Company: UHG
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001830188-25-000079
Chunk: 58

Company: United Homes Group, Inc.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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 acquisition of Rosewood. As of September 30, 2025, the Company and the plaintiffs reached a settlement that has been paid in full, and the case has been dismissed with prejudice. As a result, the Company recognized a loss of $0.2 million within Other expense, net on the Condensed Consolidated Statements of Operations.

Note 10 - Convertible Notes payableThe Company had previously issued Convertible Notes with an original principal amount of $80.0 million. On December 11, 2024 (“Redemption Date”), the Company redeemed the Convertible Notes and paid to the Convertible Note 

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Investors (a) an aggregate of $70.0 million, plus accrued and unpaid interest through the Redemption Date, and (b) an aggregate of 10,168,850 shares of Class A common stock with a fair value of $4.41 per share. The Company financed the transaction, in part, by entering into the Credit Agreement with Kennedy Lewis. See Note 6 - Debt for further details. The Company accounted for the redemption as an extinguishment of debt in accordance with ASC 405. As a result, on December 11, 2024 the Company recognized a loss on extinguishment of $45.6 million based on the difference between the total reacquisition price of the extinguished debt, including the make-whole amount of $37.1 million, and the net carrying amount of the Convertible Notes on the Redemption Date. There is no remaining debt balance associated with the Convertible Notes as of September 30, 2025 and December 31, 2024.Interest expense previously capitalized and included within Cost of sales on the Condensed Consolidated Statements of Operations was $0.2 million and $1.6 million for the Convertible Notes for the three and nine months ended September 30, 2025, respectively.Interest expense included within Other expense, net on the Condensed Consolidated Statements of Operations was $2.3 million and $6.7 million for the Convertible Notes for the three and nine months ended September 30, 2024, respectively. Interest expense included within Cost of sales on the Condensed Consolidated Statements of Operations was $0.7 million and $3.9 million for the Convertible Notes for the three and nine months ended September 30, 2024, respectively.

Note 11 - Stock-based compensationStock optionsThe following table summarizes the activity relating to the Company