)
(3,203,342
)
Contributions
10
99,990
–
100,000
–
100,000
Balance at April 30, 2022
$
40,010
$
509,990
$
(3,193,380
)
$
(2,643,380
)
$
11,625
$
(2,631,755
)
The accompanying notes are an integral part
of these consolidated financial statements.
F-
5
REALPHA TECH
CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the Year Ended April 30, 2022
and for the Period from April 22, 2021 (inception) to April 30, 2021 (audited)
Apr 30,
2022
Apr 30,
2021
Cash Flows from Operating Activities
Net loss
$
(3,203,342
)
$
(3,413
)
Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:
Depreciation and amortization
146,295
832
Gain on sale of real estate investments
(34,853
)
Changes in operating assets and liabilities:
Accounts receivable
(133,797
)
-
Related party Receivable
4,718
(4,718
)
Prepaid expenses and other current assets
(104,444
)
(5,670
)
Accounts payable
54,972
-
Related party payables
1,712,426
-
Accrued expenses
-
1,643
Total adjustments
1,645,317
(7,913
)
Net cash and restricted cash used in operating activities
(1,558,025
)
(11,326
)
Cash Flows from Investing Activities
Additions to real estate investments
(4,337,460
)
(98,189
)
Proceeds from sale of real estate Investment
1,691,644
-
Net cash and restricted cash used in investing activities
(2,645,816
)
(98,189
)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt
2,673,351
-
Payments of long-term debt
(1,420,987
)
Deferred financing costs
(92,288
)
-
Contributions
100,000
98,000
Settling subscription stock contributions
4,273,097
344,735
Net cash and restricted cash provided by  financing
    activities
5,533,173
442,735
Net increase in cash and restricted cash
1,329,332
333,220
Cash and Restricted Cash - Beginning of Year
333,220
-
Cash and Restricted Cash - End of Year
$
1,662,552
$
333,220
Reconciliation of Cash and Restricted Cash:
Cash
1,639,241
108,172
Restricted cash
23,311
225,048
Total cash and restricted cash
$
1,662,552
$
333,220
The accompanying notes are an integral part
of these consolidated financial statements.
F-
6
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS
April 30, 2022
NOTE 1 – NATURE OF OPERATIONS
reAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.) (RTC) (f.k.a. ReAlpha Asset Management, Inc.) and Subsidiaries, incorporated in Delaware on April 22, 2021, together with its subsidiaries
described below are collectively referred to as "the Company". The Company is primarily engaged in the business of the identification,
acquisition, financing, marketing and management of short-term rental properties for the benefit of the Company's members and stockholders.
For details about the merger between reAlpha Tech Corp. and reAlpha Asset Management, Inc., please refer to "Note 10 – Subsequent
Events" below.
As of April 30, 2022, the Company has
the following subsidiaries:
Name of Subsidiary
% of
Ownership
reAlpha Series 1 LLC
75
%
reAlpha 1011 Gallagher LLC
75
%
reAlpha Acquisitions LLC
100
%
reAlpha Acquisitions WF LLC
100
%
reAlpha Acquisitions Churchill LLC
100
%
reAlpha 503 North Patton LLC
100
%
reAlpha 7 LLC
100
%
reAlpha LLC
100
%
reAlpha Series 2 LLC
100
%
NOTE 2 – GOING CONCERN
The Company's consolidated financial
statements have been prepared assuming the Company will continue as a going concern. The Company commenced operations as of April 22,
2021, and has not yet realized its planned operations. The Company is dependent upon additional capital resources for full commencement
of its planned operations and is subject to significant risks and uncertainties, including failing to secure funding to commence the Company's
planned operations or failing to profitably operate the business.
Management believes that the Company
will continue to incur losses for the foreseeable future and will need equity or debt financing or will need to generate additional revenues
from the property rental activity to sustain its operations until it can achieve profitability and positive cash flows. The Company intends
to raise funds through various potential sources, such as equity or debt financings; however, the Company can provide no assurance that
such financing will be available on acceptable terms, or at all. If adequate financing is not available, the Company may be required to
significantly curtail or cease its operations, and its business would be jeopardized.
Management has determined that these
matters, among others, raise substantial doubt about the Company's ability to continue as a going concern for a period of at least one
year from the date these consolidated financial statements are issued. The accompanying consolidated financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
F-
7
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Company prepares its consolidated
financial statements under the accrual basis of accounting, in conformity with accounting principles generally accepted in the United
States of America ("U.S. GAAP") and Article 8 of Regulation S-X of the rules and regulations of the SEC.
Principles of Consolidation
The Company consolidates entities when
the Company owns, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. The Company consolidates
variable interest entities ("VIEs") in accordance with Accounting Standards Codification ("ASC") 810, Consolidation,
if the Company is the primary beneficiary of the VIE as determined by the power to direct the VIE's activities and the obligation
to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an
entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's
activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the
ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected
losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting
rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or
are conducted on behalf of, an investor that has disproportionately few voting rights.
Cash, Cash Equivalents and Restricted
Cash
The Company considers all the balances
in its bank accounts as cash equivalents & the Holdbacks due to be receivable by the company are considered as Restricted Cash.
Accounts Receivable and Allowance
for Doubtful Accounts
As of April 30, 2022 and 2021, the Company's
accounts receivable include Reg-A proceeds, & Short Term Rental Revenues due from Property management companies. Management has evaluated
the receivables and believes they are collectable based on the nature of the receivables, historical experience of credit losses, and
all other currently available evidence. As of April 30, 2022 and 2021 the Company has no allowance for doubtful accounts or uncollectible
accounts.
Deferred
Offering Costs
The Company
complies with the requirements of FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering
costs are capitalized and recognized as a reduction to the settling subscriptions liability in the consolidated balance sheets. The deferred
offering costs are charged to member's equity upon the completion of an offering or to expense if the offering is not completed.
Fair Value of Financial Instruments
The Financial
Accounting Standards Board ("FASB") issued the Accounting Standards Codification ("ASC") 820, Fair Value Measurement
and Disclosures, requires all entities to disclose the fair value of financial instruments, both assets and liabilities for which it is
practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged
in a current transaction between willing parties. As of April 30, 2022 and 2021 the recorded values of receivables, accounts payable and
other liabilities approximated their fair value due to the short-term nature of the instruments.
Concentrations
of Credit Risk
The Company
maintains its cash with major financial institutions located in the United States of America, which it believes to be creditworthy. The
Federal Deposit Insurance Corporation insures balances up to $250,000. At times, the Company may maintain balances in excess of the federally
insured limits.
F-
8
Advertising
Costs
The Company
expenses advertising costs as and when they are incurred. Advertising expenses totaled $1,939,607 for the year ended April 30, 2022 and
there was no advertising expense for the year ended April 30, 2021.
Use of Estimates
The preparation
of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Noncontrolling Interests
Noncontrolling
interests represents minority owners' share of net income or losses and equity in the Company's majority-owned consolidated
subsidiaries.
Risks and Uncertainties
The Company has a limited operating history.
The Company's business and operations are sensitive to general business and economic conditions in the United States. A host of
factors beyond the Company's control could cause fluctuations in these conditions. Adverse conditions may include recession, downturn
or otherwise, local competition or changes in consumer taste. These adverse conditions could affect the Company's financial condition
and the results of its operations
Investment in Real Estate and Depreciation and Amortization
Real estate assets are carried at cost.
