3 unchanged sentences
(in thousands, except share and per share data)
−Removed: September 30,
Current assets:
Accounts receivable, net
−Removed: Current portion of contracts - dealer financed
−Removed: Current portion of consumer loans receivable
−Removed: Current portion of notes receivable from mobile home parks (“MHP”)
−Removed: Current portion of other notes receivable
+Added: Dealer financed receivables, net
+Added: Consumer loans receivable, current
+Added: Notes receivable from mobile home parks (“MHP”), current
+Added: Other notes receivable, current
+Added: Inventories, net
Prepaid expenses and other current assets
3 unchanged sentences
Other notes receivable, net
−Removed: Inventories, net
Other assets - leased mobile homes
20 unchanged sentences
Common stock, $ .001 par value, 90,000,000 shares authorized;
−Removed: 24,865,906 and 24,843,494 issued and 24,158,311 and 24,398,429 outstanding at September 30, 2024 and December 31, 2023, respectively
−Removed: Treasury stock at cost, 707,595 and 445,065 shares at September 30, 2024 and December 31, 2023, respectively
+Added: 24,866,342 and 24,865,906 issued and 24,129,362 and 24,158,311 outstanding at March 31, 2025 and December 31, 2024, respectively
+Added: Treasury stock at cost, 736,980 and 707,595 shares at March 31, 2025 and December 31, 2024, respectively
Additional paid-in-capital
6 unchanged sentences
(in thousands, except share and per share data)
−Removed: Three months ended September 30,
−Removed: Nine months ended September 30,
+Added: Three months ended March 31,
Product sales
Consumer, MHP and dealer loans interest
+Added: Other revenue
Total net revenue
17 unchanged sentences
LEGACY HOUSING CORPORATION
+Added: CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
+Added: (in thousands, except share data)
+Added: paid-in-capital
+Added: Balances, December 31, 2023
+Added: Share based compensation
+Added: Proceeds from exercise of stock options
+Added: Purchase of treasury stock
+Added: Balances, March 31, 2024
+Added: paid-in-capital
+Added: Balances, December 31, 2024
+Added: Share based compensation
+Added: Purchase of treasury stock
+Added: Balances, March 31, 2025
+Added: See accompanying notes to unaudited interim condensed financial statements.
+Added: LEGACY HOUSING CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
−Removed: Nine months ended September 30,
+Added: Three Months Ended March 31,
Operating activities:
−Removed: Adjustments to reconcile net income to net cash provided by (used in) operating activities:
+Added: Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense
1 unchanged sentence
Provision for accounts and notes receivable
−Removed: Provision for long term inventory
+Added: Provision for inventories
+Added: Gain from sale of property
Gain from sale of assets
−Removed: Gain from loan settlements
Non-cash operating lease expense
−Removed: Share based payment expense
+Added: Share based compensation expense
Other non cash items
4 unchanged sentences
Dealer inventory loan activity, net
+Added: Inventories, net
Prepaid expenses and other current assets
5 unchanged sentences
Dealer incentive liability
−Removed: Net cash provided by (used in) operating activities
+Added: Net cash provided by operating activities
Investing activities:
Purchases of property, plant and equipment
−Removed: Proceeds from sale of leased property
Proceeds from sale of property
−Removed: Sale of investments - treasury notes
Issuance of notes receivable
1 unchanged sentence
Collections from purchased loans
−Removed: Net cash (used in) investing activities
+Added: Net cash (used in) provided by investing activities
Financing activities:
3 unchanged sentences
Payments on lines of credit
−Removed: Net cash (used in) provided by financing activities
−Removed: Net decrease in cash
+Added: Net cash used in financing activities
+Added: Net increase (decrease) in cash
Cash at beginning of period
5 unchanged sentences
LEGACY HOUSING CORPORATION
−Removed: CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
−Removed: (in thousands, except share data)
−Removed: paid-in-capital
−Removed: Balances, December 31, 2022
−Removed: Cumulative change in accounting principle, net of taxes (Note 1)
−Removed: Balances, January 1, 2023 (as adjusted for change in accounting principle)
−Removed: Share based compensation
−Removed: Balances, March 31, 2023
−Removed: Share based compensation
−Removed: Proceeds from exercise of stock options
−Removed: Balances, June 30, 2023
−Removed: Share based compensation
−Removed: Balances, September 30, 2023
−Removed: paid-in-capital
−Removed: Balances, December 31, 2023
−Removed: Share based compensation
−Removed: Proceeds from exercise of stock options
−Removed: Purchase of treasury stock
−Removed: Balances, March 31, 2024
−Removed: Share based compensation
−Removed: Purchase of treasury stock
−Removed: Balances, June 30, 2024
−Removed: Share based compensation
−Removed: Proceeds from exercise of stock options
−Removed: Purchase of treasury stock
−Removed: Balances, September 30, 2024
−Removed: See accompanying notes to unaudited interim condensed financial statements.
−Removed: LEGACY HOUSING CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
13 unchanged sentences
In the opinion of management, the unaudited interim condensed financial statements have been prepared on the same basis as the audited annual financial statements, and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair statement of the Company's financial position for the periods presented.
−Removed: The results for the three months and nine months ended September 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024, or any other period.
+Added: The results for the three months ended March 31, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025, or any other period.
The accompanying balance sheet as of December 31, 2024 was derived from audited financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”), filed on March 12, 2025.
4 unchanged sentences
These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period.
−Removed: Significant estimates made in connection with the accompanying condensed financial statements primarily relate to the determination and valuation of accounts receivable, loans to mobile home parks, consumer loans receivable, other notes receivable, loans to dealers, inventory obsolescence, income taxes, fair value of financial instruments and contingent liabilities.
+Added: Significant estimates made in connection with the accompanying financial statements primarily relate to the determination and valuation of notes receivable from mobile home parks, consumer loans receivable, other notes receivable, dealer financed receivables, fair value of financial instruments and income taxes.
Actual results could differ from these estimates.
−Removed: The Company has one reportable segment.
−Removed: All of our activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others.
−Removed: For example, the sale of manufactured homes includes providing transportation for dealers.
−Removed: We also provide financing options for customers to facilitate home sales.
−Removed: Accordingly, all significant operating and strategic decisions by the chief operating decision maker, the Chief Executive Officer, are based upon analyses of our company as one operating segment.
+Added: We have determined that we have one operating and reportable segment.
+Added: We define the segment primarily based on how internally reported financial and operating information is regularly reviewed by our chief operating decision maker (“CODM”) to evaluate financial performance, make decisions and allocate resources.
+Added: Our CODM is the Chief Executive Officer.
+Added: The CODM assesses the Company’s operating and financial performance based on net income, total revenue and return on investment.
+Added: The Company determined that it does not have significant segment expenses.
Revenue Recognition
11 unchanged sentences
Other revenue consists of contract deposit forfeitures, consignment fees, commercial lease rents, land sales, service fees and other miscellaneous income.
−Removed: Share-Based Compensation
−Removed: The Company accounts for share-based compensation in accordance with the provisions of Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation .
−Removed: Share-based compensation expense is recognized based on an award’s estimated grant date fair value in order to recognize compensation cost for those shares expected to vest.
−Removed: The Company has elected to record forfeitures as they occur.
−Removed: Compensation cost is recognized on a straight-line basis over the vesting period of the awards and adjusted as forfeitures occur.
−Removed: The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model.
−Removed: The fair value of each restricted stock grant with only service-based conditions is calculated based on the closing price of the Company’s common stock on the grant date.
−Removed: The fair value of stock option awards on the date of grant is estimated using the Black-Scholes option pricing model, which requires the Company to make certain predictive assumptions.
−Removed: The risk-free interest rate is based on the implied yield of U.S.
−Removed: Treasury zero-coupon securities that correspond to the expected life of the award.
