Company: PENG
Filing Date: 2025-06-18
Form Type: CORRESP
Source: 0001193125-25-142901
Chunk: 2

Company: Penguin Solutions, Inc.
Filing Date: 2025-06-18
Form: CORRESP
Chunk 2
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 light of the foregoing and given that the Company maintains control over the form of dividend payment, and therefore, controls the actions or events necessary to issue the maximum number of
Ordinary Shares that could be required to be delivered under share settlement of the CPS, the Company respectfully submits that the Ordinary Share Issuance Limitation does not preclude permanent equity classification of the CPS under
ASC 480-10-S99-3A(6).

Page 3 For the Staff’s benefit, the Company’s analysis as to the accounting treatment of the CPS as equity per the guidance in ASC 815-40-25-10is set forth below: The principal amountof the CPS can convert into a fixed number of Ordinary Shares based on the contractual fixed ratio. In determining that the principal amountof the CPS (excluding dividends) can be classified as equity, the Company evaluated ASC 815-40-25-10,which provides the following conditions to be met for the CPS to be classified as equity:

| • |     | ASC                                                                                                                                                                                                  
 815-40-25-10(b) — Entity has sufficient authorized and unissued shares. The entity has sufficient authorized and unissued                                                                            
 shares available to settle the contract after considering all other commitments that may require the issuance of stock during the maximum period the derivative instrument could remain outstanding. |

The Company has sufficient authorized and unissued Ordinary Shares (considering all other dilutive securities) to settle the number of shares issuable from the conversion of the principal amount of the CPS. The principal amount of the CPS is convertible into 6,096,103 Ordinary Shares. As of the issuance date of the CPS and as of February 28, 2025, the Company had approximately 133 million shares (200 million authorized shares minus approximately 67 million issued and committed shares) available for issuance. As it relates to the Company’s analysis of dividends payable on the CPS, the Company also took into account the fact that it at all times retains full discretion and control to pay such dividends in cash. Accordingly, this condition is met.

| • |     | ASC                                                                                                                          
 815-40-25-10(c) — Contract contains an explicit share limit. The contract contains an explicit limit on the number of shares 
 to be delivered in a share settlement.                                                                                       |

Under the terms of the CPS, there is an explicit limit on the number of shares to be delivered to settle the CPS. The principal amount of the CPS can be settled/converted into Ordinary Shares at a conversion price