Depreciation is calculated on the straight-line method over the estimated lives of the assets (27.5 years for residential rental property
and 5 years for furniture and fixtures). Major additions and betterments are capitalized and depreciated. Maintenance and repairs, which
do not improve or extend the estimated useful lives, are expensed as incurred. Upon disposal of assets, the related cost and accumulated
depreciation are removed from the accounts, and any gain or loss resulting from the disposal is recorded in the period of disposition
in the accompanying consolidated statement of operations.
Impairment Policy
The Company applies FASB ASC 360-10, "Property,
Plant & Equipment," to measure impairment in real estate investments. Rental properties are individually evaluated for impairment
when conditions exist which may indicate that it is probable that the sum of expected future cash flows (on an undiscounted basis without
interest) from a rental property is less than the carrying value under its historical net cost basis. These expected future cash flows
consider factors such as future operating income, trends and prospects as well as the effects of leasing demand, competition and other
factors. Upon determination that a permanent impairment has occurred, rental properties are reduced to their fair value. For properties
to be disposed of, an impairment loss is recognized when the fair value of the property, less the estimated cost to sell, is less than
the carrying amount of the property measured at the time there is a commitment to sell the property and/or it is actively being marketed
for sale. A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell.
Subsequent to the date that a property is held for disposition, depreciation expense is not recorded. There were no such impairment adjustments
during the periods ended April 30, 2022 and 2021.
Revenue Recognition
Revenues primarily consist of short-term
rental revenues. Additionally, the Company records up to 25% of the gross revenues from the short-term rental properties towards the management
of the properties acquired. The Company has the following revenue sources and revenue recognition policies:
Short-term rental revenues include revenues
from the rental of properties via Airbnb, Vacasa and such digital hospitality platforms.
F-
9
For every property, which generates revenue
through short-term rental ReAlpha charges up to 20% of the gross revenue towards the up-keep, maintenance, upgrade, and related operating
cost.
At this time, the Company is not collecting
an asset management fee related to its management of properties. In the future, that is an area that we anticipate being an area of Revenue
Recognition. No timeline, however, has yet been set for that change.
Revenues are recognized in accordance
with Topic 606 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) for revenue recognition. The
Company recognizes revenues in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration
expected to be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when
all the five following criteria are met: (1) identification of the contract with a customer, (2) identification of the performance obligations
in the contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in
the contract, and (5) recognition of revenue when (or as) performance obligations are satisfied.
Deferred Financing Costs
Deferred financing costs represent loan
fees, legal fees and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction
from the carrying value of the associated debt. These costs are amortized to interest expense over the terms of the respective financing
agreements using the interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced
or repaid before maturity unless specific rules are met that would allow for the carryover of such costs. Costs incurred in seeking financing
transactions that do not close are expensed in the period in which it is determined that the financing will not close. As of April 30,
2022, deferred financing costs and accumulated amortization of deferred financing costs were $114,172 and $62,123 , respectively ($26,373
and $5,520, respectively as of April 30, 2021). Amortization expense of deferred financing costs was $61,092 and $668 in 2022 and 2021,
respectively.
Recent Accounting Pronouncements
In June 2016, the FASB issued ASU No.
2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments."
ASU 2016-13 requires that entities use a new forward looking "expected loss" model that generally will result in the earlier
recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions,
and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU No. 2016-13 is effective for annual
reporting periods, including interim reporting periods within those periods, beginning after December 15, 2022. The Company is currently
evaluating the potential impact this standard may have on the consolidated financial statements
Income Taxes
The Company accounts for income taxes
under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax
consequences of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets
and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted
tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax
assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets
to the extent that these assets are more likely than not to be realized. In making such a determination, the Company considers all available
positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income,
tax-planning strategies, and results of recent operations.
If it is determined that the Company
would be able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to
the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions
in accordance with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the
tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not
recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon
ultimate settlement with the related tax authority. The Company recognizes and interest and penalties, if any, with income tax expense
in the accompanying consolidated statement of operations.
F-
10
Statements of Cash Flows
For the purpose of reporting cash flows, cash and restricted
cash includes cash on hand and cash on deposit with financial institutions.
NOTE 4: Investment in Real Estate
Investment in real estate consisted of the
following as of April 30, 2022:
1.
Investments in real estate – Properties other than
held for sale:
Accumulated
Depreciation
and
Net
Cost
Amortization
Investment
Land
$
218,557
$
-
$
218,557
Buildings and building improvements
1,713,265
(10,058
)
1,703,207
Appliances, Furniture and fixtures
46,952
(520
)
46,432
Total investment in real estate
$
1,978,774
$
(10,578
)
$
1,968,196
2.
Investment in real estate – Properties held for sale:
Accumulated
Depreciation
and
Net
Cost
Amortization
Investment
Land
$
138,283
$
-
$
138,283
Buildings and building improvements
1,609,873
(39,999
)
1,569,874
Appliances, Furniture and fixtures
106,530
(16,234
)
90,296
Total investment in real estate
$
1,854,686
$
(56,233
)
$
1,798,453
Investment in real estate – properties other than held for
sale consisted of the following as of April 30, 2021:
Accumulated
Net
Cost
Depreciation
Investment
Land
$
170,783
$
-
$
170,783
Buildings and building improvements
955,493
(855
)
954,638
Furniture and fixtures
12,367
(172
)
12,195
Total investment in real estate
$
1,138,643
$
(1,027
)
$
1,137,616
Depreciation expense was $85,203 for the year
ended April 30, 2022 and $164 for the period from April 22, 2021 (inception) to April 30, 2021.
All investments in real estate as of April 30,
2022 and 2021 were pledged as collateral for the Company's secured long-term debt.
NOTE 5: Cash and Restricted Cash
As of April 30, 2022, the Company maintains its
cash in three separate accounts with two financial institutions, and cash balances may, at times, exceed federally insured limits.
During the closing on an investment in rental
real estate property or real estate held for improvement transaction, the Company may place a cash deposit on the property being acquired
or fund amounts into escrow. These deposits are placed before the closing process of the property is complete.
F-
11
NOTE 6: Long-Term Debt
The Company has issued promissory notes payable
to lenders related to the acquisition of properties. These promissory notes range from 8.49% to 12.0%, with 6 months to 1 year, as detailed
below.
Long-term debt consisted of the following as of April 30, 2022
and 2021:
April 30,
April 30,
2022
2021
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
$
217,500
$
-
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on July 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
110,250
-
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest  payments. The note matures on May 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
226,737
-
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on August 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
228,750
-
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on October 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
177,974
177,974
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on November 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
98,000
98,000
Mortgage note with a bank. The note bears interest at a rate of 5% + Prime with floor of 8.25% and provides for monthly interest payments. The note matures on February 10, 2023 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
880,000
-
Mortgage note with a bank. The note bears interest at a rate of 4.75% + Prime with floor  of 8.25% and provides for monthly interest  payments. The note matures on April 15, 2023 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
342,000
-
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on February 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
-
150,000
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on May 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
-
226,737
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on January  1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
-
152,136
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2021, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
-
126,000
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2021, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
-
98,000
Total Long-term debt
$
2,281,211
$
1,028,847
Less: Deferred financing costs, net
(52,048
)
(20,853
)
Total Long-term debt, net
$
2,229,163
$
1,007,994
F-
12
Maturities of long-term debt as of April 30, 2022 are as follows:
2022
$
1,059,211
2023
1,222,000
Less: unamortized costs
(52,048
)
Total long-term debt, net
$
2,229,163
NOTE 7: Stockholders' Equity
The Company is authorized to issue up to 50,000,000
shares of Common Stock, par value $0.001 per share. As of April 30, 2022, there were 40,010,000 shares of Common Stock issued and outstanding
and as of April 30, 2021 there were no common stocks issued.
