Better Home & Finance Holding Co. Files 2023 10-K

TL;DR

<b>Better Home & Finance Holding Co. has filed its annual 10-K report for the fiscal year ending December 31, 2023.</b>

AI Summary

Better Home & Finance Holding Co (BETRW) filed a Annual Report (10-K) with the SEC on April 8, 2024. The company filed its 10-K for the fiscal year ended December 31, 2023. The filing includes financial data for the fiscal years 2023 and 2022. The company's SIC code is Loan Brokers [6163]. The company's principal executive offices are located at 3 World Trade Center, New York, NY. The company was formerly known as Aurora Acquisition Corp. and Aurora Capital Holding Corp.

Why It Matters

For investors and stakeholders tracking Better Home & Finance Holding Co, this filing contains several important signals. This 10-K filing provides a comprehensive overview of the company's financial performance and position for the fiscal year 2023, which is crucial for investors to assess its stability and growth prospects. The detailed financial statements and risk factors disclosed in the 10-K are essential for understanding the company's operational landscape and potential challenges in the loan brokerage industry.

Risk Assessment

Risk Level: medium — Better Home & Finance Holding Co shows moderate risk based on this filing. The company operates in the loan brokerage industry, which is subject to regulatory changes and market fluctuations that could impact its business model and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Better Home & Finance Holding Co.'s performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-08 — Filing Date (Filed as of date)
• 6163 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• Better Home & Finance Holding Co. (company) — Filer name
• Aurora Acquisition Corp. (company) — Former company name
• Aurora Capital Holding Corp. (company) — Former company name
• 3 World Trade Center (location) — Business address
• New York, NY (location) — Business address

FAQ

Risk Factors

• Market and Economic Conditions [high — market]: The company's business is sensitive to changes in macroeconomic conditions, including interest rates, inflation, and overall economic growth, which can affect demand for its services.
• Regulatory Environment [high — regulatory]: The company operates in a highly regulated industry, and changes in laws and regulations related to mortgage lending and financial services could adversely affect its operations and profitability.
• Technology and Platform Risks [medium — operational]: Reliance on technology platforms for its mortgage origination and servicing operations exposes the company to risks associated with system failures, cybersecurity threats, and the need for continuous technological updates.

Industry Context

Better Home & Finance Holding Co. operates in the loan brokerage industry, facilitating mortgage transactions. This sector is influenced by housing market dynamics and interest rate environments.

Regulatory Implications

The company is subject to federal and state regulations governing mortgage origination, servicing, and consumer protection. Compliance with these regulations is critical for its operations.

What Investors Should Do

1. Analyze the detailed financial statements for revenue, net income, and debt levels.
2. Review the risk factors section for potential impacts on the company's business model.
3. Assess the company's competitive positioning within the loan brokerage market.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-04-08: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for Better Home & Finance Holding Co. under its current name, providing a baseline for future comparisons.

Key Financial Figures

• $0.0001 — stered Class A Common Stock, par value $0.0001 per share BETR The Nasdaq Stock Market
• $11.50 B — A Common Stock at an exercise price of $11.50 BETRW The Nasdaq Stock Market LLC Indic
• $10.45 — million, based on the closing price of $10.45 for shares of the Registrant's class A
• $11 — ing market accounting for approximately $11 trillion per year globally, and approxi
• $3.0 b — er 31, 2023, our Funded Loan Volume was $3.0 billion, compared to $11.4 billion for th
• $11.4 billion — an Volume was $3.0 billion, compared to $11.4 billion for the year ended December 31, 2022, r
• $76.8 million — e of approximately 73%. Our revenue was $76.8 million (including Better Cash Offer revenue of
• $0.3 million — (including Better Cash Offer revenue of $0.3 million) for the year ended December 31, 2023 c
• $378.0 million — ear ended December 31, 2023 compared to $378.0 million (including Better Cash Offer revenue of
• $229 m — (including Better Cash Offer revenue of $229 million, representing gross purchase pric
• $536.4 million — r Cash Offer. We recorded a net loss of $536.4 million for the year ended December 31, 2023, c
• $877.1 million — ber 31, 2023, compared to a net loss of $877.1 million for the year ended December 31, 2022. W
• $1.5 — mily mortgage originations decreased to $1.5 trillion in 2023, from $2.37 trillion i
• $2.37 — ecreased to $1.5 trillion in 2023, from $2.37 trillion in 2022 and $4.57 trillion in
• $4.57 — n 2023, from $2.37 trillion in 2022 and $4.57 trillion in 2021, which has significant

