Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 31

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 environment the Company operates in, the carrying amount of these instruments approximates their fair value. The derivative public warrant liability is classified within Level 1 of the fair value hierarchy because the Company values these instruments based on recent trades of securities in active markets. The estimated fair value of the derivative private placement warrants liability, contingent earnout liability, derivative stock option liability, and contingent consideration is determined using Level 3 inputs. The models and significant assumptions used in preparing the valuations are disclosed in Note 11 - Stock-based compensation, Note 12 - Earnout shares, and Note 13 - Warrant liability, respectively. 

12

The following tables present information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation (in thousands): Fair value measurements as of March 31, 2025Level 1Level 2Level 3TotalContingent earnout liability$— $— $10,237 $10,237 Derivative private placement warrant liability— — 2,047 2,047 Derivative public warrant liability5,480 — — 5,480 Derivative stock option liability— — 72 72 Total derivative liability5,480 — 12,356 17,836 Contingent consideration— — 849 849 Total fair value$5,480 $— $13,205 $18,685 Fair value measurements as of December 31, 2024Level 1Level 2Level 3TotalContingent earnout liability$— $— $28,213 $28,213 Derivative private placement warrant liability— — 2,907 2,907 Derivative public warrant liability7,763 — — 7,763 Derivative stock option liability— — 275 275 Total derivative liability7,763 — 31,395 39,158 Contingent consideration— — 1,225 1,225 Total fair value$7,763 $— $32,620 $40,383 Transfers to/from Levels 1, 2 and 3 are recognized at the beginning of the reporting period. There were no transfers to/from levels during the three month period ended March 31, 2025 and the year ended December 31, 2024.The following table presents a roll forward of