Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 79

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 that they are reasonably certain to be exercised.Lease cost included in the accompanying unaudited condensed consolidated statements of income as a component of selling, general and administrative costs is presented in the table below (in thousands). Three months ended March 31, 20252024Operating leases costs$266 $170 Variable lease costs - operating$48 $36 The following table presents additional information about the Company’s leases (dollars in thousands): March 31,2025December 31,2024Right-of-use (ROU) assets$2,983 $3,065 Lease liabilities$3,108 $3,183 ROU assets are included within other assets and lease liabilities are included within accrued expenses and other liabilities in the accompanying unaudited condensed consolidated balance sheets.As of March 31, 2025, the Company had an additional operating lease for division office space that had not yet commenced with undiscounted fixed lease payments of approximately $0.6 million. The operating lease will commence in 2025 with a lease term of approximately 5 years.

Note 9 ‑ Commitments and contingencies:

The Company is subject to certain contingent liabilities resulting from litigation, claims, and other commitments which arise in the ordinary course of business. Management and legal counsel believe that the probable resolution of such contingencies will not materially affect the financial position, results of operations, or cash flows of the Company. In the normal course of business, the Company posts letters of credit and performance and other surety bonds related to certain development obligations with local municipalities, government agencies and developers. As of March 31, 2025 and December 31, 2024, performance and surety bonds totaled $38.9 million and $32.1 million, respectively. As of March 31, 2025 and December 31, 2024, there were no outstanding letters of credit.

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Note 10 - Equity:

The following table summarizes the capitalization and voting rights of the Company’s classes of stock as of March 31, 2025: AuthorizedIssued & OutstandingVotes pershareEconomicRightsPreferred stock10,000,000None   Common stock:Class A250,000,0008,991,3781YesClass B100,000,00042,435,89710(1)No(1)Each share of Class B common stock entitles its holders to ten votes per share on all matters presented to the stockholders and on