−Removed: The volatility is estimated based on the historical volatility of the Company’s common stock.
−Removed: The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which is allowed for companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience.
−Removed: The Company does not expect to pay dividends on its common stock.
Accounts Receivable
5 unchanged sentences
The Company establishes an allowance for doubtful accounts for amounts that are deemed to be uncollectible.
−Removed: On September 30, 2024, December 31, 2023 and December 31, 2022, the allowance for doubtful accounts totaled $ 709 , $ 651 and $ 279 , respectively.
+Added: At March 31, 2025, December 31, 2024, and December 31, 2023, the allowance for doubtful accounts totaled $ 763 , $ 578 , and $ 651 , respectively.
+Added: At March 31, 2025, December 31, 2024, and December 31, 2023 accounts receivable, net was $ 4,982 , $ 3,985 , and $ 4,656 , respectively.
Leased Property
1 unchanged sentence
In this arrangement, the title for the mobile homes remains with the Company, and the lease is accounted for as an operating lease.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: Our typical lease agreement is for 96 months or 120 months .
+Added: Our typical lease agreement is for 96 months or 120 month s.
It requires the lessee to maintain the home and to return the home to us at the end of the lease in good condition.
2 unchanged sentences
Homes returned to the Company upon expiration of the lease or in the event of default are sold by the Company through its standard sales and distribution channels.
−Removed: Future minimum lease income under all operating leases for each of the next five years at September 30, 2024, is as follows:
+Added: During the three months ended March 31, 2025, the Company sold 26 leased mobile homes for $ 950 to one mobile home park customer which is included in Product sales on the accompanying statements of income.
+Added: During the three months ended March 31, 2024, the Company sold 120 leased mobile homes for $ 5,450 to one mobile home park customer which is included in Product sales on the accompanying statements of income.
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
+Added: Future minimum lease income under all operating leases for each of the next five years at March 31, 2025, is as follows:
Product Warranties
The Company provides retail home buyers with a one-year warranty from the date of purchase on manufactured inventory.
+Added: At this time, we do not provide any warranties with respect to tiny houses.
Product warranty costs are accrued when the covered homes are sold to customers.
2 unchanged sentences
The accrued warranty liability is reduced as costs are incurred and the warranty liability balance is included as part of accrued liabilities in the Company’s balance sheet.
−Removed: The following table summarizes activity within the warranty liability for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: The following table summarizes activity within the warranty liability for the three months ended March 31, 2025 and 2024:
+Added: Three Months Ended March 31,
Warranty liability, beginning of period
−Removed: Product warranty reserve accrued (released)
+Added: Product warranty reserve accrued
Warranty costs incurred
Warranty liability, end of period
−Removed: Recent Accounting Pronouncements
−Removed: In June 2016, the FASB issued ASU 2016 13 Financial Instruments—Credit Losses (Topic 326):
−Removed: Measurement of Credit Losses on Financial Instruments, which amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities.
−Removed: For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses.
−Removed: The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected.
−Removed: For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses
+Added: Share-Based Compensation
+Added: The Company accounts for share-based compensation in accordance with the provisions of Accounting Standards Codification (“ASC”) 718, Compensation—Stock Compensation .
+Added: Share-based compensation expense is recognized based on an award’s estimated grant date fair value in order to recognize compensation cost for those shares expected to vest.
+Added: The Company has elected to record forfeitures as they occur.
+Added: Compensation cost is recognized on a straight-line basis over the vesting period of the awards and adjusted as forfeitures occur.
+Added: The fair value of each option grant with only service-based conditions is estimated using the Black-Scholes pricing model.
+Added: The fair value of each restricted stock grant with only service-based conditions is calculated based on the closing price of the Company’s common stock on the grant date.
+Added: The fair value of stock option awards on the date of grant is estimated using the Black-Scholes option pricing model, which requires the Company to make certain predictive assumptions.
+Added: The risk-free interest rate is based on the implied yield of U.S.
+Added: Treasury zero-coupon securities that correspond to the expected life of the award.
+Added: The volatility is estimated based on the historical volatility of the Company’s common stock.
+Added: The expected life of awards granted represents the period of time that the awards are expected to be outstanding based on the “simplified” method, which is allowed for companies that cannot reasonably estimate the expected life of options based on its historical award exercise experience.
LEGACY HOUSING CORPORATION
1 unchanged sentence
(dollars in thousands)
−Removed: be presented as an allowance rather than as a write down and affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income.
−Removed: The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash.
−Removed: The Company used the longer phase in period for adoption, and accordingly this ASU became effective for the Company’s fiscal year beginning January 1, 2023.
−Removed: The adoption of ASU 2016-13 resulted in an increase in portfolio allowances of $ 900 at transition.
−Removed: The $ 900 was comprised of a $ 225 increase for MHP notes, a $ 187 increase for dealer financed contracts and a $ 488 increase for other notes receivable.
−Removed: The cumulative effect of the adoption was a net decrease of $ 698 to beginning retained earnings at January 1, 2023.
+Added: Pursuant to the Legacy Housing Corporation 2018 Incentive Compensation Plan (the “Plan”), the Company may issue up to 10.0 million equity awards to employees, directors, consultants and nonemployee service providers in the form of stock options, stock, restricted stock and stock appreciation rights.
+Added: Stock options may be granted with a contractual life of up to ten years .
+Added: At March 31, 2025, the Company had 8.7 million shares available for grant under the Plan.
+Added: As of March 31, 2025, approximately 1,013,000 options were outstanding, 189,000 options were exercisable, and 824,000 options remained nonvested.
+Added: Unrecognized compensation expense related to these options at March 31, 2025 was $ 4,056 and is expected to be recognized over 7.0 years.
+Added: Total share based compensation expense for the three months ended March 31, 2025 and 2024 was $ 171 and $ 257 , respectively.
+Added: The Company does not expect to pay dividends on its common stock.
+Added: Fair Value Measurements
+Added: The Company accounts for its investments and derivative instruments in accordance with the provisions of Accounting Standards Codification (“ASC”) 820 10, Fair Value Measurement, which among other things provides the framework for measuring fair value.
+Added: That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
+Added: The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurement) and the lowest priority to unobservable inputs (Level III measurements).
+Added: The three levels of fair value hierarchy under ASC 820 10, Fair Value Measurement, are as follows:
+Added: Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
+Added: Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include:
+Added: (1) Quoted prices for similar assets or liabilities in active markets;
+Added: (2) Quoted prices for identical or similar assets or liabilities in inactive markets;
+Added: (3) Inputs other than quoted prices that are observable;
+Added: and (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
+Added: If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.
+Added: Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.
+Added: The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
+Added: The Company’s financial instruments consist primarily of cash, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, and lines of credit.
+Added: The carrying amounts of cash, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments.
+Added: This is considered a Level I valuation technique.
+Added: Recent Accounting Pronouncements
In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848):
4 unchanged sentences
The new standard has had no material impact on the Company's financial statements.
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
In November, 2023 the FASB issued ASU 2023-07, Segment Reporting (Topic 280):
Improvements to Reportable Segment Disclosures (“ASU 2023-07”).
−Removed: ASU 2023-07 aims to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
−Removed: ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss.
−Removed: The update also requires disclosure regarding the chief operating decision maker and expands the interim segment disclosure requirements.
−Removed: ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.
−Removed: We currently are evaluating the impact of ASU 2023-07 on our financial statements.
−Removed: From time to time, new accounting pronouncements are issued by the FASB and other regulatory bodies that are adopted by the Company as of the specified effective dates.
−Removed: Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption.
+Added: ASU 2023-07 enhances current and interim annual reportable segment disclosures and requires additional disclosures about significant segment expenses.
+Added: Public entities with a single reportable segment are required to apply the disclosure requirements in ASU 2023-07, as well as existing segment disclosures and reconciliation requirements in ASC 280 – Segment Reporting on an interim and annual basis.
