Core Viewpoint - United Homes Group, Inc. (UHG) reported a mixed performance in its fourth-quarter 2024 earnings, showing revenue growth but facing challenges in profitability and market conditions [2][10]. Financial Performance - UHG reported fourth-quarter 2024 revenues of $134.8 million, a 15.4% increase from $116.8 million in the prior-year quarter [2]. - The net income for the quarter was $0.7 million, or $0.01 per diluted share, compared to a net loss of $66.6 million, or $1.38 per share, in fourth-quarter 2023 [2]. - Gross profit for the quarter was $21.8 million, with a gross margin of 16.2%, up from $21.6 million and a gross margin of 18.5% in the prior-year period [4]. - Adjusted EBITDA was $7.7 million, down 23.2% from $10 million in fourth-quarter 2023 [5]. Operational Metrics - Home closings rose 6.9% year over year to 414 compared with 387 in fourth-quarter 2023 [3]. - Net new orders increased 19.4% to 351 from 294 in the prior-year period [3]. - The backlog stood at 157 homes valued at approximately $58.3 million, a decline from 189 homes valued at $57.6 million in the prior-year period [6]. Cost Management and Strategic Initiatives - Selling, general, and administrative (SG&A) expenses were $19.3 million, up 4.9% from the prior-year quarter [5]. - UHG focused on streamlining operations by rebidding direct construction costs and launching refreshed home designs, which have shown early positive sales traction [8]. - The company anticipates that product redesigns and cost optimizations will positively impact financial performance in 2025 [10]. Market Conditions - The company faced a competitive pricing environment, with builders sacrificing gross margins for volume due to higher mortgage rates affecting affordability [7]. - The cost of mortgage buydowns increased during the quarter, reaching approximately 5% of revenue [7]. Financial Restructuring - UHG refinanced its convertible notes in December, reducing leverage by $10 million and lowering annual cash interest expenses by approximately $4 million [9]. - The refinancing included a $70 million subordinated loan with a variable interest rate indexed to SOFR plus a spread of 6.75% to 7.75% [9]. Future Outlook - UHG plans to open 11 new communities in the second quarter of 2025 and another 15 in the third quarter of 2025, supporting future revenue growth [13]. - Early sales of redesigned home plans have demonstrated stronger gross margins, contributing to improved profitability as these homes become a larger share of deliveries [11].

Financial Performance - UHG's revenue increased by 10.0% from approximately $421.5 million in 2023 to approximately $463.7 million in 2024[225]. - UHG's net income for 2024 was approximately $46.9 million, a decrease of 62.5% compared to $125.1 million in 2023[226][240]. - UHG's EBITDA decreased by 58.3% from approximately $144.8 million in 2023 to $60.4 million in 2024[240]. - Revenues for the year ended December 31, 2024 were $463.7 million, an increase of $42.2 million, or 10.0%, from $421.5 million for the year ended December 31, 2023[241]. - Net income for the year ended December 31, 2024 was $46.9 million, a decrease of $78.2 million, or 62.5%, from $125.1 million for the year ended December 31, 2023[250]. - Basic earnings per share dropped to $0.96 in 2024 from $2.74 in 2023, reflecting a 65% decline[321]. Sales and Orders - The company delivered 1,431 homes in 2024, a 3.5% increase from 1,383 homes in 2023, with net new orders rising by 7.9% to 1,399[223][240]. - Net new orders for the year ended December 31, 2024 were 1,399 units, an increase of 103 units, or 7.9%, from 1,296 units for the year ended December 31, 2023[251]. - The cancellation rate improved from 13.6% in 2023 to 11.4% in 2024, indicating better sales stability[240]. - Backlog for the year ended December 31, 2024 was 157 units, a decrease of 32 units, or 16.9%, from 189 units for the year ended December 31, 2023[253]. Profitability and Margins - The gross profit margin decreased from 18.9% in 2023 to 17.2% in 2024, while adjusted gross profit margin fell from 21.4% to 19.9%[226][240]. - Gross profit for the year ended December 31, 2024 was $79.8 million, an increase of $0.1 million, or 0.1%, from $79.7 million for the year ended December 31, 2023[243]. - Adjusted gross profit for the year ended December 31, 2024 was $92.4 million, an increase of $2.3 million, or 2.6%, from $90.1 million for the year ended December 31, 2023[244]. Cash Flow and Liquidity - As of December 31, 2024, UHG had approximately $22.6 million in cash and cash equivalents, a decrease of $34.1 million, or 60.1%, from $56.7 million as of December 31, 2023[261]. - Net cash provided by operating activities decreased to $15.4 million for the year ended December 31, 2024, down from $28.2 million in 2023, primarily due to higher cost of sales and increased selling, general, and administrative expenses[277]. - Net cash used in investing activities was $12.6 million for the year ended December 31, 2024, compared to $24.3 million