NOTE 8: Related Party Transactions
ReAlpha Tech Corp. (f.k.a. reAlpha Asset Management,
Inc.) had a Master Service Agreement with ReAlpha Tech Corp. for their patented technologies and platforms and will pay ReAlpha Tech Corp.
a management fee of 20% of rental income, however, this agreement is no longer effective post-merger.
ReAlpha Tech Corp. (f.k.a. reAlpha Asset Management,
Inc.) had a Payable to ReAlpha Tech Corp. totaling $ 1,712,426 as of April 30, 2022 and Receivable from ReAlpha Tech Corp $ 4,718 as of
April 30, 2021. The receivable & payable do not accrue interest.
NOTE 9: Commitments, Contingencies and Concentrations
The Company may be subject to pending
legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with
certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse
effect on its business, financial condition or results of operations.
Massachusetts Consent Order
The Company entered into the Consent
Order with the Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts (the "MSD") following
an investigation by the MSD into whether the Company had engaged in acts or practices that violated the Massachusetts Uniform Securities
Act (the "Massachusetts Act") and the regulations promulgated thereunder (the "Massachusetts Regulations"). For
purposes of settlement, the Company did not admit or deny the findings of fact or law or allegations contained in the Consent Order. Under
the terms of the Consent Order, the Company is censured, barred from offering or selling securities in Massachusetts, and ordered to cease
and desist from committing future violations of the Massachusetts Act and the Massachusetts Regulations. Pursuant to the Consent Order,
the Company paid a $375,000 administrative fine on April 21, 2022 and offered to rescind the purchases of each of the 14 Massachusetts
investors who purchased the Company's common stock in its Regulation A offering. The $375,000 fine is included in general and administrative
expenses in the 2022 consolidated statements of operations. Those Massachusetts investors paid an aggregate amount of $19,500 to purchase
their shares. Seven of the fourteen Massachusetts investors elected to accept the offer of rescission and the Company has fully refunded
a total of $11,500 to such investors. The Company has fully complied with the terms of the Consent Order.
Ohio Subpoena
On May 2, 2022, we received a subpoena duces tecum
and requests for depositions of three senior managers of the Company from the Ohio Division of Securities (the "ODS"), all
related to the Company's Regulation A+ securities offering in the State of Ohio, and based on Ohio Revised Code1707.23. The depositions
were taken in July 2022. The ODS has not asserted any securities violations by the Company other than a late notice filing for its offering.
The Company is fully cooperating with the ODS.
F-
13
NOTE 10: Subsequent Events
Management has evaluated subsequent events through
the date of the Independent Auditor's Report, the date on which the financial statements were available to be issued.
Subsequent to the date of financial statements,
the Company sold four properties for a total sale consideration of $1,164,900 and had gains on sale of $179,653. In connection with these
property sales, the Company paid off the related notes payable totaling $565,737.
reAlpha Acquisitions
Churchill, LLC, a wholly owned subsidiary of reAlpha Asset Management Inc., closed a credit facility worth up to $200 million on August
18th, 2022. This credit facility allows a loan-to-cost ratio of up to 80% and is at a fixed rate of 12%. Access to this credit facility
will allow the Company to acquire properties with the intention of utilizing them as short-term rental properties.
The Reg A+ offering was
qualified by the SEC in September 2021 and requalified on August 3, 2022. Reg A+ allows sales up to $75 million exempt from state Blue
Sky registration requirements. Challenges with late Blue Sky notice filings led to a pause in the Reg A+ campaign in May, followed by
an SEC amendment disclosure and requalification. The campaign concluded on January 19, 2023.
Events after January 31, 2023
In March 2023, the Company
opened its first Regulation CF offering listed under reAlpha 612 Jasmine Lane Inc. where the subsidiary is completing its first syndication
through an initial public offering platform. The minimum offering amount is $388,639 and the maximum is $614,036, inclusive of investor
payment processing fees. The offering is selling shares of the company which owns the property at 612 Jasmine Lane, Davenport, FL 33897.
The minimum investment is $500 plus the 2.5% investor transaction fee.
On March 21, 2023, reAlpha
Tech Corp merged with reAlpha Asset Management, Inc. in a short-form merger, resulting in reAlpha Asset Management, Inc. becoming the
surviving corporation and gaining access to reAlpha Tech Corp.'s technology and intellectual property. Prior to the merger, the Parent
owned over 90% of the Subsidiary's shares. The merger enables reAlpha Asset Management, Inc. to provide customers with a broader range
of AI solutions for various industries and use cases. Following the merger, reAlpha Asset Management, Inc. changed its name to reAlpha
Tech Corp. on March 21, 2023,
On March 24, 2023, reAlpha
Tech Corp. acquired Roost Enterprises, Inc. (Rhove), a real estate technology solutions provider. The acquisition includes Rhove's Syndication
Platform and related intellectual property. The purchase price involved a $25,000 cash payment, 49,029 common stock shares to SVBB, 1,263,000
shares for sellers, and options for sellers to purchase 1,263,000 shares at $10 per share. Additionally, $50,000 was paid for Rhove's
transaction expenses. Drive Capital and its funds became investors of reAlpha, and Rhove's CEO, Calvin Cooper, joined reAlpha in an advisory
role.
F-
14
REALPHA TECH CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
January 31, 2023 and April 30, 2022
Jan 31,
2023
Apr 30,
2022
(unaudited)
(Audited)
ASSETS
Investments in real estate, net
$
2,167,368
$
3,766,649
Cash
2,312,629
1,639,241
Restricted cash
202,740
23,311
Accounts receivable
14,779
133,797
Prepaid expenses and other assets
108,095
110,114
TOTAL ASSETS
$
4,805,611
$
5,673,112
LIABILITIES AND EQUITY
Liabilities
Long-term debt, net
$
1,452,961
$
2,229,162
Settling subscriptions, net of offering costs
33,409
4,273,097
Accounts payable
191,185
54,972
Related party payables
314,096
1,712,426
Accrued expenses
232,831
35,210
Total liabilities
2,224,482
8,304,867
Equity
Common stock
40,852
40,010
Additional paid-in capital
8,882,989
509,990
Accumulated deficit
(6,342,712
)
(3,193,380
)
Total stockholders' equity (deficit)
2,581,129
(2,643,380
)
Non-controlling interests members' equity
-
11,625
Total stockholders' equity (deficit)
2,581,129
(2,631,755
)
TOTAL LIABILITIES AND EQUITY
$
4,805,611
$
5,673,112
The accompanying notes are an integral part
of these consolidated financial statements.
F-
15
REALPHA TECH CORP. (F.K.A.
REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the Three and Nine Months Ended January 31, 2023 and 2022 (unaudited)
For the Three Months Ended
For the Nine Months Ended
Particulars
January 31,
2023
January 31,
2022
January 31,
2023
January 31,
2022
Income
Rental Income
$
37,070
$
95,000
$
96,860
$
168,771
Expenses
Real estate taxes and insurance
19,719
18,523
66,232
77,566
Rental fees
4,818
19,747
13,508
56,033
Repairs and maintenance
3,356
29,475
11,893
21,351
Property management fees and utilities
11,755
23,598
42,727
44,891
General and administrative expenses
133,974
69,481
1,020,659
247,999
Advertising expense
1,320,314
1,320,658
1,857,864
1,607,215
Depreciation and amortization
35,820
3,810
107,342
46,425
Interest expense, net
41,500
42,785
125,968
100,922
Total Expenses
$
1,571,256
$
1,528,077
$
3,246,193
$
2,202,402
Net Loss
$
(1,534,186
)
$
(1,433,077
)
$
(3,149,333
)
$
(2,033,631
)
Less: Net Loss Attributable to Non-Controlling Interests
$
-
$
(2,211
)
$
-
$
(8,082
)
Net Loss Attributable to ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management , Inc.)
$
(1,534,186
)
$
(1,430,866
)
$
(3,149,333
)
$
(2,025,549
)
The accompanying notes are an integral part
of these consolidated financial statements.
F-
16
REALPHA TECH CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Condensed Consolidated
Statements of Changes in Stockholder's Equity (Deficit)
For the Nine Months Ended January 31, 2023 and 2022 (unaudited)
ReAlpha
Asseet
Management,
Inc.
Non-
Controlling
Additional
and
Interest
Total
Common
Paid-in
Accumulated
Subsidiaries
Members'
Shareholders'
Stock
Capital
Deficit
Equity
Equity
Equity
Balance at January
    31, 2022
$
40,010
$
509,990
$
(2,028,891
)
$
(1,478,891
)
$
16,847
$
(1,462,043
)
Net loss
-
-
(1,164,489
)
(1,164,489
)
(5,222
)
(1,169,711
)
Issuance of Common Stock
-
-
-
-
-
-
Balance at January 31, 2022
$
40,010
$
509,990
$
(3,193,380
)
$
(2,643,380
)
$
11,625
$
(2,631,755
)
Net loss
-
-
(487,536
)
(487,536
)
-
(487,536
)
Issuance of Common Stock
-
(46,589
)
-
(46,589
)
(11,625
)
(58,214
)
Balance at January 31, 2022
$
40,010
$
463,401
$
(3,680,915
)
$
(3,177,504
)
$
(             )
$
(3,177,504
)
Net loss
-
-
(1,127,612
)
(1,127,612
)
-
(1,127,612
)
Issuance of Common Stock
463
4,629,177
-
4,629,640
-
4,629,640
Balance at January 31, 2022
$
40,473
$
5,092,578
$
(4,808,527
)
$
324,524
$
(             )
$
(
324,524
Net loss
-
-
(1,534,185
)
(1,534,185
)
-
(1,534,185
)
Issuance of Common Stock
379
3,790,411
-
3,790,790,
-
3,790,790,
Balance at
    January 31, 2022
$
40,852
$
8,882,989
$
(6,342,712
)
$
2,581,129
$
(             )
$
2,581,129
ReAlpha
Tech Corp.
(f.k.a. ReAlpha
Asset
Management,
Inc.)
Non-
Controlling
Additional
and
Interest
Total
Common
Paid-in
Accumulated
Subsidiaries
Members'
Shareholders'
Stock
Capital
Deficit
Equity
Equity
Equity
Balance at April 22, 2021
$
-
$
-
$
-
$
-
$
-
$
-
Net income
$
-
$
-
$
(3,342
)
$
(3,342
)
$
(71
)
$
(3,413
)
Issuance of Common Stock
$
40,000
$
410,000
$
-
$
450,000
$
25,000
$
475,000
Balance at April 30, 2021
$
40,000
$
410,000
$
(3,342
)
$
446,658
$
24,929
$
471,587
Net income
-
-
(116,308
)
(116,308
)
(564
)
(116,872
)
Issuance of Common Stock
-
-
-
-
-
-
Balance at July 31, 2021
$
40,000
$
410,000
$
(119,650
)
$
330,350
$
24,365
$
354,715
Net income
-
-
(478,374
)
(478,374
)
(5,307
)
(483,681
)
Issuance of Common Stock
-
-
-
-
-
-
Balance at October 31, 2021
$
40,000
$
410,000
$
(598,024
)
$
(148,024
)
$
19,058
$
(128,965
)
Net income
-
-
(1,430,867
)
(1,430,867
)
(2,211
)
(1,433,078
)
Issuance of Common Stock
10
99,990
-
100,000
-
100,000
Balance at January 31, 2021
$
40,010
$
509,990
$
(2,028,891
)
$
(1,478,891
)
$
16,847
$
(1,462,043
)
The accompanying notes are an integral part
of these consolidated financial statements.
F-
17
REALPHA TECH CORP. (F.K.A. REALPHA ASSET MANAGEMENT, INC) AND SUBSIDIARIES
Condensed Consolidated Statements
of Cash Flows
For the Six Months Ended January 31,
2023 and 2022 (unaudited)
For the
Nine Months
Ended
Jan 31,
2023
(unaudited)
For the
Nine Months
Ended
Jan 31,
2022 (unaudited)
Cash Flows from Operating Activities
Net loss
$
(3,149,333
)
$
(2,033,630
)
Adjustments to reconcile net loss to net cash and restricted cash used in operating activities:
Depreciation and amortization
107,342
46,425
Gain on sale of real estate investments
(21,683
)
-
Changes in operating assets and liabilities:
Accounts receivable
48,315
(29,955
)
Related party Receivable
-
(477,355
)
Prepaid expenses and other current assets
(407,494
)
(107,673
)
Accounts payable
145,013
38,758
Related party payables
(1,398,331
)
2,545,330
Accrued expenses
197,622
(12,382
)
Total adjustments
(1,329,216
)
2,003,148
Net cash and restricted cash used in operating activities
(4,478,549
)
(30,481
)
Cash Flows from Investing Activities
Additions to real estate investments
(14,312
)
(2,322,374
)
Proceeds from sale of real estate Investment
1,701,583
-
Net cash and restricted cash used in investing activities
1,687,271
(2,322,374
)
Cash Flows from Financing Activities
Proceeds from issuance of long-term debt
247,000
1,353,351
Payments of long-term debt
(1,059,211
)
(152,136
)
Deferred financing costs
(12,542
)
(33,852
)
Proceeds from the issuance of common stock
8,387,218
100,000
Settling subscription stock contributions
(3,918,371
)
3,217,819
Net cash and restricted cash provided by financing activities
3,644,094
4,485,182
Net increase in cash and restricted cash
852,816
2,132,327
Cash and Restricted Cash - Beginning of Year
1,662,552
333,220
Cash and Restricted Cash - End of Year
$
2,515,369
$
2,465,548
Reconciliation of Cash and Restricted Cash:
Cash
2,312,629
2,303,567
Restricted cash
202,740
161,981
Total cash and restricted cash
$
2,515,369
$
2,465,548
The accompanying notes are an integral part
of these consolidated financial statements.
