XML 88 R37.htm IDEA: XBRL DOCUMENT
v3.24.1

Correction of Errors in Previously Reported Fiscal Year 2022 and 2021 Annual Financial Statements (Tables) | 12 Months Ended
--- | ---
May 28, 2023
Accounting Changes and Error Corrections [Abstract] |
Schedule of Error Corrections | The effects of the restatement on the consolidated balance sheet as of May 29, 2022 are summarized in the following table:
| May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
ASSETS |  |  |  |  |  |  |  |  |
Current Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,643 |  |  | $ | — |  |  | $ | 1,643 |  |  | $ | (652) |  |  | $ | 991 |
Accounts receivable, net | 48,172 |  |  | (522) |  |  | 47,650 |  |  | (9,336) |  |  | 38,314 |
Inventories | 66,845 |  |  | (4,833) |  |  | 62,012 |  |  | (26,012) |  |  | 36,000 |
Prepaid expenses and other current assets | 7,052 |  |  | (1,689) |  |  | 5,363 |  |  | (3,310) |  |  | 2,053 |
Current Assets, discontinued operations | — |  |  | — |  |  | — |  |  | 39,310 |  |  | 39,310 |
Total Current Assets | 123,712 |  |  | (7,044) |  |  | 116,668 |  |  | — |  |  | 116,668 |
Property and equipment, net | 118,531 |  |  | 4,035 |  |  | 122,566 |  |  | (3,896) |  |  | 118,670 |
Operating lease right-of-use assets | 8,580 |  |  | (94) |  |  | 8,486 |  |  | (2,933) |  |  | 5,553 |
Goodwill | 13,881 |  |  | — |  |  | 13,881 |  |  | — |  |  | 13,881 |
Trademarks/tradenames, net | 8,700 |  |  | — |  |  | 8,700 |  |  | (4,500) |  |  | 4,200 |
Customer relationships, net | 1,400 |  |  | — |  |  | 1,400 |  |  | (1,400) |  |  | — |
Other assets | 3,002 |  |  | — |  |  | 3,002 |  |  | (113) |  |  | 2,889 |
Non-current Assets, discontinued operations | — |  |  | — |  |  | — |  |  | 12,842 |  |  | 12,842 |
Total Assets | $ | 277,806 |  |  | $ | (3,103) |  |  | $ | 274,703 |  |  | $ | — |  |  | $ | 274,703 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | 15,802 |  |  | $ | — |  |  | $ | 15,802 |  |  | $ | (2,850) |  |  | $ | 12,952 |
Accrued compensation | 9,238 |  |  | — |  |  | 9,238 |  |  | (297) |  |  | 8,941 |
Other accrued liabilities | 7,647 |  |  | (229) |  |  | 7,418 |  |  | (939) |  |  | 6,479 |
Current portion of lease liabilities | 5,026 |  |  | — |  |  | 5,026 |  |  | (658) |  |  | 4,368 |
Deferred revenue | 919 |  |  | — |  |  | 919 |  |  | — |  |  | 919 |
Line of credit | 40,000 |  |  | — |  |  | 40,000 |  |  | — |  |  | 40,000 |
Current portion of long-term debt, net | 98,178 |  |  | — |  |  | 98,178 |  |  | — |  |  | 98,178 |
Current liabilities, discontinued operations | — |  |  | — |  |  | — |  |  | 4,744 |  |  | 4,744 |
Total Current Liabilities | 176,810 |  |  | (229) |  |  | 176,581 |  |  | — |  |  | 176,581 |
Long-term lease liabilities | 9,983 |  |  | — |  |  | 9,983 |  |  | (2,325) |  |  | 7,658 |
Deferred taxes, net | 126 |  |  | — |  |  | 126 |  |  | — |  |  | 126 |
Other non-current liabilities | 190 |  |  | — |  |  | 190 |  |  | — |  |  | 190 |
Non-current liabilities, discontinued operations | — |  |  | — |  |  | — |  |  | 2,325 |  |  | 2,325 |
Total Liabilities | 187,109 |  |  | (229) |  |  | 186,880 |  |  | — |  |  | 186,880 |
Stockholders’ Equity: |  |  |  |  |  |  |  |  |
Common stock, $0.001 par value; 50,000 shares authorized | 30 |  |  | — |  |  | 30 |  |  | — |  |  | 30 |
Additional paid-in capital | 167,352 |  |  | — |  |  | 167,352 |  |  | — |  |  | 167,352 |
Accumulated deficit | (76,099) |  |  | (2,874) |  |  | (78,973) |  |  | — |  |  | (78,973) |
Accumulated other comprehensive loss | (586) |  |  | — |  |  | (586) |  |  | — |  |  | (586) |
Total Stockholders’ Equity | 90,697 |  |  | (2,874) |  |  | 87,823 |  |  | — |  |  | 87,823 |
Total Liabilities and Stockholders’ Equity | $ | 277,806 |  |  | $ | (3,103) |  |  | $ | 274,703 |  |  | $ | — |  |  | $ | 274,703 |
The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the year ended May 29, 2022 are summarized in the following table:
| Year ended May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Product sales | $ | 185,786 |  |  | $ | 40 |  |  | $ | 185,826 |  |  | $ | (74,556) |  |  | $ | 111,270 |
Cost of product sales | 135,416 |  |  | 3,903 |  |  | 139,319 |  |  | (67,115) |  |  | 72,204 |
Gross profit | 50,370 |  |  | (3,863) |  |  | 46,507 |  |  | (7,441) |  |  | 39,066 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |
Research and development | 7,841 |  |  | 521 |  |  | 8,362 |  |  | (523) |  |  | 7,839 |
Selling, general and administrative | 46,127 |  |  | (395) |  |  | 45,732 |  |  | (11,073) |  |  | 34,659 |
Impairment of goodwill and long-lived and indefinite-lived assets | 46,089 |  |  | — |  |  | 46,089 |  |  | (46,089) |  |  | — |
Restructuring costs | 8,961 |  |  | (602) |  |  | 8,359 |  |  | — |  |  | 8,359 |
Total operating costs and expenses | 109,018 |  |  | (476) |  |  | 108,542 |  |  | (57,685) |  |  | 50,857 |
Operating (loss) income | (58,648) |  |  | (3,387) |  |  | (62,035) |  |  | 50,244 |  |  | (11,791) |
Interest income | 81 |  |  | — |  |  | 81 |  |  | — |  |  | 81 |
Interest expense | (17,357) |  |  | 1,806 |  |  | (15,551) |  |  | — |  |  | (15,551) |
Transition services income | 5,814 |  |  | — |  |  | 5,814 |  |  | — |  |  | 5,814 |
Other expense | 641 |  |  | 119 |  |  | 760 |  |  | — |  |  | 760 |
Net (loss) income from continuing operations before taxes | (69,469) |  |  | (1,462) |  |  | (70,931) |  |  | 50,244 |  |  | (20,687) |
Income tax benefit (provision) | 5,945 |  |  | (287) |  |  | 5,658 |  |  | (447) |  |  | 5,211 |
Net (loss) income from continuing operations | (63,524) |  |  | (1,749) |  |  | (65,273) |  |  | 49,797 |  |  | (15,476) |
Discontinued operations: |  |  |  |  |  |  |  |  |
Loss from discontinued operations | (51,276) |  |  | (409) |  |  | (51,685) |  |  | (50,244) |  |  | (101,929) |
Income tax benefit | 121 |  |  | 122 |  |  | 243 |  |  | 447 |  |  | 690 |
Loss from discontinued operations, net of tax | (51,155) |  |  | (287) |  |  | (51,442) |  |  | (49,797) |  |  | (101,239) |
Net loss | (114,679) |  |  | (2,036) |  |  | (116,715) |  |  | — |  |  | (116,715) |
Basic net (loss) income per share: |  |  |  |  |  |  |  |  |
Loss from continuing operations | $ | (2.16) |  |  | $ | (0.06) |  |  | $ | (2.22) |  |  | $ | 1.69 |  |  | $ | (0.53) |
Loss from discontinued operations | $ | (1.74) |  |  | $ | (0.01) |  |  | $ | (1.75) |  |  | $ | (1.69) |  |  | $ | (3.44) |
Total basic loss income per share | $ | (3.90) |  |  | $ | (0.07) |  |  | $ | (3.97) |  |  | $ | — |  |  | $ | (3.97) |
Diluted net loss per share: |  |  |  |  |  |  |  |  |
Loss from continuing operations | $ | (2.16) |  |  | $ | (0.06) |  |  | $ | (2.22) |  |  | $ | 1.69 |  |  | $ | (0.53) |
Loss from discontinued operations | $ | (1.74) |  |  | $ | (0.01) |  |  | $ | (1.75) |  |  | $ | (1.69) |  |  | $ | (3.44) |
Total diluted net loss per share | $ | (3.90) |  |  | $ | (0.07) |  |  | $ | (3.97) |  |  | $ | — |  |  | $ | (3.97) |
Shares used in per share computation |  |  |  |  |  |  |  |  |
Basic | 29,466 |  | — |  | 29,466 |  | — |  | 29,466
Diluted | 29,466 |  | — |  | 29,466 |  | — |  | 29,466
| Year ended May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Net loss applicable to common shareholders | $ | (114,679) |  |  | $ | (2,036) |  |  | $ | (116,715) |  |  | $ | — |  |  | $ | (116,715) |
Other comprehensive (loss) income, net of tax: |  |  |  |  |  |  |  |  |
Net unrealized gains on interest rate swaps (net of tax effect of $(430) | $ | 772 |  |  | $ | — |  |  | $ | 772 |  |  | $ | — |  |  | $ | 772 |
Other comprehensive (loss) income, net of tax | $ | 772 |  |  | $ | — |  |  | $ | 772 |  |  | $ | — |  |  | $ | 772 |
Total comprehensive (loss) income | $ | (113,907) |  |  | $ | (2,036) |  |  | $ | (115,943) |  |  | $ | — |  |  | $ | (115,943) |
The effects of the restatement on the consolidated statement of stockholders’ equity (deficit) for the year ended May 29, 2022 are summarized in the following table:
(in thousands, except per share amounts) | Common Stock |  | Additional Paid-in Capital |  | Retained Earnings (Accumulated Deficit) |  | Accumulated Other Comprehensive Loss |  | Total Stockholders’ Equity
| Shares |  | Amount |  |  |  |
As Reported |  |  |  |  |  |  |  |  |  |  |
Balance at May 30, 2021 | 29,333 |  |  | $ | 29 |  |  | $ | 165,533 |  |  | $ | 38,580 |  |  | $ | (1,358) |  |  | $ | 202,784 |
Issuance of stock under stock plans, net of shares withheld | 180 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Taxes paid by Company for employee stock plans | — |  |  | — |  |  | (789) |  |  | — |  |  | — |  |  | (789) |
Stock-based compensation | — |  |  | — |  |  | 2,608 |  |  | — |  |  | — |  |  | 2,608 |
