(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
The |
Large accelerated filer | ☐ | ☒ | |||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||||||||
Emerging growth company |
Item No. | Description | Page | ||||||||||||
Location | Ownership | Facilities | ||||||||||||
Chaska, MN | Owned | 148,200 square feet of office, laboratory and manufacturing space | ||||||||||||
Chaska, MN | Leased | 80,950 square feet of office, manufacturing and warehouse space | ||||||||||||
Chanhassen, MN | Leased | 21,384 square feet of warehouse and office space |
Year ended | Change | ||||||||||||||||||||||
(in thousands) | May 25, 2025 | May 26, 2024 | Amount | % | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
CDMO | $ | 90,095 | $ | 96,616 | $ | (6,521) | (7) | % | |||||||||||||||
HA manufacturing | 38,772 | 31,645 | 7,127 | 23 | % | ||||||||||||||||||
Total revenues | 128,867 | 128,261 | 606 | — | % | ||||||||||||||||||
Cost of goods sold | 88,569 | 86,411 | 2,158 | 2 | % | ||||||||||||||||||
Gross profit | 40,298 | 41,850 | (1,552) | (4) | % | ||||||||||||||||||
Gross profit percentage | 31.3 | % | 32.6 | % | (1.3) | % |
Year ended | Change | ||||||||||||||||||||||
(in thousands) | May 25, 2025 | May 26, 2024 | Amount | % | |||||||||||||||||||
Research and development | $ | 8,258 | $ | 8,575 | $ | (317) | (4) | % | |||||||||||||||
Selling, general and administrative | 44,046 | 40,463 | 3,583 | 9 | % | ||||||||||||||||||
Loss on sale or disposal of assets, net of portion classified as cost of sales | 6,986 | — | 6,986 | n/m | |||||||||||||||||||
Restructuring (recovery) costs | (1,747) | 1,656 | (3,403) | (205) | % | ||||||||||||||||||
Total operating expenses | $ | 57,543 | $ | 50,694 | $ | 6,849 | 14 | % |
Year ended | Change | ||||||||||||||||||||||
(in thousands) | May 25, 2025 | May 26, 2024 | Amount | % | |||||||||||||||||||
Interest expense, net | $ | (21,835) | $ | (18,090) | $ | (3,745) | 21 | % | |||||||||||||||
Change in fair value of debt derivative liability, related party | 409 | 39,500 | (39,091) | (99) | % | ||||||||||||||||||
Other expense, net | (3) | (3,052) | 3,049 | (100) | % | ||||||||||||||||||
Income tax expense | (43) | (183) | 140 | (77) | % |
Equity compensation plan information | |||||||||||||||||
Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights ($) (b) (1) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||||||||
Equity compensation plans approved by security holders (1) | 1,572,973 | (2) | $9.19 | 2,030,822 | |||||||||||||
Equity compensation plans not approved by security holders | 3,751,613 | (3) | $6.54 | 298,387 | |||||||||||||
Total | 5,324,586 | $8.57 | 2,329,209 |
Page | ||||||||
1. | Consolidated financial statements of Lifecore Biomedical, Inc. | |||||||
Reports of Independent Registered Public Accounting Firm (BDO USA, P.C., PCAOB ID: | ||||||||
2. | All schedules provided for in the applicable accounting regulations of the Securities and Exchange Commission have been omitted since they pertain to items which do not appear in the financial statements of Lifecore and its subsidiaries or to items which are not significant or to items as to which the required disclosures have been made elsewhere in the financial statements and supplementary notes and such schedules. | |||||||
3. | ||||||||
The exhibits listed in the accompanying Index of Exhibits are filed or incorporated by reference as part of this report. |
Exhibit number | Exhibit title | |||||||
10.3* | ||||||||
10.4* | Landec Corporation Executive Change in Control Severance Plan incorporated by reference to Exhibit 10.33 to the Registrant’s Annual Report on Form 10-K for the year ended May 31, 2020. | |||||||
10.5* | ||||||||
10.6 | ||||||||
10.7 | ||||||||
10.8 | ||||||||
10.9 | ||||||||
10.10 | ||||||||
10.11 | ||||||||
10.12 |
Exhibit number | Exhibit title | |||||||
10.21 | ||||||||
10.22 | ||||||||
10.23 | ||||||||
10.24 | ||||||||
10.25+ | Eighth Amendment to Credit Agreement, dated August 8, 2024, by and among Lifecore Biomedical, Inc., Curation Foods, Inc., Lifecore Biomedical Operating Company, Inc., and BMO Bank N.A. | |||||||
10.26 | ||||||||
10.27 | ||||||||
10.28 | ||||||||
10.29# |
Exhibit number | Exhibit title | |||||||
21.1+ | ||||||||
23.1+ | ||||||||
24.1+ | Power of Attorney (included on the signature page to this Annual Report on Form 10-K) | |||||||
31.1+ | ||||||||
31.2+ | ||||||||
32.1** | ||||||||
32.2** | ||||||||
97.1 | ||||||||
101.INS | XBRL Instance | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation | |||||||
101.DEF | XBRL Taxonomy Extension Definition | |||||||
101.LAB | XBRL Taxonomy Extension Labels | |||||||
101.PRE | XBRL Taxonomy Extension Presentation | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
(in thousands, except share and per share amounts) | May 25, 2025 | May 26, 2024 | |||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance for credit losses of $ | |||||||||||
Accounts receivable, related party | |||||||||||
Current portion of note receivable | |||||||||||
Contract assets | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net of accumulated depreciation of $ | |||||||||||
Goodwill | |||||||||||
Intangible assets, net of accumulated amortization of $ | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities, see note 7 | |||||||||||
Total current liabilities | |||||||||||
Debt, net of current portion | |||||||||||
Debt, net of current portion, related party | |||||||||||
Debt derivative liability, related party | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies, see note 9 | |||||||||||
Series A Redeemable Convertible Preferred Stock, $ | |||||||||||
Stockholders’ equity: | |||||||||||
Common Stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities, convertible preferred stock and stockholders’ equity | $ | $ |
Year ended | |||||||||||
(in thousands) | May 25, 2025 | May 26, 2024 | |||||||||
Revenues | $ | $ | |||||||||
Revenues, related party | |||||||||||
Total revenues | |||||||||||
Cost of goods sold | |||||||||||
Gross profit | |||||||||||
Research and development expenses | |||||||||||
Selling, general, and administrative expenses | |||||||||||
Loss on sale or disposal of assets, net of portion classified as cost of sales | |||||||||||
Restructuring (recovery) costs | ( | ||||||||||
Operating loss | ( | ( | |||||||||
Interest expense, net | ( | ( | |||||||||
Interest expense, related party | ( | ( | |||||||||
Change in fair value of debt derivative liability, related party | |||||||||||
Other expense, net | ( | ( | |||||||||
(Loss) income from continuing operations before income taxes | ( | ||||||||||
Income tax expense | ( | ( | |||||||||
(Loss) income from continuing operations | ( | ||||||||||
Income from discontinued operations | |||||||||||
Net (loss) income | $ | ( | $ |
Year ended | |||||||||||
(in thousands, except share and per share amounts) | May 25, 2025 | May 26, 2024 | |||||||||
Net (loss) income | $ | ( | $ | ||||||||
Preferred stock dividends | ( | ||||||||||
Accretion of preferred stock to redemption value | ( | ||||||||||
Fair value of conversion ratio improvement to preferred stockholders | ( | ||||||||||
(Loss) income available to common stockholders | $ | ( | $ | ||||||||
Basic income or loss per share: | |||||||||||
(Loss) income from continuing operations available to common stockholders | $ | ( | $ | ||||||||
Income from discontinued operations | |||||||||||
Basic (loss) income per share | $ | ( | $ | ||||||||
Diluted income or loss per share: | |||||||||||
(Loss) income from continuing operations available to common stockholders | $ | ( | $ | ||||||||
Income from discontinued operations | |||||||||||
Diluted (loss) income per share | $ | ( | $ | ||||||||
Weighted average shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted |
Redeemable Convertible Preferred Stock | Common Stock | Additional paid-in capital | Accumulated deficit | Total stockholders’ equity (deficit) | ||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance at May 26, 2024 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Issuance of stock, net of fees | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Dividends paid-in-kind | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Accretion to redemption value | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Settlement of stock-based awards | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Retirement of shares | — | — | ( | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balance at May 25, 2025 | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Balance at May 28, 2023 | $ | $ | $ | $ | ( | $ | ( | |||||||||||||||||||||||||||||||||||||
Dividends paid-in-kind | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Accretion to redemption value | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||
Settlement of stock-based awards | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Exercise of stock options, net | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at May 26, 2024 | $ | $ | $ | $ | ( | $ |
Year ended | |||||||||||
(in thousands) | May 25, 2025 | May 26, 2024 | |||||||||
Cash flows from operating activities: | |||||||||||
Net (loss) income | $ | ( | $ | ||||||||
Adjustments to reconcile net income or loss to net cash (used in) provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Non-cash interest expense | |||||||||||
Change in debt derivative liability, related party | ( | ( | |||||||||
Loss on sale or disposal of assets | |||||||||||
Gain on settlement of lease liability | ( | ||||||||||
Other, net | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Contract assets | ( | ||||||||||
Inventories | |||||||||||
Other assets | |||||||||||
Accounts payable | ( | ( | |||||||||
Accrued expenses and other liabilities | ( | ||||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant, and equipment | ( | ( | |||||||||
Proceeds from sale of equipment | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Issuance of common stock, net of fees | |||||||||||
Payments on revolving credit facility | ( | ( | |||||||||
Proceeds from revolving credit facility | |||||||||||
Payments of debt principal | ( | ( | |||||||||
Payments for debt issuance costs | ( | ( | |||||||||
Customer deposit | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Proceeds from finance lease incentive | |||||||||||
Payments related to employee stock plans | ( | ( | |||||||||
Net cash provided by financing activities | |||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Cash paid for income taxes, net | $ | $ | |||||||||
Cash paid for interest | |||||||||||
Non-cash investing and financing activities: | |||||||||||
Purchases of property, plant, and equipment in accounts payable | |||||||||||
Non-cash portion of sale of property, plant and equipment via note receivable | |||||||||||
Increases to property, plant and equipment from finance leases | |||||||||||
Capitalization of non-cash interest to property, plant, and equipment | |||||||||||
Dividends paid-in-kind on Redeemable Convertible Preferred Stock |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Weighted average shares for basic income or loss per share | |||||||||||
Redeemable Convertible Preferred Stock | |||||||||||
Stock options, RSUs and PSUs | |||||||||||
Weighted average shares for diluted income or loss per share |
May 25, 2025 | |||||
Redeemable Convertible Preferred Stock | |||||
Stock options | |||||
RSUs | |||||
PSUs | |||||
Total |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Revenues | $ | $ | |||||||||
Personnel costs(1) | |||||||||||
Materials and non-depreciation overhead(2) | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Reorganization costs | |||||||||||
Loss on sale or disposal of assets | |||||||||||
All other operating expenses(3) | |||||||||||
Interest expense, net | |||||||||||
Change in fair value of debt derivative liability | ( | ( | |||||||||
Other expense, net | |||||||||||
Income tax expense | |||||||||||
Income from discontinued operations | ( | ||||||||||
Net (loss) income | $ | ( | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Beginning balance | $ | $ | |||||||||
Provision | |||||||||||
Charge-offs | ( | ( | |||||||||
Balance at May 25, 2025 | $ | $ |
May 25, 2025 | May 26, 2024 | ||||||||||
Finished goods | $ | $ | |||||||||
Raw materials | |||||||||||
Work in process | |||||||||||
Inventory | $ | $ |
May 25, 2025 | May 26, 2024 | ||||||||||
Land and land improvements | $ | $ | |||||||||
Buildings and building improvements | |||||||||||
Machinery and equipment | |||||||||||
Computer equipment and software | |||||||||||
Furniture and fixtures | |||||||||||
Construction in process | |||||||||||
Idle construction in process | |||||||||||
Property, plant, and equipment, gross | |||||||||||
Less: accumulated depreciation and amortization | ( | ( | |||||||||
Property, plant, and equipment, net | $ | $ |
May 25, 2025 | May 26, 2024 | ||||||||||
Accrued compensation | $ | $ | |||||||||
Accrued payable to Redeemable Convertible Preferred Stock holders | |||||||||||
Contract liabilities, related party | |||||||||||
Current portion of debt | |||||||||||
Accrued customer pass-through expenditures | |||||||||||
Current portion of debt, related party | |||||||||||
Contract liabilities | |||||||||||
Other | |||||||||||
Accrued expenses and other current liabilities | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Employee termination | $ | $ | |||||||||
Other | ( | ||||||||||
Total | $ | ( | $ |
Employee termination | Other | Total | |||||||||||||||
Balance at May 28, 2023 | $ | $ | $ | ||||||||||||||
Expense | |||||||||||||||||
Payments | ( | ( | ( | ||||||||||||||
Other | |||||||||||||||||
Balance at May 26, 2024 | |||||||||||||||||
Expense (recoveries) | ( | ( | |||||||||||||||
Payments | ( | ( | ( | ||||||||||||||
Balance at May 25, 2025 | $ | $ | $ |
May 25, 2025 | May 26, 2024 | ||||||||||
Current portion of operating lease liabilities | $ | $ | |||||||||
Accrued expenses and other current liabilities – accrued compensation | |||||||||||
Accrued expenses and other current liabilities – other | |||||||||||
Restructuring liabilities | $ | $ |
May 25, 2025 | May 26, 2024 | ||||||||||
Debt principal: | |||||||||||
Term loan credit facility with related party | $ | $ | |||||||||
Revolving credit facility | |||||||||||
Leaseback liability with related party | |||||||||||
Finance lease liability | |||||||||||
Debt principal | |||||||||||
Unamortized debt discount on term loan credit facility with related party | ( | ( | |||||||||
Total debt, net of discounts | $ | $ | |||||||||
Classification on consolidated balance sheet: | |||||||||||
Accrued expenses and other current liabilities | $ | $ | |||||||||
Debt, net of current portion | |||||||||||
Debt, net of current portion, related party | |||||||||||
Total debt, net of discounts | $ | $ |
Fiscal year: | |||||
2026 | $ | ||||
2027 | |||||
2028 | |||||
2029 | |||||
2030 | |||||
Thereafter | |||||
Debt principal | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Expensed in statement of operations | |||||||||||
Capitalized to property, plant and equipment | |||||||||||
Total interest incurred | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Average borrowings | $ | $ | |||||||||
Weighted average interest rate | % | % |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
CDMO | $ | $ | |||||||||
HA manufacturing | |||||||||||
Total | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Revenues recognized over time | $ | $ | |||||||||
Revenues recognized at a point in time | |||||||||||
Total | $ | $ |
Contract assets, current | Contract liabilities, current | Contract liabilities, noncurrent | |||||||||||||||
Balance at May 26, 2024 | $ | $ | ( | $ | ( | ||||||||||||
Changes to the beginning balance arising from: | |||||||||||||||||
Amounts billed as accounts receivable as the result of rights to consideration becoming unconditional | ( | ||||||||||||||||
Recognition of revenue as the result of performance obligations satisfied | |||||||||||||||||
Reclassification of scheduled satisfaction of performance obligations from noncurrent to current due to passage of time | |||||||||||||||||
Net change to contract balances recognized after the beginning of the period due to amounts billed, recognition of revenue, changes in estimate, reclassifications from noncurrent to current, and interest from significant financing component | ( | ( | |||||||||||||||
Balance at May 25, 2025 | $ | $ | ( | $ | ( |
Stock options | PSUs | ||||||||||||||||||||||
Year ended | Year ended | ||||||||||||||||||||||
May 25, 2025 | May 26, 2024 | May 25, 2025 | May 26, 2024 | ||||||||||||||||||||
Weighted-average grant date fair value per share | $ | $ | |||||||||||||||||||||
Weighted-average assumptions used to determine grant-date fair value: | |||||||||||||||||||||||
Expected life | |||||||||||||||||||||||
Risk-free interest rate | % | % | % | % | |||||||||||||||||||
Volatility | % | % | % | % | |||||||||||||||||||
Dividend yield | % | % | % | % |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Weighted average grant-date fair value of RSUs awarded per share | $ | $ | |||||||||
Intrinsic value of stock options exercised | |||||||||||
Fair value of RSUs vested per share | |||||||||||
Fair value of PSUs vested per share | |||||||||||
Tax benefit of options exercised |
Shares | Weighted-average exercise price per share | Weighted-average remaining contractual term | Aggregate intrinsic value | ||||||||||||||||||||
Outstanding at May 26, 2024 | $ | ||||||||||||||||||||||
Granted | |||||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Expired | ( | ||||||||||||||||||||||
Outstanding at May 25, 2025 | $ | ||||||||||||||||||||||
Exercisable at May 25, 2025 |
RSUs | PSUs | ||||||||||||||||||||||
Shares | Weighted-average grant date fair value per share | Shares | Weighted-average grant date fair value per share | ||||||||||||||||||||
Outstanding at May 26, 2024 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ||||||||||||||||||||||
Outstanding at May 25, 2025 |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Cost of product sales | $ | $ | |||||||||
Research and development expense | ( | ||||||||||
Selling, general and administrative expense | |||||||||||
Stock-based compensation expense | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Current: | |||||||||||
Federal | $ | $ | ( | ||||||||
State | |||||||||||
Total | |||||||||||
Deferred: | |||||||||||
Federal | ( | ||||||||||
State | ( | ||||||||||
Total | ( | ||||||||||
Income tax provision | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Tax at U.S. statutory rate | $ | ( | $ | ||||||||
State income taxes, net of federal benefit | ( | ||||||||||
Compensation-related activity | |||||||||||
Return to provision adjustments | |||||||||||
Deferred tax write-offs | ( | ||||||||||
Tax credit carryforwards | ( | ( | |||||||||
Other | |||||||||||
Change in valuation allowance | ( | ||||||||||
Income tax expense | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Deferred tax assets: | |||||||||||
Net operating loss carryforwards | $ | $ | |||||||||
Limitations on business interest expense | |||||||||||
Research credit carryforwards | |||||||||||
Capitalized research and development | |||||||||||
Other | |||||||||||