F-
18
Notes to Condensed Consolidated Financial Statements
Note 1. Nature of Operations
ReAlpha Tech Corp. (f.k.a. ReAlpha Asset Management,
Inc.) and Subsidiaries (RTC), incorporated in Delaware on April 22, 2021, together with its subsidiaries described below are collectively
referred to as "the Company". The Company is primarily engaged in the business of the identification, acquisition, financing,
marketing, and management of short-term rental properties for the benefit of the Company's members and stockholders. For details
about the merger between reAlpha Tech Corp. and reAlpha Asset Management, Inc., please refer to "Note 10 – Subsequent Events"
below. As of January 31, 2023, the Company has the following subsidiaries:
Jan 31,
2023
Apr 30,
2022
Company Name
% of Ownership
% of Ownership
reAlpha Series 1 LLC
100
%
75
%
reAlpha 1011 Gallagher LLC
NA
75
%
reAlpha Acquisitions LLC
100
%
100
%
reAlpha 503 North Patton LLC
NA
100
%
reAlpha 7 LLC
NA
100
%
reAlpha LLC
100
%
100
%
reAlpha Acquisitions WF LLC
100
%
-
reAlpha Realty LLC
100
%
-
NOTE 2 – GOING CONCERN
The Company's consolidated financial statements
have been prepared assuming the Company will continue as a going concern. The Company commenced operations on April 22, 2021, and has
not yet realized its planned operations. The Company is dependent upon additional capital resources for the full commencement of its planned
operations and is subject to significant risks and uncertainties, including failing to secure funding to commence the Company's
planned operations or failing to profitably operate the business.
Management believes that the Company will continue
to incur losses for the foreseeable future and will need equity or debt financing or will need to generate additional revenues from the
property rental activity to sustain its operations until it can achieve profitability and positive cash flows. The Company intends to
raise funds through various potential sources, such as equity or debt financings; however, the Company can provide no assurance that such
financing will be available on acceptable terms, or at all. If adequate financing is not available, the Company may be required to significantly
curtail or cease its operations, and its business would be jeopardized.
Management has determined that these matters,
among others, raise substantial doubt about the Company's ability to continue as a going concern for a period of at least one year
from the date these consolidated financial statements are issued. The accompanying consolidated financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
F-
19
NOTE 3: Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited financial statements
have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they
do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments considered necessary for fair presentation of the results of operations for the periods
presented have been included. The financial statements should be read in conjunction with the audited financial statements and the notes
thereto for the year ended April 30, 2022. Interim results are not necessarily indicative of results for the full year.
Principles of Consolidation
The Company consolidates entities when the Company
owns, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. The Company consolidates
variable interest entities ("VIEs") in accordance with Accounting Standards Codification ("ASC") 810, Consolidation
if the Company is the primary beneficiary of the VIE as determined by the power to direct the VIE's activities and the obligation
to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an
entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's
activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the
ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected
losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting
rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve or
are conducted on behalf of, an investor that has disproportionately few voting rights.
Use of Estimates
The preparation of consolidated financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
Settling Subscriptions
Settling subscriptions presented on the consolidated
balance sheet represent equity subscriptions for which funds have been received but the common stock has not yet been issued. Under the
terms of the Offering Circular for our common stock, subscriptions will be accepted or rejected by us. Once a subscription agreement is
accepted, settlement of the shares will occur. We rely on our capital raising platform provider to notify us that funds have been settled
for this purpose, which may differ from the time that cash is posted to our bank statement.
Investment in Real Estate and Depreciation and Amortization
Real estate assets are carried at cost. Depreciation
is calculated on the straight-line method over the estimated lives of the assets (27.5 years for residential rental property and 5 years
for furniture and fixtures). Major additions and betterments are capitalized and depreciated. Maintenance and repairs, which do not improve
or extend the estimated useful lives, are expensed as incurred. Upon disposal of assets, the related cost and accumulated depreciation
are removed from the accounts, and any gain or loss resulting from the disposal is recorded in the period of disposition in the accompanying
consolidated statement of operations.
Impairment Policy
The Company applies FASB ASC 360-10, "Property,
Plant & Equipment," to measure impairment in real estate investments. Rental properties are individually evaluated for impairment
when conditions exist which may indicate that it is probable that the sum of expected future cash flows (on an undiscounted basis without
interest) from a rental property is less than the carrying value under its historical net cost basis. These expected future cash flows
consider factors such as future operating income, trends, and prospects as well as the effects of leasing demand, competition, and other
factors. Upon determination that a permanent impairment has occurred, rental properties are reduced to their fair value. For properties
to be disposed of, an impairment loss is recognized when the fair value of the property, less the estimated cost to sell, is less than
the carrying amount of the property measured at the time there is a commitment to sell the property and/or it is actively being marketed
for sale. A property to be disposed of is reported at the lower of its carrying amount or its estimated fair value, less its cost to sell.
Subsequent to the date that a property is held for disposition, depreciation expense is not recorded. There were no such impairment adjustments
during the period ending January 31, 2023.
F-
20
Revenue Recognition
Revenues are recognized in accordance with the
Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606 for revenue recognition. The Company recognizes
revenues in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to
be received in exchange for those goods or services. The Company considers revenue realized or realizable and earned when all the five
following criteria are met: (1) identification of the contract with a customer, (2) identification of the performance obligations in the
contract, (3) determination of the transaction price, (4) allocation of the transaction price to the performance obligations in the contract
and (5) recognition of revenue when (or as) performance obligations are satisfied.
Revenues primarily consist of short-term rental
revenues, fees, and other income and gains generated by the sale of properties. The Company has the following revenue sources and revenue
recognition policies:
●
Short-term rental revenues include revenues from the rental of properties via Airbnb and similar digital
hospitality platforms.
●
Fee and other income include late fees, violation fees, and other revenue arising from contractual agreements
with third parties. This revenue is recognized as the services are transferred in accordance with ASC 606
Deferred Financing Costs
Deferred financing costs represent loan fees,
legal fees, and other third-party costs associated with obtaining financing and are presented on the balance sheet as a direct deduction
from the carrying value of the associated debt. These costs are amortized to interest expense over the terms of the respective financing
agreements using the interest method. Unamortized deferred financing costs are generally expensed when the associated debt is refinanced
or repaid before maturity unless specific rules are met that would allow for the carryover of such costs. Costs incurred in seeking financing
transactions that do not close are expensed in the period in which it is determined that the financing will not close.
Income Taxes
The Company accounts for income taxes under the
asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences
of events that have been included in the financial statements. Under this method, the Company determines deferred tax assets and liabilities
on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in
effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities
is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that
these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and
negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning
strategies, and results of recent operations.
If it is determined that the Company would be
able to realize the deferred tax assets in the future in excess of their net recorded amount, an adjustment would be made to the deferred
tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance
with ASC 740 on the basis of a two-step process in which (1) it is determined whether it is more likely than not that the tax positions
will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not
recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon
ultimate settlement with the related tax authority. The Company recognizes interest and penalties, if any, with income tax expense in
the accompanying consolidated statement of operations.
Statements of Cash Flows
For the purpose of reporting cash flows, cash
and restricted cash include cash on hand and cash on deposit with financial institutions.