Net loss | — |  |  | — |  |  | — |  |  | (114,679) |  |  | — |  |  | (114,679) |
Other comprehensive income, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | 772 |  |  | 772 |
Balance at May 29, 2022 | 29,513 |  |  | $ | 30 |  |  | $ | 167,352 |  |  | $ | (76,099) |  |  | $ | (586) |  |  | $ | 90,697 |
Restatements Adjustments |  |  |  |  |  |  |  |  |  |  |
Opening retained earnings | — |  |  | — |  |  | — |  |  | (838) |  |  | — |  |  | (838) |
Net loss | — |  |  | — |  |  | — |  |  | (2,036) |  |  | — |  |  | (2,036) |
As Restated |  |  |  |  |  |  |  |  |  |  |
Balance at May 30, 2021 | 29,333 |  |  | $ | 29 |  |  | $ | 165,533 |  |  | $ | 37,742 |  |  | $ | (1,358) |  |  | $ | 201,946 |
Issuance of stock under stock plans, net of shares withheld | 180 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Taxes paid by Company for employee stock plans | — |  |  | — |  |  | (789) |  |  | — |  |  | — |  |  | (789) |
Stock-based compensation | — |  |  | — |  |  | 2,608 |  |  | — |  |  | — |  |  | 2,608 |
Net loss | — |  |  | — |  |  | — |  |  | (116,715) |  |  | — |  |  | (116,715) |
Other comprehensive income, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | 772 |  |  | 772 |
Balance at May 29, 2022 | 29,513 |  |  | $ | 30 |  |  | $ | 167,352 |  |  | $ | (78,973) |  |  | $ | (586) |  |  | $ | 87,823 |
The effects of the restatement on the consolidated statement of cash flows for the year ended May 29, 2022 are summarized in the following table:
| Year Ended May 29, 2022
| As Reported |  | Restatement Adjustment |  | As Restated
Cash flows from operating activities: |  |  |  |  |
Net loss | $ | (114,679) |  |  | $ | (2,036) |  |  | $ | (116,715) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |  |  |  |  |
Impairment of goodwill and long-lived and indefinite-lived assets | 78,146 |  |  | — |  |  | 78,146 |
Depreciation, amortization of intangibles, debt costs and right-of-use assets | 17,884 |  |  | 177 |  |  | 18,061 |
Deferred taxes | (6,990) |  |  | 165 |  |  | (6,825) |
Loss on disposal of property and equipment related to restructuring, net | 5,185 |  |  | — |  |  | 5,185 |
Stock-based compensation expense | 2,608 |  |  | — |  |  | 2,608 |
Loss on sale of Eat Smart | 336 |  |  | — |  |  | 336 |
Net loss on disposal of property and equipment held and used | 152 |  |  | — |  |  | 152 |
Provision for expected credit losses | (14) |  |  | — |  |  | (14) |
Other, net | (426) |  |  | — |  |  | (426) |
Changes in current assets and current liabilities: |  |  |  |  |
Accounts receivable, net | (6,138) |  |  | — |  |  | (6,138) |
Inventory | (5,960) |  |  | 3,780 |  |  | (2,180) |
Prepaid expenses and other current assets | (602) |  |  | (87) |  |  | (689) |
Accounts payable | 9,343 |  |  | — |  |  | 9,343 |
Accrued compensation | (2,546) |  |  | — |  |  | (2,546) |
Other accrued liabilities | (680) |  |  | (193) |  |  | (873) |
Deferred revenue | (18) |  |  | — |  |  | (18) |
Net cash (used in) provided by operating activities | (24,399) |  |  | 1,806 |  |  | (22,593) |
Cash flows from investing activities: |  |  |  |  |
Proceeds from the Sale of Eat Smart | 73,500 |  |  | — |  |  | 73,500 |
Eat Smart sale net working capital adjustment | (9,839) |  |  | — |  |  | (9,839) |
Proceeds from sale of investment in non-public company | 45,100 |  |  | — |  |  | 45,100 |
Purchases of property and equipment | (28,134) |  |  | (1,806) |  |  | (29,940) |
Proceeds from sales of property and equipment | 1,141 |  |  | — |  |  | 1,141 |
Net cash provided by (used in) investing activities | 81,768 |  |  | (1,806) |  |  | 79,962 |
Cash flows from financing activities: |  |  |  |  |
Proceeds from long-term debt | 20,000 |  |  | — |  |  | 20,000 |
Payments on long-term debt | (86,411) |  |  | — |  |  | (86,411) |
Proceeds from line of credit | 55,111 |  |  | — |  |  | 55,111 |
Payments on line of credit | (44,111) |  |  | — |  |  | (44,111) |
Payments for debt issuance costs | (821) |  |  | — |  |  | (821) |
Taxes paid by Company for employee stock plans | (789) |  |  | — |  |  | (789) |
Net cash used in financing activities | (57,021) |  |  | — |  |  | (57,021) |
Net increase in cash, cash equivalents and restricted cash | 348 |  |  | — |  |  | 348 |
Cash, cash equivalents and restricted cash, beginning of period | 1,295 |  |  | — |  |  | 1,295 |