in 2023, mainly due to a decrease in cash used for business acquisitions[278]. - Net cash used in financing activities was $34.0 million for the year ended December 31, 2024, a significant change from net cash provided of $40.5 million in 2023, largely due to the redemption of Convertible Notes and repayments of homebuilding debt[279]. Assets and Liabilities - As of December 31, 2024, total assets decreased to $265.38 million from $298.65 million in 2023, reflecting a decline of approximately 11.1%[319]. - The company reported a total liabilities reduction from $329.83 million in 2023 to $198.51 million in 2024, a decrease of about 40%[319]. - The company’s homebuilding debt decreased from $80.45 million in 2023 to $50.20 million in 2024, a reduction of approximately 37.5%[319]. - Goodwill increased from $5.71 million in 2023 to $9.28 million in 2024, an increase of approximately 62.5%[319]. Business Strategy and Growth - UHG's strategy includes organic growth through its mortgage joint venture and targeted acquisitions of complementary homebuilders[224]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[321]. - UHG's business strategy focuses on a land-light approach, primarily constructing single-family residential homes in South Carolina, North Carolina, and Georgia[331]. Acquisitions and Investments - The company completed the acquisition of Creekside Custom Homes for $12.7 million, recognizing $3.6 million in goodwill[232]. - UHG received net proceeds of approximately $94.4 million from the Business Combination and PIPE investments in March 2023, which were used for corporate purposes and acquisitions[262]. - The Company received approximately $128.6 million in gross proceeds from the Business Combination, including $43.9 million from DHHC's trust account and $80.0 million from Notes PIPE Financing[352]. Financing and Debt - The Term Loan has an outstanding balance of $67.15 million as of December 31, 2024, with a weighted average interest rate of 11.70%[270]. - The weighted average interest rates on the Syndicated Line and Term Loan were 8.41% and 11.70%, respectively, as of December 31, 2024[308]. - Cash paid for interest increased to $20,691,978 from $15,682,821 year-over-year, indicating a rise in financing costs[328]. Market and Economic Factors - A 100 basis point increase in overall interest rates would negatively affect the company's net income by approximately $1.2 million[308]. - UHG's cash flows from projects may differ materially in timing from operational results, as significant cash outflows occur at the beginning of projects[265].

Financial Data and Key Metrics Changes - For Q4 2024, net income was $0.7 million, which included a change in fair value of $38 million related to potential earn-out accounting [28] - Revenue for Q4 2024 was $134.8 million, up from $116.8 million in Q4 2023, while full-year revenue increased to $463.7 million from $421.5 million in 2023 [30] - Gross profit for Q4 2024 was $21.8 million with a gross profit margin of 16.2%, compared to $21.6 million and 18.5% in the prior year [32] Business Line Data and Key Metrics Changes - New home deliveries grew by 7% year-over-year, and net new home orders increased by 19% in Q4 2024 [18] - Average sales price for Q4 2024 was approximately $324,000 for 413 production-built homes, compared to $320,000 for 338 homes in the prior year [31] - Home closings in Q4 2024 were 414, up from 387 in the same quarter of the previous year [30] Market Data and Key Metrics Changes - The backlog at the end of Q4 stood at 157 homes valued at approximately $58.3 million [32] - The company faced a competitive market with high mortgage rates impacting affordability and leading to increased use of mortgage incentives [13][15] Company Strategy and Development Direction - The company is focusing on enhancing financial and operational performance and scaling operations in key Southeast markets [6] - A strategic shift towards a more balanced approach in operations was noted, with an emphasis on product redesign and cost-saving initiatives [20][26] - The company aims to improve gross margins through a re-bidding process for direct construction costs [10][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from a competitive pricing environment and high mortgage rates but remains optimistic about long-term homebuilding prospects [13][16] - The company is positioned well in markets with strong job creation and in-migration, which are critical for new housing demand [16] - 2025 is expected to be a pivotal year for the company, with ongoing initiatives aimed at driving revenue growth and improving profitability [17] Other Important Information - The company controlled approximately 7,700 lots as of December 31, 2024, positioning it for future growth [35] - SG&A expenses for Q4 2024 were $19.3 million, with adjusted SG&A at approximately $17.7 million or 13.1% of revenue [34] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a detailed Q&A segment [38]

