Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 38

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 related parties. For the three months ended March 31, 2025 and 2024, Revenue of zero and $0.3 million, respectively, and Cost of sales of zero and $0.2 million, respectively, were recognized in the Condensed Consolidated Statement of Operations.OtherThe Company utilizes a related party vendor to perform certain civil engineering services. For the three months ended March 31, 2025 and 2024, expenses of less than $0.1 million and zero, respectively, were recognized in the Condensed Consolidated Statement of Operations. The remaining balance outstanding as of March 31, 2025 and December 31, 2024 was a payable of $0.1 million and $0.1 million, respectively, and is presented within Due to related party, net on the Condensed Consolidated Balance Sheets.The Company utilizes a related party vendor for certain site contracting services. Typically these costs are reimbursed by the Company's land bank partners in accordance with its construction agreements. The remaining related 

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party balance outstanding as of March 31, 2025 and December 31, 2024 was $0.5 million and $0.1 million, respectively, and is presented within Due to related party, net on the Condensed Consolidated Balance Sheets.

Note 8 - Warranty reservesThe Company establishes warranty reserves to provide for estimated future costs as a result of construction and product defects. Estimates are determined based on management’s judgment considering factors such as historical spend and projected cost of corrective action. The following table provides a summary of the activity related to warranty reserves, which are included in Other accrued expenses and liabilities on the accompanying Condensed Consolidated Balance Sheets as follows (in thousands):Three Months Ended March 31,20252024Warranty reserves at beginning of the period$1,866 $1,302 Reserves provided225 271 Payments for warranty costs(152)(210)Warranty reserves at end of the period$1,939 $1,363 

Note 9 - Commitments and contingencies LeasesThe Company leases several office spaces in South Carolina under operating lease agreements with related parties, and one office space in North Carolina with a third party. In addition, the Company leases certain model homes under operating agreements with related parties and third parties. The leases have a remaining lease term of up to four years, some of which include options to extend on a month-to-month basis, and some of which include options to terminate the lease. These