Deferred tax assets before valuation allowance | |||||||||||
Less: valuation allowance | ( | ( | |||||||||
Deferred tax assets | |||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | ( | ( | |||||||||
Debt derivative liability and related debt discount | ( | ( | |||||||||
Other | ( | ( | |||||||||
Deferred tax liabilities | ( | ( | |||||||||
Net deferred tax liability | $ | ( | $ | ( |
Net operating loss carryforwards | Research and development credits | ||||||||||||||||||||||||||||
Amount | Begin to expire | Amount | Life | Begin to expire | |||||||||||||||||||||||||
Federal | $ | 2028 | $ | 2033 | |||||||||||||||||||||||||
California | 2025 | unlimited | none | ||||||||||||||||||||||||||
All other states | 2025 | 2029 |
Type of measurement | Measurement date | Type of measurement | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Debt derivative liability | Recurring | May 25, 2025 | |||||||||||||||||||||||||||
Debt derivative liability | Recurring | May 26, 2024 |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Change in fair value | ( | ( | |||||||||
Balance at end of period | $ | $ |
May 25, 2025 | May 26, 2024 | ||||||||||
Probability of change in control event | % | % | |||||||||
Weighted average discount rate | % | % |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Finance lease cost: | |||||||||||
Amortization of leased assets | $ | $ | |||||||||
Interest on lease liabilities | |||||||||||
Operating lease cost | |||||||||||
Variable lease cost | |||||||||||
Sublease income | ( | ||||||||||
Total lease cost | $ | $ |
Operating leases | Finance leases | ||||||||||
Fiscal year: | |||||||||||
2026 | $ | $ | |||||||||
2027 | |||||||||||
2028 | |||||||||||
2029 | |||||||||||
2030 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less: interest | ( | ( | |||||||||
Present value of lease liabilities | $ | $ | |||||||||
Classification on consolidated balance sheet: | |||||||||||
$ | $ | ||||||||||
— | |||||||||||
— | |||||||||||
Present value of lease liabilities | $ | $ |
Year ended | |||||||||||
May 25, 2025 | May 26, 2024 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Operating cash flows from finance leases | |||||||||||
Financing cash flows from finance leases | ( | ||||||||||
Lease liabilities arising from obtaining right-of-use assets: | |||||||||||
Finance leases |
LIFECORE BIOMEDICAL, INC. | ||||||||
By: | /s/ Paul Josephs | |||||||
Paul Josephs | ||||||||
President and Chief Executive Officer | ||||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Ryan D. Lake | |||||||
Ryan D. Lake | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
Signature | Title | Date | ||||||||||||
/s/ Paul Josephs | ||||||||||||||
Paul Josephs | President and Chief Executive Officer (Principal Executive Officer) and Director | August 7, 2025 | ||||||||||||
/s/ Ryan D. Lake | ||||||||||||||
Ryan D. Lake | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | August 7, 2025 | ||||||||||||
/s/ Katrina L. Houde | ||||||||||||||
Katrina L. Houde | Chairman of the Board | August 7, 2025 | ||||||||||||
/s/ Humberto C. Antunes | ||||||||||||||
Humberto C. Antunes | Director | August 7, 2025 | ||||||||||||
/s/ Jason Aryeh | ||||||||||||||
Jason Aryeh | Director | August 7, 2025 | ||||||||||||
/s/ Paul H. Johnson | ||||||||||||||
Paul H. Johnson | Director | August 7, 2025 | ||||||||||||
/s/ Christopher Kiper | ||||||||||||||
Christopher Kiper | Director | August 7, 2025 | ||||||||||||
/s/ Matthew Korenberg | ||||||||||||||
Matthew Korenberg | Director | August 7, 2025 | ||||||||||||
/s/ Nelson Obus | ||||||||||||||
Nelson Obus | Director | August 7, 2025 | ||||||||||||
/s/ Joshua E. Schechter | ||||||||||||||
Joshua E. Schechter | Director | August 7, 2025 | ||||||||||||
Signature Page to Limited Waiver under and Amendment to Credit Agreement |
Signature Page to Limited Waiver under and Amendment to Credit Agreement |
ALCON RESEARCH, LLC By: /s/ James Sinor Name: James Sinor Title: Sr. Director, Head ESO Date: 6/13/2025 | LIFECORE BIOMEDICAL, LLC By: /s/ Jackie Klecker Name: Jackie Klecker Title: EVP, Quality & Dev Services Date: 6/13/2025 |
3515 Lyman Boulevard Chaska, Minnesota 55318-3051 USA |
Performance Price | ||
$5.00 | ||
$7.50 | ||
$10.00 | ||
$12.50 | ||
$15.00 | ||
$17.50 | ||
$20.00 | ||
$22.50 | ||
$25.00 | ||
$30.00 | ||
$35.00 | ||
$40.00 |
Subsidiary | State of Incorporation | |||||||
Lifecore Biomedical Operating Company, Inc. | Delaware | |||||||
Lifecore Biomedical, LLC | Minnesota | |||||||
Curation Foods, Inc. | Delaware | |||||||
Greenline Logistics, Inc. | Ohio | |||||||
Camden Fruit Corp | California |
/s/ Paul Josephs | |||||
Paul Josephs President and Chief Executive Officer (Principal Executive Officer) |
/s/ Ryan D. Lake | |||||
Ryan D. Lake Chief Financial Officer (Principal Financial Officer) |
/s/ Paul Josephs | |||||
Paul Josephs President and Chief Executive Officer (Principal Executive Officer) |
/s/ Ryan D. Lake | |||||
Ryan D. Lake Chief Financial Officer (Principal Financial Officer) |
Audit Information |
12 Months Ended |
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May 25, 2025 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, P.C. |
Auditor Location | Minneapolis, Minnesota |
Auditor Firm ID | 243 |
Organization, basis of presentation, and summary of significant accounting policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, basis of presentation, and summary of significant accounting policies | Organization, basis of presentation, and summary of significant accounting policies Organization Lifecore Biomedical, Inc. and its subsidiaries (“Lifecore” or the “Company”) is a fully integrated contract development and manufacturing organization (“CDMO”) that provides services in the development, fill and finish of complex sterile injectable pharmaceutical products in syringes, vials and cartridges. Basis of presentation The Company’s fiscal year was the 52- or 53-week period that ended on the last Sunday of May. Quarters within each fiscal year ended on the last Sunday of August, November, and February. In instances where the last Sunday resulted in a quarter being twelve weeks in length, the Company’s policy was to extend that quarter to the following Sunday. A fourteenth week was included in the fiscal year every five or six years to realign the Company’s fiscal quarters with calendar quarters. Certain prior period amounts in the balance sheet, the statement of cash flows and the notes to the financial statements have been reclassified to conform to the current period presentation. Basis of consolidation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated. Use of estimates The preparation of financial statements and the notes to the financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition; recognition and measurement of current and deferred income tax assets and liabilities; the net realizable value of inventories; the valuation and recognition of stock-based compensation; and the valuation of the debt derivative liability. Actual results may differ from management’s estimates. Supplemental disclosures of cash flow information The following table presents supplemental cash flow information:
Discontinued operations The Company previously operated a food business through its wholly-owned subsidiary, Curation Foods, Inc. (“Curation Foods”). The Company completed the sale or disposition of all Curation Foods subsidiaries during the fiscal year ended May 26, 2024. Upon completion of the dispositions, it ceased to operate the Curation Foods business. Interest and income tax expense were not allocated to discontinued operations due to their immateriality. During the fiscal year ended May 26, 2024, the Company reached settlement agreements related to the Curation Foods business that resulted in the receipt of cash payments totaling $2,682, which were recognized as income from discontinued operations in the fiscal year ended May 26, 2024. The $2,682 cash received is included in net cash from operating activities on the consolidated statements of cash flows. Income or loss per share Net loss per common share is computed using the two-class method required due to the participating nature of the Series A Convertible Preferred Stock, which is redeemable under certain circumstances either by the Company or by the holder thereof (the “Redeemable Convertible Preferred Stock”) (see note 11) given the rights to participate in dividends if declared on common stock. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as these securities are participating securities, the Company is required to calculate diluted net income or loss per share under the if-converted and treasury stock method in addition to the two-class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to the Series A Convertible Preferred stockholders is performed as the holders of these securities are not contractually obligated to participate in the Company’s losses. Basic income or loss per share is computed using the weighted average number of common shares outstanding during the reporting period. Diluted income or loss per share reflects the potential dilution as if securities or other contracts to issue the Company’s common stock, par value $0.001 per share (“Common Stock”) were exercised or converted into Common Stock. The Company’s diluted common equivalent shares consist of Redeemable Convertible Preferred Stock, stock options, restricted stock units (“RSUs”) and performance share units (“PSUs”). Dilution related to stock options, RSUs and PSUs is calculated using the treasury stock method, which includes the assumed repurchase of common shares from cash received upon stock option exercises, and unrecognized compensation expense. The potential dilutive effect of the Redeemable Convertible Preferred Stock is calculated using the if-converted method assuming the conversion as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. Reportable segments The Company’s Chief Operating Decision Maker (“CODM”), the President and Chief Executive Officer, manages CDMO and HA (defined below) manufacturing operations on the basis of a single, integrated segment. The CODM's review of financial results includes the consolidated financial statements of the Company, which the Company used to aid its determination that net income or loss is the measure of single-segment performance. Asset information is not separately identified nor internally reported to the Company’s CODM. Entity-wide disclosures of revenue by geographic area are presented based on the customer location. Concentrations of risk Cash, accounts receivable and a note receivable are financial assets that potentially subject the Company to concentrations of credit risk. Company policy limits, among other things, the amount of credit exposure to any one issuer and to any one type of investment, other than securities issued or guaranteed by the U.S. government. The Company maintains cash in U.S. bank accounts, the balances of which generally exceeds the federally insured limit. A significant portion of accounts receivable is concentrated with a few large customers as described further in note 4. The note receivable was paid in June 2025. Cash and cash equivalents The Company records all highly liquid securities with original maturities of three months or less when acquired as cash equivalents. Cash equivalents consist mainly of money market funds. The market value of cash equivalents approximates their historical cost given their short-term nature. Accounts receivable, net of allowance for credit losses Accounts receivable generally represent amounts billed for services provided under customer contracts and are recorded at the invoiced amount net of an allowance for credit losses, if necessary. Management applies judgment in assessing the ultimate realization of our receivables, and estimates an allowance for credit losses based on various factors, such as the aging of our receivables, historical collection experience, current and future economic market conditions, and the financial condition of our customers. Inventory Inventory consists of raw materials, work in process and finished goods related to sterile injectable pharmaceutical products in syringes, vials and cartridges. This includes premium, pharmaceutical-grade hyaluronic acid (“HA”) in bulk form as well as formulated and filled syringes, vials and cartridges for injectable products. Inventory is stated at the lower of cost (using the first-in, first-out method) or net realizable value. Work in process and finished goods cost includes the purchase price of applied raw materials, direct labor costs and allocated overhead primarily in the form of indirect labor and property, plant and equipment costs. Adjustments to inventory are determined at the raw materials, work-in-process, and finished goods levels to reflect obsolescence or impaired balances. Factors influencing inventory obsolescence include changes in demand, product life cycle, product pricing, physical deterioration, and quality concerns. Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired by the Company in a business combination. Goodwill is not amortized but assessed for impairment on an annual basis or more frequently if impairment indicators exist. The impairment analysis for goodwill consists of an optional qualitative assessment, potentially followed by a quantitative analysis. If the Company determines that the carrying value of its reporting unit exceeds its fair value, an impairment charge is recorded for the excess. The Company performs its annual goodwill impairment test in the fiscal fourth quarter, or whenever an event or change in circumstances occurs that would require a reassessment of the impairment of goodwill. In performing the evaluation, the Company assesses qualitative factors such as overall financial performance, actual and anticipated changes in industry and market conditions, and competitive environments. As a result of the most recent annual goodwill impairment test, the Company determined that there was no impairment of goodwill. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful life. The Company is required to review the carrying value of intangible assets for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. Property, plant and equipment, net Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are as follows: to ten years for furniture and fixtures; to ten years for computer equipment; to twenty-five years for machinery and equipment; to forty years for buildings and building improvements; and the shorter of the lease term or useful life for leasehold improvements. Repairs and maintenance costs are expensed as incurred. Depreciation and amortization expense for these assets is recorded either in cost of goods sold or selling, general and administrative expenses in the consolidated statements of operations, depending on the asset and its intended use. The Company capitalizes interest on construction in process projects. To determine the capitalization rate, management uses judgment with the objective of achieving a reasonable measure of the cost of financing those projects that theoretically could have been avoided if funding for the project had instead been used to repay debt. The Company reviews the carrying value of property and equipment for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of individual assets or asset groups may not be recoverable. The Company conducts a quarterly review to determine if construction in process activities have gone idle and, if so, ceases to capitalize interest on idle projects. The Company capitalizes software development costs for internal use. Capitalization of software development costs begins in the application development stage and ends when the asset is placed into service. The Company depreciates such costs on a straight-line basis over estimated useful lives of to seven years, and the depreciation expense is recorded either in cost of goods sold or selling, general and administrative expenses in the consolidated statements of operations, depending on the asset and its intended use. Impairment of long-lived assets Long-lived assets or asset groups are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Recoverability of assets or asset groups is measured by comparison of the carrying amount of the asset to the net undiscounted future cash flow expected to be generated from the asset or asset group. If the future undiscounted cash flows are not sufficient to recover the carrying value of the assets or asset group, its carrying value is adjusted to fair value. The Company regularly evaluates its long-lived assets for indicators of possible impairment. Debt The Company capitalizes debt issuance costs related to term debt as an offset to the carrying value of the debt and amortizes these costs over the term of the agreement using the effective interest method. The Company capitalizes debt issuance costs related to revolving credit lines as other assets on the balance sheet and amortizes the costs over the life of the credit line using the straight-line method, as the effective interest method cannot be applied to the variable borrowings under these instruments. Amortization of deferred issuance costs is included as a component of interest expense in the consolidated statements of operations. Revenue recognition The Company follows a five-step, principles-based model to recognize revenue upon the transfer of promised goods or services to customers at an amount that reflects the consideration for which the Company expects to be entitled in exchange for those goods or services. Revenue is recognized when or as the Company satisfies its performance obligations under a contract and control of the product is transferred to the customer. Standard terms of sale are generally included in contracts and purchase orders. Lifecore’s standard payment terms with its customers generally range from 30 days to 60 days. The following sections provide additional details about the Company’s revenue recognition policies: CDMO Lifecore provides aseptic formulation and filling of syringes, vials and cartridges for injectable products used for medical purposes. In instances where the customer contracts with the Company for aseptic filling, the filled goods are distinct in the context of the contract. Lifecore generally recognizes revenue for these products at the point in time when the product is released through the completion of the certificate of analysis. Lifecore provides product development services to assist its customers in obtaining regulatory approval for the commercial sale of their device or drug product. These services include analytical method development and validation, formulation development, sterile filtration, process scale-up, pilot studies, stability studies, process validation and production of materials for clinical studies. The promised services are not individually distinct in the context of the contract; rather, they are highly interdependent such that Lifecore would not be able to fulfill its promise by transferring any of the goods or services independently. Revenues generated from product development services are recognized over time, as Lifecore is creating an asset unique to each customer without alternative use and has