Financial Data and Key Metrics Changes - For Q4 2024, net income was $0.7 million, which included a change in fair value of $38 million related to potential earn-out accounting [28] - Revenue for Q4 2024 was $134.8 million, up from $116.8 million in Q4 2023, while full-year revenue increased to $463.7 million from $421.5 million in 2023 [30] - Gross profit for Q4 2024 was $21.8 million with a gross profit margin of 16.2%, compared to $21.6 million and 18.5% in the prior year [32] Business Line Data and Key Metrics Changes - New home deliveries grew by 7% year-over-year, and net new home orders increased by 19% in Q4 2024 [18] - Average sales price for Q4 2024 was approximately $324,000 for 413 production-built homes, compared to $320,000 for 338 homes in the prior year [31] - Home closings for the full year increased to 1,431 homes, up from 1,383 homes in 2023 [30] Market Data and Key Metrics Changes - The company faced a competitive market with high mortgage rates negatively impacting affordability, leading to the use of mortgage incentives [13] - Completed inventory remains high across the industry, prompting competitors to offer substantial price discounts [14] Company Strategy and Development Direction - The company aims to enhance financial and operational performance by updating product designs to align with current market demands [7][9] - A focus on a land-light operating model is intended to reduce risks and upfront capital requirements [7] - The company is committed to improving its balance sheet and executing long-term strategic initiatives [23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged short-term challenges but remains optimistic about the long-term outlook for homebuilding, citing strong housing fundamentals in key markets [16] - The company is positioned to capitalize on job creation and in-migration trends, which are critical for new home demand [16] - 2025 is expected to be a pivotal year for the company, with ongoing initiatives aimed at driving revenue growth and improving gross margins [17] Other Important Information - The company controlled approximately 7,700 lots as of December 31, 2024, positioning it for future growth [35] - SG&A expenses for Q4 2024 were $19.3 million, with adjusted SG&A at approximately $17.7 million or 13.1% of revenue [34] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.

Financial Performance - For Q4 2024, net income was $0.7 million, or $0.01 per diluted share, compared to a net loss of $66.6 million, or $1.38 per diluted share in Q4 2023[2]. - For the fiscal year 2024, net income was $46.9 million, or $0.90 per diluted share, down from $125.1 million, or $2.35 per diluted share in 2023[6]. - Net income for Q4 2024 was $666,718, a significant improvement from a net loss of $(66,640,834) in Q4 2023[30]. - Net income for the year ended December 31, 2024, was $46.91 million, compared to a net income of $125.06 million for the year ended December 31, 2023[24]. Revenue and Sales - Revenue for Q4 2024 was $134.8 million, a 15% increase from $116.8 million in Q4 2023[3]. - Fiscal year 2024 revenue was $463.7 million, a 10% increase from $421.5 million in 2023[7]. - Revenue for Q4 2024 reached $134.81 million, a 15.4% increase from $116.83 million in Q4 2023[24]. - Total net new orders for Q4 2024 increased by 19% year-over-year to 351, while total closings rose by 7% to 414[37]. - For the fiscal year 2024, total net new orders increased by 8% to 1,399, while total closings rose by 3% to 1,431[38]. Profitability Metrics - Gross profit percentage for FY 2024 was 17.2%, down from 18.9% in FY 2023, primarily due to increased sales incentives[8]. - Adjusted EBITDA for FY 2024 was $31.6 million, compared to $40.5 million in FY 2023[10]. - Gross profit for Q4 2024 was $21.78 million, slightly up from $21.62 million in Q4 2023, resulting in a gross profit margin of 16.2%[24][27]. - EBITDA for the year ended December 31, 2024, was $60,431,172, compared to $144,815,138 in 2023, reflecting a decrease in EBITDA margin from 34.4% to 13.0%[30]. - Adjusted EBITDA for Q4 2024 was $7,713,763, with an adjusted EBITDA margin of 5.7%, down from 8.6% in Q4 2023[30]. Assets and Liabilities - Total assets decreased to $265.38 million in 2024 from $298.65 million in 2023[22]. - Total liabilities decreased significantly from $329.83 million in 2023 to $198.51 million in 2024[22]. - The company’s cash and cash equivalents decreased to $22.63 million in 2024 from $56.67 million in 2023[22]. - Total stockholders' equity as of December 31, 2024, was $66,866,872, while adjusted book value was $96,745,405[36]. Operational Highlights - Home closings in Q4 2024 were 414, up 7% from 387 in Q4 2023, while net new orders increased by 19% to 351 from 294 in Q4 2023[3]. - The average sale price of production-built homes rose to approximately $324,000 in Q4 2024, compared to $320,000 in Q4 2023[4]. - The Coastal market saw a 258% increase in net new orders and a 136% increase in closings compared to Q4 2023[37]. - Backlog inventory as of December 31, 2024, was 157 homes valued at $58.3 million, a decrease of 17% in inventory but an increase of 1% in backlog value compared to 2023[38]. Financing Activities - The company completed a refinancing of Convertible Notes in December 2024, expected to reduce interest expense by approximately $4 million annually[3]. - The company experienced a loss on extinguishment of Convertible Notes amounting to $45.64 million in 2024[24]. - The company reported a loss on extinguishment of convertible notes amounting to $45,642,497 for the year ended December 31, 2024[30]. Expenses - Selling, general and administrative expense for Q4 2024 was $19,341,701, with adjusted SG&A at $17,666,568, representing 13.1% of revenue[33].

