Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 100

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 100
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 the Monte Carlo simulation method. Stock-based compensation expense, net of forfeitures, included in Selling, general and administrative expense in the Condensed Consolidated Statements of Operations for PSUs was $0.2 million and $0.2 million for the three months ended June 30, 2025 and 2024, respectively, and $0.4 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, total unrecognized pre-tax compensation expense was $1.1 million related to the PSUs which is expected to be recognized over a weighted-average period of 1.47 years.Stock warrantsThe Company previously granted an option to non-employee directors to purchase 1,867,368 stock warrants for $0.2 million. Each warrant represents one non-voting common share. The warrants are exercisable at $4.05 per warrant, and can be exercised for 10 years starting from July 1, 2022. As of June 30, 2025, there are 746,947 stock warrants outstanding. There were no additional stock warrants granted, and no compensation expense recorded, during the three and six months ended June 30, 2025 and 2024.

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Note 12 - Earnout sharesAs of June 30, 2025, the fair value of the earnout shares was $0.81 per share issuable upon Triggering Event I, $0.63 per share issuable upon Triggering Event II and $0.50 per share issuable upon Triggering Event III. As of December 31, 2024, the fair value of the earnout shares was $1.59 per share issuable upon Triggering Event I, $1.25 per share issuable upon Triggering Event II and $0.99 per share issuable upon Triggering Event III. The estimated fair value of the earnout shares was determined using a Monte Carlo simulation using a distribution of potential outcomes on a daily basis over the earnout period. The assumptions used in the valuation of these instruments, using the most reliable information available, include: June 30, 2025December 31, 2024Current stock price$2.90 $4.23 Stock price targets$12.50, $15.00, $17.50$12.50, $15.00, $17.