Company: PENG
Filing Date: 2025-07-08
Form Type: 10-Q
Source: 0001628280-25-034541
Chunk: 156

Company: Penguin Solutions, Inc.
Filing Date: 2025-07-08
Form: 10-Q
Item: Part II, Item 8
Chunk 156
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. 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 2022 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 Convertible Senior Notes.

Equity PlansAs of May 30, 2025, 8.4 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 EndedNine Months EndedMay 30,2025May 31,2024May 30,2025May 31,2024Restricted awards granted1,3231,2132,0061,837Weighted-average grant date fair value per share$17.09 $19.93 $18.35 $22.47 Aggregate vesting date fair value of shares vested$6,091 $6,629 $25,768 $25,584 As of May 30, 2025, total unrecognized compensation costs for unvested Restricted Awards were $78.1 million, which were expected to be recognized over a weighted-average period of 2.7 years.Employee Share Purchase Plan (“ESPP”)Under our ESPP, employees purchased 529 thousand ordinary shares for $6.8 million in the first nine months of 2025 and 584 thousand ordinary shares for $6.8 million in the first nine months of 2024.

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Share-Based Compensation ExpenseShare-based compensation expense for our continuing operations was as follows:Three Months EndedNine Months EndedMay 30,2025May 31,2024May 30,2025May 31,2024Share-based compensation expense by caption:Cost of sales$1,393 $1,760 $4,812 $5,301 Research and development1,531 1,968 4,818 5,382 Selling, general and administrative7,327 7,464 23