Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 101

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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50Expected life (in years)2.75 3.25 Earnout period (in years)2.75 3.25 Risk-free interest rate3.70 %4.30 %Expected volatility64 %52 %Expected dividend yield— %— %For the three and six months ended June 30, 2025, the change in fair value of the earnout shares resulted in a loss of $4.1 million and a gain of $13.9 million, respectively, primarily resulting from changes in the company's stock price. For the three and six months ended June 30, 2024, the change in fair value of the earnout shares resulted in gains of $27.6 million and $54.0 million, respectively, primarily resulting from changes in the company's stock price.As none of the earnout triggering events have occurred as of June 30, 2025, no shares have been distributed.

Note 13 - Warrant liabilityThe private placement warrant liability is recognized in accordance with ASC 815 as a derivative liability and marked to market at each reporting period end. The change in fair value of the private placement warrant liability for the three and six months ended June 30, 2025, resulted in a loss of $0.6 million and gain $0.3 million, respectively. For the three and six months ended June 30, 2024, the change in fair value resulted in a gains of $1.2 million. These changes are included in Change in fair value of derivative liabilities on the Condensed Consolidated Statements of Operations. The Private Placement Warrants were valued using the following assumptions under the Monte Carlo method:June 30, 2025December 31, 2024Current stock price$2.90 $4.23 Exercise price$11.50 $11.50 Expected life (in years)2.75 3.25 Risk-free interest rate3.70 %4.30 %Expected volatility64 %52 %Expected dividend yield— — 

The public warrant liability is recognized in accordance with ASC 815 as a derivative liability and marked to market at each reporting period end. The change in fair value of the public warrant liability for the three and six months ended June 30, 2025 resulted in a loss of $1.5 million and gains of $0.7 million, respectively. For the three and six months