Company: PENG
Filing Date: 2025-04-02
Form Type: 10-Q
Source: 0001628280-25-016182
Chunk: 58

Company: Penguin Solutions, Inc.
Filing Date: 2025-04-02
Form: 10-Q
Item: Part I, Item 1
Chunk 58
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81% interest in SMART Brazil is accounted for as a derivative financial instrument and is revalued at the end of each reporting period. The asset’s fair value, as measured on a recurring basis, was based on Level 2 measurements, including market-based observable inputs of interest rates and credit-risk spreads.The fair value of the Amended 2027 TLA, as measured on a non-recurring basis, was estimated based on Level 2 measurements, including discounted cash flows and interest rates based on similar debt issued by parties with credit ratings similar to ours. The fair values of our convertible senior notes, as measured on a non-recurring basis, were determined based on Level 2 measurements, including the trading prices of the notes.

Equity PlansAs of February 28, 2025, 7.9 million of our ordinary shares were available for future awards under our equity plans.The disclosures related to our restricted awards and employee share purchase plan include both our continuing and discontinued operations.Restricted Share Awards and Restricted Share Units Awards (“Restricted Awards”)Restricted Award activity was as follows:Three Months EndedSix Months EndedFebruary 28,2025March 1,2024February 28,2025March 1,2024Restricted awards granted60205683624Weighted-average grant date fair value per share$20.59 $21.15 $20.79 $22.75 Aggregate vesting date fair value of shares vested$10,649 $10,222 $19,677 $18,955 As of February 28, 2025, total unrecognized compensation costs for unvested Restricted Awards were $66.3 million, which were expected to be recognized over a weighted-average period of 2.4 years.Employee Share Purchase Plan (“ESPP”)Under our ESPP, employees purchased 253 thousand ordinary shares for $3.2 million in the first six months of 2025 and 298 thousand ordinary shares for $3.3 million in the first six months of 2024.Share-Based Compensation ExpenseShare-based compensation expense for our continuing operations was as follows:Three Months EndedSix Months EndedFebruary 28,2025March 1,2024February 28,2025March 1,2024Share-based compensation expense by caption:Cost of sales$1,776 $1,691 $3,419 $3,541 Research and development1,598 1,781 3,287 3,414 Selling,