an enforceable right to payment, including a reasonable profit margin, for performance completed to-date. The Company determined that labor hours, the primary input to such arrangements, are the best and most accurate measure of progress and measures that progress as a proportion of total estimated hours for an individual arrangement. HA manufacturing Lifecore manufactures and sells pharmaceutical-grade, non-animal-sourced hyaluronic acid (“HA”) using our proprietary, fermentation-based HA process in bulk form as well as for use in formulated and filled syringes and vials for customers’ injectable products used in treating a broad spectrum of medical conditions and procedures. The HA produced is distinct as customers are able to utilize the product provided under HA supply contracts when they obtain control. Lifecore recognizes revenue for these products at the point in time when legal title to the product is transferred to the customer, which is at the time shipment is made. Other revenue policies Revenue for bill-and-hold arrangements is recognized when control transfers to the customer, even though the customer does not have physical possession of the goods. Control transfers when the bill-and-hold arrangement has been determined to have substantive reason, the product is identified as belonging to the customer, the product is ready for physical transfer to the customer and the product cannot be used or directed to another customer. The Company accounts for shipping and handling as fulfillment activities, and not as a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. Amounts billed to third-party customers for shipping and handling are included as a component of revenues. Shipping and handling costs incurred are included as a component of cost of products sold. Defined contribution plan The Company sponsors a defined contribution 401(k) plan which is available to all full-time Lifecore employees and allows participants to contribute from 1% to 50% of their salaries, up to the Internal Revenue Service limitation into designated investment funds. The Company matches 100% on the first 3% and 50% on the next 2% contributed by an employee. Employee and Company contributions are fully vested at the time of the contributions. The Company retains the right, by action of the Board of Directors, to amend, modify, or terminate the plan. For fiscal years ended May 25, 2025 and May 26, 2024, the Company contributed $1,500 and $1,664, respectively, to the plan. Stock-based compensation The Company issues stock-based awards to employees and non-employee directors in the form of stock options, RSUs and PSUs. The Company recognizes compensation expense for stock options and RSUs awards based on their estimated fair value on the date of grant on a straight-line basis over the vesting period of the award. The Company recognizes compensation expense for PSUs over the requisite service period, which is generally the vesting period of the award. The Company accounts for forfeitures as they occur. Stock options are exercisable generally for a period of seven years from the date of grant and generally vest over four years. RSUs generally vest in to three years. All vesting is subject to continued service. The grant date fair value of stock options is estimated using the Black-Scholes option pricing model which relies upon management’s estimates and assumptions of the expected stock price volatility, the life of the award and the risk-free interest rate. The Company estimates volatility using the historical share price performance over the expected life of the option. RSUs are valued at the closing market price of the Common Stock on the date of grant. PSUs are valued on the grant date through the use of a Monte Carlo simulation model which relies upon management’s estimates and assumptions of the expected stock price volatility, the life of the award and the risk-free interest rate. The Company estimates volatility using the historical share price performance over the expected life of the award. Income taxes The Company measures deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. The Company maintains valuation allowances when it is likely that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. In determining whether a valuation allowance is warranted, the Company considers such factors as prior earnings history, expected future earnings, unsettled circumstances that, if unfavorably resolved, would adversely affect utilization of a deferred tax asset, carryback and carryforward periods and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. In addition to valuation allowances, the Company establishes accruals for uncertain tax positions. The tax-contingency accruals are adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law and emerging legislation. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The Company’s effective tax rate includes the impact of tax-contingency accruals as considered appropriate by management. A number of years may elapse before a particular matter, for which the Company has accrued, is audited and finally resolved. The number of years with open tax audits varies by jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes its tax-contingency accruals are adequate to address known tax contingencies. Favorable resolution of such matters could be recognized as a reduction to the Company’s effective tax rate in the year of resolution. Unfavorable settlement of any particular issue could increase the Company’s effective tax rate in the year of resolution. Any resolution of a tax issue may require the use of cash in the year of resolution. The Company’s tax-contingency accruals are recorded in other accrued liabilities in the accompanying consolidated balance sheets. Derivative financial instruments The Company accounts for put and call options embedded in the term debt in accordance with U.S. GAAP, which generally requires companies to bifurcate put and call options embedded in the Term Loan Credit Facility (as defined in note 10) from their host instruments and to account for them as free standing derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument that is required to be bifurcated, the bifurcated derivative instruments are accounted for as separate derivative instruments. The fair value of the embedded features are accounted for as a derivative debt liability in the Company’s consolidated balance sheets and adjusted to fair value each reporting period. The change in fair value of derivatives is recorded as a component of other income (expense) in the Company’s consolidated statements of operations. Fair value measurements The Company uses fair value measurement accounting for financial assets and liabilities and for financial instruments and certain other items measured at fair value. The Company has not elected the fair value option for any of its other eligible financial assets or liabilities. Applicable accounting guidance establishes a three-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows: •Level 1 – observable inputs such as quoted prices for identical instruments in active markets. •Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data. •Level 3 – unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions. Leases The Company determines if an arrangement is a lease at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Right-of-use assets are measured at cost and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is a quoted rate based on the understanding of what the Company’s credit rating would be. Options to extend the lease are included in the lease term if the options are reasonably certain to be exercised. The Company’s lease agreements do not contain any material residual value guarantees. The Company’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company combines fixed payments for non-lease components with lease payments and accounts for them together as a single lease component which increases the amount of lease assets and liabilities. Payments under lease arrangements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and are not included in the operating lease assets and liabilities. These amounts primarily include payments affected by changes in price indices. In a sale-leaseback transaction, the Company determines if it relinquished control of the assets to the buyer-lessor. If control is not relinquished, it does not derecognize the asset and does not apply the lease accounting model. Operating lease assets are included in other assets and operating lease liabilities are presented in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheets. Finance lease assets are included in property, plant and equipment and finance lease liabilities are classified as debt. Related party transactions For each material transaction with a related party, the Company discloses the nature of the relationship, a description of the transactions, and the amounts due to or from the related party as required by U.S. GAAP. See note 17. Recent accounting pronouncements In November 2023, accounting standards update 2023-07 was issued to enhance disclosure of significant expenses that are regularly provided to the chief operating decision maker and are included with each reported measure of segment profit and loss. The update also specifies that companies with a single reportable segment are subject to this standard. The update became effective for this annual reporting period ended May 25, 2025 and was applied retrospectively to all periods presented. There was no impact on the Company’s reportable segments identified, and additional required disclosures have been included in notes 1 and 3. In December 2023, accounting standards update 2023-09 was issued to improve income tax disclosures. This update includes disclosure of disaggregated information about both the effective tax rate reconciliation and income taxes paid. This update is effective for annual periods beginning after December 15, 2024, which will be for our transition period ending December 31, 2025, with early adoption permitted. The amendments in this update may be applied prospectively or retrospectively. Management is currently evaluating the impact that the adoption of this update will have on its financial statements. In November 2024, accounting standards update 2024-03 was issued to require more detailed disclosures related to certain costs and expenses. The guidance requires entities to disclose amounts of certain expense categories included in expense captions presented on the face of the income statement, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. ASU 2024-03, as clarified by ASU 2025-01, is effective for public entities for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Management is currently evaluating the impact that the adoption of this update will have on its financial statements. In July 2025, accounting standards update 2025-05 was issued to improve the measurement of credit losses for accounts receivable and contract assets. The guidance provides a practical expedient for all entities to assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the assets. The update aims to reduce the cost and complexity of estimating credit losses while maintaining decision-useful information for financial statement users. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025. Management is currently evaluating the impact that the adoption of this update may have on its financial statements. Management has evaluated recently issued accounting pronouncements outside of those mentioned above and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures.
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Income or loss per share |
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Income or loss per share | Income or loss per share The following table presents the reconciliation of weighted average shares used in the computation of basic and diluted income or loss per share:
Due to the Company’s net loss for the fiscal year ended May 25, 2025, the diluted loss per share is calculated using only the basic weighted average common shares outstanding and thus excludes the following securities on an as-converted basis as of May 25, 2025.
See note 11 for more information about Redeemable Convertible Preferred Stock and note 13 for more information about stock options, RSUs and PSUs.
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Segment reporting for single reportable segment |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment reporting for single reportable segment | Segment reporting for single reportable segment The following table presents the components of net income or loss, which is the measure of profit or loss used for our single reportable segment:
(1)Includes all wages and salary, bonus, employer taxes, and employee benefit plan expenses (2)Represents cost of goods sold, excluding direct labor and all personnel cost and depreciation allocations (3)Includes expenses for accounting, legal and other professional services, software licensing, insurance costs, public company costs and board fees. For the fiscal year ended May 25, 2025, the Company earned revenue of approximately 60% in the United States, 20% in Belgium, 10% in Netherlands and 10% in all other countries combined. For the fiscal year ended May 26, 2024, the Company earned revenue of approximately 65% in the United States, 10% in Belgium, 5% in Netherlands and 20% in all other countries combined.
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Accounts and note receivable |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts and note receivable | Accounts and note receivable Accounts receivable Four of the Company’s customers had accounts receivable concentrations of 10% or greater as of May 25, 2025, with those customers comprising 37%, 14%, 11% and 11% of accounts receivable. Two of the Company’s customers had accounts receivable concentrations of 10% or greater as of May 26, 2024, with those customers comprising 34% and 18% of accounts receivable. Changes in the allowance for credit losses related to accounts receivable are as follows:
The primary factor that is currently influencing our estimate of expected credit losses is the knowledge of certain customers whose development projects are awaiting additional funding. Note receivable On January 7, 2025, the Company accepted a $10,000 note as a portion of the proceeds from the sale of certain excess equipment described in note 6. The note would have matured on July 7, 2026 and was receivable in whole or in part at any time prior to maturity without penalty or premium. Otherwise, the note was scheduled to be collected as follows: $4,000 on July 7, 2025, $4,000 on January 7, 2026 and $2,000 on July 7, 2026. The note was interest-free through July 7, 2025, and thereafter principal would have earned interest at the U.S. prime rate plus 1% until repayment. Management concluded that interest should have been imputed for the full duration of the note at an effective interest rate of 8.5%, representing the stated rate as of May 25, 2025. As a result, the Company recorded an initial discount of $410 as an offset to the noncurrent portion of the note based on its maturity date. As of May 25, 2025, the note receivable of $10,000, net of discount of $99, was classified on our balance sheet as follows: $8,000 as a standalone current asset and $1,901 as a component of other assets. Interest income of $205 is included on our statement of operations within interest expense, net. On June 11, 2025, the note holder paid the note in full.
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Inventory |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory | Inventory Inventories consisted of the following:
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Property, plant, and equipment, net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant, and equipment, net | Property, plant, and equipment, net All property, plant and equipment is located in the United States. The following table presents the components of property, plant and equipment:
Most of the value of construction in process is related to two projects: (i) an aseptic isolator-filler that will significantly increase manufacturing capacity and is expected to be placed into service during the transition period ending December 31, 2025; and (ii) an idle plant improvement project that supports the Company’s plans for future revenue growth. On January 7, 2025, the Company entered into an agreement for the sale of certain excess equipment. The aggregate purchase price was $17,000. Lifecore received $7,000 cash and paid fees of $752 at closing. Lifecore also accepted a note for the remainder of the proceeds (see note 4) and recorded current and noncurrent payables of $800 and $200, respectively, for selling fees due to a third-party broker. The note and the payables were each cash-settled in June 2025. The sale resulted in a $21,239 reduction in idle construction in process. The Company recorded a loss on the sale of the equipment of $6,400, which is included with other losses of $586 for the fiscal year ended May 25, 2025, respectively, in loss on sale or disposal of assets, net of portion classified as cost of sales, within the statement of operations. The Company also recognized other losses on disposal of assets of $790 as cost of sales within the statement of operations. Depreciation and amortization expense for property, plant, and equipment for the fiscal years ended May 25, 2025 and May 26, 2024 was $8,027 and $7,954, respectively.
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Accrued expenses and other current liabilities |
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Accrued expenses and other current liabilities | Accrued expenses and other current liabilities The following table presents the components of accrued expenses and other current liabilities:
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Restructuring costs |
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Restructuring costs | Restructuring costs During fiscal year 2020, the Company commenced a multi-year restructuring plan to improve profitability and to redesign the organization to focus on strategic assets so that it could compete and thrive as a standalone public CDMO business. Management finished incurring expenses under this plan during fiscal year 2025. Types of costs associated with this plan include: (i) employee termination costs, as a result of multiple reductions-in-force; and (ii) other costs related to the sale of non-strategic assets, including contract termination costs and asset write-offs. These costs are included as a separate caption on the statements of operations. The following table presents the restructuring costs or recovery recognized during the period:
The following table presents a reconciliation of the beginning and ending restructuring liabilities:
The following table presents the balance sheet classification of restructuring liabilities:
Under the multi-year restructuring plan, the Company incurred total costs of $5,756 related to employee termination and $10,216 related to other actions. No additional costs will be incurred under this plan.
