Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 86

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 general and administrative costs is presented in the table below (in thousands). Three months ended March 31, 20252024Operating leases costs (related party)$97 $87 Variable lease costs – operating (related party)$18 $17 Payments under the office lease agreement, along with costs associated with the office space, totaled approximately $0.1 million and $0.1 million during the three months ended March 31, 2025 and 2024, respectively.During both the three months ended March 31, 2025 and 2024, the Company incurred fees of $0.4 million in the aggregate from certain entities affiliated by common ownership for use of facilities related to business development and vendor relations, which is included in selling, general and administrative costs in the accompanying unaudited condensed consolidated statements of income. The Company paid fees of $3,000 for use of these facilities during the three months ended March 31, 2024. The Company did not pay fees for use of these facilities during the three months ended March 31, 2025.The Company charters aircraft services from companies that are controlled by a related entity of the Founder Fund. Expenses incurred and paid to these companies under a dry lease agreement for the use of the aircraft for business travel totaled approximately $2,000 and $0.1 million for the three months ended March 31, 2025 and 2024, respectively, which are included in selling, general and administrative costs in the accompanying unaudited condensed consolidated statements of income.The Company has related party receivables totaling approximately $0.1 million as of both March 31, 2025 and December 31, 2024 for various expenses paid by the Company on behalf of the related party, which are included in other assets in the accompanying unaudited condensed consolidated balance sheets.

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Note 14 ‑ Segment information:

The Company operates one principal homebuilding business that is organized, managed and reported by geographic division. Management of the eight geographic divisions report to the Company's chief operating decision maker (CODM), which consists of the Chief Executive Officer and Chief Financial Officer of the Company. The CODM is regularly provided operating results of individual operating segments. These operating results include key operating metrics which inform the CODM's decisions regarding the allocation of resources and the assessment of the Company's overall operational performance. These operating results are reviewed against actual and budgeted figures, with income before income taxes (segment profit) being the key operating metric used