Company: ARRY
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001820721-25-000085
Chunk: 70

Company: Array Technologies, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 were as follows (in thousands):June 30, 2025December 31, 2024Carrying ValueFair ValueCarrying ValueFair Value2028 Convertible Notes$320,002 $256,792 $417,525 $311,525 2031 Convertible Notes334,580 341,443 — — The fair value of the Convertible Notes is estimated using Level 2 inputs, as they are not registered securities nor listed on any securities exchange but may be traded by qualified institutional buyers. The fair value of the Term Loan Facility and Other Debt is estimated using Level 2 inputs. The carrying values of the Term Loan Facility outstanding under the Senior Secured Credit Facility recorded in the condensed consolidated balance sheets approximate fair value due to the variable nature of the interest rates. Other Debt with an aggregate carrying value of $39.3 million, consists of variable and fixed rate obligations. Due to the relative short-term maturity of the fixed rate obligations, the Company believes the carrying value approximates fair value. The carrying value of the variable rate obligations approximates fair value due to the variable nature of the interest rates.

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13.    Equity-Based Compensation

2020 Equity Incentive PlanOn October 14, 2020, the Company’s 2020 Equity Incentive Plan (the “2020 Plan”) became effective. The 2020 Plan authorized 6,683,919 new shares, subject to adjustments pursuant to the 2020 Plan.Restricted Stock UnitsPursuant to the 2020 Plan, the Company grants time-based restricted stock units (“RSUs”) to employees and members of the Company’s board of directors. The fair value of the RSUs is determined using the market value of the Company’s common stock on the grant date and is recognized on a straight-line basis over the vesting term of the awards.RSU activity under the 2020 Plan during the six months ended June 30, 2025, was as follows:Number of SharesWeighted Average Grant Date Fair ValueOutstanding non-vested, December 31, 20242,648,161 $10.97 Shares granted2,668,649 6.11 Shares vested(751,244)12.53 Shares forfeited(210,060)10.49 Outstanding non-vested, June 30, 20254,355,506 $7.74 Performance Stock UnitsThe Company has granted performance-based restricted stock