Company: UHG
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001830188-25-000065
Chunk: 44

Company: United Homes Group, Inc.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 2024 was de minimis and is presented within Due to related parties on the Condensed Consolidated Balance Sheets.General contractingThe Company may occasionally be engaged as a general contractor by several related parties. There was no related party general contracting activity during the three and six months ended June 30, 2025. For the three and six months ended June 30, 2024, Revenue of $0.3 million and $0.5 million, respectively, and Cost of sales of $0.2 million and $0.4 million, respectively, were recognized in the Condensed Consolidated Statements of Operations.OtherThe Company utilizes a related party vendor to perform certain civil engineering services. For the three and six months ended June 30, 2025 and 2024, expenses of $0.1 million and zero, respectively, were recognized in the Condensed Consolidated Statements of Operations. The remaining balance outstanding as of June 30, 2025 and December 31, 2024 was a payable of less than $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 utilized a related party vendor for certain aviation services. For the three and six months ended June 30, 2025 and 2024, expenses recognized in the Condensed Consolidated Statements of Operations were de minimis.

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):

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Three Months Ended June 30,Six Months Ended June 30,2025202420252024Warranty reserves at beginning of the period$1,939 $1,363 $1,866 $1,302 Reserves provided275 287 500 558 Payments for warranty costs(141)(224)(293)(434)Warranty reserves at end of the period$2,073 $1,426 $2,073 $1,426 

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