Risk Factors Update Summary

• Increased restrictions may limit UHG's ability to raise additional financing, impacting compliance and default risk.
• UHG faces risks from subcontractor availability and labor union issues, impacting construction quality and costs.
• Increased regulations and restrictions on land development may lead to delays and increased costs.
• Material weaknesses in internal controls may result in significant costs. No estimate provided.
• UHG's long-term growth relies on acquiring desirable land parcels for residential build-out, with approximately 9,000 lots in its pipeline.
• UHG's CEO's relationship with Land Development Affiliates may lead to conflicts of interest.
• UHG's debt as of December 31, 2023, was approximately $77.2 million with a weighted average interest rate of 8.13%.
• Homeowners Mortgage is subject to a wide array of federal and state statutes and regulations.
• Failure to maintain effective internal control could lead to loss of investor confidence.
• UHG's net new orders increased by 37 units from 2022 to 2023, with a reduced cancellation rate of 13.6%.
• Changes in federal income tax laws may increase after-tax costs of owning a home.
• UHG's owned real estate inventory decreased in value from $86,000 in 2022 to $57,600 in 2023.
• UHG's convertible notes had an outstanding balance of approximately $68.0 million, bearing interest at a fixed rate of 15%.
• Cybersecurity incidents could result in significant financial exposure and reputational damage.
• UHG's dual-class structure gives CEO and Nieri Trusts majority voting power, potentially limiting stockholder influence.
• Failure to comply with data protection laws may lead to fines, penalties, and negative publicity.
• UHG's ability to acquire land parcels may be adversely affected by changes in availability, pricing, and financing.
• UHG's status as a "controlled company" under Nasdaq rules allows exemptions from certain corporate governance requirements.
• Acts of war or terrorism could disrupt operations, increase costs, and reduce demand.
• UHG's dependence on key personnel poses risks; untimely departures could adversely impact operations.
• UHG's growth strategies, acquisitions, and market expansion initiatives may not provide anticipated benefits.
• Negative publicity may impact business performance and stock price, affecting consumer confidence.
• UHG's internal control weaknesses identified post-Business Combination may impact financial reporting accuracy.
• Home order cancellations could negatively impact UHG's sales, results of operations, and backlog.
• UHG's compliance with evolving laws and regulations may increase legal, accounting, and financial compliance costs.
• Changes in the availability and affordability of mortgage loans could affect demand for UHG's homes.
• Changes in accounting rules and judgments could delay financial reporting and impact financial statements.