Core Viewpoint - An investigation has been initiated by Levi & Korsinsky, LLP regarding potential breaches of fiduciary duty by the board of directors of United Homes Group Inc (UHG), previously known as DiamondHead Holdings Corp, for shareholders who purchased stock before March 20, 2023 [1][2]. Group 1 - The investigation focuses on whether the UHG board of directors has violated its fiduciary duties to the company's stockholders [2]. - Levi & Korsinsky, LLP is a nationally recognized law firm with expertise in prosecuting securities litigation and has successfully recovered hundreds of millions of dollars for shareholders [3].

Revenue and Sales Performance - UHG's revenue for Q3 2024 was approximately $118.6 million, a 35.2% increase from $87.7 million in Q3 2023, driven by increased home closings and higher average sales prices [191][200]. - For the nine months ended September 30, 2024, UHG generated revenue of approximately $328.9 million, compared to $304.6 million for the same period in 2023, marking an increase of 8.0% [192]. - Revenue for the nine months ended September 30, 2024 was $328.9 million, an increase from $304.6 million in 2023, representing a growth of 7.8% [226]. Home Closings and Orders - The company closed 369 homes in Q3 2024, representing a 30.4% increase from 283 homes closed in Q3 2023 [201]. - Net new orders for the three months ended September 30, 2024 were 341 units, an increase of 69 units, or 25.4%, from 272 units for the same period in 2023 [210]. - Net new orders for the nine months ended September 30, 2024 were 1,048 units, an increase of 46 units, or 4.6%, from 1,002 units in 2023 [224]. Financial Losses and Profit Margins - The company reported a net loss of approximately $7.3 million for Q3 2024, which included $7.8 million related to the change in fair value of derivative liabilities [191]. - UHG's gross profit margin for Q3 2024 was 18.9%, a decrease of 0.9% from 19.8% in Q3 2023 [200]. - The adjusted EBITDA margin for Q3 2024 was 7.6%, down from 10.0% in Q3 2023, reflecting a decrease of 2.4% [191][200]. Backlog and Inventory - UHG's backlog decreased to 220 units in Q3 2024, down 22.0% from 282 units in Q3 2023 [200]. - Backlog for the three months ended September 30, 2024 was 220 units, a decrease of 62 units, or 22.0%, from 282 units for the same period in 2023 [212]. Costs and Expenses - Cost of sales for the nine months ended September 30, 2024 was $270.8 million, an increase of $24.3 million, or 9.9%, from $246.5 million for the same period in 2023 [216]. - Selling, general and administrative expense for the three months ended September 30, 2024 was $18.7 million, an increase of $5.1 million, or 37.5%, from $13.6 million for the same period in 2023 [204]. Cash Flow and Financing - As of September 30, 2024, the company had approximately $25.8 million in cash and cash equivalents, a decrease of $30.9 million from $56.7 million as of December 31, 2023 [230]. - Net cash flows used in operating activities for the nine months ended September 30, 2024, were $12.0 million, a decrease of $57.5 million compared to $45.5 million provided in the same period of 2023 [242]. - Net cash used in financing activities for the nine months ended September 30, 2024, was $6.2 million, a decrease of $31.8 million compared to $25.6 million provided in the same period of 2023 [244]. Acquisitions and Investments - The company completed the acquisition of Creekside Custom Homes for $12.7 million, recognizing goodwill of approximately $3.6 million [198]. - The Company used $12.7 million in cash to acquire homebuilding assets of Creekside Custom Homes during the nine months ended September 30, 2024 [243]. Tax and Earnings - The company's estimated annual effective tax rate for the fiscal year ending September 30, 2024 is 17.0%, down from 26.2% for the same period in 2023 [222]. - Net income for the nine months ended September 30, 2024 was $46.2 million, a decrease of $145.5 million, or 75.9%, from $191.7 million for the same period in 2023 [213]. Market and Economic Factors - A 100 basis point increase in overall interest rates would negatively affect the Company's net income by approximately $0.7 million [254]. - The Company has not entered into derivative financial instruments for trading or speculative purposes or to hedge against interest rate fluctuations [253].