F-
21
NOTE 4 – Investment in Real Estate
For the period ended January 31, 2023:
1.
Investments in real estate – Properties other than held for sale:
Accumulated
Net
Cost
Depreciation
Investment
Land
$
218,556
$
-
$
218,556
Buildings and building improvements
1,713,265
(57,167
)
1,656,098
Furniture and fixtures
52,748
(13,379
)
39,369
Total investment in real estate
$
1,984,569
$
(70,546
)
$
1,914,023
2.
Investment in real estate – Properties held for sale:
Accumulated
Net
Cost
Depreciation
Investment
Land
$
19,689
$
-
$
19,689
Buildings and building improvements
226,284
(6,169
)
220,115
Furniture and fixtures
16,280
(2,739
)
13,541
Total investment in real estate
$
262,253
$
(8,908
)
$
253,345
Investment in real estate consisted of the following as of April
30, 2022:
1.
Investments in real estate – Properties other than held for sale:
Accumulated
Net
Cost
Depreciation
Investment
Land
$
218,557
$
-
$
218,557
Buildings and building improvements
1,713,265
(10,058
)
$
1,703,207
Furniture and fixtures
46,952
(520
)
$
46,432
Total investment in real estate
$
1,978,774
$
(10,578
)
$
1,968,196
2.
Investment in real estate – Properties held for sale:
Accumulated
Net
Cost
Depreciation
Investment
Land
$
138,283
$
-
$
138,283
Buildings and building improvements
1,609,873
(39,999
)
1,569,874
Furniture and fixtures
106,530
(16,234
)
90,296
Total investment in real estate
$
1,854,686
$
(56,233
)
$
1,798,453
F-
22
NOTE 5 – Cash and Restricted Cash
As of January 31, 2023, the Company maintains
its cash in four separate accounts with three financial institutions, and cash balances may, at times, exceed federally insured limits.
During the closing on an investment in rental
real estate property or real estate held for improvement transaction, the Company may place a cash deposit on the property being acquired
or fund amounts into escrow. These deposits are placed before the closing process of the property is complete.
NOTE 6: Long-Term Debt
The Company has issued promissory notes payable
to lenders related to the acquisition of properties. These promissory notes range from 8.25% to 14.0%, and are due within 1 year, as detailed
below.
Long-term debt consisted of the following as of January 31, 2023 and
April 30, 2022:
January 31,
April 30,
2023
2022
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on September 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
$
217,500
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on July 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
110,250
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on May 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
226,737
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on August 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
228,750
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on October 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
177,974
Mortgage note with a bank. The note bears interest at a rate of 8.49% and provides for monthly interest payments. The note matures on November 1, 2022, at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
98,000
Mortgage note with a bank. The note bears interest at a rate of 5% + Prime with floor of 8.25% and provides for monthly interest payments. The note matures on February 10, 2024 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
880,000
880,000
Mortgage note with a bank. The note bears interest at a rate of 4.75% + Prime with floor of 8.25% and provides for monthly interest payments. The note matures on April 15, 2024 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
342,000
342,000
Mortgage note with a bank. The note bears interest at a rate of 7.5% and provides for monthly interest payments. The note matures on January 1, 2053 at which time there is a balloon payment of remaining principal and interest due, and is secured by the property as well as guaranteed by a shareholder of the Company.
247,000
-
Total Long-term debt
$
1,469,000
$
2,281,211
Less: Deferred financing costs, net
(16,039
)
(52,048
)
Total Long-term debt, net
$
1,452,961
$
2,229,163
F-
23
Maturities of long-term debt as of January 31, 2023, are as follows:
2024
$
1,222,000
2053
247,000
Less: unamortized costs
16,039
Total long-term debt, net
$
1,452,961
NOTE 7: Stockholders' Equity
The Company is authorized to issue up to 50,000,000
shares of Common Stock, par value $0.001 per share. As of January 31, 2023, there were 40,852,050 shares of Common Stock issued for a
total consideration of $8,923,841 comprising Common Stock and Additional paid-in capital of $40,852 and $8,882,989 respectively. As of
January 31, 2022 there were 40,010,000 shares of Common Stock issued for a total consideration of $ 550,000 comprising Common Stock and
Additional paid-in capital of $40,010 and $509,990 respectively.
NOTE 8: Related Party Transactions
ReAlpha AMI has a Master Service Agreement with
ReAlpha Tech Corp. for their patented technologies and platforms and will pay ReAlpha Tech Corp. a management fee of 20% of rental income.
ReAlpha AMI has a Payable to ReAlpha Tech Corp.
totaling $ 314,096 as of January 31, 2023 and $ 1,712,426 as of April 30 2022. The receivable & payable do not accrue interest.
NOTE 9: Commitments, Contingencies, and Concentrations
The Company may be subject to pending legal proceedings
and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the
Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse effect on its
business, financial condition, or results of operations.
Ohio Subpoena
On May 2, 2022, the Company received a subpoena
and request for deposition from the Ohio Division of Securities, relating to the Company's communication with investors in the state
of Ohio. The Ohio Division of Securities has not asserted any written allegations. The Company is fully cooperating with the Ohio Division
of Securities. The Company cannot predict the eventual scope, duration, or outcome at this time. Accordingly, the Company is unable to
estimate the reasonably possible loss or range of reasonably possible loss arising from these investigations.
NOTE 10: Subsequent Events
Management has evaluated subsequent events through
the date on which the financial statements were available to be issued.
In March 2023, the Company opened its first Regulation
CF offering listed under reAlpha 612 Jasmine Lane Inc. where the subsidiary iscompleting its first syndication through our initial public
offering platform. The minimum offering amount is $388,639 and the maximum is $614,036, inclusive of investor payment processing fees.
The offering is selling shares of the company which owns the property at 612 Jasmine Lane, Davenport, FL 33897. The minimum investment
is $500 plus the 2.5% investor transaction fee.
On March 21, 2023, reAlpha Tech Corp merged with
reAlpha Asset Management, Inc. in a short-form merger, resulting in reAlpha Asset Management, Inc. becoming the surviving corporation
and gaining access to reAlpha Tech Corp.'s technology and intellectual property. Prior to the merger, the Parent owned over 90% of the
Subsidiary's shares. The merger enables reAlpha Asset Management, Inc. to provide customers with a broader range of AI solutions for various
industries and use cases. Following the merger, reAlpha Asset Management, Inc. changed its name to reAlpha Tech Corp. on March 21, 2023,
On March 24, 2023, reAlpha Tech Corp. acquired
Roost Enterprises, Inc. (Rhove), a real estate technology solutions provider. The acquisition includes Rhove's Syndication Platform and
related intellectual property. The purchase price involved a $25,000 cash payment, 49,029 common stock shares to SVBB, 1,263,000 shares
for sellers, and options for sellers to purchase 1,263,000 shares at $10 per share. Additionally, $50,000 was paid for Rhove's transaction
expenses. Drive Capital and its funds became investors of reAlpha, and Rhove's CEO, Calvin Cooper, joined reAlpha in an advisory role.
F-
24
41,666,554 shares
of common stock
reAlpha Tech Corp.
Prospectus
April 17, 2023
Through and including     ,
2023 (the 25
th
day after the date of this Direct Listing), all dealers effecting transactions in these securities, whether
or not participating in this Direct Listing, may be required to deliver a prospectus. This is in addition to a dealer's obligation
to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.