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Commitments and contingencies |
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May 25, 2025 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Legal contingencies In the ordinary course of business, the Company is involved in various legal proceedings and claims. The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least each fiscal quarter and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Legal fees are expensed in the period in which they are incurred. Because recovery of amounts is contingent upon a legal settlement, no amounts have been recorded as recoverable costs through May 25, 2025. Investor dispute On December 23, 2024, 22NW Fund, L.P. (“22NW”), a holder of shares of the Company’s Common Stock and Series A Redeemable Convertible Preferred Stock (see note 11), filed a complaint against the Company, two former officers, and five former or current directors in the Commercial Division of the Supreme Court of the State of New York, New York County. The complaint seeks money damages (including compensatory damages, court costs, and attorneys’ fees) for (i) alleged material misrepresentations by the Company on which 22NW allegedly relied when purchasing shares of the Series A Redeemable Convertible Preferred Stock and Common Stock, (ii) alleged breaches of certain express representations in the stock purchase agreement through which 22NW acquired its shares, and (iii) registration delay fees owed under a registration rights agreement entered into in connection with the issuance of the Series A Redeemable Convertible Preferred Stock. The complaint also seeks the equitable remedy of specific performance under the aforementioned stock purchase agreement, requesting an order compelling the Company to file a proxy statement with the SEC and to hold a stockholder meeting to seek the approval of the removal of the current cap on the conversion of Series A Redeemable Convertible Preferred Stock into Common Stock as set forth in the Certificate of Designations related to the Redeemable Convertible Preferred Stock. On February 24, 2025, the Company filed a motion to dismiss all claims against it except for the claims relating to the registration delay fees. The individual defendants filed separate motions to dismiss the complaint against them in its entirety. Those motions were fully briefed on April 9, 2025. The Court has not scheduled a hearing on the motions or stated whether it will do so. On March 27, 2025, the Court issued a case management order setting forth an initial schedule for discovery, which is ongoing. The Company intends to vigorously defend itself and its former officers and directors in this action. Any potential loss arising from these claims is not currently probable or estimable. The Company has, however, accrued for the registration delay fees sought by 22NW (see note 11). The Company also held a Special Meeting of Stockholders on April 10, 2025, at which time the stockholders approved the removal of the cap on the conversion of Series A Redeemable Convertible Preferred Stock into Common Stock. Class action complaint On July 29, 2024, a putative class action complaint was filed on behalf of stockholders of the Company in the United States District Court of Minnesota against the Company and certain of its named executive officers. The complaint generally alleges that statements made to the Company’s stockholders between October 7, 2020, and March 19, 2024 regarding the Company’s financial results, internal controls, remediation efforts, periodic reporting, and financial prospects were false and misleading in violation of Section 10(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and that the individual defendants are liable for such statements because they are controlling persons under Section 20(a) of the Exchange Act. The complaint seeks compensatory damages, court costs, and attorneys’ fees. On November 15, 2024, the Court appointed co-lead plaintiffs and their respective counsel. The co-lead plaintiffs filed an amended complaint on January 24, 2025 which contained substantially similar allegations and claims as those set forth in the original complaint. The Company filed a motion to dismiss the complaint on March 25, 2025, and the plaintiffs filed their opposition to the motion to dismiss on May 23, 2025. The Company continues to believe that the claims are without merit and intends to vigorously defend against them. Any potential loss arising from this claim is not currently probable or estimable. SEC subpoena On February 16, 2024, the Chicago Regional Office of the SEC issued a subpoena to the Company seeking documents and information concerning the financial statement restatement. The Company is cooperating with the SEC. We cannot predict the duration or outcome of this matter at this time. Landlord complaints On January 12, 2024, the landlord for a property leased by Curation Foods filed a complaint of unlawful detainer against the Company in Santa Barbara County Superior Court, seeking possession of the building and alleging past due rent of approximately $171. On February 29, 2024, Curation Foods surrendered possession of the premises to the landlord. The unlawful detainer action was converted to an ordinary civil action. The landlord filed an amended complaint against both Curation Foods and the Company seeking to recover all rent which will accrue through the expiration of the lease, less any sums landlord collects from a replacement tenant. On March 24, 2025, the parties entered into a settlement agreement and resolved this matter. See note 16. Compliance matters On December 1, 2018, the Company acquired all of the voting interests and substantially all of the assets of Yucatan Foods L.P. (“Yucatan”, collectively the “Yucatan Acquisition”), which owns a guacamole manufacturing plant in Mexico called Procesadora Tanok, S de RL de C.V. (“Tanok”). On October 21, 2019, the Company retained Latham & Watkins, LLP to conduct an internal investigation relating to potential environmental and Foreign Corrupt Practices Act (“FCPA”) compliance matters associated with regulatory permitting at the Tanok facility in Mexico. The Company subsequently voluntarily self-disclosed to the SEC and the U.S. Department of Justice (“DOJ”) the conduct under investigation, and these agencies commenced an investigation. The Company also disclosed the conduct under investigation to the Office of the Attorney General in Mexico, which in December 2021 decided (a) that Curation Foods, did not commit or participate in the criminal conduct disclosed, (b) no criminal action would be taken against Curation Foods, (c) that no criminal liability was established against Tanok and Yucatan after they were acquired by Curation Foods, and (d) the decisions do not apply to any individuals who may be responsible for misconduct. The Company also disclosed the misconduct to other regulators in Mexico. The conduct at issue began prior to the Yucatan Acquisition, and the agreement for the Yucatan Acquisition provides the Company with certain indemnification rights that may allow the Company to recover the cost of a portion of the liabilities that have been and may be incurred by the Company in connection with these compliance matters. On November 16, 2023, the Company and the DOJ executed a letter (“Declination Letter”) in which the DOJ has declined to prosecute the Company for violations of the FCPA involving the Company’s formerly-held subsidiary, Yucatan. Pursuant to the Declination Letter, in connection with the DOJ’s declination to prosecute, in fiscal year 2023 the Company agreed to pay disgorgement in the amount of $407, and to continue to fully cooperate with any ongoing government investigations and any prosecutions that might result in the future. The Company paid the disgorgement amount in full in fiscal year 2024. On September 2, 2020, one of the former owners of Yucatan filed a lawsuit against the Company in Los Angeles County Superior Court for breach of employment agreement, breach of contract, breach of holdback agreement, declaratory relief and accounting, and related claims. The Plaintiff sought over $10,000 in damages, including delivery of shares of his stock held in escrow for the indemnification claims described above. On November 3, 2020, the Company filed an answer and cross-complaint against the Plaintiff and other former equity holders of Yucatan for fraud, indemnification, and other claims, and seeking no less than $80,000 in damages. In fiscal years 2022, 2023 and 2024, the Company reached settlements with several of the cross-defendants, pursuant to which the settling cross-defendants agreed that certain of the shares of stock they received when the Company acquired Yucatan either be sold and the proceeds paid to the Company, or that those shares be released to the Company. The trial for the remaining defendants was severed into two trials by the Court: •The first trial involved claims by and against one defendant only. This trial concluded on October 18, 2024, and final judgment was entered on March 21, 2025, with offsetting verdicts that resulted in a net award in the Company’s favor of $902 against the defendant and an award of recoverable costs of $275 for a total judgment of $1,177. The Company filed a notice of appeal on June 9, 2025 and the Plaintiff filed a notice of cross-appeal on July 1, 2025. •The second trial for the other defendants will involve only the Company’s claims against them, and there are no claims made by those defendants against the Company. That second trial has been stayed by the Court pending a final judgment, including any appeal, in the first trial. •The Plaintiff filed a new complaint seeking over $15,000 in damages and delivery of shares of his stock held in escrow, and served it on the Company on June 30, 2025. The Plaintiff’s new lawsuit arises out of the same allegations as his earlier lawsuit, asserts the same claims, and seeks the same damages. The Company will oppose the new complaint and seek to dismiss on the grounds it is duplicative of the first lawsuit. The ultimate outcome of these or any other investigations, legal actions, or potential claims that may arise from the matters related to the litigation remains uncertain. The Company cannot reasonably predict the timing or outcomes, or estimate the amount of final judgments, or the effect, if any, they may have on its financial statements. Separately, future rulings from the Court will affect pending claims against the severed defendants for indemnification under provisions in the purchase agreement. Because recovery of amounts is still contingent upon the resolution of certain issues, no amounts have been recorded as recoverable costs through May 25, 2025.
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Debt |
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Debt | Debt The following table presents the components of debt:
The following table presents future minimum principal payments:
The following table presents the classification of interest in the consolidated financial statements:
As of May 25, 2025, the Company was in compliance with all financial covenants under the Term Loan Credit Facility and Revolving Credit Facility. Term Loan Credit Facility On May 22, 2023, the Company entered into a Credit and Guaranty Agreement (the “Term Loan Credit Facility”) with Alcon Research, LLC (“Alcon”). The Term Loan Credit Facility refinanced in full all obligations of the Company and their subsidiaries under its prior term loan credit facility. This facility has been amended three times for the purpose of (i) enhancing and clarifying certain reporting requirements; and (ii) most recently on November 26, 2024, to provide limited waivers of potential events of default and permit the Company to retain cash proceeds from the recent sale of the isolator-filler (see note 6). The Company initially made $142,270 of term loan borrowings under the facility. The term loans bear interest at a fixed rate of 10% per annum payable-in-kind until the third anniversary of the closing date, following which interest is payable at a fixed rate of 3% per annum in cash with the remainder payable-in-kind. The Company may elect to pay any amounts of interest in cash instead of in-kind. The obligations under the Term Loan Credit Facility mature on May 22, 2029. Term loan principal generally cannot be repaid prior to the maturity date except as follows: (i) the Company is permitted to make voluntary prepayments beginning May 22, 2028 at a rate of 110%; (ii) Alcon or the Company can require prepayment upon a change in control at a rate of 115%; (iii) Alcon can require prepayment upon uncured material default of its supply agreement with the Company at a rate of 120%; (iv) sales of certain collateral assets, with specific exception, require the Company to prepay the term loans in the amount of proceeds received. The Term Loan Credit Facility contains customary affirmative covenants including, but not limited to, financial reporting requirements and maintenance of existence requirements and negative covenants, including, but not limited to, limitations on the incurrence of debt, liens, investments, restricted payments, restricted debt payments, and affiliate transactions. The Term Loan Credit Facility contains one financial covenant, a minimum liquidity covenant, requiring $4,000 of Consolidated Liquidity (as defined in the Term Loan Credit Facility) as of May 28, 2023 and as of the end of the first, second and third fiscal quarters of 2024 of the Company. During the fourth quarter of fiscal year 2024, the minimum liquidity covenant was increased to $4,500. As of May 25, 2025, the Company’s effective annual interest rate under the Term Loan Credit Facility was 20.9%. Borrowings are guaranteed and secured by substantially all of the Company’s consolidated assets. Pursuant to an intercreditor agreement between Alcon and BMO (as defined below), Alcon is generally entitled to a priority claim with respect to property, plant and equipment, intellectual property and all other collateral to which BMO does not have a priority claim, as described further below. The facility contains customary financial covenants and events of default under which the obligations thereunder could be accelerated and / or the interest rate increased in specified circumstances. Revolving Credit Facility On December 31, 2020, the Company entered into a revolving credit agreement with BMO Harris Bank, N.A. (“BMO,” collectively the “Revolving Credit Facility”). The Revolving Credit Facility has been amended nine times for the purpose of (i) providing limited waivers from historical events of default; (ii) as a result of discontinued operations, reducing the maximum committed amount to its current level of $40,000; (iii) creating an additional $2,500 borrowing tranche beyond the maximum committed amount that must be repaid prior to any other borrowings (the “FILO Tranche”); and (iv) most recently on November 26, 2024, extending the maturity date to November 26, 2027, reducing the applicable interest rates and making certain other changes to the financial and reporting covenants. The Company can make ordinary borrowings under the main tranche of the facility in an amount up to the lesser of (i) the maximum committed amount and (ii) a specified borrowing base calculated as of the end of each month. The monthly borrowing base is determined using specified percentages of qualifying accounts receivable and inventory that serve as collateral under the facility, net of reserves. As of May 25, 2025, the Company's borrowing base was $27,300, and the Company had no ordinary borrowings under this tranche. These borrowings, when outstanding, bear interest based on an average daily SOFR rate plus a spread of 2.50% per annum for a total interest rate of 8.69% as of May 25, 2025. The facility also bears a commitment fee on unused availability of 0.375% per annum. As of May 25, 2025, the Company also had a $2,500 borrowing under the FILO Tranche of the facility. This borrowing bears interest at the same rate as ordinary borrowings as described above. This borrowing was repaid in June 2025 and as a result, this tranche was effectively terminated. The following table presents average borrowings and interest rates for the periods presented:
Borrowings are guaranteed and secured by substantially all of the Company’s consolidated assets. Pursuant to an intercreditor agreement between Alcon and BMO, BMO is generally entitled to a priority claim with respect to cash and cash equivalents, accounts receivable and inventory, subject to certain specific exclusions. The facility contains customary financial covenants and events of default under which the obligations thereunder could be accelerated and / or the interest rate increased in specified circumstances. Leaseback liability with related party On May 22, 2023, the Company entered into an equipment sale and leaseback transaction with Alcon. The sale and leaseback did not meet the requirements for sale-leaseback accounting, which resulted in the creation of a $7,730 leaseback liability representing the Company's total payment obligation under the lease. The lease expires on the earlier of May 22, 2033 or the date on which the Company exercises its option to repurchase the leased equipment, at which time the Company must automatically repurchase the equipment for a nominal amount. During the lease term, the Company is obligated to make quarterly principal payments to Alcon of $193 plus interest at a rate of 6% per annum on the unpaid principal balance. The lease contains terms and provisions that are generally customary for a commercial lease of this nature, including obligations relating to the use, operation and maintenance of the equipment. During the term of the lease, Alcon is not permitted to sell or encumber the equipment. Alcon is only entitled to cancel the lease in the event of insolvency, liquidation or bankruptcy; its remedies for other breaches of the lease are limited to monetary damages.
