Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 51

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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.7 million in the second quarter and first six months of 2024, respectively.

16

Intangible Assets and GoodwillGrossAmountAccumulatedAmortizationGrossAmountAccumulatedAmortizationAs ofFebruary 28, 2025August 30, 2024Intangible assets:Technology$143,322 $(71,147)$142,539 $(58,948)Customer relationships47,700 (25,559)72,500 (45,556)Trademarks/trade names27,974 (19,010)27,964 (17,045)$218,996 $(115,716)$243,003 $(121,549)Goodwill by segment:Advanced Computing$141,159 $147,238 Integrated Memory14,720 14,720 $155,879 $161,958 In the first six months of 2025 and 2024, we capitalized $0.8 million and $0.9 million, respectively, for intangible assets with weighted-average useful lives of 18.5 years and 19.0 years, respectively. Amortization expense for intangible assets was $9.0 million and $19.0 million in the second quarter and first six months of 2025, respectively, and $9.9 million and $20.1 million in the second quarter and first six months of 2024, respectively. Amortization expense is expected to be $16.6 million for the remainder of 2025, $30.3 million for 2026, $29.7 million for 2027, $9.9 million for 2028, $6.0 million for 2029 and $10.8 million for 2030 and thereafter.During the second quarter of 2023, we initiated a plan within our Advanced Computing segment pursuant to which we intend to wind down manufacturing and discontinue the sale of legacy products offered through our Penguin Edge business by approximately the end of 2025. As a result, we recorded a charge of $6.1 million in the second quarter of 2025 to impair the carrying value of Advanced Computing goodwill. At each reporting date, we reassess the estimated remaining cash flows of the Penguin Edge business. We currently anticipate that the goodwill of the Penguin Edge reporting unit of $10.0 million as of February 28, 2025 will become further impaired in future periods.

Accounts Payable