Company: SDHC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001628280-25-049591
Chunk: 74

Company: Smith Douglas Homes Corp.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 74
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, including ITGCs and automated controls, through hiring a Vice President, IT Operations in June 2025 and engaging third-party consultants and specialists in March 2025 to assist with executing our remediation plan;

•implementing a process for regular review of privileged access to key IT systems;

•developing new and strengthening existing IT policies and procedures;

•redesigning and implementing new ITGCs within the Company and related to our third-party service providers;

•enhancing oversight of our third-party service providers through review of relevant SOC reports;

•reassessing roles and responsibilities across key IT systems to ensure appropriate access and segregation of duties;

•developing and implementing additional training addressing ITGCs;

•transitioning to a new IT managed service provider that offers enhanced cybersecurity, internal controls, and service offerings; and

•implementing new technology tools to strengthen internal processes and controls.

Our remediation plan can only be accomplished over time and will be continually reviewed to determine that it is achieving its objectives. We are committed to maintaining a strong internal control environment, and we expect to continue our efforts to ensure the material weakness described above is remediated. However, the material weakness cannot be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

As we continue to monitor the effectiveness of our internal control over financial reporting in the areas affected by the material weakness described above, we have and will continue to perform additional procedures prescribed by management, including the use of manual mitigating control procedures designed to ensure that our consolidated financial statements are fairly stated in all material respects. 

Changes in internal control over financial reporting

Other than the actions to remediate the material weakness in our internal control over financial reporting as described above, which was ongoing as of the date of issuance of this Quarterly Report on Form 10-Q, there were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II—OTHER INFORMATION