Cash, cash equivalents and restricted cash, end of period | $ | 1,643 |  |  | $ | — |  |  | $ | 1,643 |
The effects of this error on our previously reported fiscal year 2022 changes in the Company’s allowance for sales returns and credit losses for the year ended May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 1, are as follows:
| Year Ended May 29, 2022
(in thousands) | Balance at beginning of period |  | Provision (benefit) for expected credit losses |  | Write offs, net of recoveries |  |  |  | Balance at end of period
Year ended May 29, 2022, As Reported | $ | 85 |  |  | (14) |  |  | (6) |  |  |  |  | $ | 65 |
Restatement Adjustment | $ | 522 |  |  | — |  |  | — |  |  |  |  | $ | 522 |
Year ended May 29, 2022, As Restated | $ | 607 |  |  | (14) |  |  | (6) |  |  |  |  | $ | 587 |
Discontinued Operations | $ | (85) |  |  | 14 |  |  | 6 |  |  |  |  | $ | (65) |
Year ended May 29, 2022, As Restated, after Discontinued Operations | $ | 522 |  |  | — |  |  | — |  |  |  |  | $ | 522 |
The effects of this error on our previously reported fiscal year 2022 inventories as of May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 1, are as follows:
| May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Finished goods | $ | 33,029 |  |  | $ | (3) |  |  | $ | 33,026 |  |  | $ | (19,629) |  |  | $ | 13,397 |
Raw materials | 24,221 |  |  | (2,393) |  |  | 21,828 |  |  | (6,340) |  |  | 15,488 |
Work in progress | 9,595 |  |  | (2,437) |  |  | 7,158 |  |  | (43) |  |  | 7,115 |
Total inventories | $ | 66,845 |  |  | $ | (4,833) |  |  | $ | 62,012 |  |  | $ | (26,012) |  |  | $ | 36,000 |
The effects of this error on our previously reported fiscal year 2022 basic and diluted net loss per share for the year ended May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 1, are as follows:
| Year ended May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Numerator: |  |  |  |  |  |  |  |  |
Net loss applicable to Common Stockholders | $ | (114,679) |  |  | $ | (2,036) |  |  | $ | (116,715) |  |  | $ | — |  |  | $ | (116,715) |
Denominator: |  |  |  |  |  |  |  |  |
Weighted average shares for basic net income per share | 29,466 |  |  | — |  |  | 29,466 |  |  | — |  |  | 29,466 |
Weighted average shares for diluted net income per share | 29,466 |  |  | — |  |  | 29,466 |  |  | — |  |  | 29,466 |
Diluted net loss per share | $ | (3.90) |  |  | $ | (0.07) |  |  | $ | (3.97) |  |  | $ | — |  |  | $ | (3.97) |
The effects of this error on our previously reported fiscal year 2022 disaggregated revenue for the year ended May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 1, are as follows:
| As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Contact development and manufacturing organization | $ | 86,313 |  |  | $ | 40 |  |  | $ | 86,353 |  |  | $ | — |  |  | $ | 86,353 |
Fermentation | 23,007 |  |  | — |  |  | 23,007 |  |  | — |  |  | 23,007 |
Total | $ | 109,320 |  |  | $ | 40 |  |  | $ | 109,360 |  |  | $ | — |  |  | $ | 109,360 |
| As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Avocado Products | $ | 65,269 |  |  | $ | — |  |  | $ | 65,269 |  |  | $ | (65,269) |  |  | $ | — |
Olive oil and vinegars | 9,287 |  |  | — |  |  | 9,287 |  |  | (9,287) |  |  | — |
Technology | 1,910 |  |  | — |  |  | 1,910 |  |  | — |  |  | 1,910 |
Total | $ | 76,466 |  |  | $ | — |  |  | $ | 76,466 |  |  | $ | (74,556) |  |  | $ | 1,910 |
The effects of this error on our previously reported fiscal year 2022 property and equipment, net as of May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 3, are as follows:
| May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Land | $ | 3,710 |  |  | $ | — |  |  | $ | 3,710 |  |  | $ | — |  |  | $ | 3,710 |
Buildings | 58,359 |  |  | — |  |  | 58,359 |  |  | — |  |  | 58,359 |
Leasehold improvements | 5,143 |  |  | — |  |  | 5,143 |  |  | (1,124) |  |  | 4,019 |
Computers, capitalized software, machinery, equipment and autos | 74,974 |  |  | — |  |  | 74,974 |  |  | (4,512) |  |  | 70,462 |
Furniture and fixtures | 2,099 |  |  | — |  |  | 2,099 |  |  | (8) |  |  | 2,091 |
Construction in process | 22,786 |  |  | 4,118 |  |  | 26,904 |  |  | (12) |  |  | 26,892 |
Gross property and equipment | 167,071 |  |  | 4,118 |  |  | 171,189 |  |  | (5,656) |  |  | 165,533 |