+Added: We adopted ASU 2023-07 on a retrospective basis for annual periods starting with our Annual Report on Form 10-K for the year ending December 31, 2024.
+Added: Pronouncements Issued But Not Yet Adopted
+Added: In December 2023, the FASB issued Accounting Standard Update 2023-09, Income taxes (Topic 740):
+Added: Improvements to Income Tax Disclosures which requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction.
+Added: The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively.
+Added: The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted.
+Added: We are currently evaluating the disclosure requirements related to the new standard.
+Added: In November 2024, the FASB issued ASU 2024-03, Income Statement Reporting-Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), Disaggregation of Income Statement Expenses.
+Added: The standard update improves the disclosures about a public business entity’s expenses by requiring more detailed information about certain types of costs and expenses in the notes to the financial statements.
+Added: The guidance will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.
+Added: Early adoption is permitted.
+Added: The standard updates are to be applied prospectively with the option for retrospective application.
+Added: We are currently evaluating the impact of disclosure requirements related to the new standard on our financial statements.
Product sales primarily consist of sales of mobile homes to consumers and mobile home parks through various sales channels, which include Direct Sales, Commercial Sales, Inventory Finance Sales, and Retail Store Sales.
21 unchanged sentences
Warranty costs and contract costs are included in selling, general and administrative expenses in the statements of income.
−Removed: Warranty and contract costs were $ 474 and $ 666 for the three months ended September 30, 2024 and 2023, respectively, and $ 1,287 and $ 2,024 for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: For the three months ended September 30, 2024 and 2023, total cost of product sales included $ 1,450 and $ 3,285 of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.
−Removed: For the nine months ended September 30, 2024 and 2023, total cost of product sales included $ 4,198 and $ 9,857 of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.
+Added: Warranty and contract costs were $ 493 and $ 537 for the three months ended March 31, 2025 and 2024, respectively.
+Added: For the three months ended March 31, 2025 and 2024, total cost of product sales included $ 1,729 and $ 1,408 of costs relating to subcontracted production for commercial sales, transportation and delivery costs, and certain other costs incurred for retail store and commercial sales.
Other revenue consists of contract deposit forfeitures, consignment fees, commercial lease rents, land sales, service fees and other miscellaneous income.
4 unchanged sentences
Revenue for service fees and miscellaneous income is recognized at a point in time when the performance obligation is satisfied.
−Removed: Sales Concentration.
−Removed: The following table presents mobile home park (“MHP”) sales to independent third parties and their affiliates that are greater than 5.0% of our total product sales for the three and nine months ended September 30, 2024 and 2023:
−Removed: Three months ended September 30,
−Removed: Nine months ended September 30,
−Removed: No other MHP customer accounted for more than 5.0% of our total product sales.
+Added: Land sales revenue is comprised of sales of land (real property) that was acquired as a result of maintaining or furthering our primary business of producing, selling and financing mobile homes.
+Added: For the three months ended March 31, 2025, there were no mobile home park (“MHP”) customers that accounted for more than 5.0 % of our product sales.
+Added: For the three months ended March 31, 2024, MHP sales to two independent third parties and their affiliates accounted for $ 5,450 or 17.7 % and $ 2,799 or 9.1 % of our product sales.
LEGACY HOUSING CORPORATION
2 unchanged sentences
Disaggregation of Revenue.
−Removed: The following table summarizes customer contract revenues disaggregated by the source of the revenue for the three and nine months ended September 30, 2024 and 2023:
+Added: The following table summarizes customer contract revenues disaggregated by the source of the revenue for the three ended March 31, 2025 and 2024:
Three months ended
−Removed: Nine months ended
−Removed: September 30,
−Removed: September 30,
Product sales:
4 unchanged sentences
Total product sales
−Removed: Consumer, MHP and dealer loans interest:
+Added: Loan portfolio interest:
Interest - consumer installment notes
1 unchanged sentence
Interest - dealer finance notes
−Removed: Total consumer, MHP and dealer loans interest
+Added: Total loan portfolio interest
+Added: Other revenue
Total net revenue
4 unchanged sentences
Interest income is recognized monthly per the terms of the financing agreements.
−Removed: The average contractual interest rate per loan was approximately 13.1% and 13.2% as of September 30, 2024 and December 31, 2023, respectively.
+Added: The average contractual interest rate per loan was approximately 13.1 % as of March 31, 2025 and December 31, 2024.
Consumer loans receivable have maturities that range from 3 to 30 years .
2 unchanged sentences
The Company may also receive escrow payments for property taxes and insurance included in its consumer loan collections.
−Removed: The liabilities associated with these escrow collections totaled $ 12,700 and $ 10,104 as of September 30, 2024 and December 31, 2023, respectively, and are included in escrow liability in the accompanying balance sheets.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
+Added: The liabilities associated with these escrow collections totaled $ 12,388 and $ 11,623 as of March 31, 2025 and December 31, 2024, respectively, and are included in escrow liability in the accompanying balance sheets.
Allowance for Loan Losses—Consumer Loans Receivable
1 unchanged sentence
An allowance for loan losses is determined after giving consideration to, among other things, the loan characteristics, including the financial condition of borrowers, the value and liquidity of collateral, delinquency and historical loss experience.
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
The allowance for loan losses is comprised of two components:
20 unchanged sentences
Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell.
−Removed: At repossession, the collateral is recorded at the same amount as the principal balance as the loan.
+Added: At repossession, the collateral is recorded at the same amount as the principal balance of the loan.
The fair value of the collateral is then computed based on the historical recovery rates of previously charged off loans, the loan is charged off and the loss is charged to the allowance for loan losses.
At each reporting period, the fair value of the collateral is adjusted to the lower of the amount recorded at repossession or the estimated sales price less estimated costs to sell, based on current information.
−Removed: Repossessed homes from the consumer loan portfolio totaled $ 3,986 and $ 2,215 as of September 30, 2024 and December 31, 2023, respectively, and are included in other assets in the accompanying balance sheets.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
+Added: Repossessed homes from the consumer loan portfolio totaled $ 5,076 and $ 3,931 as of March 31, 2025 and December 31, 2024, respectively, and are included in other assets in the accompanying balance sheets.
Consumer loans receivable, net of allowance for loan losses and deferred financing fees, consists of the following:
−Removed: As of September 30,
+Added: As of March 31,
As of December 31,
+Added: As of December 31,
Consumer loans receivable
2 unchanged sentences
Consumer loans receivable, net
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
The following table presents a detail of the activity in the allowance for loan losses:
−Removed: Three months ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three months ended March 31,
Allowance for loan losses, beginning of period
3 unchanged sentences
The following table presents impaired and general reserve for allowance for loan losses:
−Removed: As of September 30,
+Added: As of March 31,
As of December 31,
5 unchanged sentences
General allowance for loan losses
−Removed: As of September 30, 2024 and December 31, 2023, the total principal outstanding for consumer loans on nonaccrual status was $ 2,961 and $ 1,565 , respectively.
A detailed aging of consumer loans receivable that are past due is as follows:
−Removed: As of September 30,
+Added: As of March 31,
As of December 31,
7 unchanged sentences
We evaluate the credit quality of our consumer loan portfolio based on the aging status of the loan and by payment activity.
−Removed: Loan delinquency reporting generally is based on borrower payment activity relative to the contractual
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: terms of the loan.
−Removed: The following table disaggregates the outstanding principal balance of consumer loans receivable by credit quality indicator based on delinquency status and fiscal year of origination:
+Added: Loan delinquency reporting generally is based on borrower payment activity relative to the contractual terms of the loan.
+Added: The following table disaggregates the outstanding principal balance of consumer loans receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of March 31, 2025:
Year of Origination
6 unchanged sentences
The MHP Notes have varying maturity dates and require monthly principal and interest payments.
