Company: SDHC
Filing Date: 2025-03-21
Form Type: 10-K
Source: 0001982518-25-000007
Chunk: 24

Company: Smith Douglas Homes Corp.
Filing Date: 2025-03-21
Form: 10-K
Item: Item 1A
Chunk 24
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Table of contentsSUMMARY RISK FACTORSOur business is subject to numerous risks and uncertainties, including those described in Part I, Item 1A. Risk Factors. You should carefully consider these risks and uncertainties when investing in our common stock. The principal risks and uncertainties affecting our business include the following:•general business, macroeconomic, and geopolitical conditions and risks; •our inability to successfully identify, secure, and control an adequate inventory of lots at reasonable prices;•the tightening of mortgage lending standards and mortgage financing requirements;•the housing market may not continue to grow at the same rate, or may decline;•the availability, skill, and performance of trade partners;•a shortage or increase in the costs of building materials, including due to tariffs, could delay or increase the cost of home construction;•efforts to impose joint employer liability on us for labor, safety, or worker’s compensation law violations committed by our trade partners;•volatility in the credit and capital markets may impact our cost of capital and our ability to access necessary financing and the difficulty in obtaining sufficient capital could prevent us from acquiring lots for our development or increase costs and delays in the completion of our homebuilding expenditures;•an active, liquid trading market for our Class A common stock may not continue, which may make it difficult for you to sell your shares of Class A common stock;•we cannot predict the effect our dual class structure may have on the market price of our Class A common stock;•the Tax Receivable Agreement requires us to make cash payments to the Continuing Equity Owners in respect of certain tax benefits to which we may become entitled, and we expect that such payments will be substantial;•our organizational structure, including the Tax Receivable Agreement, confers certain benefits upon the Continuing Equity Owners that will not benefit holders of our Class A common stock to the same extent that it will benefit the Continuing Equity Owners; and•the significant influence the Continuing Equity Owners have over us, including control over decisions that require the approval of stockholders.9