Less accumulated depreciation and amortization | (48,540) |  |  | (83) |  |  | (48,623) |  |  | 1,760 |  |  | (46,863) |
Net property and equipment | $ | 118,531 |  |  | $ | 4,035 |  |  | $ | 122,566 |  |  | $ | (3,896) |  |  | $ | 118,670 |
The effects of this error on our previously reported fiscal year 2022 income taxes as of and for the year ended May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 7, are as follows:
| For the Year Ended May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Current: |  |  |  |  |  |  |  |  |
State | 23 |  |  | — |  |  | 23 |  |  | — |  |  | 23 |
Foreign | 356 |  |  | — |  |  | 356 |  |  | — |  |  | 356 |
| 379 |  |  | — |  |  | 379 |  |  | — |  |  | 379 |
Deferred: |  |  |  |  |  |  |  |  |
Federal | $ | (5,670) |  |  | $ | 287 |  |  | $ | (5,383) |  |  | $ | 447 |  |  | $ | (4,936) |
State | (654) |  |  | — |  |  | (654) |  |  | — |  |  | (654) |
| (6,324) |  |  | 287 |  |  | (6,037) |  |  | 447 |  |  | (5,590) |
Total (provision) benefit for income taxes | (5,945) |  |  | 287 |  |  | (5,658) |  |  | 447 |  |  | (5,211) |
| For the Year Ended May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Tax at U.S. statutory rate | $ | (14,548) |  |  | $ | (288) |  |  | $ | (14,836) |  |  | $ | 10,492 |  |  | $ | (4,344) |
State income taxes, net of federal benefit | (2,195) |  |  | (44) |  |  | (2,239) |  |  | 1,601 |  |  | (638) |
Change in valuation allowance | 10,134 |  |  | 634 |  |  | 10,768 |  |  | (11,833) |  |  | (1,065) |
Tax credit carryforwards | (436) |  |  | — |  |  | (436) |  |  | — |  |  | (436) |
Other compensation-related activity | 234 |  |  | — |  |  | 234 |  |  | — |  |  | 234 |
Impairment of goodwill | 2,347 |  |  | — |  |  | 2,347 |  |  | — |  |  | 2,347 |
Foreign rate differential | (496) |  |  | — |  |  | (496) |  |  | — |  |  | (496) |
Other | (985) |  |  | (15) |  |  | (1,000) |  |  | 187 |  |  | (813) |
Income tax (expense) benefit | $ | (5,945) |  |  | $ | 287 |  |  | $ | (5,658) |  |  | $ | 447 |  |  | $ | (5,211) |
| As of May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Deferred tax assets: |  |  |  |  |  |  |  |  |
Accruals and reserves | $ | 867 |  |  | $ | 886 |  |  | $ | 1,753 |  |  | $ | — |  |  | $ | 1,753 |
Net operating loss carryforwards | 28,558 |  |  | 399 |  |  | 28,957 |  |  | — |  |  | 28,957 |
Stock-based compensation | 880 |  |  | — |  |  | 880 |  |  | — |  |  | 880 |
Research and AMT credit carryforwards | 5,611 |  |  | — |  |  | 5,611 |  |  | — |  |  | 5,611 |
Lease Liability | 2,874 |  |  | — |  |  | 2,874 |  |  | — |  |  | 2,874 |
Limitations on business interest expense | 4,245 |  |  | (741) |  |  | 3,504 |  |  | — |  |  | 3,504 |
Goodwill and other indefinite life intangibles | 2,745 |  |  | — |  |  | 2,745 |  |  | — |  |  | 2,745 |
Other | 750 |  |  | 2 |  |  | 752 |  |  | — |  |  | 752 |
Gross deferred tax assets | 46,530 |  |  | 546 |  |  | 47,076 |  |  | — |  |  | 47,076 |
Valuation Allowance | (35,942) |  |  | (589) |  |  | (36,531) |  |  | — |  |  | (36,531) |
Net deferred tax assets | 10,588 |  |  | (43) |  |  | 10,545 |  |  | — |  |  | 10,545 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |
Depreciation and amortization | (8,614) |  |  | 20 |  |  | (8,594) |  |  | — |  |  | (8,594) |
Right of use asset | (2,100) |  |  | 23 |  |  | (2,077) |  |  | — |  |  | (2,077) |
Deferred tax liabilities | (10,714) |  |  | 43 |  |  | (10,671) |  |  | — |  |  | (10,671) |
Net deferred tax liabilities | $ | (126) |  |  | $ | — |  |  | $ | (126) |  |  | $ | — |  |  | $ | (126) |
| As of May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Unrecognized tax benefits – beginning of the period | $ | 942 |  |  | $ | 16 |  |  | $ | 958 |  |  | $ | — |  |  | $ | 958 |
Gross increases – current-period tax positions | 83 |  |  | — |  |  | 83 |  |  | — |  |  | 83 |
Unrecognized tax benefits – end of the period | $ | 1,025 |  |  | $ | 16 |  |  | $ | 1,041 |  |  | $ | — |  |  | $ | 1,041 |
The effects of this error on our previously reported fiscal year 2022 segment reporting for the year ended May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 10, are as follows. The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the period ending year ended May 29, 2022. Refer to Note 13 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.
