Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 51

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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 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 ended June 30, 2024 the change in fair value of the public warrant liability resulted in gains of $3.2 million and $3.1 million, respectively. These changes are included in Change in fair value of derivative liabilities on the Condensed Consolidated Statements of Operations. 

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Note 14 - Income taxes

The Company recognized an income tax benefit for the three and six months ended June 30, 2025 of $0.3 million and $1.6 million, respectively, as compared to an income tax expense of $0.1 million and income tax benefit of $1.0 million, respectively, for the three and six months ended June 30, 2024. At the end of each interim period, the Company estimates the effective tax rate expected to be applicable for the full fiscal year and this rate is applied to the results for the year-to-date period, and then adjusted for any discrete period items. Excluding discrete items related to fair value adjustments on derivative liabilities, the Company's estimated effective tax rate as of June 30, 2025 is 33.1% as compared to 15.3% as of June 30, 2024. This differs from the federal statutory rate of 21.0% primarily due to state income tax expense and nondeductible stock compensation expense for executives. 

Note 15 - Earnings per shareThe Company computes basic net earnings per share using net income attributable to Company common stockholders and the weighted average number of common shares outstanding during each period. The following table sets forth the computation of the Company’s basic and diluted net earnings per share (in thousands, except shares and earnings per share):Three Months Ended June 30,Six Months Ended June 30,2025202420252024Net (loss) income$(6,341)$28,640 $11,839 $53,578 Basic (loss) income available to common shareholders$(6,