Core Viewpoint - United Homes Group, Inc. reported significant declines in profitability for the third quarter of 2024, despite strong revenue growth and increased home closings and orders [1][7][9]. Revenue Performance - United Homes registered revenues of $118.6 million in the third quarter, reflecting a 35.2% increase year over year [2]. - Home closings during the quarter were 369, up 30.4% from 283 in the same period last year [2]. - Net new home orders were 341, representing a 25.4% increase compared to 272 in the year-ago period [2]. Pricing and Sales Metrics - The average sale price (ASP) of production-built homes was approximately $320,000, a 1.3% increase from $316,000 in the previous year [3]. - The active community count as of September 30, 2024, was 55, with 8,600 lots owned or controlled by the company or related parties [3]. Profitability Analysis - Gross profit improved 28.6% year over year to $22.4 million, but gross margin contracted by 98 basis points to 18.9% [5]. - Adjusted gross margin was 20.6%, down from 22.1% in the year-ago period [5]. - The operating loss totaled $7.4 million compared to an operating profit of $152.6 million in the previous year [7]. - The net loss was $7.3 million against a net profit of $150.8 million in the year-ago quarter [7]. - Adjusted EBITDA was $8.9 million, up 2.1% from the previous year [7]. Operating Expenses - Selling, general and administrative expenses increased by 37.1% year over year to $18.7 million [6]. Liquidity Position - United Homes ended the third quarter with cash and cash equivalents of $25.8 million, slightly up from $24.9 million at the end of the second quarter [8]. Management Insights - Management indicated that the company is implementing initiatives to drive growth, reduce direct costs, and manage overhead effectively [10]. - The company is updating its product offerings to remain competitive and meet market demand [10].

Financial Data and Key Metrics Changes - For Q3 2024, the company reported a net loss of $7.3 million, influenced by a change in fair value of $7.8 million related to potential earn-out liabilities [17] - Revenue for Q3 2024 was $118.6 million, up from $87.7 million in Q3 2023, marking a significant year-over-year increase [18] - Gross profit for Q3 2024 was $22.4 million with a gross profit margin of 18.9%, compared to $17.4 million and 19.8% in Q3 2023 [20] - Average sales price for production-built homes in Q3 2024 was approximately $320,000, slightly up from $316,000 in Q3 2023 [19] Business Line Data and Key Metrics Changes - Home sales revenue grew by 35% year-over-year, with a 30% increase in new home deliveries [5] - Home closings in Q3 2024 totaled 369 homes, compared to 283 homes in Q3 2023 [19] - Net new orders for Q3 2024 were 341 homes, up from 272 homes in Q3 2023 [20] Market Data and Key Metrics Changes - The company noted steady traffic in its communities, although conversion rates were affected by mortgage rate fluctuations [6] - The backlog at the end of Q3 was 220 homes valued at approximately $79.9 million [20] Company Strategy and Development Direction - The company aims to transition from a private home builder to a production-focused builder, emphasizing affordable housing segments [8][12] - The strategy includes leveraging relationships with land bankers to maintain capital efficiency and reduce risk [14] - The focus will remain on the affordable housing market, which is seen as undersupplied and in high demand [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to market conditions and execute strategic initiatives, despite a competitive environment [16] - The favorable housing fundamentals in the Southeast are expected to provide a consistent pipeline of new home buyers [11] - The company anticipates elevated incentives for home buyers due to the current mortgage rate environment [7] Other Important Information - As of September 30, 2024, the company had 55 active communities and approximately 80,600 lots under control [23] - Total liquidity was reported at $89 million, consisting of $25.8 million in cash and $63.2 million available on the credit facility [23] Q&A Session Summary - The call concluded without a detailed Q&A session, as the operator indicated the end of the conference call [24]

