Company: PENG
Filing Date: 2025-06-18
Form Type: CORRESP
Source: 0001193125-25-142901
Chunk: 3

Company: Penguin Solutions, Inc.
Filing Date: 2025-06-18
Form: CORRESP
Chunk 3
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 of $32.81 [(200,000 preferred shares x $1,000) / $32.81 per convertible preferred share = 6,096,103 Ordinary Shares]. Here, too, as it relates to the Company’s analysis of dividends payable on the CPS, the Company 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(d) — No required cash payment (with the exception of penalty payments) if the entity fails to timely file.                                         
 There is no requirement to net cash settle the contract in the event the entity fails to make timely filings with the Securities and Exchange Commission (SEC). |

There is no such requirement. Accordingly, this condition is met.

| • |     | ASC                                                                              
 815-40-25-10(e) — No cash-settled top-off or make-whole provisions. There are no 
 cash settled top-off or make-whole provisions.                                   |

There are no such provisions. Accordingly, this condition is met.

Page 4 In addition, Company reviewed the guidance in ASC 815-40-25-10Aand concluded that the CPS meet each condition therein with regard to Company control. First, the Company is not required to settle the CPS in registered shares; pursuant to Section 7.1(a) of the Investor Agreement applicable to the CPS, any Ordinary Shares issued upon conversion of the CPS shall be issued in a transaction exempt from registration. Second, the CPS holders do not have any rights that rank higher than ordinary shareholder rights with regard to cash payments; while the CPS holders have certain additionalrights as compared to ordinary shareholders (such as director appointment rights, consent rights, and a liquidation preference), these rights do not supersede ordinary shareholder rights in terms of the Company’s control over future cash payments, and the Certificate of Designation expressly disclaims any right of the CPS holders to require the Company to redeem or repurchase the CPS. Finally, there are no requirements in the CPS to post collateral at any point for any reason. Accordingly, each condition is met. Accordingly, the Company respectfully advises the Staff that it concluded that the CPS should be accounted for as permanent equity. Management’s Discussion and Analysis of Financial Condition and Results of Operations Impairment of Goodwill, page 31

| 2. | Your response to prior comment 1 indicated that you now anticipate the wind down of certain