−Removed: The interest rate on the MHP Notes can be fixed or variable, and the interest rates range from 6.9 % to 12.0 %.
−Removed: The average interest rate per loan was approximately 7.9 % as of September 30, 2024 and December 31, 2023, with maturities that range from 1 to 10 years .
+Added: The interest rate on the MHP Notes can be fixed or variable, and the interest rates range from
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
+Added: 4.9 % to 11.5 %.
+Added: The average interest rate per loan was approximately 7.8 % as of March 31, 2025 and December 31, 2024, with maturities that range from 1 to 10 years .
The collateral underlying the MHP Notes are individual mobile homes which can be repossessed and resold.
−Removed: The MHP Notes are generally personally guaranteed by borrowers with substantial financial resources.
−Removed: As of September 30, 2024, the Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 24.1 %, 17.3 % and 12.0 % of the principal balance outstanding, all of which were secured by the mobile homes.
+Added: The MHP Notes are generally personally guaranteed by borrowers.
+Added: As of March 31, 2025, the Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 23.9 %, 13.1 % and 11.5 % of the principal balance outstanding, all of which were secured by the mobile homes.
As of December 31, 2024, the Company had concentrations of MHP Notes with three independent third-parties and their respective affiliates that equated to 23.5 %, 14.6 % and 11.4 % of the principal balance outstanding, all of which were secured by the mobile homes.
2 unchanged sentences
The Company establishes an allowance composed of specific and general reserve amounts.
−Removed: As of September 30, 2024 and December 31, 2023, the MHP Notes balance is presented net of unamortized finance fees of $ 1,137 and $ 1,565 , respectively.
+Added: As of March 31, 2025 and December 31, 2024, the MHP Notes balance is presented net of unamortized finance fees of $ 958 and $ 1,057 , respectively.
The finance fees are amortized over the life of the MHP Notes.
−Removed: As of September 30, 2024, there were past due balances of $ 220 on MHP Notes.
−Removed: As of December 31, 2023, there were past due balances of $ 98 on the MHP Notes excluding any amounts attributed to the Notes, as defined below.
−Removed: For the three months ended September 30, 2024 and 2023, there were no charge offs recorded for MHP Notes.
−Removed: For the nine months ended September 30, 2024 and 2023, there were no charge offs recorded for MHP Notes.
−Removed: Allowance for loan loss for the MHP Notes was $ 753 and $ 735 as of September 30, 2024 and December 31, 2023, respectively.
−Removed: As of September 30, 2024 and December 31, 2023, there was a minimal impaired balance of MHP Notes.
+Added: As of March 31, 2025, there were past due balances of $ 131 on MHP Notes.
+Added: As of December 31, 2024, there were past due balances of $ 17 on the MHP Notes.
+Added: For the three months ended March 31, 2025 and 2024, there were no charge offs recorded for MHP Notes.
+Added: Allowance for loan loss for the MHP Notes was $ 776 and $ 654 as of March 31, 2025 and December 31, 2024, respectively.
+Added: As of March 31, 2025 and December 31, 2024, there was a minimal impaired balance of MHP Notes.
Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell.
Settlement Agreement
−Removed: As the Company previously disclosed, in a Form 10-K for the fiscal year ended December 31, 2023, and Forms 10-Q for the quarterly periods ended March 31, 2024 and June 30, 2024, Legacy and numerous entities owned or operated by one individual (the “Makers”) previously entered into several Promissory Notes (the “Notes”) valued at approximately $ 55 million.
+Added: Legacy and numerous entities owned or operated by one individual (the “Makers”) previously entered into several Promissory Notes (the “Notes”) valued at approximately $ 55 million.
In January 2024, the Makers defaulted on, and Legacy accelerated, a portion of the Notes valued at approximately $ 37 million.
The Notes were secured by mobile homes and mobile-home parks located in Texas, Mississippi, and Louisiana, and personally guaranteed by individuals (the “Personal Guarantors”).
−Removed: In the first,
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: second and third quarters of 2024, Legacy filed several lawsuits against the Makers and the Personal Guarantors and aggressively pursued the collateral.
+Added: During 2024, Legacy filed several lawsuits against the Makers and the Personal Guarantors and aggressively pursued the collateral.
On July 27, 2024, Legacy, the Makers, and the Personal Guarantors entered into a Settlement Agreement and Release (the “Agreement”).
7 unchanged sentences
Richland, MS 39218 (the “Cleveland Mobile Home Community”) to Legacy;
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
● Cleveland and Forest Hollow assigned all intangible assets, including all leases, contracts, and goodwill applicable or related to the real and personal property located on or at the Forest Hollow Mobile Home Community and the Cleveland Mobile Home Community to Legacy;
1 unchanged sentence
● Legacy refinanced the Entity and Individual Defendants’ remaining debt, pursuant to a new two-year , $ 48.6 million Promissory Note (the “New Note”).
+Added: The New Note bears interest at a fixed rate of 7.9 % , requires monthly payments of interest only for twenty-four months , and matures in July, 2026.
The New Note is secured by a first priority interest in more than 1,000 mobile homes and two mobile-home parks located in Louisiana, and personal guarantees signed by the Individual Defendants.
2 unchanged sentences
The Company presents the entire New Note on the accompanying balance sheets under the heading Notes receivable from mobile home parks (“MHP”), and interest income associated with the New Note is presented on the accompanying statement of income under the heading Consumer, MHP and dealer loans interest.
−Removed: The prior debt was presented on Form 10-Q for the quarterly period ended June 30, 2024 on the balance sheets under the headings Current portion of notes receivable from mobile home parks (“MHP”), Notes receivable from mobile home parks, net, Current portion of other notes receivable and Other notes receivable, net.
−Removed: Interest income associated with the prior debt was presented on Form 10-Q for the quarterly period ended June 30, 2024 on the statements of income under the headings Consumer, MHP and dealer loans interest and Non-operating interest income.
−Removed: The Company recorded the fair value of the real property from Cleveland and Forest Hollow on the accompanying balance sheets under the heading Property, plant and equipment, net.
−Removed: The Company recorded the fair value of the personal property from Cleveland and Forest Hollow on the accompanying balance sheets under the heading Other assets.
−Removed: The Agreement resulted in a gain for the Company of $ 3.4 million that is shown on the accompanying statements of income under the heading Other income (expense) for the nine months ended September 30, 2024.
−Removed: The Company evaluated the recoverability of the New Note as of September 30, 2024 and determined a provision for expected loan losses is not necessary based on the analysis of the fair value of underlying collateral.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: Notes receivable from mobile home parks, net of allowance for loan losses and deferred financing fees, consisted of the following at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: Prior to the three months ending September 30, 2024, the Company classified the old Notes as MHP notes and other notes.
+Added: The Company sold the Forest Hollow Mobile Home Community in December, 2024.
+Added: The Company recorded the fair value of the real property from Cleveland on the accompanying balance sheets under the heading Property, plant and equipment, net and the fair value of the personal property from Cleveland on the accompanying balance sheets under the heading Other assets.
+Added: The Company recorded a gain of $ 5.4 million in 2024 on the settlement agreement and transactions related to the Cleveland Mobile Home Community and the Forest Hollow Mobile Home Community.
+Added: The Company evaluated the recoverability of the New Note as of March 31, 2025 and determined a provision for expected loan losses is not necessary based on the analysis of the fair value of underlying collateral.