Financial Performance - In Q3 2024, United Homes Group closed 369 homes, generating revenue of $118.6 million, a 35% increase from $87.7 million in Q3 2023[1][3] - Revenue for the three months ended September 30, 2024, was $118,643,955, a 35.2% increase from $87,728,091 in the same period of 2023[22] - For the nine months ended September 30, 2024, revenues were $328.9 million, compared to $304.6 million for the same period in 2023[6] - Net loss for the three months ended September 30, 2024, was $(7,339,235), a significant decrease from net income of $150,842,687 in the same period of 2023[22] - The company reported a basic loss per share of $(0.15) for the three months ended September 30, 2024, compared to earnings of $3.12 per share in the same period of 2023[22] Profitability Metrics - The gross profit percentage for Q3 2024 was 18.9%, down from 19.8% in Q3 2023, primarily due to increased sales incentives[4][7] - Gross profit for the three months ended September 30, 2024, was $22,383,027, compared to $17,410,295 in the prior year, reflecting a gross profit margin of 18.9%[22][26] - Adjusted gross profit for the three months ended September 30, 2024, was $24,480,958, with an adjusted gross profit margin of 20.6%[26] - Adjusted EBITDA for Q3 2024 was $9.0 million, slightly up from $8.8 million in Q3 2023[5][9] - Adjusted EBITDA for the three months ended September 30, 2024, was $8,978,713, reflecting a slight increase from $8,797,192 in the same period of 2023[29] - The adjusted EBITDA margin for the three months ended September 30, 2024, was 7.6%, compared to 10.0% in the same period of 2023[29] Orders and Backlog - Net new home orders increased by 25% year-over-year, totaling 341 in Q3 2024 compared to 272 in Q3 2023[2][3] - Total net new orders for the three months ended September 30, 2024, reached 341, a 25% increase from 272 in the same period of 2023[39] - The company’s total backlog inventory as of September 30, 2024, was 220 homes, with a backlog value of $79.9 million, representing a 16% increase in inventory and a 39% increase in backlog value compared to the previous year[41] Assets and Liabilities - Total assets decreased to $282,611,518 as of September 30, 2024, down from $298,647,328 at the end of 2023[21] - Total liabilities decreased to $262,822,204 as of September 30, 2024, down from $329,829,864 at the end of 2023[21] - Homebuilding debt decreased to $72,196,208 from $80,451,429 at the end of 2023[21] - Cash and cash equivalents decreased to $25,818,156 from $56,671,471 at the end of 2023[21] Equity and Retained Earnings - Total stockholders' equity for Q3 2024 was $19.8 million, with an adjusted book value of $87.7 million[2][4] - The company’s retained earnings improved to $12,257,158 as of September 30, 2024, from a deficit of $(33,981,864) at the end of 2023[21] - The company’s total stockholders' equity as of September 30, 2024, was $19,789,314, with an adjusted book value of $87,671,035 after excluding goodwill and derivative liabilities[37] Operational Expenses - SG&A expenses as a percentage of revenues were 15.8% in Q3 2024, including $1.6 million in stock-based compensation[4][8] - Adjusted SG&A for the three months ended September 30, 2024, was $16,434,672, with an adjusted SG&A percentage of 15.8%[33] - The company incurred $1,567,945 in stock-based compensation expense for the three months ended September 30, 2024[33] Market Expansion - The company plans to expand into new geographic markets focusing on positive population and employment growth trends[15] Interest and Derivative Liabilities - Interest expense in cost of sales for the three months ended September 30, 2024, was $1,524,748, slightly down from $1,531,318 in the same period of 2023[29] - The change in fair value of derivative liabilities for the three months ended September 30, 2024, was $7,784,965, compared to a loss of $(149,703,161) in the same period of 2023[29]