Company: UHG
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001830188-25-000036
Chunk: 80

Company: United Homes Group, Inc.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 contracts with related parties to acquire lots for the construction of homes. Out of the lot deposits outstanding as of March 31, 2025 and December 31, 2024, $6.6 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 under operating agreements with 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. During the three months ended March 31, 2025 and 2024, the Company allocated de minimis overhead costs to the related party. The balance outstanding as of March 31, 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 $0.1 million for the three months ended March 31, 2025, and 2024, respectively, by the same related party. The balance outstanding as of March 31, 2025 and December 31, 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. 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