| For the Year Ended May 29, 2022
(in thousands) | Lifecore |  | Curation Foods |  | Other |  | Total
Year Ended May 29, 2022, As Reported |  |  |  |  |  |  |
Net sales | $ | 109,320 |  |  | $ | 76,466 |  |  | $ | — |  |  | $ | 185,786 |
Gross profit | 43,746 |  |  | 6,624 |  |  | — |  |  | 50,370 |
Net income (loss) from continuing operations | 16,675 |  |  | (47,783) |  |  | (32,416) |  |  | (63,524) |
Loss from discontinued operations, net of tax | — |  |  | (48,114) |  |  | (3,041) |  |  | (51,155) |
Total assets | 213,969 |  |  | 59,594 |  |  | 4,243 |  |  | 277,806 |
Depreciation and amortization | 6,673 |  |  | 4,004 |  |  | 80 |  |  | 10,757 |
Capital expenditures | 23,552 |  |  | 2,674 |  |  | — |  |  | 26,226 |
Interest income | 72 |  |  | — |  |  | 9 |  |  | 81 |
Interest expense | — |  |  | 299 |  |  | 17,058 |  |  | 17,357 |
Income tax (benefit) expense, continuing operations | 5,266 |  |  | (13,831) |  |  | 2,620 |  |  | (5,945) |
Corporate overhead allocation | 4,484 |  |  | 1,092 |  |  | (5,576) |  |  | — |
Restatement Adjustments |  |  |  |  |  |  |
Net sales | 40 |  |  | — |  |  | — |  |  | 40 |
Gross profit | (3,863) |  |  | — |  |  | — |  |  | (3,863) |
Net (loss) income from continuing operations | (39) |  |  | (8,411) |  |  | 6,701 |  |  | (1,749) |
Loss from discontinued operations, net of tax | — |  |  | (287) |  |  | — |  |  | (287) |
Total assets | (1,320) |  |  | (1,783) |  |  | — |  |  | (3,103) |
Depreciation and amortization | 83 |  |  | — |  |  | — |  |  | 83 |
Interest expense | — |  |  | — |  |  | (1,806) |  |  | (1,806) |
Income tax (benefit) expense, continuing operations | (3,824) |  |  | 8,960 |  |  | (4,849) |  |  | 287 |
Year Ended May 29, 2022, As Restated |  |  |  |  |  |  |
Net sales | $ | 109,360 |  |  | $ | 76,466 |  |  | $ | — |  |  | $ | 185,826 |
Gross profit | 39,883 |  |  | 6,624 |  |  | — |  |  | 46,507 |
Net income (loss) from continuing operations | 16,636 |  |  | (56,194) |  |  | (25,715) |  |  | (65,273) |
Loss from discontinued operations, net of tax | — |  |  | (48,401) |  |  | (3,041) |  |  | (51,442) |
Total assets | 212,649 |  |  | 57,811 |  |  | 4,243 |  |  | 274,703 |
Depreciation and amortization | 6,756 |  |  | 4,004 |  |  | 80 |  |  | 10,840 |
Capital expenditures | 23,552 |  |  | 2,674 |  |  | — |  |  | 26,226 |
Interest income | 72 |  |  | — |  |  | 9 |  |  | 81 |
Interest expense | — |  |  | 299 |  |  | 15,252 |  |  | 15,551 |
Income tax (benefit) expense, continuing operations | 1,442 |  |  | (4,871) |  |  | (2,229) |  |  | (5,658) |
Corporate overhead allocation | 4,484 |  |  | 1,092 |  |  | (5,576) |  |  | — |
The effects of this error on our previously reported fiscal year 2021 discontinued operations as of and for the year ended May 30, 2021 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 12, are as follows:
| Eat Smart - As of May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  |  |  |
ASSETS |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 136 |  |  | $ | — |  |  | $ | 136 |  |  |  |  |
Accounts receivable, less allowance for credit losses | 28,583 |  |  | — |  |  | 28,583 |  |  |  |  |
Inventories | 6,587 |  |  | — |  |  | 6,587 |  |  |  |  |
Prepaid expenses and other current assets | 2,312 |  |  | (515) |  |  | 1,797 |  |  |  |  |
Total current assets, discontinued operations | 37,618 |  |  | (515) |  |  | 37,103 |  |  |  |  |
Investment in non-public company, fair value | 45,100 |  |  | (45,100) |  |  | — |  |  |  |  |
Property and equipment, net | 59,273 |  |  | — |  |  | 59,273 |  |  |  |  |
Operating lease right-of-use assets | 3,729 |  |  | — |  |  | 3,729 |  |  |  |  |
Goodwill | 35,470 |  |  | — |  |  | 35,470 |  |  |  |  |
Trademarks/tradenames, net | 8,228 |  |  | — |  |  | 8,228 |  |  |  |  |
Customer relationships, net | 2,260 |  |  | — |  |  | 2,260 |  |  |  |  |
Other assets | 80 |  |  | — |  |  | 80 |  |  |  |  |
Total other assets, discontinued operations | 154,140 |  |  | (45,100) |  |  | 109,040 |  |  |  |  |
Total assets, discontinued operations | $ | 191,758 |  |  | $ | (45,615) |  |  | $ | 146,143 |  |  |  |  |
LIABILITIES |  |  |  |  |  |  |  |  |
Accounts payable | 31,271 |  |  | — |  |  | 31,271 |  |  |  |  |
Accrued compensation | 4,550 |  |  | — |  |  | 4,550 |  |  |  |  |
Other accrued liabilities | 4,041 |  |  | 350 |  |  | 4,391 |  |  |  |  |
Current portion of lease liabilities | 2,289 |  |  | — |  |  | 2,289 |  |  |  |  |
Deferred revenue | 493 |  |  | (350) |  |  | 143 |  |  |  |  |
