reAlpha Tech Corp. Announces Departure of Key Executive and Severance Agreement

Key Points from the SEC 8-K Filing

• Filing Date: March 20, 2026
• Event Date: March 16, 2026
• Company: reAlpha Tech Corp. (Nasdaq: AIRE)
• Item Reported: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
• Exhibit: Severance Agreement with Piyush Phadke

Details of the Executive Departure and Severance Agreement

reAlpha Tech Corp., a real estate technology company listed on the Nasdaq Stock Market (AIRE), has filed a Form 8-K announcing the departure of Piyush Phadke, a key executive. The filing includes a severance agreement between the company and Mr. Phadke, dated March 16, 2026.

Severance Agreement Terms

• RSU Settlement and Tax Withholding: The agreement specifies that the settlement of Restricted Stock Units (RSUs) granted to Mr. Phadke will be treated as ordinary compensation income, subject to federal, state, and local tax withholdings. The company will satisfy its withholding obligations by withholding a portion of the shares unless an alternative method is agreed upon in writing. The fair market value for tax purposes will be the closing price of reAlpha’s common stock on Nasdaq on the trading day immediately preceding the issuance date.
• Section 16 Reporting: If Mr. Phadke was subject to Section 16 of the Securities Exchange Act, both the settlement of RSUs and the acquisition of shares are reportable transactions, requiring the filing of a Form 4 with the SEC within two business days. The company has committed to cooperate with Mr. Phadke in making these filings.
• Clawback Policy: The shares received by Mr. Phadke will remain subject to the company’s Clawback Policy pursuant to SEC Rule 10D-1 and Nasdaq listing standards. This means that if any circumstances arise that trigger the Clawback Policy, the company may be able to recover the value of the shares previously issued.
• Share Legend and Transfer Restrictions: Since the shares are registered, no restrictive legend is required on the records except as required by law or for affiliate resale restrictions. However, if Mr. Phadke is an “affiliate” under Rule 144 at the time of separation, he may be subject to certain limitations on resale for up to 90 days.
• Insider Trading Policy: Any sale or transfer of shares by Mr. Phadke will remain subject to the company’s Insider Trading Policy, to the extent applicable after his separation.

Additional Information Relevant to Shareholders

• Emerging Growth Company: reAlpha Tech Corp. identifies itself as an “emerging growth company” under the Securities Act, giving it certain regulatory exemptions that may impact financial reporting.
• No Use of Extended Transition Period: The company has not elected to use the extended transition period for complying with new or revised financial accounting standards.
• Listing Details: Shares are listed on Nasdaq under the symbol AIRE, with a par value of \$0.001 per share.

Potential Market Impact

This executive departure and the detailed severance arrangement could be of material interest to investors, as it may indicate changes in the company’s leadership team or strategic direction. The clawback provisions and Section 16 reporting requirements are also significant, as they ensure transparency and compliance with SEC regulations. Investors should monitor further disclosures regarding potential changes in management or any subsequent leadership appointments, as these developments might affect company performance, investor sentiment, and share price volatility.

Exhibits

• 10.1*+: Severance Agreement by and between reAlpha Tech Corp. and Piyush Phadke, dated March 16, 2026 (filed with the 8-K)
• 104*: Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Indicates filed herewith. + Indicates a management contract or compensatory plan or arrangement.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial advice, or an offer to buy or sell any securities. Investors should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions. The information provided is based on filings with the SEC and is subject to change without notice.

View reAlpha Tech Corp. Historical chart here