Company: PENG
Filing Date: 2025-07-08
Form Type: 10-Q
Source: 0001628280-25-034541
Chunk: 163

Company: Penguin Solutions, Inc.
Filing Date: 2025-07-08
Form: 10-Q
Item: Part II, Item 8
Chunk 163
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482 86,518 Unallocated:Share-based compensation expense(10,251)(11,192)(33,362)(32,801)Amortization of acquisition-related intangibles(8,439)(9,766)(27,033)(29,525)Cost of sales-related restructuring(369)(387)(404)(1,271)Diligence, acquisition and integration expense(296)(4)(1,696)(6,678)Redomiciliation costs(3,702)— (7,304)— Impairment of goodwill(5,294)— (11,373)— Restructuring charges— (465)(968)(6,739)Other(280)— (655)— Total unallocated(28,631)(21,814)(82,795)(77,014)Consolidated operating income (loss)$9,843 $11,511 $45,687 $9,504 

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Related Party TransactionsFrom time to time, we may enter into an agreement with a related party in the ordinary course of business. These agreements are reviewed and approved or ratified by the Audit Committee of the Board pursuant to our related person transaction policy. We follow Accounting Standards Codification 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions, under which related parties are defined as members of our Board of Directors, affiliates of the Company, management and principal owners of our outstanding stock and members of their immediate families. Related parties also include any other person or entity with significant influence over our management or operations. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. We assess related parties each reporting period. On May 26, 2025, we entered into an agreement with SKT, a related party, under which we anticipate providing solutions to support SKT’s future AI data center infrastructure initiatives. SKT, through Astra AI Infra, a special purpose vehicle formed by SKT, holds more than 10% of the voting interest of the Company. Additionally, Min Yong Ha, an executive of SKT, is a member of our Board of Directors. As of May 30, 2025, no transactions had occurred under the terms of this agreement. Subsequent to May 30, 2025, we have recognized a total transaction amount of $34.6 million, representing a receivable and a corresponding contract liability for payment on the