+Added: Notes receivable from mobile home parks, net of allowance for loan losses and deferred financing fees, consisted of the following at March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
+Added: As of December 31,
Outstanding principal balance
1 unchanged sentence
Allowance for loan losses
−Removed: The following table presents a detail of the activity in the allowance for loan losses for the three and nine months ended September 30, 2024 and 2023:
+Added: The following table presents a detail of the activity in the allowance for loan losses for the three months ended March 31, 2025 and 2024:
Three months ended
−Removed: Nine months ended
−Removed: September 30,
−Removed: September 30,
Allowance for loan losses, beginning of period
2 unchanged sentences
Allowance for loan losses, end of period
−Removed: The following table presents impaired and general reserve for allowance for loan losses at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
+Added: The following table presents impaired and general reserve for allowance for loan losses at March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
7 unchanged sentences
Loan delinquency reporting is generally based upon borrower payment activity relative to the contractual terms of the loan.
−Removed: The following table disaggregates the outstanding principal balance of MHP receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of September 30, 2024:
+Added: The following table disaggregates the outstanding principal balance of MHP receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of March 31, 2025:
Year of Origination
6 unchanged sentences
These other notes have varying maturity dates and generally require monthly principal and interest payments.
−Removed: They are collateralized by mortgages on real estate, mobile homes that we have financed for which
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: the borrower uses as offices, as well as vehicles.
+Added: They are collateralized by mortgages on real estate, mobile homes that we have financed for which the borrower uses as offices, as well as vehicles.
These notes typically are personally guaranteed by the borrowers.
1 unchanged sentence
The Company reserves for estimated losses on the other notes based on current economic conditions that may affect the borrower’s ability to pay, the borrower’s financial strength, and historical loss experience.
−Removed: As of September 30, 2024, there were past due balances of $ 569 on other notes.
−Removed: As of December 31, 2023, there were past due balances of $ 22 on other notes, excluding any amounts attributable to the Notes, as described in Note 4, Notes Receivable from Mobile Home Parks, above.
−Removed: For the three months ended September 30, 2024 and 2023, there were no charge offs recorded for other notes.
−Removed: For the nine months ended September 30, 2024 and 2023, there were no charge offs recorded for other notes.
−Removed: Allowance for loan loss for the other notes was $ 208 and $ 236 as of September 30, 2024 and December 31, 2023, respectively.
−Removed: As of September 30, 2024 and December 31, 2023, the impaired balance of other notes was $ 88 and $ 84 , respectively.
+Added: As of March 31, 2025, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 31.7 %, 21.4 % and 10.3 % of the principal balance outstanding, all of which were secured by the mobile homes.
+Added: As of December 31, 2024, the Company had concentrations of other notes receivable with three independent third-parties and their respective affiliates that equated to 33.7 %, 22.7 % and 10.5 % of the principal balance outstanding, all of which were secured by the mobile homes.
+Added: As of March 31, 2025, there were past due balances of $ 1,698 on other notes.
+Added: As of December 31, 2024, there were past due balances of $ 1,357 on other notes.
+Added: For the three months ended March 31, 2025 and 2024, there were no charge offs recorded for other notes.
+Added: Allowance for loan loss for the other notes was $ 468 and $ 364 as of March 31, 2025 and December 31, 2024, respectively.
+Added: As of March 31, 2025 and December 31, 2024, the impaired balance of other notes was $ 168 and $ 141 , respectively.
Collateral for repossessed loans is acquired through foreclosure or similar proceedings and is recorded at the estimated fair value of the home, less the costs to sell.
−Removed: Note 4, Notes Receivable from Mobile Home Parks, in these Notes to Condensed Financial Statements (Unaudited) for the quarter ended September 30, 2024 provides details regarding a settlement agreement related to prior debt that was presented in Form 10-Q for the quarterly period ended June 30, 2024 on the balance sheets under the headings Current portion of notes receivable from mobile home parks (“MHP”), Notes receivable from mobile home parks, net, Current portion of other notes receivable and Other notes receivable, net.
−Removed: Other notes receivable, net of allowance for loan losses and deferred financing fees, consisted of the following at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: Note 4, Notes Receivable from Mobile Home Parks, in these Notes to Condensed Financial Statements (Unaudited) for the quarter ended March 31, 2025 provides details regarding a settlement agreement related to prior
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
+Added: notes receivable.
+Added: Prior to the three months ending September 30, 2024, the Company recorded the old Notes described in Note 4 in MHP notes and other notes.
+Added: The New Note is recorded in MHP notes only.
+Added: Other notes receivable, net of allowance for loan losses and deferred financing fees, consisted of the following at March 31, 2025, December 31, 2024 and December 31, 2023:
+Added: As of March 31,
As of December 31,
+Added: As of December 31,
Outstanding principal balance
1 unchanged sentence
Allowance for loan losses
−Removed: The following table presents a detail of the activity in the allowance for loan losses for the three and nine months ended September 30, 2024 and 2023:
+Added: The following table presents a detail of the activity in the allowance for loan losses for the three months ended March 31, 2025 and 2024:
Three months ended
−Removed: Nine months ended
−Removed: September 30,
−Removed: September 30,
Allowance for loan losses, beginning of period
2 unchanged sentences
Allowance for loan losses, end of period
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: The following table presents impaired and general reserve for allowance for loan losses at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: The following table presents impaired and general reserve for allowance for loan losses at March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
6 unchanged sentences
We evaluate the credit quality of our Other notes receivable portfolio based on the aging status of the loan and by payment activity.
−Removed: Loan delinquency reporting is generally based upon borrower payment activity, relative to the contractual terms of the loan.
−Removed: The following table disaggregates the outstanding principal balance of Other notes receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of September 30, 2024:
+Added: Loan delinquency reporting generally is based on borrower payment activity relative to the contractual terms of the loan.
+Added: The following table disaggregates the outstanding principal balance of Other notes
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
+Added: receivable by credit quality indicator based on delinquency status and fiscal year of origination and is presented as of March 31, 2025:
Year of Origination
6 unchanged sentences
The loans are part of our inventory finance program.
−Removed: In late 2022 and early 2023, the Company transitioned many of its dealers from a traditional consignment arrangement to an inventory finance arrangement.
The terms of the financing typically include a three year term, a monthly interest payment, an annual curtailment payment and require the retailer to pay the principal amount of the loan to the Company upon the earlier of the sale of the home by the retailer to its customer or the end of the term.
−Removed: Dealer financed notes receivable, net of allowance for loan losses and deferred financing fees, consisted of the following at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: Dealer financed notes receivable, net of allowance for loan losses, consisted of the following at March 31, 2025, December 31, 2024 and December 31, 2023:
+Added: As of March 31,
As of December 31,
+Added: As of December 31,
Outstanding principal balance
Allowance for loan losses
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: The following table presents a detail of the activity in the allowance for loan losses for the three and nine months ended September 30, 2024 and 2023:
+Added: The following table presents a detail of the activity in the allowance for loan losses for the three months ended March 31, 2025 and 2024:
Three months ended
−Removed: Nine months ended
−Removed: September 30,
−Removed: September 30,
Allowance for loan losses, beginning of period
2 unchanged sentences
Allowance for loan losses, end of period
−Removed: The dealer financed loan portfolio was established primarily in late 2022 and 2023 as a result of converting from consignment arrangements with dealers to inventory finance arrangements with dealers.
−Removed: As such, there is relatively little historical data to measure credit quality of the loans in this portfolio.
−Removed: The Company currently has 13 operating leases, eight of which are for the Company’s Heritage Housing and Tiny Homes retail locations, three are subleased by the Company and two are for corporate and administrative offices in Bedford, TX and Norcross, GA.
−Removed: These leases typically have initial terms ranging from 5 to 10 years and include one or more options to renew.
−Removed: Under ASC 842, the Company elected the modified retrospective approach, applying the new standard to all leases at the date of initial application.
−Removed: We determine if an arrangement is or contains a lease at inception.
−Removed: Operating leases are right-of-use (“ROU”) assets and are shown as ROU assets – operating leases on our balance sheets.
−Removed: The lease liabilities are shown as Operating lease obligation and Operating lease obligation, less current portion on our balance sheets.