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Equity |
12 Months Ended |
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May 25, 2025 | |
Equity [Abstract] | |
Equity | Equity Common stock The Company is authorized to issue up to 75,000,000 shares of common stock, $0.001 par value. The Company is generally not permitted to pay cash dividends to common stockholders due to restrictions arising from the Term Loan Credit Facility, the Revolving Credit Facility and the Redeemable Convertible Preferred Stock. On October 3, 2024, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain entities. Pursuant to the Purchase Agreement, the Company agreed to sell an aggregate of 5,928,775 shares of its common stock (the “Shares”) for aggregate gross proceeds of approximately $24,300 (the “Offering”). The purchase price for each Share was $4.10. The Offering closed on October 3, 2024. The issuance costs of $467 were recorded as an offset to the Offering proceeds within additional paid-in capital. The issuance of these common shares triggered an anti-dilution provision of the Redeemable Convertible Preferred Stock, resulting in a $2,132 adjustment to loss attributable to common stockholders. This was determined by the additional 453,117 common shares the Preferred Stockholders could obtain upon conversion as of November 24, 2024, multiplied by the October 3, 2024 Lifecore closing stock price of $4.705 per share. Redeemable Convertible Preferred Stock On January 9, 2023, the Company issued 38,750 shares of Series A Convertible Preferred Stock, par value $0.001 per share, that is in certain cases redeemable at the option of the holder as discussed further below. The Redeemable Convertible Preferred Stock is convertible into shares of Common Stock at the election of the holders of the Redeemable Convertible Preferred Stock. The Redeemable Convertible Preferred Stock ranks senior to the Common Stock with respect to dividends, distributions and payments on liquidation, winding-up and dissolution. The Company recorded Redeemable Convertible Preferred Stock proceeds of $38,750, net of issuance costs of $668. The deduction for issuance costs is being amortized through June 29, 2026 as a charge to additional paid-in capital. Dividends The holders of Redeemable Convertible Preferred Stock are entitled to dividends at a rate of 7.5% per annum, or $75 per share, payable in-kind and compounding quarterly. The holders are also entitled to participate in dividends declared or paid on the Common Stock on an as-converted basis. At May 25, 2025, there were $572 of dividends in arrears that had not yet been paid-in-kind in the form of additional shares of Redeemable Convertible Preferred Stock, representing $12.50 per preferred share. As of May 25, 2025 and May 26, 2024, the aggregate liquidation preference of the Redeemable Convertible Preferred Stock was $46,308 and $42,991, respectively. Conversion Each holder has the right, any time at its option, to convert its Redeemable Convertible Preferred Stock, in whole or in part, into fully paid and non-assessable shares of Common Stock at an initial conversion price equal to $7.00 per share. The conversion price is subject to customary anti-dilution adjustments, including in the event of any stock split, stock dividend, recapitalization or similar events, and is also subject to adjustment in the event of subsequent offerings of Common Stock or convertible securities by the Company for less than the conversion price. The issuance of 5,928,775 shares of Common Stock on October 3, 2024 triggered an adjustment to the conversion price to approximately $6.53 per share. In addition, in April 2025, the Company held a Special Meeting of Stockholders at which stockholders approved the removal of the 19.99% “exchange cap” on the issuance of Common Stock underlying the Redeemable Convertible Preferred Stock. As of May 25, 2025, the Redeemable Convertible Preferred Stock was convertible into 7,000,626 shares of Common Stock. The Company may also elect to convert the Redeemable Convertible Preferred Stock, subject to certain conditions, if, for at least 20 consecutive trading days during the respective measuring period, the Company's closing stock price equals or exceeds $10.50 per share. Redemption The Redeemable Convertible Preferred Stock is redeemable by the holders after the earlier of June 29, 2026 or the termination or waiver of the restriction on cash dividends and/or redemptions that is set forth in the Company’s credit agreements. The redemption price for each share of Redeemable Convertible Preferred Stock is an amount equal to its liquidation preference. Until such date, it is redeemable contingent upon the occurrence of certain events that may be outside of the control of the Company. As a result, the Company has presented the Redeemable Convertible Preferred Stock as temporary equity on the consolidated balance sheets. Voting Each holder is entitled to vote with the holders of the shares of Common Stock on all matters submitted for a vote of holders of shares of Common Stock, with certain limited exceptions. Each holder is entitled to the whole number of votes equal to the number of shares of Common Stock into which such holder’s shares of Redeemable Convertible Preferred Stock would be convertible on the record date for the vote. The holders of the Redeemable Convertible Preferred Stock are also entitled to elect two directors to serve on the Company's board of directors so long as at least 30% of the initial shares of Redeemable Convertible Preferred Stock remain outstanding. Registration rights The holders of the Redeemable Convertible Preferred Stock also entered into a registration rights agreement with the Company. This agreement required the Company to file an initial registration statement covering sufficient shares of Common Stock into which the Redeemable Convertible Preferred Stock may be converted, which the Company filed in 2023. The agreement contains monetary penalties if the Company fails to maintain the effectiveness of that registration statement. The agreement has no specified termination date and no specified maximum amount of penalties. As of May 25, 2025, the Company had accumulated $5,034 of monetary penalties and interest under the registration rights agreement. The penalties accumulated because of delinquent filings of the Company’s annual and quarterly reports with the SEC, which caused the initial registration statement to cease to be effective. In October 2024, the Company completed the necessary SEC filings to regain the effectiveness of the registration statement. This caused monetary penalties to stop accruing. Meanwhile, interest continues to accrue on the penalty amount at a rate of 12% per annum until paid. Penalties are recorded in other expense, net, and interest is recorded in interest expense, net, on the consolidated statements of operations. The Company initially paid $535 of these monetary penalties leaving a remaining accrual for penalties and interest of $4,499 as of May 25, 2025, which is included in accrued expenses and other current liabilities (see note 7).
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Revenue recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue recognition | Revenue recognition The Company disaggregates its revenue based on how it markets its products and services and reviews results of operations. The following table disaggregates revenues by major product lines and services:
The following table disaggregates revenues by the timing of revenue recognition:
During the fiscal year ended May 25, 2025, the Company had revenues concentrations of 10% or greater from three customers, with those customers comprising 44%, 18% and 10% of revenue. During the fiscal year ended May 26, 2024, the Company had revenues concentrations of 10% or greater from three customers, with those customers comprising 39%, 19% and 10% of revenue. Contract assets primarily relate to the Company’s unconditional right to consideration for work completed but not billed at the reporting date. Contract liabilities primarily relate to payments received from customers in advance of performance under a contract. The following table presents changes in contract assets and liabilities:
Cash received in advance of services performed are recorded as deferred revenue.
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Stock-based compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation The Company provides stock-based compensation to its employees under two plans: •The 2019 Stock Incentive Plan became effective on October 16, 2019. This plan provides for the grant of stock options, stock grants, stock units and stock appreciation rights to employees, consultants and directors. Under the plan, no recipient may receive awards during any fiscal year that exceed 500,000 stock options, 250,000 stock grants or stock units, or 500,000 stock appreciation rights, nor may any non-employee director be granted awards in excess of $120. As of May 25, 2025, the Company had 2,030,822 common shares reserved for new awards under the 2019 Stock Incentive Plan. •The Equity Inducement Plan became effective on March 20, 2024. This plan provides for the grant of equity awards to individuals that were not previously employees or directors of the Company as an inducement material to the individual’s entry into employment with the Company. As of May 25, 2025, the Company had 298,387 common shares reserved for new awards under the Equity Inducement Plan. The following table presents information about the fair value of stock-based awards:
The following table presents other information about stock-based awards:
The following table presents information about stock option balances and activity:
The intrinsic values presented in the table above were calculated as the excess, if any, of the market price or closing price of the Company’s Common Stock over the exercise price of the options multiplied by the number of options exercised, outstanding or exercisable, as applicable. The following table presents information about recent RSU and PSU activity:
Stock-based compensation expense The following table summarizes stock-based compensation by income statement line item:
Most of the stock-based compensation expense arises from recent awards to our executive officers and other newly hired employees under the Equity Inducement Plan. Those awards include (i) RSUs that primarily vest on each of the first anniversaries of the grant date; and (ii) PSU awards divided into ten equal tranches that will vest, if at all, based upon closing stock price milestones over a five-year performance period, and to the extent a PSU award tranche vests based on performance, 50% of the shares for each tranche will be issued immediately, and 50% of the shares will be issued on the one-year anniversary of the performance vesting date. As of May 25, 2025, there was $13,865 of total unrecognized compensation expense related to unvested equity compensation awards granted under the Lifecore incentive stock plans. This total expense is expected to be recognized over a weighted-average period of 2.0 years.
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Income taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes All of the Company’s income or loss from continuing operations before income tax is derived from its domestic operating subsidiaries. The following table presents the components of the provision for income taxes from continuing operations:
Income tax expense differs from the amount calculated using the 21% statutory U.S. federal income tax rate as follows:
The following table presents the components of deferred tax assets and liabilities reported in the balance sheets:
The Company continues to maintain a full valuation allowance against its U.S. and state deferred tax assets based on available positive and negative evidence, including historical losses during the most recent three-year period. The Company will re-evaluate the need for a valuation allowance in future periods based on its operating results as a standalone entity. The following table presents the amounts and expiration dates of net operating loss and tax credit carryforwards as of May 25, 2025:
The Federal net operating loss carryforwards presented in the table above include $164,770 with no expiration date. The Company estimated utilization of $2,051 and $3,907 of Federal net operating loss carryforwards and no material state operating loss carryforwards for the fiscal years ended May 25, 2025 and May 26, 2024, respectively. As of May 25, 2025, the total amount of net unrecognized tax benefits is $1,323, of which $1,186, if recognized, would affect the effective tax rate. No interest and penalties have been accrued as of May 25, 2025. The Company has not had, and does not expect to have, any significant increase or decrease to its unrecognized tax benefits within the next twelve months. Due to tax attribute carryforwards, the Company is subject to examination for tax years 2012 forward for U.S. tax purposes. The Company was also subject to examination in various state jurisdictions for tax years 2012 forward. New tax legislation was passed subsequent to year-end, see note 18 for additional information.
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Fair value of financial instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of financial instruments | Fair value of financial instruments Term Loan Credit Facility and debt derivative liability The Term Loan Credit Facility contains various features that meet the definition of an embedded derivative and require bifurcation. These features, which were necessary for the Company to accept in order for Alcon to agree to provide the term loan financing, comprise three options for early prepayment of the term loans at stated premiums above par if certain future events were to occur, as described more fully in note 10. These embedded derivatives were initially recorded at fair value as a noncurrent liability (“debt derivative liability”) offset by a discount to the carrying value of the Term Loan Credit Facility that is being amortized to interest expense over the term of that facility. The debt derivative liability is being subsequently remeasured at fair value every reporting period with changes in fair value recognized as a component of other expense, net. The disclosed fair value of the term loan and the recorded fair value of the debt derivative liability are estimated using a discounted cash flow method (a level 3 measurement) that includes annually weighted probabilities that certain call and put premiums are exercised upon qualifying events of default or changes in control. As of May 25, 2025, the fair value of the term loan, excluding the value of the embedded debt derivative liability, was $132,100 with a carrying value of $115,594; the fair value of the debt derivative liability was $24,991, which was the same as its carrying value. As of May 26, 2024, the fair value of the term loan, excluding the value of the embedded debt derivative liability, was $124,700 with a carrying value of $94,442; the fair value of the debt derivative liability was $25,400, which was the same as its carrying value. The debt derivative liability is currently the only financial instrument recorded at fair value on a recurring basis in the accompanying balance sheets. The following table presents information about those measurements:
The following table presents the rollforward reconciliation of this Level 3 recurring fair value measurement:
The key inputs to the valuation model are (i) the probability and timing of a change in control event occurring over the remaining term of the debt; and (ii) the discount rate, which can be influenced by changes in the risk-free rate, the Company's credit rating and/or as changes in the overall credit market. Factors that can affect the estimate of fair value at each reporting date, and therefore the amount of gain or loss recorded for a particular period, include imprecision in estimating unobservable market inputs and the selection of particular methodologies and assumptions used to determine the fair value. During fiscal year 2024, there were large sequential declines in the probability of a change in control that significantly lowered the fair value of the debt derivative liability. During fiscal year 2025, we increased the probability of a 2028 change in control and lowered the discount rate due to an improvement in the Company's credit rating. Key inputs used to develop the fair value measurement were as follows:
The weighted average discount rate was calculated based on the individual discount rate used for each future payment and weighted by both the present value of the future payments and the probability of each scenario. Cash and Revolving Credit Facility Outstanding cash and outstanding borrowings under the Company's Revolving Credit Facility are carried at cost, which approximates fair value due to their short duration and variable rates of interest (a level 2 measurement). Leaseback liability with related party As discussed further in note 10, the Company maintains a financial liability for an equipment sale and leaseback with Alcon for which control of the asset was deemed not to have transferred. In accordance with U.S. GAAP, we present supplemental fair value information based on market conditions of the underlying financial instrument. The fair value information does not change the stated rate or carrying value of the instrument. The fair value of the leaseback liability was estimated using a discounted cash flow method (a level 3 measurement) that assumes a weighted-average discount rate of 5.8% and 6.3% as of May 25, 2025 and May 26, 2024, respectively. As of May 25, 2025 and May 26, 2024, the fair value of the leaseback liability approximated its carrying value. Customer deposit A significant customer of the Company agreed to provide an upfront cash deposit in order to finance working capital requirements for the duration of its commercial supply agreement with us. The deposit bears no interest and matures upon termination of the commercial supply agreement, which can be extended indefinitely upon mutual agreement of the parties, and was most recently extended in March 2024 for a period of 1.75 years to December 31, 2026. In accordance with U.S. GAAP, we present supplemental fair value information based on market conditions of the underlying financial instrument. The fair value information does not change the stated rate or carrying value of the instrument. The fair value of the deposit is estimated using a discounted cash flow method (a level 3 measurement) that includes assumed discount rates of 6.6% and 7.3% as of May 25, 2025 and May 26, 2024, respectively. The fair value assumes repayment in 1.6 years and 2.6 years as of May 25, 2025 and May 26, 2024, respectively, which was the remaining contractual term of the agreement as of each measurement date. As of May 25, 2025 and May 26, 2024, the fair value of the deposit approximated its carrying value. Conversion ratio improvement provided to preferred stockholders During the three months ended November 24, 2024, we performed a non-recurring fair value measurement to record the value of a conversion ratio improvement provided to preferred stockholders as a result of the October 3, 2024 Securities Purchase Agreement referenced in note 11. The fair value of the conversion feature was recorded as $2,132 adjustment to loss attributable to common stockholders. The fair value was calculated using an as-converted method based on the contractual conversion ratio of the preferred shares and the closing price of our Common Stock, a level 1 measurement. The weighted average discount rate was calculated based on the individual discount rate used for each future payment and weighted by both the present value of the future payments and the probability of each scenario.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Substantially all current lease activity comes from two active facilities near the Company’s owned headquarters facility in Chaska, Minnesota. Additionally, an operating lease liability for the abandoned headquarters of the Curation Foods business in Santa Maria, California was settled with the landlord in the March 2025 for a gain of $2,642. None of the Company’s other leases are material to the periods presented. In January 2016, a lease commenced for the Company’s warehouse and final packaging building in Chaska, Minnesota. The lease has since been amended twice to accomplish the following: (i) to extend the term of the lease to September 2034, (ii) to add a buyout option equal to the balance of the lessor’s mortgage loan, valued at $3,100 as of May 25, 2025; and (iii) to provide a $2,400 cash payment to the Company in fiscal year 2024 in exchange for an increased rent payment schedule and an updated purchase option. The lease is classified as a finance lease and has a discount rate of 9%, which was the Company’s incremental borrowing rate at the time of the most recent amendment to the lease in August 2024. In January 2021, a lease commenced for the Company’s warehouse and office space in Chanhassen, Minnesota. The lease term extends through March 2033. The lease is classified as an operating lease and has a discount rate of 3%, which was the Company’s incremental borrowing rate at lease inception. The components of lease cost were as follows:
The Company’s maturity analysis of operating and finance lease liabilities as of May 25, 2025 are as follows:
Supplemental cash flow information related to leases are as follows:
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Leases | Leases Substantially all current lease activity comes from two active facilities near the Company’s owned headquarters facility in Chaska, Minnesota. Additionally, an operating lease liability for the abandoned headquarters of the Curation Foods business in Santa Maria, California was settled with the landlord in the March 2025 for a gain of $2,642. None of the Company’s other leases are material to the periods presented. In January 2016, a lease commenced for the Company’s warehouse and final packaging building in Chaska, Minnesota. The lease has since been amended twice to accomplish the following: (i) to extend the term of the lease to September 2034, (ii) to add a buyout option equal to the balance of the lessor’s mortgage loan, valued at $3,100 as of May 25, 2025; and (iii) to provide a $2,400 cash payment to the Company in fiscal year 2024 in exchange for an increased rent payment schedule and an updated purchase option. The lease is classified as a finance lease and has a discount rate of 9%, which was the Company’s incremental borrowing rate at the time of the most recent amendment to the lease in August 2024. In January 2021, a lease commenced for the Company’s warehouse and office space in Chanhassen, Minnesota. The lease term extends through March 2033. The lease is classified as an operating lease and has a discount rate of 3%, which was the Company’s incremental borrowing rate at lease inception. The components of lease cost were as follows:
The Company’s maturity analysis of operating and finance lease liabilities as of May 25, 2025 are as follows:
Supplemental cash flow information related to leases are as follows:
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Related party transactions |
12 Months Ended |
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May 25, 2025 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Alcon has been and continues to be one of the Company's largest customers, comprising 44% and 39% of its revenues for the fiscal years ended May 25, 2025 and May 26, 2024, respectively. On May 22, 2023, Alcon entered into the Term Loan Credit Facility with the Company as described in note 10. This relationship as the Company's largest creditor, combined with its position as one of the Company's largest customers, caused management to conclude that Alcon has the ability to exert significant influence over the Company and therefore meets the definition of a related party beginning in May 2023. Alcon’s transactions with the Company are as follows: •Customary current financial positions for a customer of Alcon's size, including accounts receivable, contract assets, contract liabilities and revenue, each as presented in the consolidated balance sheets and statements of operations. Alcon has provided the Company guaranteed contractual minimum purchasing commitments through 2031, and the Company is required to maintain certain manufacturing capacity levels through 2033; •Cash advances Alcon provided to the Company to purchase and install Alcon-owned equipment on the Company's premises totaling $307 and $1,207 at May 25, 2025 and May 26, 2024, respectively; •A significant individual prepayment that Alcon made to the Company in the fourth quarter of fiscal year 2024 of $5,500. The prepayment was accounted for as a contract liability, initially recorded at present value due to the existence of a significant financing component, and now being accreted to its settlement value via charges to interest expense, related party. This contract liability will be settled beginning January 2026 by issuing twelve monthly credit memos to Alcon totaling $5,500. The contract liability is classified on the balance sheet as a current portion of $2,731 and a noncurrent portion of $2,768, which is included in other liabilities on the balance sheet; •Proceeds of $142,270 from term loans issued in May 2023 that were used to repay prior borrowings. The term loan principal plus accrued interest has grown to $173,508 through May 25, 2025 as a result of 10% interest paid-in-kind. See note 10 for additional information; and •Alcon purchased equipment in May 2023 for $7,730 that it is leasing back to the Company in exchange for quarterly payments over a ten-year period. Payments to Alcon under the lease were $1,185 and $970 for the fiscal year ended May 25, 2025 and May 26, 2024. See note 10 for additional information. •Interest expense incurred from the Alcon borrowings noted above was $18,879 and $14,662 for the years ended May 25, 2025 and May 26, 2024, respectively. Included in those amounts was non-cash interest expense of $18,473 and $14,186 for the years ended May 25, 2025 and May 26, 2024, respectively. •A contract asset for $110 as of May 25, 2025 for the recognition of revenue as the result of performance obligations satisfied
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Subsequent events |
12 Months Ended |
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May 25, 2025 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events The One, Big, Beautiful Bill Act (the “Act”) was signed into law in July 2025. The Act contains significant tax law changes with various effective dates affecting business taxpayers, including a permanent extension of the 21% flat corporate income tax rate which was previously set to expire after 2025. Among the other tax law changes that will impact the Company relate to the timing of certain tax deductions including depreciation expense, research and development expenditures and interest expense. The Company will implement the tax law changes for its next quarterly report for the period ending September 30, 2025. The Company is still evaluating the potential impact of this new law. On August 1, 2025, the Company’s Board of Directors approved a change in the Company’s fiscal year from 52- or 53-week periods that end on the last Sunday of May to calendar years ending on December 31. The Company will report its financial results for a transition period from May 26, 2025 to December 31, 2025 on a Transition Report on Form 10-K/T. Thereafter, the Company plans to file annual reports for twelve-month periods ending December 31 beginning with the year ending December 31, 2026. Prior to filing the transition report, the Company will file a Quarterly Report on Form 10-Q for the quarter ending September 30, 2025.
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Insider Trading Arrangements |
3 Months Ended |
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May 25, 2025 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Procedures |
12 Months Ended |
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May 25, 2025 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
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May 25, 2025 | |
Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | Cybersecurity risk management and strategy We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan. We design and assess our program based on the National Institute of Standards and Technology Cybersecurity Framework (the “NIST CSF”). This does not imply that we meet any particular technical standards, specifications, or requirements, only that we use the NIST CSF as a guide to help us identify, assess, and manage cybersecurity risks relevant to our business. Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas. Our cybersecurity risk management program includes: •risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise information technology environment; •development of a multi-year cybersecurity roadmap and prioritization rubric based on risk; •a contracted third-party security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, (3) our response to cybersecurity incidents and (4) actively monitoring for threats; •the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls; •cybersecurity awareness training of our employees, incident response personnel, and senior management; •a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and •a third-party risk management process for service providers, suppliers, and vendors. We have not identified risks from known cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to materially affect us, including our operations, business strategy, results of operations, or financial condition.
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Cybersecurity Risk Management Processes Integrated [Flag] | true |
Cybersecurity Risk Management Processes Integrated [Text Block] | Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes that apply across the enterprise risk management program to other legal, compliance, strategic, operational, and financial risk areas.
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Cybersecurity Risk Management Third Party Engaged [Flag] | true |
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false |
Cybersecurity Risk Board of Directors Oversight [Text Block] | Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program. The Committee receives periodic reports from management on our cybersecurity risks, including reports of external service providers relating to testing. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential. The Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from our Senior Vice President of Information Technology, leveraging information and analysis from external experts as part of the Board’s continuing education on topics that impact public companies.
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Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | Our Board considers cybersecurity risk as part of its risk oversight function and has delegated to the Audit Committee (the “Committee”) oversight of cybersecurity and other information technology risks. The Committee oversees management’s implementation of our cybersecurity risk management program. |
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | The Committee receives periodic reports from management on our cybersecurity risks, including reports of external service providers relating to testing. In addition, management updates the Committee, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential. |
Cybersecurity Risk Role of Management [Text Block] | The Senior Vice President of Information Technology leads an internal team that is responsible for assessing and managing our material risks from cybersecurity threats. The Information Technology team has primary responsibility for our overall cybersecurity risk management program and engages our retained external cybersecurity consultants as needed. The Information Technology team has also developed incident response playbooks that would be put into effect in the event of a Cyber Security incident and have exercised these playbooks in tabletop exercises with our external Cyber Security experts. The Senior Vice President of Information Technology has 25+ years of information management, governance, architecture and security controls management at Lifecore and other Fortune 500 organizations. Our Information Technology team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means, which may include briefings from external security personnel; threat intelligence and other information obtained from governmental, public or private sources, including external consultants engaged by us; and alerts and reports produced by security tools deployed in the information technology environment.
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Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | The Senior Vice President of Information Technology leads an internal team that is responsible for assessing and managing our material risks from cybersecurity threats. The Information Technology team has primary responsibility for our overall cybersecurity risk management program and engages our retained external cybersecurity consultants as needed. |
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | The Senior Vice President of Information Technology has 25+ years of information management, governance, architecture and security controls management at Lifecore and other Fortune 500 organizations. |
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | The Committee reports to the full Board regarding its activities, including those related to cybersecurity. The full Board also receives briefings from management on our cyber risk management program. Board members receive presentations on cybersecurity topics from our Senior Vice President of Information Technology, leveraging information and analysis from external experts as part of the Board’s continuing education on topics that impact public companies.
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Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
Organization, basis of presentation, and summary of significant accounting policies (Policies) |
12 Months Ended |
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May 25, 2025 | |
Accounting Policies [Abstract] | |
Fiscal period | The Company’s fiscal year was the 52- or 53-week period that ended on the last Sunday of May. Quarters within each fiscal year ended on the last Sunday of August, November, and February. In instances where the last Sunday resulted in a quarter being twelve weeks in length, the Company’s policy was to extend that quarter to the following Sunday. A fourteenth week was included in the fiscal year every five or six years to realign the Company’s fiscal quarters with calendar quarters.
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Reclassification | Certain prior period amounts in the balance sheet, the statement of cash flows and the notes to the financial statements have been reclassified to conform to the current period presentation.
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Basis of consolidation | Basis of consolidation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All intercompany accounts and transactions have been eliminated.
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Use of estimates | Use of estimates The preparation of financial statements and the notes to the financial statements in accordance with U.S. GAAP requires management to make estimates and judgments that affect the amounts reported. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition; recognition and measurement of current and deferred income tax assets and liabilities; the net realizable value of inventories; the valuation and recognition of stock-based compensation; and the valuation of the debt derivative liability. Actual results may differ from management’s estimates.
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Discontinued operations | Discontinued operations The Company previously operated a food business through its wholly-owned subsidiary, Curation Foods, Inc. (“Curation Foods”). The Company completed the sale or disposition of all Curation Foods subsidiaries during the fiscal year ended May 26, 2024. Upon completion of the dispositions, it ceased to operate the Curation Foods business. Interest and income tax expense were not allocated to discontinued operations due to their immateriality. During the fiscal year ended May 26, 2024, the Company reached settlement agreements related to the Curation Foods business that resulted in the receipt of cash payments totaling $2,682, which were recognized as income from discontinued operations in the fiscal year ended May 26, 2024. The $2,682 cash received is included in net cash from operating activities on the consolidated statements of cash flows.
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Income or loss per share | Income or loss per share Net loss per common share is computed using the two-class method required due to the participating nature of the Series A Convertible Preferred Stock, which is redeemable under certain circumstances either by the Company or by the holder thereof (the “Redeemable Convertible Preferred Stock”) (see note 11) given the rights to participate in dividends if declared on common stock. The two-class method is an earnings allocation formula that treats participating securities as having rights to earnings that would otherwise have been available to common stockholders. In addition, as these securities are participating securities, the Company is required to calculate diluted net income or loss per share under the if-converted and treasury stock method in addition to the two-class method and utilize the most dilutive result. In periods where there is a net loss, no allocation of undistributed net loss to the Series A Convertible Preferred stockholders is performed as the holders of these securities are not contractually obligated to participate in the Company’s losses. Basic income or loss per share is computed using the weighted average number of common shares outstanding during the reporting period. Diluted income or loss per share reflects the potential dilution as if securities or other contracts to issue the Company’s common stock, par value $0.001 per share (“Common Stock”) were exercised or converted into Common Stock. The Company’s diluted common equivalent shares consist of Redeemable Convertible Preferred Stock, stock options, restricted stock units (“RSUs”) and performance share units (“PSUs”). Dilution related to stock options, RSUs and PSUs is calculated using the treasury stock method, which includes the assumed repurchase of common shares from cash received upon stock option exercises, and unrecognized compensation expense. The potential dilutive effect of the Redeemable Convertible Preferred Stock is calculated using the if-converted method assuming the conversion as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive.
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Reportable segments | Reportable segments The Company’s Chief Operating Decision Maker (“CODM”), the President and Chief Executive Officer, manages CDMO and HA (defined below) manufacturing operations on the basis of a single, integrated segment. The CODM's review of financial results includes the consolidated financial statements of the Company, which the Company used to aid its determination that net income or loss is the measure of single-segment performance. Asset information is not separately identified nor internally reported to the Company’s CODM. Entity-wide disclosures of revenue by geographic area are presented based on the customer location.
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Concentrations of risk | Concentrations of risk Cash, accounts receivable and a note receivable are financial assets that potentially subject the Company to concentrations of credit risk. Company policy limits, among other things, the amount of credit exposure to any one issuer and to any one type of investment, other than securities issued or guaranteed by the U.S. government. The Company maintains cash in U.S. bank accounts, the balances of which generally exceeds the federally insured limit. A significant portion of accounts receivable is concentrated with a few large customers as described further in note 4. The note receivable was paid in June 2025.
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Cash and cash equivalents | Cash and cash equivalents The Company records all highly liquid securities with original maturities of three months or less when acquired as cash equivalents. Cash equivalents consist mainly of money market funds. The market value of cash equivalents approximates their historical cost given their short-term nature.
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Accounts receivable, net of allowance for credit losses | Accounts receivable, net of allowance for credit losses Accounts receivable generally represent amounts billed for services provided under customer contracts and are recorded at the invoiced amount net of an allowance for credit losses, if necessary. Management applies judgment in assessing the ultimate realization of our receivables, and estimates an allowance for credit losses based on various factors, such as the aging of our receivables, historical collection experience, current and future economic market conditions, and the financial condition of our customers.
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Inventory | Inventory Inventory consists of raw materials, work in process and finished goods related to sterile injectable pharmaceutical products in syringes, vials and cartridges. This includes premium, pharmaceutical-grade hyaluronic acid (“HA”) in bulk form as well as formulated and filled syringes, vials and cartridges for injectable products. Inventory is stated at the lower of cost (using the first-in, first-out method) or net realizable value. Work in process and finished goods cost includes the purchase price of applied raw materials, direct labor costs and allocated overhead primarily in the form of indirect labor and property, plant and equipment costs. Adjustments to inventory are determined at the raw materials, work-in-process, and finished goods levels to reflect obsolescence or impaired balances. Factors influencing inventory obsolescence include changes in demand, product life cycle, product pricing, physical deterioration, and quality concerns.
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Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired by the Company in a business combination. Goodwill is not amortized but assessed for impairment on an annual basis or more frequently if impairment indicators exist. The impairment analysis for goodwill consists of an optional qualitative assessment, potentially followed by a quantitative analysis. If the Company determines that the carrying value of its reporting unit exceeds its fair value, an impairment charge is recorded for the excess. The Company performs its annual goodwill impairment test in the fiscal fourth quarter, or whenever an event or change in circumstances occurs that would require a reassessment of the impairment of goodwill. In performing the evaluation, the Company assesses qualitative factors such as overall financial performance, actual and anticipated changes in industry and market conditions, and competitive environments. As a result of the most recent annual goodwill impairment test, the Company determined that there was no impairment of goodwill. Definite-lived intangible assets are amortized on a straight-line basis over their estimated useful life. The Company is required to review the carrying value of intangible assets for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable.