PART II
INFORMATION NOT REQUIRED
IN THE PROSPECTUS
Item 13. Other expenses of issuance
and distribution
The
following table sets forth the costs and expenses, other than the underwriting discounts and commissions, payable in connection with the
sale of the securities being registered. All amounts shown are estimates, except the Securities and Exchange Commission registration fee,
the Financial Industry Regulatory Authority filing fee and the Exchange listing fee.
SEC registration fee
$
279.17
Nasdaq listing fee
$
75,000
Printing and engraving expenses
*
Legal fees and expenses
*
Accounting fees and expenses
*
Transfer agent fees and expenses
*
Miscellaneous fees and expenses
*
Total
$
*
*
To be filed by amendment
Item 14.
Indemnification of Directors and Officers
As permitted by Section 102
of the Delaware General Corporation Law (the "DGCL"), the Second Amended and Restated Certificate of Incorporation (the "Certificate
of Incorporation") and Second Amended and Restated Bylaws (the "Bylaws") that will be in effect immediately prior to
the effectiveness of this registration statement contain provisions that limit or eliminate the personal liability of our officers and
directors for a breach of their fiduciary duty as a director and/or officer, as applicable. For example, the fiduciary duty of care generally
requires that, when acting on behalf of the corporation, directors exercise an informed business judgment based on all material information
reasonably available to them. Consequently, a director will not be personally liable to us or our stockholders for monetary damages for
breach of fiduciary duty as a director, except to the extent such exemption from liability or limitation thereof is not permitted under
the DGCL.
These limitations of liability
do not affect the availability of equitable remedies such as injunctive relief or rescission. Our Certificate of Incorporation will also
authorize us to indemnify our officers, directors, and other agents to the fullest extent permitted under Delaware law.
As permitted by Section 145
of the DGCL, our Bylaws will provide that:
●
we may indemnify our directors, officers, and employees to the fullest extent permitted by the DGCL, subject to limited exceptions;
●
the rights provided in our Bylaws are not exclusive.
Our Certificate of Incorporation
and our Bylaws will provide for the indemnification provisions described above and elsewhere herein. We will enter into, and intend to
continue to enter into, separate indemnification agreements with our directors and officers that may be broader than the specific indemnification
provisions contained in the DGCL. These indemnification agreements generally require us, among other things, to indemnify our officers
and directors against certain liabilities that may arise by reason of their status or service as directors or officers, other than liabilities
arising from willful misconduct. These indemnification agreements also generally require us to advance any expenses incurred by the directors
or officers as a result of any proceeding against them as to which they could be indemnified. These indemnification provisions and the
indemnification agreements may be sufficiently broad to permit indemnification of our officers and directors for liabilities, including
reimbursement of expenses incurred, arising under the Securities Act of 1933, as amended (the "Securities Act").
We have purchased and currently
intend to maintain insurance on behalf of each and every person who is or was a director or officer of the company against any loss arising
from any claim asserted against him or her and incurred by him or her in any such capacity, subject to certain exclusions.
II-
1
Item 15. Recent Sales of Unregistered
Securities.
Since
April 22, 2021, we have made the following sales of unregistered securities:
On
April 22, 2021, reAlpha Asset Management, Inc. (our previous name) issued 40,000,000 shares of common stock to reAlpha Tech Corp. (our
previous parent company) valued at $0.01125 per share.
On
March 21, 2023, in connection with our Downstream Merger (as defined above), each share of common stock of reAlpha Asset Management, Inc.
held by reAlpha Tech Corp. (our previous parent) was automatically cancelled and all of the shares of common stock owned by reAlpha Tech
Corp. (our previous parent) were converted into shares of the Company (f.k.a. reAlpha Asset Management, Inc.) post-merger. In accordance
with the foregoing, the surviving corporation of the Downstream Merger (reAlpha Tech Corp.) issued 40,050,000 shares of common stock,
which consisted of the previously issued 40,000,000 shares of common stock to our previous parent company, and 50,000 shares issued to
reAlpha Tech Corp. prior to the Downstream Merger pursuant to their participation in our Regulation A offering.
On
March 24, 2023, in connection with the Roost Enterprises, Inc. ("Rhove") acquisition, we issued 49,029 shares of common stock
to Silicon Valley Bridge Bank, N.A. ("SVBB"), 1,263,000 shares of common stock to the investor sellers of Rhove and the issuance
of option letters to purchase in aggregate (pro-rated per investor seller) 1,263,000 shares of our common stock for $10 per share, with
an expiration date of two (2) years from the date of issuance.
On
April 14, 2023, 100,000 shares of common stock were issued to Mitchell Silberberg & Knupp LLP as partial consideration for
legal services provided to us in connection with the Direct Listing.
On
April 14, 2023, 204,529 shares of common stock were issued to Maxim Partners LLC as partial consideration for their engagement to provide
general financial advisory and investment banking services to the Company.
From April 22, 2021, through
January 31, 2023, we issued 855,537 shares of common stock at a per share price of $10, for total cash proceeds of $8,555,370, pursuant
to our Regulation A offering. This offering has concluded on January 31, 2023. These shares of common stock were issued in reliance
on the exemption provided by Regulation A under the Securities Act.
The
foregoing issuances of shares, except for the shares issued pursuant to our Regulation A offering,
are
intended to be exempt from registration pursuant to Section 4(a)(2) and/or Rule 506 of Regulation D of the Securities Act of 1933, as
amended (the "Securities Act"), since the stockholders involved in such issuances represented that each was acquiring the
shares of common stock for investment purposes only, and not with a view towards distribution or resale except in compliance with applicable
securities laws. No general solicitation or advertising was used in connection with any transaction, and the certificate evidencing the
securities that were issued contained a legend restricting their transferability absent registration under the Securities Act of 1933,
as amended (the "1933 Act"), or the availability of an applicable exemption therefrom. There were less than 35 non-accredited
investors that have received shares of common stock pursuant to the Downstream Merger and Rhove acquisition transactions. Unless specifically
set forth below, no underwriter participated in the transaction and no commissions were paid in connection with the transactions.
Item 16. Exhibits and Financial Statement
Schedules.
(a)
Exhibits
The following documents
are filed as exhibits to this registration statement.
Exhibit
No.
