Real Brokerage Inc

The Real Brokerage Inc. ( Real or the Company ) is a growing real estate technology company that operates across all 50 U.S. states, the District of Columbia, and five Canadian provinces. As a licensed real estate brokerage, the Company’s revenue is generated primarily by processing real estate transactions which entitle us to commissions. The Company pays a portion of its commission revenue to real estate agents who are affiliated with the Company. Real operates as a fully digital brokerage and offers ancillary services such as mortgage origination, title and escrow services, and financial technology and lending products. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The significant accounting policies described below have been applied consistently to all periods presented. A. Basis of Preparation These consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ( U.S. GAAP ). B. Basis of Consolidation The consolidated financial statements incorporate the financial statements of the Company, its wholly-owned subsidiaries and entities in which we have a controlling interest in. Intercompany transactions and balances are eliminated upon consolidation. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, the results of subsidiaries acquired or disposed of during the year are included in profit or loss from the date the Company gains control until the date when the Company ceases to control the subsidiary.