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Property, plant and equipment, net | Property, plant and equipment, net Property, plant and equipment are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are as follows: to ten years for furniture and fixtures; to ten years for computer equipment; to twenty-five years for machinery and equipment; to forty years for buildings and building improvements; and the shorter of the lease term or useful life for leasehold improvements. Repairs and maintenance costs are expensed as incurred. Depreciation and amortization expense for these assets is recorded either in cost of goods sold or selling, general and administrative expenses in the consolidated statements of operations, depending on the asset and its intended use. The Company capitalizes interest on construction in process projects. To determine the capitalization rate, management uses judgment with the objective of achieving a reasonable measure of the cost of financing those projects that theoretically could have been avoided if funding for the project had instead been used to repay debt. The Company reviews the carrying value of property and equipment for recoverability whenever events occur or changes in circumstances indicate that the carrying amount of individual assets or asset groups may not be recoverable. The Company conducts a quarterly review to determine if construction in process activities have gone idle and, if so, ceases to capitalize interest on idle projects. The Company capitalizes software development costs for internal use. Capitalization of software development costs begins in the application development stage and ends when the asset is placed into service. The Company depreciates such costs on a straight-line basis over estimated useful lives of to seven years, and the depreciation expense is recorded either in cost of goods sold or selling, general and administrative expenses in the consolidated statements of operations, depending on the asset and its intended use.
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Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets or asset groups are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. Recoverability of assets or asset groups is measured by comparison of the carrying amount of the asset to the net undiscounted future cash flow expected to be generated from the asset or asset group. If the future undiscounted cash flows are not sufficient to recover the carrying value of the assets or asset group, its carrying value is adjusted to fair value. The Company regularly evaluates its long-lived assets for indicators of possible impairment.
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Debt | Debt The Company capitalizes debt issuance costs related to term debt as an offset to the carrying value of the debt and amortizes these costs over the term of the agreement using the effective interest method. The Company capitalizes debt issuance costs related to revolving credit lines as other assets on the balance sheet and amortizes the costs over the life of the credit line using the straight-line method, as the effective interest method cannot be applied to the variable borrowings under these instruments. Amortization of deferred issuance costs is included as a component of interest expense in the consolidated statements of operations.
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Revenue recognition | Revenue recognition The Company follows a five-step, principles-based model to recognize revenue upon the transfer of promised goods or services to customers at an amount that reflects the consideration for which the Company expects to be entitled in exchange for those goods or services. Revenue is recognized when or as the Company satisfies its performance obligations under a contract and control of the product is transferred to the customer. Standard terms of sale are generally included in contracts and purchase orders. Lifecore’s standard payment terms with its customers generally range from 30 days to 60 days. The following sections provide additional details about the Company’s revenue recognition policies: CDMO Lifecore provides aseptic formulation and filling of syringes, vials and cartridges for injectable products used for medical purposes. In instances where the customer contracts with the Company for aseptic filling, the filled goods are distinct in the context of the contract. Lifecore generally recognizes revenue for these products at the point in time when the product is released through the completion of the certificate of analysis. Lifecore provides product development services to assist its customers in obtaining regulatory approval for the commercial sale of their device or drug product. These services include analytical method development and validation, formulation development, sterile filtration, process scale-up, pilot studies, stability studies, process validation and production of materials for clinical studies. The promised services are not individually distinct in the context of the contract; rather, they are highly interdependent such that Lifecore would not be able to fulfill its promise by transferring any of the goods or services independently. Revenues generated from product development services are recognized over time, as Lifecore is creating an asset unique to each customer without alternative use and has an enforceable right to payment, including a reasonable profit margin, for performance completed to-date. The Company determined that labor hours, the primary input to such arrangements, are the best and most accurate measure of progress and measures that progress as a proportion of total estimated hours for an individual arrangement. HA manufacturing Lifecore manufactures and sells pharmaceutical-grade, non-animal-sourced hyaluronic acid (“HA”) using our proprietary, fermentation-based HA process in bulk form as well as for use in formulated and filled syringes and vials for customers’ injectable products used in treating a broad spectrum of medical conditions and procedures. The HA produced is distinct as customers are able to utilize the product provided under HA supply contracts when they obtain control. Lifecore recognizes revenue for these products at the point in time when legal title to the product is transferred to the customer, which is at the time shipment is made. Other revenue policies Revenue for bill-and-hold arrangements is recognized when control transfers to the customer, even though the customer does not have physical possession of the goods. Control transfers when the bill-and-hold arrangement has been determined to have substantive reason, the product is identified as belonging to the customer, the product is ready for physical transfer to the customer and the product cannot be used or directed to another customer. The Company accounts for shipping and handling as fulfillment activities, and not as a separate performance obligation. Shipping and other transportation costs charged to customers are recorded in both revenue and cost of goods sold. Amounts billed to third-party customers for shipping and handling are included as a component of revenues. Shipping and handling costs incurred are included as a component of cost of products sold.
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Defined contribution plan | Defined contribution plan The Company sponsors a defined contribution 401(k) plan which is available to all full-time Lifecore employees and allows participants to contribute from 1% to 50% of their salaries, up to the Internal Revenue Service limitation into designated investment funds. The Company matches 100% on the first 3% and 50% on the next 2% contributed by an employee. Employee and Company contributions are fully vested at the time of the contributions. The Company retains the right, by action of the Board of Directors, to amend, modify, or terminate the plan.
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Stock-based compensation | Stock-based compensation The Company issues stock-based awards to employees and non-employee directors in the form of stock options, RSUs and PSUs. The Company recognizes compensation expense for stock options and RSUs awards based on their estimated fair value on the date of grant on a straight-line basis over the vesting period of the award. The Company recognizes compensation expense for PSUs over the requisite service period, which is generally the vesting period of the award. The Company accounts for forfeitures as they occur. Stock options are exercisable generally for a period of seven years from the date of grant and generally vest over four years. RSUs generally vest in to three years. All vesting is subject to continued service. The grant date fair value of stock options is estimated using the Black-Scholes option pricing model which relies upon management’s estimates and assumptions of the expected stock price volatility, the life of the award and the risk-free interest rate. The Company estimates volatility using the historical share price performance over the expected life of the option. RSUs are valued at the closing market price of the Common Stock on the date of grant. PSUs are valued on the grant date through the use of a Monte Carlo simulation model which relies upon management’s estimates and assumptions of the expected stock price volatility, the life of the award and the risk-free interest rate. The Company estimates volatility using the historical share price performance over the expected life of the award.
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Income taxes | Income taxes The Company measures deferred tax assets and liabilities using enacted tax rates for the effect of temporary differences between the book and tax bases of recorded assets and liabilities. The Company maintains valuation allowances when it is likely that all or a portion of a deferred tax asset will not be realized. Changes in valuation allowances from period to period are included in the Company’s income tax provision in the period of change. In determining whether a valuation allowance is warranted, the Company considers such factors as prior earnings history, expected future earnings, unsettled circumstances that, if unfavorably resolved, would adversely affect utilization of a deferred tax asset, carryback and carryforward periods and tax strategies that could potentially enhance the likelihood of realization of a deferred tax asset. In addition to valuation allowances, the Company establishes accruals for uncertain tax positions. The tax-contingency accruals are adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law and emerging legislation. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. The Company’s effective tax rate includes the impact of tax-contingency accruals as considered appropriate by management. A number of years may elapse before a particular matter, for which the Company has accrued, is audited and finally resolved. The number of years with open tax audits varies by jurisdiction. While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, the Company believes its tax-contingency accruals are adequate to address known tax contingencies. Favorable resolution of such matters could be recognized as a reduction to the Company’s effective tax rate in the year of resolution. Unfavorable settlement of any particular issue could increase the Company’s effective tax rate in the year of resolution. Any resolution of a tax issue may require the use of cash in the year of resolution. The Company’s tax-contingency accruals are recorded in other accrued liabilities in the accompanying consolidated balance sheets.
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Derivative financial instruments | Derivative financial instruments The Company accounts for put and call options embedded in the term debt in accordance with U.S. GAAP, which generally requires companies to bifurcate put and call options embedded in the Term Loan Credit Facility (as defined in note 10) from their host instruments and to account for them as free standing derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument that is required to be bifurcated, the bifurcated derivative instruments are accounted for as separate derivative instruments. The fair value of the embedded features are accounted for as a derivative debt liability in the Company’s consolidated balance sheets and adjusted to fair value each reporting period. The change in fair value of derivatives is recorded as a component of other income (expense) in the Company’s consolidated statements of operations.
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Fair value measurements | Fair value measurements The Company uses fair value measurement accounting for financial assets and liabilities and for financial instruments and certain other items measured at fair value. The Company has not elected the fair value option for any of its other eligible financial assets or liabilities. Applicable accounting guidance establishes a three-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows: •Level 1 – observable inputs such as quoted prices for identical instruments in active markets. •Level 2 – inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data. •Level 3 – unobservable inputs in which there is little or no market data, which would require the Company to develop its own assumptions.
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Leases | Leases The Company determines if an arrangement is a lease at inception. The arrangement is a lease if it conveys the right to the Company to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Right-of-use assets are measured at cost and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As most of the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is a quoted rate based on the understanding of what the Company’s credit rating would be. Options to extend the lease are included in the lease term if the options are reasonably certain to be exercised. The Company’s lease agreements do not contain any material residual value guarantees. The Company’s lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. The Company combines fixed payments for non-lease components with lease payments and accounts for them together as a single lease component which increases the amount of lease assets and liabilities. Payments under lease arrangements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and are not included in the operating lease assets and liabilities. These amounts primarily include payments affected by changes in price indices. In a sale-leaseback transaction, the Company determines if it relinquished control of the assets to the buyer-lessor. If control is not relinquished, it does not derecognize the asset and does not apply the lease accounting model. Operating lease assets are included in other assets and operating lease liabilities are presented in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheets. Finance lease assets are included in property, plant and equipment and finance lease liabilities are classified as debt.
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Related party transaction | Related party transactions For each material transaction with a related party, the Company discloses the nature of the relationship, a description of the transactions, and the amounts due to or from the related party as required by U.S. GAAP.
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Recent accounting pronouncements | Recent accounting pronouncements In November 2023, accounting standards update 2023-07 was issued to enhance disclosure of significant expenses that are regularly provided to the chief operating decision maker and are included with each reported measure of segment profit and loss. The update also specifies that companies with a single reportable segment are subject to this standard. The update became effective for this annual reporting period ended May 25, 2025 and was applied retrospectively to all periods presented. There was no impact on the Company’s reportable segments identified, and additional required disclosures have been included in notes 1 and 3. In December 2023, accounting standards update 2023-09 was issued to improve income tax disclosures. This update includes disclosure of disaggregated information about both the effective tax rate reconciliation and income taxes paid. This update is effective for annual periods beginning after December 15, 2024, which will be for our transition period ending December 31, 2025, with early adoption permitted. The amendments in this update may be applied prospectively or retrospectively. Management is currently evaluating the impact that the adoption of this update will have on its financial statements. In November 2024, accounting standards update 2024-03 was issued to require more detailed disclosures related to certain costs and expenses. The guidance requires entities to disclose amounts of certain expense categories included in expense captions presented on the face of the income statement, including purchases of inventory, employee compensation, depreciation, and intangible asset amortization. ASU 2024-03, as clarified by ASU 2025-01, is effective for public entities for annual periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Management is currently evaluating the impact that the adoption of this update will have on its financial statements. In July 2025, accounting standards update 2025-05 was issued to improve the measurement of credit losses for accounts receivable and contract assets. The guidance provides a practical expedient for all entities to assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the assets. The update aims to reduce the cost and complexity of estimating credit losses while maintaining decision-useful information for financial statement users. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025. Management is currently evaluating the impact that the adoption of this update may have on its financial statements. Management has evaluated recently issued accounting pronouncements outside of those mentioned above and does not believe that any of these pronouncements will have a significant impact on the Company’s consolidated financial statements and related disclosures.
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Organization, basis of presentation, and summary of significant accounting policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Cash Flow Information | The following table presents supplemental cash flow information:
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Income or loss per share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Diluted Net Income Per Share | The following table presents the reconciliation of weighted average shares used in the computation of basic and diluted income or loss per share:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Due to the Company’s net loss for the fiscal year ended May 25, 2025, the diluted loss per share is calculated using only the basic weighted average common shares outstanding and thus excludes the following securities on an as-converted basis as of May 25, 2025.
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Segment reporting for single reportable segment (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Profit or Loss | The following table presents the components of net income or loss, which is the measure of profit or loss used for our single reportable segment:
(1)Includes all wages and salary, bonus, employer taxes, and employee benefit plan expenses (2)Represents cost of goods sold, excluding direct labor and all personnel cost and depreciation allocations (3)Includes expenses for accounting, legal and other professional services, software licensing, insurance costs, public company costs and board fees.
