Company: SDHC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001982518-25-000020
Chunk: 82

Company: Smith Douglas Homes Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
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 cash, to the extent that Smith Douglas Holdings LLC has cash available, on a pro rata basis to its members to the extent necessary to cover the members’ tax liabilities, if any, with respect to each member’s share of Smith Douglas Holdings LLC taxable earnings. Smith Douglas Holdings LLC makes such tax distributions to its members quarterly, based on an estimated tax rate and projected year-to-date taxable income, with a final accounting once actual taxable income or loss has been determined. Smith Douglas Holdings LLC made tax distributions to the Continuing Equity Owners totaling approximately $13.8 million and $14.5 million for the three months ended March 31, 2025 and 2024, respectively.Redemption of Class C & Class D UnitsOn January 16, 2024, after the IPO, Smith Douglas Holdings LLC redeemed all of its Class C and Class D Units at an aggregate redemption price of $2.6 million.

Note 11 - Share-based payments:

The Company maintains the 2024 Incentive Award Plan (the 2024 Plan). The 2024 Plan generally is administered by the Company’s board of directors with respect to awards to non-employee directors and by its compensation committee with respect to other participants and authorizes the Company to grant incentive stock-based awards, including, but not limited to, 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