Company: PENG
Filing Date: 2025-10-21
Form Type: 10-K
Source: 0001616533-25-000061
Chunk: 21

Company: Penguin Solutions, Inc.
Filing Date: 2025-10-21
Form: 10-K
Item: Item 1A
Chunk 21
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 production to customer demand, which may have a material adverse effect on our business, results of operations and financial condition.

•Our future success depends on our ability to develop new products and services.

•Our customers often require that our products undergo a lengthy and expensive process of evaluation and qualification without any assurance of net sales.

•If our OEM customers decide to utilize standardized solutions instead of our specialty products, our net sales and market share may decline.

•We depend on a small number of sole or limited source suppliers.

•We may be unable to adapt to technological change or maintain or improve our manufacturing efficiency.

•Disruption of our operations at any one of our manufacturing facilities would substantially harm our business.

•We are subject to a number of procurement laws and regulations.

•Products that fail to meet specifications, are defective or that are otherwise incompatible with end uses could impose significant costs on us.

•Actual or perceived failures or breaches of our information and security systems, or those of our customers, suppliers or business partners, could expose us to losses.

•Actual or perceived non-compliance with applicable data privacy and security laws, or that of our customers, suppliers or business partners, could expose us to losses.

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•Some of our offerings utilize open source software, which may pose particular risks to our proprietary software, products and services in a manner that could harm our business or make it easier for competitors to enter our markets and compete with us.

•We could be prevented from selling or developing our software if our licenses are not enforceable or are modified so as to become incompatible with other open source licenses.

•Contracts with the U.S. Government may be terminated, cancelled or modified.

•Our indemnification obligations to our customers and suppliers could require us to pay substantial damages.

•We may need to raise additional funds, which may not be available on acceptable terms or at all.

•We have in the past made, and may in the future make, acquisitions, investments and/or alliances, which involve numerous risks.

•We may fail to realize the anticipated benefits of our acquisitions or the sale of our SMART Brazil business.

•We have incurred, and may in the future incur, impairment charges related to our goodwill, which could have a material adverse effect on our business, results of operations and financial condition.

•We may incur liabilities relating to additional Brazilian withholding tax in connection with the sale of our Brazil business.

•The sale of our Brazil business could impair our ability to protect our trademarks and brand.

•If we are not able to maintain, develop and enhance our