Company: ARRY
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001820721-25-000060
Chunk: 89

Company: Array Technologies, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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769 $8.03 Performance Stock UnitsThe Company has granted performance-based restricted stock units (“PSUs”) to certain employees. The PSUs cliff vest after three years and upon meeting certain revenue and adjusted EPS targets. The PSUs also contain a modifier based on the total stock return compared to a certain index which modifies the number of PSUs that vest. The PSUs were valued using a Monte-Carlo simulation method on the date of grant based on the U.S. Treasury Constant Maturity rates. The following assumptions were used in the Monte Carlo simulation for computing the grant date fair value of the PSUs issued during the three months ended March 31, 2025 and 2024:20252024 (1)Volatility76 %— %Risk-free interest rate4.04 %— %Dividend yield— %— %(1) No PSUs were issued during the three months ended March 31, 2024.PSU activity under the 2020 Plan during the three months ended March 31, 2025, was as follows:Number of SharesWeighted Average Grant Date Fair ValueOutstanding non-vested, December 31, 2024924,241 $12.76 Shares granted638,222 6.60 Shares vested— — Shares forfeited(17,859)14.19 Outstanding non-vested, March 31, 20251,544,604 $9.53 

24

For three months ended March 31, 2025 and 2024, the Company recognized $2.8 million and $4.0 million, respectively, in equity-based compensation costs. At March 31, 2025, the Company had $32.9 million of unrecognized compensation costs related to RSUs and PSUs, which are expected to be recognized over 2.4 years and 2.7 years, respectively.

14    Supplemental Cash Flow Information

Supplemental cash flow information consists of the following (in thousands):Three Months Ended March 31,20252024Cash paid for interest$6,821 $11,300 Cash (refunded) paid for income taxes (1,791)402 Non-cash investing and financing activitiesProperty, plant and equipment acquisitions funded by liabilities2,122 1,627 Preferred Series A dividends and accretion14,443 13,502 

15    Segment Reporting

ASC 280 Segment