Closure of Florida facility	9 Months Ended
Jul. 31, 2022
Closure of Florida facility
Closure of Florida facility	14. Closure of Florida facility On November 15, 2021, Prepared’s Green Cove Springs, Florida facility ceased operations. The Company’s Grown avocado operations at this facility will continue and are not affected. Prepared will continue to serve customers of this location from its other food processing locations, primarily in Georgia. The closure resulted in a reduction of 140 employees, impairment of leasehold improvements, writedowns of inventory and other assets, and certain cash expenditures for the relocation of machinery and equipment and the closure of the leased facilities. During the fourth quarter of fiscal 2021, we wrote down $8.7 million of leasehold improvements, $0.1 million of equipment, and $0.6 million of inventory (recognized through cost of goods sold). We also paid $0.4 million in employee severance. The impairment related to the Prepared Florida closure has been recorded on the consolidated statement of operations under “Impairment and charges related to Florida facility closure”. There were no impairments charges related to the Prepared Florida facility closure during the three and nine months ended July 31, 2022. As of July 31, 2022 and October 31, 2021, the Company had right of use assets with a net book value of $4.1 million and $4.8 million respectively, and lease liabilities of $5.3 million and $6.0 million, respectively, recorded on the balance sheet related to the closed facility. The facility lease has a maturity date of October 31, 2031. The Company intends to seek a sub-lease tenant to assume the vacated space, and believes such a sub-lease can be obtained at a lease rate, and for a lease period, sufficient to realize the right of use asset. Management will continue to evaluate the actual amounts and duration of expected future sub-lease revenues. Should the actual sub-lease revenues be less than those currently expected, the Company may need to record impairment of some or all its investment in the right of use asset. During the nine months ended July 31, 2022, we incurred $1.0 million of incremental restructuring and related costs due to the transition to other facilities.

Closure of Florida facility

9 Months Ended

Jul. 31, 2022

14. Closure of Florida facility

On November 15, 2021, Prepared’s Green Cove Springs, Florida facility ceased operations. The Company’s Grown avocado operations at this facility will continue and are not affected. Prepared will continue to serve customers of this location from its other food processing locations, primarily in Georgia.

The closure resulted in a reduction of 140 employees, impairment of leasehold improvements, writedowns of inventory and other assets, and certain cash expenditures for the relocation of machinery and equipment and the closure of the leased facilities. During the fourth quarter of fiscal 2021, we wrote down $8.7 million of leasehold improvements, $0.1 million of equipment, and $0.6 million of inventory (recognized through cost of goods sold). We also paid $0.4 million in employee severance. The impairment related to the Prepared Florida closure has been recorded on the

consolidated statement of operations under “Impairment and charges related to Florida facility closure”. There were no impairments charges related to the Prepared Florida facility closure during the three and nine months ended July 31, 2022.

As of July 31, 2022 and October 31, 2021, the Company had right of use assets with a net book value of $4.1 million and $4.8 million respectively, and lease liabilities of $5.3 million and $6.0 million, respectively, recorded on the balance sheet related to the closed facility. The facility lease has a maturity date of October 31, 2031. The Company intends to seek a sub-lease tenant to assume the vacated space, and believes such a sub-lease can be obtained at a lease rate, and for a lease period, sufficient to realize the right of use asset. Management will continue to evaluate the actual amounts and duration of expected future sub-lease revenues. Should the actual sub-lease revenues be less than those currently expected, the Company may need to record impairment of some or all its investment in the right of use asset.

During the nine months ended July 31, 2022, we incurred $1.0 million of incremental restructuring and related costs due to the transition to other facilities.