Description of Exhibit
2.1
Certificate of Ownership and Merger, filed March 21, 2023 (previously filed as Exhibit 2.1 of Form 1-U filed with the SEC on March 24, 2023)*
3.1
Second Amended and Restated Certificate of Incorporation**
3.2
Second Amended and Restated Bylaws**
4.1
Form of Warrant (For Share Repurchase Agreement included in Exhibit  6.6 hereto) (previously filed as Exhibit 6.3 of Form 1-U filed with the SEC on December 5, 2022)*
5.1
Legal Opinion of Mitchell Silberberg & Knupp LLP***
10.1
Master Service Agreement dated April 28, 2021 by and between the Company and reAlpha Tech Corp. (previously filed as Exhibit 6.1 filed as part of Form 1-A/A filed on June 9, 2021)*
10.2
Master Service Agreement dated April 28, 2021 by and between the Company and reAlpha Operations, Inc. (previously filed as Exhibit 6.2 of Form 1-A/A filed on June 9, 2021)*
10.3
Technology License Agreement dated April 28, 2021 by and between the Company and reAlpha Tech Corp (Incorporated by reference from Exhibit 6.3 of Form 1-A/A filed on June 9, 2021)*
10.4
Form of Tri-party Escrow Agreement, dated as of July 19, 2022 (previously filed as Exhibit 8.1 of Form 1-K/A filed on September 7,  2022)*
10.5
Form of Subscription Agreement (previously filed as Exhibit 4.1 to Form 1-U filed with the SEC on November 8, 2022)*
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10.6
Joint Venture Binding Term Sheet by and between reAlpha Asset Management, Inc. and SAIML Pte. Ltd., dated as of November 17, 2022 (previously filed as Exhibit 1.1 to Form 1-U filed with the SEC on November 18, 2022)*
10.7
Share Purchase by and among reAlpha Asset Management, Inc., GEM Global Yield LLC SCS and GEM Yield Bahamas Limited, dated as of December 1, 2022 (previously filed as Exhibit 6.1 of Form 1-U filed with the SEC on December 5, 2022)*
10.8
Registration Rights Agreement by and among reAlpha Asset Management, Inc., GEM Global Yield LLC SCS and GEM Yield Bahamas Limited, dated as of December 1, 2022 (previously filed as Exhibit 6.2 of Form 1-U filed with the SEC on December 5, 2022)*
10.9
Stock Purchase Agreement by and Among Roost Enterprises, Inc. dba Rhove, the Sellers and reAlpha Tech Corp., dated March 24, 2023 (previously filed as Exhibit 1.1 of Form 1-U filed with the SEC on March 27, 2023)*
10.10
Restricted Stock Purchase Agreement by and between reAlpha Tech Corp. and Silicon Valley Bridge Bank, N.A., dated as of March 24, 2023 (previously filed as Exhibit 1.2 of Form 1-U filed with the SEC on March 27, 2023)*
10.11+
Employment Agreement of Giri Devanur, dated April 11, 2023**
10.12+
Employment Agreement of Michael J. Logozzo, dated April 11, 2023**
10.13+
Employment Agreement of Christine Currie, dated April 14, 2023**
10.14+
Employment Agreement of Jorge Aldecoa, dated April 11, 2023**
10.15+
reAlpha Tech Corp. 2022 Equity Incentive Plan**
10.16
Form of 2022 Equity Incentive Plan Restricted Stock Award Agreement**
10.17
Form of 2022 Equity Incentive
    Plan Stock Option Award Agreement***
10.18
Form of Director and Officer Indemnification Agreement***
10.19#
Master Credit Facility Agreement by and between reAlpha Tech Corp. (f.k.a. reAlpha Asset Management, Inc.) and reAlpha Acquisitions Churchill, LLC, dated as of August 18, 2022**
10.20#
Form of Credit Facility Loan Agreement**
10.21
Form of Credit Facility Promissory Note Agreement**
10.22
Form of Credit Facility Guaranty of reAlpha Tech Corp. (f.k.a. reAlpha Asset Management, Inc.)**
10.23
Form of Credit Facility Guaranty of Giri Devanur**
14.1
Code of Conduct and Ethics**
21.1
Subsidiaries of the Registrant**
23.1
Consent of GBQ Partners, LLC, independent registered public accounting firm**
23.2
Consent of Mitchell Silberberg & Knupp LLP (included in Exhibit 5.1)***
24.1
Power of Attorney (included on signature page)
107
Filing Fee Table**
*
Previously filed
**
Filed herewith
***
To be filed by amendment
+
Indicates management contract or compensatory plan or arrangement.
#
The schedules and exhibits to this agreement have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request.
(b)
Financial statement exhibits.
No
financial statement schedules are provided because the information called for is not required or is shown in the consolidated financial
statements or related notes.
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Item 17. Undertakings
The undersigned registrant hereby undertakes:
(1)
To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:
(i)
To include any prospectus required by Section 10(a)(3) of
the Securities Act of 1933;
(ii)
To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus
filed with the Securities and Exchange Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price
represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective registration statement; and
(iii)
To include any material information with respect to the plan
of distribution not previously disclosed in the registration statement or any material change to such information in the registration
statement;
(2)
That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3)
To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of the offering.
(4)
That, for the purpose of determining liability under the Securities
Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating
to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A
(§230.430A of this chapter), shall be deemed to be part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration
statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is
part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify
any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use.
(5)
That, for the purpose of determining liability of the registrant
under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:
The undersigned registrant undertakes that in a primary offering of securities of the undersigned
                                                                             registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the
                                                                             purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned
                                                                             registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
(i)
Any preliminary prospectus or prospectus of the undersigned
registrant relating to the offering required to be filed pursuant to Rule 424;
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(ii)
Any free writing prospectus relating to the offering prepared
by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
(iii)
The portion of any other free writing prospectus relating to
the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned
registrant; and
(iv)
Any other communication that is an offer in the offering made
by the undersigned registrant to the purchaser.
(6)
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification
by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of
such issue.
(7)
The undersigned registrant hereby undertakes to provide to the
underwriter at the closing specified in the underwriting agreements certificates in such denominations and registered in such names as
required by the underwriter to permit prompt delivery to each purchaser.
(8)
The undersigned Registrant hereby undertakes that:
(i)
For purposes of determining any liability under the Securities
Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A
and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities
Act shall be deemed to be part of this registration statement as of the time it was declared effective.
(ii)
For the purpose of determining any liability under the Securities
Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering
thereof.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended,
the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in
the city of Dublin, Ohio, on this 17th day of April, 2023.
REALPHA TECH CORP.
By:
/s/ Giri Devanur
Giri Devanur
Chief Executive Officer, President and Director
POWER OF ATTORNEY
Each
of the undersigned officers and directors of reAlpha Tech, Corp. hereby constitutes and appoints Giri Devanur and Michael J. Logozzo,
as the individual's true and lawful attorneys-in-fact and agents, with full power of substitution and re-substitution,
for the person and in his or her name, place and stead, in any and all capacities, to sign this registration statement of reAlpha Tech
Corp. on Form S-1, and any other registration statement relating to the same offering (including any registration statement,
or amendment thereto, that is to become effective upon filing pursuant to Rule 462(b) under the Securities Act of 1933, as amended), and
any and all amendments thereto (including post-effective amendments to the registration statement), and to file the same, with all exhibits
thereto, and all other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and
agents, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith,
as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and
agents or any of them, or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act of 1933, as amended, this registration statement on Form S-1 has been signed by the
following persons in the capacities set forth opposite their names and on the date indicated above.
Signature
Title
Date
/s/ Giri Devanur
Chief Executive Officer, President and Director
April 17
, 2023
Giri Devanur
(principal executive officer)
/s/ Michael J. Logozzo
Chief Financial Officer
April 17, 2023
Michael J. Logozzo
(principal financial and accounting officer)
/s/ Dimitrios Angelis
Director
April 17, 2023
Dimitrios Angelis
/s/ Brian Cole
Director
April 17, 2023
Brian Cole
/s/ Monaz Karkaria
Director
April 17, 2023
Monaz Karkaria
/s/ Balaji Swaminathan
Director
April 17, 2023
Balaji Swaminathan
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