Total current liabilities, discontinued operations | 42,644 |  |  | — |  |  | 42,644 |  |  |  |  |
Long-term lease liabilities | 3,252 |  |  | — |  |  | 3,252 |  |  |  |  |
Other non-current liabilities | 729 |  |  | — |  |  | 729 |  |  |  |  |
Non-current liabilities, discontinued operations | 3,981 |  |  | — |  |  | 3,981 |  |  |  |  |
Total liabilities, discontinued operations | $ | 46,625 |  |  | $ | — |  |  | $ | 46,625 |  |  |  |  |
The effects of this error on our previously reported fiscal year 2022 restructuring cost for the year ended May 29, 2022 as presented in the Company’s fiscal year 2022 Annual Report on Form 10-K/A Note 13, are as follows:
| May 29, 2022
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Asset write-off costs | $ | 3,693 |  |  | $ | (566) |  |  | $ | 3,127 |  |  | $ | — |  |  | $ | 3,127 |
Employee severance and benefit costs | 371 |  |  | 34 |  |  | 405 |  |  | — |  |  | 405 |
Lease costs | 2,072 |  |  | — |  |  | 2,072 |  |  | — |  |  | 2,072 |
Other restructuring costs | 2,825 |  |  | (70) |  |  | 2,755 |  |  | — |  |  | 2,755 |
Total restructuring costs | $ | 8,961 |  |  | $ | (602) |  |  | $ | 8,359 |  |  | $ | — |  |  | $ | 8,359 |
| May 29, 2022
| Curation |  | Other |  | Total
Total restructuring costs, As reported | 6,425 |  |  | 2,536 |  |  | 8,961 |
Restatement adjustments | (602) |  |  | — |  |  | (602) |
Total restructuring costs, As restated | $ | 5,823 |  |  | $ | 2,536 |  |  | $ | 8,359 |
As of and for the year ended May 30, 2021 The effects of the restatement on the consolidated balance sheet as of May 30, 2021 are summarized in the following table:
| May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
ASSETS |  |  |  |  |  |  |  |  |
Current Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 1,159 |  |  | $ | — |  |  | $ | 1,159 |  |  | $ | (396) |  |  | $ | 763 |
Accounts receivable, net | 41,430 |  |  | (522) |  |  | 40,908 |  |  | (9,317) |  |  | 31,591 |
Inventories | 63,076 |  |  | (1,053) |  |  | 62,023 |  |  | (28,093) |  |  | 33,930 |
Prepaid expenses and other current assets | 5,038 |  |  | (930) |  |  | 4,108 |  |  | (2,606) |  |  | 1,502 |
Current assets, discontinued operations | 37,618 |  |  | (515) |  |  | 37,103 |  |  | 40,412 |  |  | 77,515 |
Total Current Assets | 148,321 |  |  | (3,020) |  |  | 145,301 |  |  | — |  |  | 145,301 |
Investment in non-public company, fair value | — |  |  | 44,769 |  |  | 44,769 |  |  | — |  |  | 44,769 |
Property and equipment, net | 120,286 |  |  | 2,312 |  |  | 122,598 |  |  | (15,467) |  |  | 107,131 |
Operating lease right-of-use assets | 17,098 |  |  | — |  |  | 17,098 |  |  | (3,562) |  |  | 13,536 |
Goodwill | 33,916 |  |  | — |  |  | 33,916 |  |  | (20,035) |  |  | 13,881 |
Trademarks/tradenames, net | 17,100 |  |  | — |  |  | 17,100 |  |  | (12,900) |  |  | 4,200 |
Customer relationships, net | 8,532 |  |  | — |  |  | 8,532 |  |  | (8,250) |  |  | 282 |
Other assets | 3,531 |  |  | — |  |  | 3,531 |  |  | (113) |  |  | 3,418 |
Non-current assets, discontinued operations | 154,140 |  |  | (45,100) |  |  | 109,040 |  |  | 60,327 |  |  | 169,367 |
Total Assets | $ | 502,924 |  |  | $ | (1,039) |  |  | $ | 501,885 |  |  | $ | — |  |  | $ | 501,885 |
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities: |  |  |  |  |  |  |  |  |
Accounts payable | $ | 16,298 |  |  | $ | — |  |  | $ | 16,298 |  |  | $ | (4,676) |  |  | $ | 11,622 |
Accrued compensation | 7,754 |  |  | — |  |  | 7,754 |  |  | (254) |  |  | 7,500 |
Other accrued liabilities | 3,955 |  |  | 314 |  |  | 4,269 |  |  | (1,260) |  |  | 3,009 |
Current portion of lease liabilities | 1,600 |  |  | — |  |  | 1,600 |  |  | (623) |  |  | 977 |
Deferred revenue | 637 |  |  | (350) |  |  | 287 |  |  | — |  |  | 287 |
Line of credit | 29,000 |  |  | — |  |  | 29,000 |  |  | — |  |  | 29,000 |
Current liabilities, discontinued operations | 42,644 |  |  | — |  |  | 42,644 |  |  | 6,813 |  |  | 49,457 |
Total Current Liabilities | 101,888 |  |  | (36) |  |  | 101,852 |  |  | — |  |  | 101,852 |
Long-term debt, net | 164,902 |  |  | — |  |  | 164,902 |  |  | — |  |  | 164,902 |
Long-term lease liabilities | 20,359 |  |  | — |  |  | 20,359 |  |  | (2,984) |  |  | 17,375 |
Deferred taxes, net | 6,140 |  |  | (165) |  |  | 5,975 |  |  | — |  |  | 5,975 |
Other non-current liabilities | 2,870 |  |  | — |  |  | 2,870 |  |  | — |  |  | 2,870 |
Non-current liabilities, discontinued operations | 3,981 |  |  | — |  |  | 3,981 |  |  | 2,984 |  |  | 6,965 |
Total Liabilities | 300,140 |  |  | (201) |  |  | 299,939 |  |  | — |  |  | 299,939 |