−Removed: ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease.
−Removed: ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.
−Removed: We have elected the practical expedient to not separate lease and non-lease components.
−Removed: Therefore, lease payments included in the measurement of the lease liability include all fixed payments in the lease arrangement.
−Removed: We record a ROU asset for an amount equal to the lease liability, increased for any prepaid lease costs and initial direct costs and reduced by any lease incentives.
−Removed: We remeasure the lease liability and ROU asset when a change to our future minimum lease payments occurs.
−Removed: Key assumptions and judgments included in the determination of the lease liability include the discount rate used in the present value calculation and the exercise of renewal options.
−Removed: Many of our leases contain renewal options.
−Removed: As the exercise of the renewal options is not likely at the commencement of a lease, we generally do not include the option periods in the lease term when determining the lease liabilities and ROU assets.
−Removed: We remeasure the lease liability and ROU asset when it is reasonably likely that we will exercise a renewal option.
−Removed: Our leases do not provide information about the rate implicit in the lease.
−Removed: Therefore, we utilize an incremental borrowing rate to calculate the present value of our future lease obligations.
−Removed: The incremental borrowing rate represents the rate of interest we would otherwise pay on a collateralized borrowing, for an amount equal to the lease payments, over a similar term and in a similar economic environment.
−Removed: As of September 30, 2024, the remaining weighted-average lease term is 3.34 years and the weighted-average discount rate is 2.80 %.
+Added: The allowance for loan losses reflects management’s estimate of losses inherent in the dealer loans that may be uncollectible based on review and evaluation of the dealer loan portfolio as of the date of the balance sheet.
+Added: An allowance for loan losses is determined after considering, among other things, the loan characteristics, the financial condition of the dealer and the value and liquidity of collateral.
LEGACY HOUSING CORPORATION
1 unchanged sentence
(dollars in thousands)
−Removed: We consider lease payments that cannot be predicted with reasonable certainty upon lease commencement to be variable lease payments, which are recorded as incurred each period and are excluded from our calculation of lease liabilities.
−Removed: There were no variable lease costs for the three months ended September 30, 2024.
−Removed: Short-term leases, those with a term of 12 months or less, are not recorded on our balance sheet.
−Removed: Our short-term lease costs were not material for the three months ended September 30, 2024.
−Removed: Lease expense for operating leases consists of fixed lease payments recognized on a straight-line basis over the lease term plus variable lease payments as incurred.
−Removed: Amortization of the ROU asset for operating leases reflects amortization of the lease liability, any differences between straight-line expense and related lease payments during the accounting period, and any impairments.
−Removed: As of September 30, 2024, present value of future lease payments under our operating lease liabilities were as follows:
−Removed: Total lease payments
−Removed: Less amount representing interest
−Removed: Total lease liability
−Removed: Less current lease liability
−Removed: Total non-current lease liability
−Removed: Inventories consisted of the following at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: INVENTORIES, NET
+Added: Inventories, net consisted of the following at March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
1 unchanged sentence
Work in progress
−Removed: Finished goods
−Removed: Finished goods expected to be held for more than twelve months are classified as long-term and represented $ 9,803 and $ 7,793 as of September 30, 2024 and December 31, 2023, respectively.
−Removed: The Company has an inventory allowance of $ 673 and $ 439 as of September 30, 2024 and December 31, 2023, respectively, for finished goods classified as long-term.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
+Added: Finished goods, net
+Added: Finished goods includes an allowance of $ 703 and $ 688 as of March 31, 2025 and December 31, 2024, respectively.
PROPERTY, PLANT AND EQUIPMENT
−Removed: Property, plant and equipment consisted of the following at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: Property, plant and equipment consisted of the following at March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
5 unchanged sentences
Total property, plant and equipment
−Removed: Depreciation expense was $ 481 and $ 412 for the three months ended September 30, 2024 and 2023, respectively, and includes depreciation expense for leased mobile homes.
−Removed: Depreciation expense also includes $ 168 and $ 127 as a component of cost of product sales for the three months ended September 30, 2024 and 2023, respectively.
−Removed: Depreciation expense was $ 1,337 and 1,235 for the nine months ended September 30, 2024 and 2023, respectively, and includes depreciation expense for leased mobile homes.
−Removed: Depreciation expense also includes $ 494 and $ 377 as a component of cost of product sales for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: Other assets consisted of the following at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: Depreciation expense was $ 399 and $ 403 for the three months ended March 31, 2025 and 2024, respectively, and includes depreciation expense for leased mobile homes.
+Added: Depreciation expense also includes $ 167 and $ 158 as a component of cost of product sales for the three months ended March 31, 2025 and 2024, respectively.
+Added: Other assets consisted of the following at March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
Repossessed homes
−Removed: Repossessed homes balance as of September 30, 2024 includes $ 3,986 for homes repossessed from the consumer loan portfolio and $ 5,546 for homes repossessed from the MHP loan portfolio.
−Removed: Repossessed homes balance as of December 31, 2023 includes $ 2,215 for homes repossessed from the consumer loan portfolio.
+Added: Repossessed homes balance as of March 31, 2025 includes $ 5,076 for homes repossessed from the consumer loan portfolio and $ 1,198 for homes repossessed from the MHP loan portfolio.
+Added: Repossessed homes balance as of December 31, 2024 includes $ 3,931 for homes repossessed from the consumer loan portfolio and $ 1,198 for homes repossessed from the MHP loan portfolio.
LEGACY HOUSING CORPORATION
2 unchanged sentences
ACCRUED LIABILITIES
−Removed: Accrued liabilities consisted of the following at September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: Accrued liabilities consisted of the following at March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
10 unchanged sentences
The Revolver provides for a four-year senior secured revolving credit facility with an initial commitment of $ 50,000 and an additional $ 25,000 commitment under an accordion feature.
−Removed: The Revolver is secured by the Company’s consumer loans receivables and all escrow accounts associated with the consumer loans receivables.
+Added: The Revolver is secured by the Company’s consumer loans receivables.
At the Company's option, borrowings will bear interest at a per annum rate equal to, (i) Term Secured Overnight Financing Rate (“SOFR”) plus an applicable margin of 2.5 % or 2.75 % based upon the Company's average quarterly borrowings under the Revolver or (ii) a base rate plus an applicable margin of 2.5 % or 2.75 % based upon the Company's average quarterly borrowings under the Revolver.
1 unchanged sentence
The Revolver matures July 28, 2027.
−Removed: For the three months ended September 30, 2024, interest expense under the Revolver was $ 175 , and for the three months ended September 30, 2023, interest expense under the Revolver and prior line of credit was $ 302 .
−Removed: For the nine months ended September 30, 2024, interest expense under the Revolver was $ 686 , and for the nine months ended September 30, 2023, interest expense under the Revolver and prior line of credit was $ 588 .
−Removed: The outstanding balance of the Revolver as of September 30, 2024 and December 31, 2023 was $ 2,111 and $ 23,680 , respectively.
−Removed: The interest rate in effect as of September 30, 2024 and December 31, 2023 for the Revolver was 7.61 % and 7.95 %, respectively.
−Removed: The amount of available credit under the Revolver was $ 47,889 and $ 26,320 as of September 30, 2024 and December 31, 2023, respectively.
+Added: For the three months ended March 31, 2025 and 2024, interest expense under the Revolver was $ 0 and $ 276 , respectively.
+Added: The outstanding balance of the Revolver as of March 31, 2025 and December 31, 2024 was $ 0 .
+Added: The interest rate in effect as of March 31, 2025 and December 31, 2024 for the Revolver was 6.76 % and 7.61 %, respectively.
+Added: The amount of available credit under the Revolver was $ 50,000 as of March 31, 2025 and December 31, 2024.
The Revolver requires the Company to comply with certain financial and non-financial covenants.