Filing Documents

• aurcu-20231231.htm (10-K) — 4011KB
• better-amendedandrestatedc.htm (EX-3.1) — 107KB
• better-10xkdescriptionofre.htm (EX-4.4) — 137KB
• betterholdcoexecutivechang.htm (EX-10.29) — 134KB
• better-amendmenttoemployme.htm (EX-10.30) — 9KB
• betterhomefinance_2023xex2.htm (EX-21.1) — 25KB
• exhibit231-deloitteconsent.htm (EX-23.1) — 2KB
• better10-kexhibit311.htm (EX-31.1) — 16KB
• better10-kexhibit312.htm (EX-31.2) — 16KB
• better10-kexhibit321.htm (EX-32.1) — 6KB
• better10-kexhibit322.htm (EX-32.2) — 6KB
• better-clawbackpolicy4855x.htm (EX-97.1) — 29KB
• aurcu-20231231_g1.jpg (GRAPHIC) — 173KB
• image_2.jpg (GRAPHIC) — 6KB
• 0001628280-24-015134.txt (&nbsp;) — 22966KB
• aurcu-20231231.xsd (EX-101.SCH) — 128KB
• aurcu-20231231_cal.xml (EX-101.CAL) — 162KB
• aurcu-20231231_def.xml (EX-101.DEF) — 701KB
• aurcu-20231231_lab.xml (EX-101.LAB) — 1326KB
• aurcu-20231231_pre.xml (EX-101.PRE) — 1080KB
• aurcu-20231231_htm.xml (XML) — 4588KB

Risk Factors

Item 1A. Risk Factors 19

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 68

Cybersecurity

Item 1C. Cybersecurity

Properties

Item 2. Properties 69

Legal Proceedings

Item 3. Legal Proceedings 69

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 70 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 71

[ Reserved ]

Item 6. [ Reserved ] 71

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 72

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 98

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 101

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 173

Controls and Procedures

Item 9A. Controls and Procedures 173

Other Information

Item 9B. Other Information 174

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 174 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 175

Executive Compensation

Item 11. Executive Compensation 175

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 175

Certain Relationships and Related Transactions and Director Independence

Item 13. Certain Relationships and Related Transactions and Director Independence 176

Principal Accountants Fees and Services

Item 14. Principal Accountants Fees and Services 176 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 177

10-K Summary

Item 16. 10-K Summary 179

Signatures

Signatures 180 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This annual report on Form 10-K ("Annual Report") contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that reflect future plans, business strategy, estimates, beliefs and expected performance. These statements constitute forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Annual Report, the words "could," "should," "will," "may," "believe," "anticipate," "intend," "estimate," "expect," "project," the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are based on management's current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this Annual Report. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements in this Annual Report and the associated risks, uncertainties, assumptions and other important factors may include, but are not limited to: Factors relating to our business, operations and financial performance, including: 1 Table of Contents Our ability to operate under and maintain or improve our business model; The effect

Business

Item 1. Business The Business Combination On August 22, 2023, we consummated the transactions contemplated by the Agreement and Plan of Merger (as amended, the "Merger Agreement"), by and among Aurora Acquisition Corp. ("Aurora"), Better Holdco, Inc. ("Pre-Business Combination Better"), and Aurora Merger Sub I, Inc., formerly a wholly owned subsidiary of Aurora ("Merger Sub"). On that date, Merger Sub merged with and into Pre-Business Combination Better, with Pre-Business Combination Better surviving the merger (the "First Merger") and Pre-Business Combination Better merged with and into Aurora, with Aurora surviving the merger and changing its name to "Better Home & Finance Holding Company" (referred to as "Better Home & Finance") (such merger, the "Second Merger," and together with the First Merger, the "Business Combination" and the completion thereof, the "Closing"). In connection with the Closing of the Business Combination, the Company's Class A Common Stock and Warrants began trading on the Nasdaq Global Market and Nasdaq Capital Market, respectively, under the ticker symbols "BETR" and BETRW." On March 13, 2024, the listing of the Company's Class A Common Stock transferred from the Nasdaq Global Market to the Nasdaq Capital Market. Unless otherwise indicated, references to "Better," "Better Home & Finance," the "Company," "we," "us," "our" and other similar terms refer to (i) Pre-Business Combination Better and its consolidated subsidiaries prior to the Closing and (ii) Better Home & Finance and its consolidated subsidiaries following the Closing. Overview Our mission is to build a homeownership platform that revolutionizes the consumer experience of finding, financing, insuring and selling a home. The home is among the world's largest, oldest, and most tangible asset classes—with annual spend across the housing market accounting for approximately $11 trillion per year globally, and approximately 15-18% of annual U.S. GDP since 2001, according to the N

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View this 10-K filing on SEC EDGAR