Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 43

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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 $2.1 million, and the Company incurred debt issuance costs of $0.8 million that were allocated to the term loan, resulting in net cash proceeds of $67.1 million. 

Note 7 - Related party transactionsLot depositsThe Company enters into option contracts with related parties to acquire lots for the construction of homes. Out of the lot deposits outstanding as of June 30, 2025 and December 31, 2024, $5.1 million and $6.8 million, respectively, are with related parties. LeasesThe Company has four separate operating lease agreements with a related party, including a lease of an office space used for its corporate headquarters. In addition, the Company leases certain model homes from related parties. During the second quarter of 2024, the Company modified the lease of its corporate headquarters to reduce the leased space for the premises, which was accounted for as a lease modification and partial termination. The Company recorded a gain of $0.2 million as a result of the modification. The terms of the related party leases, including rent expense and future minimum payments, are described in Note 9 - Commitments and contingencies.Services agreementThe Company previously shared office spaces with a related party and certain employees of the Company provided services to the same related party. As such, the Company allocated certain shared costs to the related party in line with a predetermined methodology based on headcount. The Company allocated no overhead costs to the related party during the three and six months ended June 30, 2025. During the three and six months ended June 30, 2024, the Company allocated overhead costs to the related party in the amounts of $0.1 million and $0.2 million, respectively. The balance outstanding as of June 30, 2025 and December 31, 2024 was a receivable of $0.2 million and $0.2 million, respectively, and is presented within Due from related party on the Condensed Consolidated Balance Sheets. The Company was charged for property maintenance, consulting, and land development management services in the amount of less than $0.1 million and $0.3 million for the three months ended June 30, 2025 and 2024, and $0.1 million and $0.4 million for the six months ended June 30, 2025 and 2024, respectively, by the same related party. The balance outstanding as of June 30, 2025 and December 31,