Form 4: reAlpha Tech Corp. CFO Receives Stock Grants Under Incentive Plans

Piyush Phadke, CFO of reAlpha Tech Corp., reports the acquisition of 165,076 shares of common stock through restricted stock units (RSUs) granted under the company's incentive plans.

Summary

• On April 30, 2025, Piyush Phadke, the Chief Financial Officer of reAlpha Tech Corp., acquired a total of 165,076 shares of common stock.
• These shares were granted in the form of restricted stock units (RSUs) under the company's 2025 Short-Term Incentive Plan (STIP) and the 2022 Equity Incentive Plan.
• 68,162 RSUs were granted based on the achievement of performance goals for the fiscal quarter ended March 31, 2025.
• 96,914 RSUs were granted as compensation for services as an executive officer during the same fiscal quarter.
• The number of RSUs awarded was based on a closing price of $0.6449 per share on April 30, 2025.
• The RSUs vest over a two-year period, with 50% vesting 12 months from the grant date and the remaining 50% vesting in equal quarterly installments over the subsequent 12 months, contingent upon continuous service.
• Unvested RSUs are forfeited if the reporting person's service with the Issuer is terminated.

Sentiment

Score: 7

Explanation: The document reflects a standard executive compensation practice, indicating stability and alignment of interests. The sentiment is neutral to slightly positive.

Positives

• The grant of RSUs aligns the CFO's interests with those of the shareholders, incentivizing performance and retention.
• The vesting schedule encourages long-term commitment from the CFO.
• The performance-based component of the RSU grant suggests that the company is rewarding achievement of specific goals.

Risks

• The value of the RSUs is subject to the volatility of the company's stock price.
• The forfeiture of unvested RSUs upon termination of service could create a disincentive for the CFO to leave the company, even if better opportunities arise.

Future Outlook

The document does not contain specific forward-looking statements, but the RSU grants suggest an expectation of continued service and performance from the CFO.

Industry Context

Granting stock options and RSUs to executives is a common practice in the tech industry to align management's interests with those of shareholders and incentivize performance. The specific terms of the grant, such as the vesting schedule and performance criteria, are tailored to the company's specific circumstances and goals.

Comparison to Industry Standards

• Many tech companies use RSUs as part of their compensation packages for executives.
• Vesting schedules typically range from 2 to 4 years, with some companies using performance-based vesting criteria.
• The size of the RSU grant is generally determined based on the executive's role, performance, and the company's overall compensation strategy.
• Comparable companies such as Opendoor, Zillow, and Redfin also utilize equity-based compensation for their executives.

Stakeholder Impact

• Shareholders may view the RSU grants positively as they align management's interests with the company's long-term success.
• Employees may see the RSU grants as a sign of the company's commitment to rewarding performance and retaining key personnel.

Key Dates

Keywords

reAlpha Tech Corp., Piyush Phadke, CFO, restricted stock units, RSUs, equity incentive plan, short-term incentive plan, compensation, vesting, Form 4