Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 36

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 time-based and performance-based restricted stock units.Time-based Restricted Stock UnitsThe following table summarizes information about our time-based restricted stock units (RSUs):Three months ended March 31,20252024RSUsWeighted Average Grant Date Fair ValueRSUsWeighted Average Grant Date Fair ValueBeginning balance463,938 $21.34 — $— Granted244,523 20.61 440,727 21.00 Vested(190,264)21.00 — — Forfeited(190)21.00 — — Ending balance518,007 $21.12 440,727 $21.00 Generally, the RSUs granted during the three months ended March 31, 2025 vest in three equal installments on each of the first three anniversaries of the grant date, subject to the employee’s continued employment through the applicable vesting date. The RSUs granted during the three months ended March 31, 2024 vested in full upon the one-year anniversary of the closing date of the IPO, subject to the employee’s continued employment or the director’s continued service, with the 

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exception of one executive’s award that vests in six equal installments on each of the first six anniversaries of the closing date of the IPO, subject to the employee’s continued employment through the applicable vesting date. Additionally, vesting of the awards granted during the three months ended March 31, 2025 and 2024 is subject to certain change in control and qualifying termination provisions as provided in the award agreements.During the three months ended March 31, 2025 and 2024, the Company recognized compensation expense for RSUs of approximately $0.6 million and $0.9 million, respectively, which is included in selling, general and administrative costs in the accompanying unaudited condensed consolidated statements of income.The unamortized compensation cost related to RSUs of approximately $10.1 million as of March 31, 2025 is expected to be recognized over a weighted-average period of approximately 2.25 years.Market-based Performance Restricted Stock UnitsIn March 2025, the compensation committee granted awards of market-based performance RSUs (PSUs) under the 2024 Plan to certain members of senior management. The PSUs vest based on the Company’s total shareholder return (TSR) relative to a selected peer group over a three-year performance period and will be settled in shares of the Company