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Related party transactions
 12 Months Ended
Dec. 31, 2024
Related Party Transactions [Abstract]  
Related party transactions
Note 10 - Related party transactions
Prior to the Business Combination, Legacy UHG transacted with Other Affiliates that were owned by the shareholders of GSH. Those Other Affiliates included Land Development Affiliates and Other Operating Affiliates (see Note 1 - Nature of operations and basis of presentation).
Post Business Combination, the Company continues to transact with these parties, however, they are no longer considered affiliates of the Company. Land Development Affiliates and Other Operating Affiliates of Legacy UHG (post Business Combination) meet the definition of related parties of the Company as defined in ASC 850-10-20.
Prior to the Business Combination, Legacy UHG maintained the cash management and treasury function for its Other Affiliates. Cash receipts from customers and cash disbursements made to vendors were recorded through one centralized bank account. Legacy UHG recorded a Due from Other Affiliate when cash was disbursed, generally to a vendor, on behalf of an affiliate. Conversely, Legacy UHG recorded a Due to Other Affiliate when cash was received from a customer on behalf of an affiliate. The balances were settled through equity upon the consummation of the Business Combination.
The below table summarizes Legacy UHG transactions with the Land Development Affiliates and Other Operating Affiliates for the year ended December 31, 2023. There were no such transactions with Land Development Affiliates and Other Operating Affiliates for the year ended December 31, 2024.
Year ended December 31, 2023
 Land Development Affiliates Other Operating AffiliatesTotal
Financing cash flows:
Land development expense$(384,349)$— $(384,349)
Other activities(225,392)(422,342)(647,734)
Total financing cash flows$(609,741)$(422,342)$(1,032,083)
Non-cash activities
Settlement of co-obligor debt to Other Affiliates$8,340,545 $— $8,340,545 
Release of guarantor from GSH to shareholder2,841,034 — 2,841,034 
Credit for earnest money deposits2,521,626 — 2,521,626 
Total non-cash activity$13,703,205 $— $13,703,205 
Land development expense – Represents costs that were paid for by Legacy UHG that relate to the Land Development Affiliates’ operations. The Land Development Affiliates acquire raw parcels of land and develop them so that Legacy UHG can build houses on the land.
Other activities – Represent other transactions with Legacy UHG’s Other Affiliates. This includes, predominately, rent expense incurred for leased model homes and payment of real estate taxes.
Settlement of co-obligor debt to Other Affiliates – The amount represents the settlement of Wells Fargo debt associated with Other Affiliates.
Release of guarantor from GSH to shareholder – The amount represents that Legacy UHG was released as a co-obligor from the Anderson Brothers debt associated with Other Affiliates.
Credit for earnest money deposits – The amount represents credit received from a Legacy UHG affiliate in relation to lot deposits that Legacy UHG paid on behalf of the affiliate.
Leases
The Company has entered into four separate operating lease agreements with a related party, including a lease of an office space used for its corporate headquarters. 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 $197,427 as a result of the modification. The Company also leases several model homes with related parties as a result of a sales-leaseback transaction that occurred in 2022. The terms of the related party leases, including rent expense and future minimum payments, are described in Note 13 - Commitments and contingencies.
Services agreement
The Company shares office spaces with a related party and certain employees of the Company provide services to the same related party. As such, the Company allocates certain shared costs to the related party in line with a predetermined methodology based on headcount. During for the years ended December 31, 2024 and 2023, the Company allocated overhead costs to the related party in the amount of $352,740 and $412,970, respectively. The Company was charged for property maintenance, consulting, and land development management services in the amount of $884,199 and $205,606 for the years ended December 31, 2024 and 2023, by the same related party. The remaining balance outstanding as of December 31, 2024 and December 31, 2023 was a receivable of $187,688 and $88,000, respectively, and is presented within Due from related party on the Consolidated Balance Sheets.
General contracting
The Company has been engaged as a general contractor by several related parties. For the years ended December 31, 2024 and 2023, Revenue of $869,676 and $2,575,881, respectively, and Cost of sales of $723,161 and $2,164,453, respectively, were recognized in the Consolidated Statement of Operations.
Other
During the year ended December 31, 2024, the Company recognized Revenue of $629,700 within the Consolidated Statement of Operations related to speculative homes purchased by related parties.
During the year ended December 31, 2024, the Company entered into a lot option contract with a related party that included option fees. These lots were subsequently transferred to a land bank partner. As of December 31, 2024, the Company capitalized $47,910 of option fees within Pre-acquisition costs on the Consolidated Balance Sheets related to this transaction.
During the year ended December 31, 2024, the Company paid certain land closing costs on behalf of a related party to transfer the land to one of the Company’s land banking partners. As of December 31, 2024, the Company capitalized $166,489 of related party closing costs within Pre-acquisition costs on the Consolidated Balance Sheets related to this transaction.
The Company utilizes a related party vendor to perform certain civil engineering services. For the years ended December 31, 2024 and 2023, expenses of $117,422 and $74,339, respectively, were recognized in the Consolidated Statement of Operations.
The Company utilized a related party vendor for certain site contracting services. For the year ended December 31, 2023, expenses of $22,878 were recognized in the Consolidated Statements of Operations.
The Company utilized a related party vendor for certain professional and legal services. For the years ended December 31, 2024 and 2023, expenses of $2,250 and $22,790 were recognized in the Consolidated Statements of Operations.
During the year ended December 31, 2024, the Company utilized a related party vendor to perform certain consulting services. For the year ended December 31, 2024, expenses of $115,671 were recognized in the Consolidated Statement of Operations.
The Company utilized a related party vendor for certain aviation services. For the years ended December 31, 2024 and 2023, expenses of $17,200 and $28,723, respectively, were recognized in the Consolidated Statement of Operations. The remaining balance outstanding for reimbursed services as of December 31, 2024 was a payable of $2,495 is presented within Due to related party on the Consolidated Balance Sheets.