−Removed: As of September 30, 2024, the Company was in compliance with all financial covenants, including that it maintain a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: SHARE-BASED COMPENSATION
−Removed: Pursuant to the Legacy Housing Corporation 2018 Incentive Compensation Plan (the “Plan”), the Company may issue up to 10.0 million equity awards to employees, directors, consultants and nonemployee service providers in the form of stock options, stock, restricted stock and stock appreciation rights.
−Removed: Stock options may be granted with a contractual life of up to ten years .
−Removed: At September 30, 2024, the Company had 8.7 million shares available for grant under the Plan.
−Removed: Restricted Stock
−Removed: The following is a summary of restricted stock award activity for the year ended December 31, 2023 and the three and nine months ended September 30, 2024 (number of units in thousands except per unit data):
−Removed: Number of Units
−Removed: Weighted Average Grant Date Fair Value Per Unit
−Removed: Nonvested, January 1, 2023
−Removed: Nonvested, December 31, 2023
−Removed: Nonvested, January 1, 2024
−Removed: Nonvested, March 31, 2024
−Removed: Nonvested, March 31, 2024
−Removed: Nonvested, June 30, 2024
−Removed: Nonvested, June 30, 2024
−Removed: Nonvested, September 30, 2024
−Removed: As of September 30, 2024, approximately 1,000 shares of restricted stock remained unvested.
−Removed: Unrecognized compensation expense related to these restricted stock awards at September 30, 2024 was $ 3 and is expected to be recognized over 0.08 years.
−Removed: Compensation expense for restricted stock awards for the three months ended September 30, 2024 and 2023 was $ 5 and $ 67 , respectively, and for the nine months ended September 30, 2024 and 2023 was $ 69 and $ 200 , respectively.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: Stock Options
−Removed: The following is a summary of option award activity for the year ended December 31, 2023 and the three and nine months ended September 30, 2024 (number of units in thousands except per unit data):
−Removed: Number of Units
−Removed: Exercise Price Per Unit
−Removed: Average Grant Date
−Removed: Fair Value Per Unit
−Removed: Contractual Life (years)
−Removed: Outstanding, January 1, 2023
−Removed: Outstanding, December 31, 2023
−Removed: Exercisable, December 31, 2023
−Removed: Outstanding, January 1, 2024
−Removed: Outstanding, March 31, 2024
−Removed: Exercisable, March 31, 2024
−Removed: Outstanding, March 31, 2024
−Removed: Outstanding, June 30, 2024
−Removed: Exercisable, June 30, 2024
−Removed: Outstanding, June 30, 2024
−Removed: Outstanding, September 30, 2024
−Removed: Exercisable, September 30, 2024
−Removed: As of September 30, 2024, approximately 829,000 options remained nonvested.
−Removed: Unrecognized compensation expense related to these options at September 30, 2024 was $ 4,387 and is expected to be recognized over 7.5 years.
−Removed: Compensation expense for stock option awards for the three months ended September 30, 2024 and 2023 was $ 168 and $ 131 , respectively, and for the nine months ended September 30, 2024 and 2023 was $ 462 and $ 386 , respectively.
−Removed: The provision for income tax expense for the three months ended September 30, 2024 and 2023 was $ 3,522 and $ 3,380 respectively, and for the nine months ended September 30, 2024 and 2023 was $ 10,502 and $ 9,885 respectively.
−Removed: The effective tax rate for the three months ended September 30, 2024 and 2023 was 18.2 % and 17.4 %, respectively, and for the nine months ended September 30, 2024 and 2023 was 18.2 % and 17.3 %, respectively.
−Removed: These rates differ from the federal statutory rate of 21 % primarily due to a federal tax credit for the sale of energy efficient homes under the Internal
+Added: As of March 31, 2025, the Company was in compliance with all financial covenants, including that it maintain a maximum leverage ratio of no more than 1.00 to 1.00 and a minimum fixed charge coverage ratio of no less than 1.75 to 1.00.
+Added: The provision for income tax expense for the three months ended March 31, 2025 and 2024 was $ 2,452 and $ 3,373 respectively.
+Added: The effective tax rate for the three months ended March 31, 2025 and 2024 was 19.3 % and 18.2 %, respectively.
+Added: These rates differ from the federal statutory rate of 21 % primarily due to a federal tax credit for the sale of energy efficient homes under the Internal Revenue Code §45L, partially offset by state income taxes.
+Added: The §45L tax credit was initially established under the Federal Energy Policy Act of 2005 and was extended through December 31, 2032 by the Inflation Reduction Act of 2022.
LEGACY HOUSING CORPORATION
1 unchanged sentence
(dollars in thousands)
−Removed: Revenue Code §45L, partially offset by state income taxes.
−Removed: The §45L tax credit was initially established under the Federal Energy Policy Act of 2005 and was extended through December 31, 2032 by the Inflation Reduction Act of 2022.
COMMITMENTS AND CONTINGENCIES
3 unchanged sentences
The Company will adjust its self-insured medical benefits reserve based on actual experience, estimated costs and changes to assumptions.
−Removed: As of September 30, 2024 and December 31, 2023, the Company accrued a $ 830 and $ 242 liability for incurred but not reported claims, respectively.
+Added: As of March 31, 2025 and December 31, 2024, the Company accrued a $ 809 and $ 861 liability for incurred but not reported claims, respectively.
These accrued amounts are included in accrued liabilities on the accompanying balance sheets.
3 unchanged sentences
The Company believes that risk of loss is mitigated due to the resale value of the repurchased homes and the fact that the agreements are spread over many retailers.
−Removed: The maximum amount for which the Company was liable under such agreements approximated $ 856 and $ 3,030 at September 30, 2024 and December 31, 2023, respectively, without reduction for the resale value of the homes.
−Removed: The Company considers its obligations on current contracts to be immaterial and accordingly has not recorded any reserve for repurchase commitment as of September 30, 2024 and December 31, 2023.
+Added: The maximum amount for which the Company was liable under such agreements approximated $ 672 and $ 805 at March 31, 2025 and December 31, 2024, respectively, without reduction for the resale value of the homes.
+Added: The Company considers its obligations on current contracts to be immaterial and accordingly has not recorded any reserve for repurchase commitment as of March 31, 2025 and December 31, 2024.
The Company leases facilities under operating leases that typically have 10 year terms.
These leases usually offer the Company a right of first refusal that affords the Company the option to purchase the leased premises under certain terms in the event the landlord attempts to sell the leased premises to a third party.
−Removed: Rent expense for the three months ended September 30, 2024 and 2023 was $ 160 and $ 159 , respectively, and for the nine months ended September 30, 2024 and 2023 was $ 480 and $ 482 , respectively.
+Added: Rent expense for the three months ended March 31, 2025 and 2024 was $ 149 and $ 159 , respectively.
The Company also subleases properties to third parties, ranging from 3-year to 11-year terms with various renewal options.
−Removed: Rental income from the subleased properties for the three months ended September 30, 2024 and 2023 was approximately $ 17 and $ 59 , respectively, and for the nine months ended September 30, 2024 and 2023 was approximately $ 131 and $ 184 , respectively.
−Removed: See Note 7 – Leases, for a schedule of the Company’s future minimum lease commitments.
+Added: Rental income from the subleased properties for the three months ended March 31, 2025 and 2024 was approximately $ 21 and $ 54 , respectively.
Legal Matters
2 unchanged sentences
The Company has determined that it is probable that it has some liability related to the claims.
−Removed: The Company has included legal reserves of $ 564 and $ 990 as of September 30, 2024 and December 31, 2023, respectively, in accrued liabilities on the accompanying balance sheets.
+Added: The Company has included legal reserves of $ 490 and $ 328 as of March 31, 2025 and December 31, 2024, respectively, in accrued liabilities on the accompanying balance sheets.
