{"url_path":"/sec/grbk-pa/10-q/2026/item-4","section_key":"item-4","section_title":"Item 4 CONTROLS AND PROCEDURES","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-11","source_url":"https://www.sec.gov/Archives/edgar/data/1373670/0001628280-26-033612-index.html","accession_number":"0001628280-26-033612","cik":"0001373670","ticker":"GRBK","issuer_name":"Green Brick Partners, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1373670/0001628280-26-033612-index.html","primary_entity_key":"0001373670","primary_entity_name":"Green Brick Partners, Inc."},"word_count":516,"has_tables":true,"body_markdown":"ITEM 4. CONTROLS AND PROCEDURES\n\nDisclosure Controls and Procedures\n\nUnder the supervision and with the participation of our management, including our principal executive officer ( “CEO”) and principal financial officer (“CFO”), we conducted an evaluation of our disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based on this evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of March 31, 2026 in providing reasonable assurance that information required to be disclosed in the reports we file, furnish, submit or otherwise provide to the SEC under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that information required to be disclosed in reports filed by us under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, in such a manner as to allow timely decisions regarding the required disclosures.\n\nRemediation of Previously Disclosed Material Weakness in Internal Control over Financial Reporting\n\nAs previously disclosed in our Annual Report on Form 10-K/A filed on May 11, 2026, management identified a material weakness as of December 31, 2025. The material weakness stemmed from our risk assessment process not being sufficiently precise to identify, on a timely basis, that a prior immaterial conclusion related to ASC 606 Revenue from Contracts with Customers (“ASC 606”) had become material as conditions changed. Management determined that a control process was not implemented at a level of precision to ensure that an accounting standard that was not material upon adoption continued to be tested for materiality upon changes in the Company’s business practices.\n\nRemediation of this material weakness was completed as of March 31, 2026 and included implementation of the following enhanced policies and controls:\n\n•Management revised its accounting policy on ASC 606 to provide for explicit consideration of incentives payable to or on behalf of customers and expanded guidance regarding the characterization and treatment of these types of closing cost incentives;\n\n•Management enhanced its quarterly “Accounting Disclosure Checklist” control to add an additional entity-level control that specifically includes a reassessment of previously adopted accounting standards to our financials and\n\n31\n\n[TABLE OF CONTENTS](#i8441eee2fcce4bc4ae50c3890e635d6d_7)\n\nincludes a documented quarterly assessment of (a) new accounting guidance and (b) changes in the Company’s business practices and significant transaction types to determine whether previously adopted accounting conclusions remain appropriate;\n\n•Management has implemented communication processes at the corporate level and throughout all the builders to ensure that all individuals in control positions understand the correct interpretation and application of ASC 606 with respect to cost incentives and variable consideration; and\n\n•The Company has appointed new individuals in key roles within the finance and accounting department.\n\nChanges in Internal Control over Financial Reporting\n\nExcept for the material weakness and remediation discussed above, during the three months ended March 31, 2026, there were no changes in our internal controls that have materially affected or are reasonably likely to have a material effect on our internal control over financial reporting."}