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Accounts and note receivable (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Changes in the allowance for credit losses related to accounts receivable are as follows:
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Inventory (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following:
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Property, plant, and equipment, net (Tables) |
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Schedule of Property, Plant and Equipment | The following table presents the components of property, plant and equipment:
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Accrued expenses and other current liabilities (Tables) |
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Schedule of Components of Accrued Expenses and Other Current Liabilities | The following table presents the components of accrued expenses and other current liabilities:
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Restructuring costs (Tables) |
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May 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following table presents the restructuring costs or recovery recognized during the period:
The following table presents a reconciliation of the beginning and ending restructuring liabilities:
The following table presents the balance sheet classification of restructuring liabilities:
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following table presents the components of debt:
The following table presents the classification of interest in the consolidated financial statements:
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Schedule of Maturities of Long-term Debt | The following table presents future minimum principal payments:
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Schedule of Line of Credit Facilities Average Borrowings and Interest Rates | The following table presents average borrowings and interest rates for the periods presented:
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Revenue recognition (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | The following table disaggregates revenues by major product lines and services:
The following table disaggregates revenues by the timing of revenue recognition:
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Schedule of Contract Assets and Liabilities | The following table presents changes in contract assets and liabilities:
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Stock-based compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Weighted Average Assumptions | The following table presents information about the fair value of stock-based awards:
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Schedule of Other Information about Stock-Based Awards | The following table presents other information about stock-based awards:
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Summary of Stock Option Activity | The following table presents information about stock option balances and activity:
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Summary of Stock-based Compensation Activity | The following table presents information about recent RSU and PSU activity:
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Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The following table summarizes stock-based compensation by income statement line item:
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Income taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Benefits and Provisions for Income Taxes | The following table presents the components of the provision for income taxes from continuing operations:
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Schedule of Provision (Benefit) for Income Taxes | Income tax expense differs from the amount calculated using the 21% statutory U.S. federal income tax rate as follows:
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Schedule of Deferred Tax Assets and Liabilities | The following table presents the components of deferred tax assets and liabilities reported in the balance sheets:
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Summary of Operating Loss and Tax Credit Carryforwards | The following table presents the amounts and expiration dates of net operating loss and tax credit carryforwards as of May 25, 2025:
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Fair value of financial instruments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets and Liabilities | The debt derivative liability is currently the only financial instrument recorded at fair value on a recurring basis in the accompanying balance sheets. The following table presents information about those measurements:
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Schedule of Fair Value Reconciliation of Level 3 | The following table presents the rollforward reconciliation of this Level 3 recurring fair value measurement:
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Schedule of Derivative Liabilities Assumptions | Key inputs used to develop the fair value measurement were as follows:
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 25, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Lease Cost and Supplemental Cash Flow Information | The components of lease cost were as follows:
Supplemental cash flow information related to leases are as follows:
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Schedule of Maturity Analysis of Operating Lease Liability | The Company’s maturity analysis of operating and finance lease liabilities as of May 25, 2025 are as follows:
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Schedule of Maturity Analysis of Finance Lease Liability | The Company’s maturity analysis of operating and finance lease liabilities as of May 25, 2025 are as follows:
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Organization, basis of presentation, and summary of significant accounting policies - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Accounting Policies [Abstract] | ||
Cash paid for income taxes, net | $ 46 | $ 72 |
Cash paid for interest | 1,907 | 2,730 |
Non-cash investing and financing activities: | ||
Purchases of property, plant, and equipment in accounts payable | 1,539 | 7,858 |
Non-cash portion of sale of property, plant and equipment via note receivable | 9,590 | 0 |
Increases to property, plant and equipment from finance leases | 2,737 | 0 |
Capitalization of non-cash interest to property, plant, and equipment | 3,049 | 3,150 |
Dividends paid-in-kind on Redeemable Convertible Preferred Stock | $ 3,318 | $ 3,078 |
Income or loss per share - Schedule of Basic and Diluted Earnings per Share (Details) - shares |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
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Earnings Per Share [Abstract] | ||
Weighted average shares for basic income or loss per share (in shares) | 34,818,906 | 30,474,298 |
Redeemable convertible preferred stock (in shares) | 0 | 5,846,612 |
Stock options, RSUs and PSUs (in shares) | 0 | 337,276 |
Weighted average shares for diluted income or loss per share (in shares) | 34,818,906 | 36,658,186 |
Segment reporting for single reportable segment - Narrative (Details) - Revenues - Geographic concentration risk |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
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United States | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 60.00% | 65.00% |
Belgium | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 20.00% | 10.00% |
Netherlands | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 5.00% |
All other countries | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 10.00% | 20.00% |
Accounts and note receivable - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
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Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 711 | $ 485 |
Provision | 658 | 263 |
Charge-offs | (18) | (37) |
Ending balance | $ 1,351 | $ 711 |
Inventory (Details) - USD ($) $ in Thousands |
May 25, 2025 |
May 26, 2024 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 13,379 | $ 14,924 |
Raw materials | 10,169 | 13,140 |
Work in process | 8,743 | 11,915 |
Inventory | $ 32,291 | $ 39,979 |
Accrued expenses and other current liabilities (Details) - USD ($) $ in Thousands |
May 25, 2025 |
May 26, 2024 |
---|---|---|
Supplier Finance Program [Line Items] | ||
Accrued compensation | $ 6,144 | $ 6,165 |
Accrued payable to Redeemable Convertible Preferred Stock holders | 4,499 | 3,471 |
Contract liabilities | 3,415 | 2,113 |
Current portion of debt | 3,437 | 943 |
Accrued customer pass-through expenditures | 1,911 | 3,509 |
Current portion of operating lease liabilities | $ 387 | $ 3,963 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Other | $ 2,165 | $ 2,374 |
Accrued expenses and other current liabilities | 21,958 | 22,538 |
Related party | ||
Supplier Finance Program [Line Items] | ||
Contract liabilities | 2,731 | 1,025 |
Current portion of debt | 773 | 773 |
Nonrelated party | ||
Supplier Finance Program [Line Items] | ||
Contract liabilities | 684 | 1,088 |
Current portion of debt | $ 2,664 | $ 170 |
Restructuring costs - Schedule of Restructuring Expenses Incurred (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring (recovery) costs | $ (1,747) | $ 1,656 |
Employee termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring (recovery) costs | 1,423 | 234 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring (recovery) costs | $ (3,170) | $ 1,422 |
Restructuring costs - Restructuring Costs Liability Roll-Forward (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | $ 4,771 | $ 2,997 |
Expense (recoveries) | (1,747) | 1,656 |
Payments | (2,553) | (3,008) |
Other | 3,126 | |
Restructuring reserve, ending balance | 471 | 4,771 |
Employee termination | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 217 | 1,600 |
Expense (recoveries) | 1,423 | 234 |
Payments | (1,368) | (1,617) |
Other | 0 | |
Restructuring reserve, ending balance | 272 | 217 |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning balance | 4,554 | 1,397 |
Expense (recoveries) | (3,170) | 1,422 |
Payments | (1,185) | (1,391) |
Other | 3,126 | |
Restructuring reserve, ending balance | $ 199 | $ 4,554 |
Restructuring costs - Schedule of Classification of Restructuring Liabilities (Details) - USD ($) $ in Thousands |
May 25, 2025 |
May 26, 2024 |
May 28, 2023 |
---|---|---|---|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities | $ 471 | $ 4,771 | $ 2,997 |
Current portion of operating lease liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities | 0 | 3,575 | |
Accrued expenses and other current liabilities – accrued compensation | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities | 272 | 217 | |
Accrued expenses and other current liabilities – other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring liabilities | $ 199 | $ 979 |
Restructuring costs - Narrative (Details) $ in Thousands |
May 25, 2025
USD ($)
|
---|---|
Employee termination | |
Restructuring Cost and Reserve [Line Items] | |
Incurred cost | $ 5,756 |
Other | |
Restructuring Cost and Reserve [Line Items] | |
Incurred cost | $ 10,216 |
Commitments and contingencies (Details) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2025
USD ($)
|
Mar. 21, 2025
USD ($)
|
Oct. 18, 2024
defendant
|
Nov. 03, 2020
USD ($)
|
Sep. 02, 2020
USD ($)
|
May 28, 2023
USD ($)
|
May 26, 2024
trial
|
Jan. 12, 2024
USD ($)
|
|
Landlord complaint, past due rent, one | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, minimum amount of damages | $ 171 | |||||||
Compliance matters | ||||||||
Loss Contingencies [Line Items] | ||||||||
Litigation settlement | $ 407 | |||||||
Damages sought | $ 10,000 | |||||||
Number of trials | trial | 2 | |||||||
Number of defendants | defendant | 1 | |||||||
Damages awarded | $ 1,177 | |||||||
Compliance matters | Awards against defendant | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded | 902 | |||||||
Compliance matters | Recoverable costs | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages awarded | $ 275 | |||||||
Compliance matters | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages sought | $ 80,000 | |||||||
Compliance matters, complaint 2 | Subsequent event | ||||||||
Loss Contingencies [Line Items] | ||||||||
Damages sought | $ 15,000 |
Debt - Future Minimum Principal Payments of Debt (Details) - USD ($) $ in Thousands |
May 25, 2025 |
May 26, 2024 |
---|---|---|
Debt Disclosure [Abstract] | ||
2026 | $ 3,437 | |
2027 | 967 | |
2028 | 1,001 | |
2029 | 174,546 | |
2030 | 1,052 | |
Thereafter | 7,347 | |
Debt principal | $ 188,350 | $ 187,539 |
Debt - Schedule of Classification of Interest (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Debt Disclosure [Abstract] | ||
Expensed in statement of operations | $ 21,835 | $ 18,090 |
Capitalization of non-cash interest to property, plant, and equipment | 3,049 | 3,150 |
Total interest incurred | $ 24,884 | $ 21,240 |
Debt - Schedule of Line of Credit, Average Borrowings and Interest Rates (Details) - Line of credit - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Debt Instrument [Line Items] | ||
Average borrowings | $ 9,643 | $ 18,971 |
Weighted average interest rate | 9.04% | 9.75% |
Revenue recognition - Disaggregation of Revenue by Product Line (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 128,867 | $ 128,261 |
CDMO | ||
Segment Reporting Information [Line Items] | ||
Revenues | 90,095 | 96,616 |
HA manufacturing | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 38,772 | $ 31,645 |
Revenue recognition - Disaggregation of Revenue by Timing of Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 128,867 | $ 128,261 |
Revenues recognized over time | ||
Segment Reporting Information [Line Items] | ||
Revenues | 23,194 | 29,361 |
Revenues recognized at a point in time | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 105,673 | $ 98,900 |
Revenue recognition - Narrative (Details) - Revenues - Customer concentration risk |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Customer one | ||
Related Party Transaction [Line Items] | ||
Concentration risk percentage | 44.00% | 39.00% |
Customer two | ||
Related Party Transaction [Line Items] | ||
Concentration risk percentage | 18.00% | 19.00% |
Customer three | ||
Related Party Transaction [Line Items] | ||
Concentration risk percentage | 10.00% | 10.00% |
Stock-based compensation - Schedule of Weighted Average Assumptions (Details) - $ / shares |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 4.32 | $ 3.91 |
Expected life | 4 years 4 months 24 days | 4 years 4 months 24 days |
Risk-free interest rate | 4.00% | 4.30% |
Volatility | 84.00% | 58.00% |
Dividend yield | 0.00% | 0.00% |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant date fair value (in dollars per share) | $ 3.85 | $ 4.66 |
Expected life | 5 years | 5 years |
Risk-free interest rate | 3.70% | 4.40% |
Volatility | 82.00% | 78.00% |
Dividend yield | 0.00% | 0.00% |
Stock-based compensation - Schedule of Other Information about Stock-Based Awards (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of stock options exercised | $ 0 | $ 115 |
Tax benefit of options exercised | $ 0 | $ 35 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value (in dollars per share) | $ 5.50 | $ 7.48 |
Fair value vested per share (in dollars per share) | 7.93 | 7.74 |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value (in dollars per share) | 3.85 | |
Fair value vested per share (in dollars per share) | $ 4.24 | $ 0 |
Stock-based compensation - Summary of Stock-based Compensation (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 10,158 | $ 6,201 |
Cost of product sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 856 | 582 |
Research and development expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | (122) | 168 |
Selling, general and administrative expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 9,424 | $ 5,451 |
Income taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Current: | ||
Federal | $ 14 | $ (10) |
State | 148 | 37 |
Total | 162 | 27 |
Deferred: | ||
Federal | (124) | 173 |
State | 5 | (17) |
Total | (119) | 156 |
Income tax provision | $ 43 | $ 183 |
Income taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Income Tax Disclosure [Abstract] | ||
Tax at U.S. statutory rate | $ (8,122) | $ 1,998 |
State income taxes, net of federal benefit | (197) | 52 |
Compensation-related activity | 799 | 418 |
Return to provision adjustments | 213 | 3,136 |
Deferred tax write-offs | (748) | 711 |
Tax credit carryforwards | (539) | (518) |
Other | 96 | 158 |
Change in valuation allowance | 8,541 | (5,772) |
Income tax provision | $ 43 | $ 183 |
Income taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
May 25, 2025 |
May 26, 2024 |
---|---|---|
Deferred tax assets: | ||
Net operating loss carryforwards | $ 40,677 | $ 40,806 |
Limitations on business interest expense | 15,573 | 11,783 |
Research credit carryforwards | 7,116 | 6,700 |
Capitalized research and development | 3,767 | 2,916 |
Other | 6,338 | 4,609 |
Deferred tax assets before valuation allowance | 73,471 | 66,814 |
Less: valuation allowance | (54,714) | (46,173) |
Deferred tax assets | 18,757 | 20,641 |
Deferred tax liabilities: | ||
Depreciation | (10,735) | (11,809) |
Debt derivative liability and related debt discount | (7,026) | (7,911) |
Other | (1,419) | (1,464) |
Deferred tax liabilities | (19,180) | (21,184) |
Net deferred tax liability | $ (423) | $ (543) |
Income taxes - Summary of Operating Loss and Tax Credit Carryforwards (Details) $ in Thousands |
12 Months Ended |
---|---|
May 25, 2025
USD ($)
| |
Federal | |
Tax Credit Carryforward [Line Items] | |
Net operating loss carryforwards | $ 172,048 |
Tax credit carryforward amount | $ 3,858 |
Tax credit carryforward, period | 20 years |
State | California | |
Tax Credit Carryforward [Line Items] | |
Net operating loss carryforwards | $ 52,239 |
Tax credit carryforward amount | 2,058 |
State | All other states | |
Tax Credit Carryforward [Line Items] | |
Net operating loss carryforwards | 16,512 |
Tax credit carryforward amount | $ 2,024 |
Tax credit carryforward, period | 15 years |
Income taxes - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Tax Credit Carryforward [Line Items] | ||
Unrecognized tax benefits | $ 1,323 | |
Unrecognized tax benefits that would change the effect tax rate if recognized | 1,186 | |
Federal | ||
Tax Credit Carryforward [Line Items] | ||
Operating loss carryforwards, not subject to expiration | 164,770 | |
Carryforwards utilized | 2,051 | $ 3,907 |
State | ||
Tax Credit Carryforward [Line Items] | ||
Carryforwards utilized | $ 0 | $ 0 |
Fair value of financial instruments - Fair Value of Assets and Liabilities (Details) - Recurring - USD ($) $ in Thousands |
May 25, 2025 |
May 26, 2024 |
---|---|---|
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability | $ 24,991 | $ 25,400 |
Fair value of financial instruments - Fair Value Reconciliation of Level 3 (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 25,400 | $ 64,900 |
Change in fair value | (409) | (39,500) |
Balance at end of period | $ 24,991 | $ 25,400 |
Fair value of financial instruments - Derivative Liability Assumptions (Details) |
May 25, 2025 |
May 26, 2024 |
---|---|---|
Probability of change in control event | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 0.800 | 0.800 |
Weighted average discount rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability, measurement input | 0.184 | 0.214 |
Leases - Narrative (Details) $ in Thousands |
1 Months Ended | |||
---|---|---|---|---|
Aug. 09, 2024
USD ($)
|
Mar. 31, 2025
USD ($)
|
May 25, 2025
USD ($)
facility
|
Jan. 31, 2021 |
|
Operating Leased Assets [Line Items] | ||||
Number of active facilities | facility | 2 | |||
Litigation settlement, gain | $ 2,642 | |||
Chaska, Minnesota Facility | ||||
Operating Leased Assets [Line Items] | ||||
Finance lease, liability, buyout | $ 3,100 | |||
Consideration received for lease adjustment | $ 2,400 | |||
Weighted average discount rate | 9.00% | |||
Chanhassen, Minnesota Warehouse And Office | ||||
Operating Leased Assets [Line Items] | ||||
Weighted average discount rate | 3.00% |
Leases - Schedule of Lease Costs (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Finance lease cost: | ||
Amortization of leased assets | $ 160 | $ 137 |
Interest on lease liabilities | 456 | 373 |
Operating lease cost | 336 | 344 |
Variable lease cost | 0 | 306 |
Sublease income | 0 | (148) |
Total lease cost | $ 952 | $ 1,012 |
Leases - Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands |
May 25, 2025 |
May 26, 2024 |
---|---|---|
Operating leases | ||
2026 | $ 433 | |
2027 | 416 | |
2028 | 302 | |
2029 | 146 | |
2030 | 150 | |
Thereafter | 436 | |
Total lease payments | 1,883 | |
Less: interest | (153) | |
Present value of lease liabilities | 1,730 | |
Operating lease, current | 387 | $ 3,963 |
Operating lease, noncurrent | $ 1,343 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Finance leases | ||
2026 | $ 682 | |
2027 | 698 | |
2028 | 715 | |
2029 | 732 | |
2030 | 722 | |
Thereafter | 6,396 | |
Total lease payments | 9,945 | |
Less: interest | (3,980) | |
Present value of lease liabilities | 5,965 | |
Finance lease, current | $ 164 | |
Finance lease, liability, current, statement of financial position, extensible enumeration | Accrued expenses and other current liabilities, see note 7 | |
Finance lease, noncurrent | $ 5,801 | |
Finance lease, liability, noncurrent, statement of financial position, extensible enumeration | Debt, net of current portion |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
May 25, 2025 |
May 26, 2024 |
|
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 445 | $ 761 |
Operating cash flows from finance leases | 443 | 373 |
Financing cash flows from finance leases | (2,230) | 136 |
Lease liabilities arising from obtaining right-of-use assets: | ||
Increases to property, plant and equipment from finance leases | $ 2,737 | $ 0 |
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