Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 41

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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acquisition price of the extinguished debt, including the make-whole amount of $37.1 million, and the net carrying amount of the Notes on the Redemption Date. There is no remaining debt balance associated with the Convertible Notes as of March 31, 2025 and December 31, 2024.Interest expense included within Other expense, net on the Condensed Consolidated Statements of Operations related to the Convertible Notes was zero and $2.1 million for the three months ended March 31, 2025 and 2024, respectively. Interest expense included within Cost of sales on the Condensed Consolidated Statements of Operations was $0.8 million and $2.1 million for the three months ended March 31, 2025 and 2024, respectively.

Note 11 - Stock-based compensationStock optionsThe following table summarizes the activity relating to the Company’s stock options:

18

Stock optionsWeighted-average per share exercise priceOutstanding, December 31, 20245,031,303 $8.92 Granted1,553,666 4.37 Exercised— — Forfeited(19,805)8.64 Outstanding, March 31, 20256,565,164 $7.85 Options exercisable at March 31, 20251,625,593 $7.53 Stock compensation expense, net of forfeitures, included in the Condensed Consolidated Statements of Operations for stock options for the three months ended March 31, 2025 and 2024 was $1.6 million and $1.3 million, respectively, and is recognized in the Selling, general and administrative expense line item in the Condensed Consolidated Statements of Operations. As of March 31, 2025, total unrecognized stock compensation expense related to unvested stock option arrangements was $15.3 million which is expected to be recognized over a weighted-average period of 2.62 years.Certain stock options issued under the 2023 Plan are issued to individuals who are not employees of the Company and who are not providing goods or services to the Company. These options are recognized in accordance with ASC 815, Derivatives and Hedging as a derivative liability and marked to market at each reporting period end. As of March 31, 2025, and December 31, 2024, the derivative liability of stock options amounts to $0.1