Although litigation is inherently uncertain, based on past experience and the information currently available, management does not believe that the currently pending and threatened litigation or claims will have a material adverse effect on the Company’s financial position, liquidity or results of operations.
However, future events or circumstances currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on the Company’s financial position, liquidity or results of operations in any future reporting periods.
−Removed: FAIR VALUE MEASUREMENTS
−Removed: The Company accounts for its investments and derivative instruments in accordance with the provisions of Accounting Standards Codification (“ASC”) 820 10, Fair Value Measurement, which among other things provides the
LEGACY HOUSING CORPORATION
1 unchanged sentence
(dollars in thousands)
−Removed: framework for measuring fair value.
−Removed: That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.
−Removed: The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level I measurement) and the lowest priority to unobservable inputs (Level III measurements).
−Removed: The three levels of fair value hierarchy under ASC 820 10, Fair Value Measurement, are as follows:
−Removed: Level I Quoted prices are available in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
−Removed: Level II Significant observable inputs other than quoted prices in active markets for which inputs to the valuation methodology include:
−Removed: (1) Quoted prices for similar assets or liabilities in active markets;
−Removed: (2) Quoted prices for identical or similar assets or liabilities in inactive markets;
−Removed: (3) Inputs other than quoted prices that are observable;
−Removed: and (4) Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
−Removed: If the asset or liability has a specified (contractual) term, the Level II input must be observable for substantially the full term of the asset or liability.
−Removed: Level III Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities.
−Removed: The asset or liability fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
−Removed: The Company’s financial instruments consist primarily of cash, accounts receivable, consumer loans, MHP Notes, other notes, accounts payable, and lines of credit.
−Removed: The carrying amounts of cash, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments.
−Removed: This is considered a Level I valuation technique.
−Removed: The lines of credit, part of the MHP Notes and part of the other notes receivables have variable interest rates that reflect market rates and their fair value approximates their carrying value.
−Removed: This is considered a Level II valuation technique.
−Removed: The Company also assessed the fair value of the consumer loans receivable, the fixed rate MHP Notes and the portion of other note receivables with fixed rates based on the discounted value of the remaining principal and interest cash flows.
−Removed: This is considered a Level III valuation technique.
−Removed: The following table shows the fair market value and book value of these portfolios as of September 30, 2024 and December 31, 2023:
−Removed: As of September 30,
+Added: FAIR VALUE MEASUREMENTS
+Added: The following table shows the estimated fair market value and book value of our consumer loan portfolio, MHP notes and other notes, net of allowances, loan discount fees and deferred financing fees, as of March 31, 2025 and December 31, 2024:
+Added: As of March 31,
As of December 31,
3 unchanged sentences
Fixed rate MHP Notes, book value
+Added: Variable rate MHP Notes, book value
Fixed rate other notes, fair value
Fixed rate other notes, book value
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
+Added: Variable rate other notes, book value
+Added: Part of the MHP Notes, part of the other notes receivable, and our line of credit have variable interest rates that reflect market rates, and their fair value approximates their carrying value.
+Added: This is considered a Level II valuation technique.
+Added: The Company also assessed the fair value of the consumer loans receivable, the fixed rate MHP Notes and the portion of other notes receivable with fixed rates based on the discounted value of the remaining principal and interest cash flows.
+Added: This is considered a Level III valuation technique.
EARNINGS PER SHARE
4 unchanged sentences
Three months ended
−Removed: Nine months ended
−Removed: September 30,
−Removed: September 30,
Net income (in 000's)
1 unchanged sentence
Effect of dilutive securities:
−Removed: Restricted stock grants
+Added: Restricted stock
Stock options
Diluted weighted-average common shares outstanding
−Removed: Earnings per share attributable to Legacy Housing Corporation
+Added: Earnings per share
In November 2022, our Board of Directors approved a share repurchase program to authorize the repurchase of up to $ 10.0 million of the Company’s common stock.
−Removed: We repurchased 1,001 shares for $ 0.02 million in the open market during the three months ended September 30, 2024, and we repurchased 262,530 shares for $ 5.4 million in the open market during the nine months ended September 30, 2024.
−Removed: As of September 30, 2024, we had a remaining authorization of approximately $ 14.6 million.
On August 6, 2024, our Board of Directors authorized the repurchase of an additional $ 10.0 million of the Company’s common stock under the share repurchase program.
+Added: LEGACY HOUSING CORPORATION
+Added: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
+Added: (dollars in thousands)
+Added: repurchased 262,530 shares of common stock for $ 5,398 in the open market during the year ended December 31, 2024.
+Added: We repurchased 29,385 shares of common stock for $ 675 in the open market during the three months ended March 31, 2025.
+Added: As of March 31, 2025, we had a remaining authorization of approximately $ 13,927 .
+Added: Between April 1, 2025 and May 12, 2025 we repurchased 11,466 shares of common stock for $ 261 in the open market.
RELATED PARTY TRANSACTIONS
Bell Mobile Homes (“Bell”), a retailer owned by one of the Company’s significant stockholders, purchases manufactured homes from the Company.
−Removed: Accounts receivable balances due from Bell were $ 153 and $ 403 as of September 30, 2024 and December 31, 2023, respectively.
−Removed: Accounts payable balances due to Bell were $ 77 and $ 18 as of September 30, 2024 and December 31, 2023, respectively.
−Removed: Home sales to Bell were $ 452 and $ 1,163 for the three months ended September 30, 2024 and 2023, respectively, and were $ 2,883 and $ 3,150 for the nine months ended September 30, 2024 and 2023, respectively.
+Added: Accounts receivable balances due from Bell were $ 64 and $ 115 as of March 31, 2025 and December 31, 2024, respectively.
+Added: Accounts payable balances due to Bell were $ 24 and $ 58 as of March 31, 2025 and December 31, 2024, respectively.
+Added: Home sales to Bell were $ 384 and $ 1,119 for the three months ended March 31, 2025 and 2024, respectively.
Shipley Bros., Ltd.
and Crazy Red’s Mobile Homes (together, “Shipley”), retailers owned by one of the Company’s significant shareholders, purchase manufactured homes from the Company.
−Removed: Accounts receivable balances due from Shipley were $ 76 and $ 143 as of September 30, 2024 and December 31, 2023, respectively.
−Removed: Accounts payable balances due to Shipley were $ 23 and $ 67 as of September 30, 2024 and December 31, 2023.
−Removed: Home sales to Shipley were $ 1,708 and $ 207 for the three months ended September 30, 2024 and 2023, respectively, and were $ 3,368 and $ 830 for the nine months ended September 30, 2024 and 2023, respectively.
−Removed: LEGACY HOUSING CORPORATION
−Removed: NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: (dollars in thousands)
−Removed: At September 30, 2024, the Company had a receivable of $ 31 from a principal shareholder.
−Removed: This amount is included in the Company’s accounts receivable balance as of September 30, 2024.
+Added: Accounts receivable balances due from Shipley were $ 65 and $ 78 as of March 31, 2025 and December 31, 2024, respectively.
+Added: Accounts payable balances due to Shipley were $ 20 and $ 22 as of March 31, 2025 and December 31, 2024, respectively.
+Added: Home sales to Shipley were $ 392 and $ 299 for the three months ended March 31, 2025 and 2024, respectively.
SUBSEQUENT EVENTS
−Removed: In connection with the preparation of these financial statements, we evaluated subsequent events after the balance sheet date of September 30, 2024 and through the date of this filing and determined that no events occurred that would require adjustments or disclosures in the financial statements.
+Added: In connection with the preparation of these interim financial statements, we evaluated subsequent events after the balance sheet date of March 31, 2025 and through the date of this filing and determined that no events occurred that would require adjustments or disclosures in the interim financial statements other than those disclosed in Note 15 – Earnings Per Share of these interim financial statements.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.