Stockholders’ Equity: |  |  |  |  |  |  |  |  |
Common stock, $0.001 par value; 50,000 shares authorized | 29 |  |  | — |  |  | 29 |  |  | — |  |  | 29 |
Additional paid-in capital | 165,533 |  |  | — |  |  | 165,533 |  |  | — |  |  | 165,533 |
Retained earnings (Accumulated deficit) | 38,580 |  |  | (838) |  |  | 37,742 |  |  | — |  |  | 37,742 |
Accumulated other comprehensive loss | (1,358) |  |  | — |  |  | (1,358) |  |  | — |  |  | (1,358) |
Total Stockholders’ Equity | 202,784 |  |  | (838) |  |  | 201,946 |  |  | — |  |  | 201,946 |
Total Liabilities and Stockholders’ Equity | $ | 502,924 |  |  | $ | (1,039) |  |  | $ | 501,885 |  |  | $ | — |  |  | $ | 501,885 |
The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the year ended May 30, 2021 are summarized in the following table:
| For the year ended May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Product sales | $ | 171,546 |  |  | $ | 492 |  |  | $ | 172,038 |  |  | $ | (71,164) |  |  | $ | 100,874 |
Cost of product sales | 121,075 |  |  | 1,025 |  |  | 122,100 |  |  | (60,163) |  |  | 61,937 |
Gross profit | 50,471 |  |  | (533) |  |  | 49,938 |  |  | (11,001) |  |  | 38,937 |
Operating costs and expenses: |  |  |  |  |  |  |  |  |
Research and development | 7,423 |  |  | — |  |  | 7,423 |  |  | (739) |  |  | 6,684 |
Selling, general and administrative | 37,660 |  |  | 457 |  |  | 38,117 |  |  | (10,396) |  |  | 27,721 |
Legal settlement charge | 1,763 |  |  | (1,763) |  |  | — |  |  | — |  |  | — |
Restructuring costs | 3,759 |  |  | 9,596 |  |  | 13,355 |  |  | — |  |  | 13,355 |
Total operating costs and expenses | 50,605 |  |  | 8,290 |  |  | 58,895 |  |  | (11,135) |  |  | 47,760 |
Operating (loss) income | (134) |  |  | (8,823) |  |  | (8,957) |  |  | 134 |  |  | (8,823) |
Interest income | 48 |  |  | — |  |  | 48 |  |  | — |  |  | 48 |
Interest expense | (10,387) |  |  | 1,454 |  |  | (8,933) |  |  | — |  |  | (8,933) |
Loss on debt refinancing | (1,110) |  |  | — |  |  | (1,110) |  |  | — |  |  | (1,110) |
Other income (expense), net | 111 |  |  | (11,080) |  |  | (10,969) |  |  | — |  |  | (10,969) |
Net (loss) income from continuing operations before taxes | (11,472) |  |  | (18,449) |  |  | (29,921) |  |  | 134 |  |  | (29,787) |
Income tax benefit (provision) | 1,903 |  |  | 4,899 |  |  | 6,802 |  |  | (452) |  |  | 6,350 |
Net (loss) income from continuing operations | (9,569) |  |  | (13,550) |  |  | (23,119) |  |  | (318) |  |  | (23,437) |
Discontinued operations: |  |  |  |  |  |  |  |  |
Loss from discontinued operations | (28,994) |  |  | 18,839 |  |  | (10,155) |  |  | (134) |  |  | (10,289) |
Income tax benefit (provision) | 5,898 |  |  | (4,918) |  |  | 980 |  |  | 452 |  |  | 1,432 |
Loss from discontinued operations, net of tax | (23,096) |  |  | 13,921 |  |  | (9,175) |  |  | 318 |  |  | (8,857) |
Net (loss) income | $ | (32,665) |  |  | $ | 371 |  |  | $ | (32,294) |  |  | $ | — |  |  | $ | (32,294) |
Basic net loss per share: |  |  |  |  |  |  |  |  |
Loss from continuing operations | $ | (0.33) |  |  | $ | (0.46) |  |  | $ | (0.79) |  |  | $ | (0.01) |  |  | $ | (0.80) |
Loss from discontinued operations | $ | (0.79) |  |  | $ | 0.48 |  |  | $ | (0.31) |  |  | $ | 0.01 |  |  | $ | (0.30) |
Total basic net loss per share | $ | (1.12) |  |  | $ | 0.02 |  |  | $ | (1.10) |  |  | $ | — |  |  | $ | (1.10) |
Diluted net loss per share: |  |  |  |  |  |  |  |  |
Loss from continuing operations | $ | (0.33) |  |  | $ | (0.46) |  |  | $ | (0.79) |  |  | $ | (0.01) |  |  | $ | (0.80) |
Loss from discontinued operations | $ | (0.79) |  |  | $ | 0.48 |  |  | $ | (0.31) |  |  | $ | 0.01 |  |  | $ | (0.30) |
Total diluted net loss per share | $ | (1.12) |  |  | $ | 0.02 |  |  | $ | (1.10) |  |  | $ | — |  |  | $ | (1.10) |
Shares used in per share computation |  |  |  |  |  |  |  |  |
Basic | 29,294 |  | — |  | 29,294 |  | — |  | 29,294
Diluted | 29,294 |  | — |  | 29,294 |  | — |  | 29,294
| For the year ended May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Net loss applicable to common shareholders | $ | (32,665) |  |  | $ | 371 |  |  | $ | (32,294) |  |  | $ | — |  |  | $ | (32,294) |
Other comprehensive (loss) income, net of tax: |  |  |  |  |  |  |  |  |
Net unrealized gains on interest rate swaps (net of tax effect of $(455)) | $ | 1,450 |  |  | $ | — |  |  | $ | 1,450 |  |  | $ | — |  |  | $ | 1,450 |
Other comprehensive income, net of tax | $ | 1,450 |  |  | $ | — |  |  | $ | 1,450 |  |  | $ | — |  |  | $ | 1,450 |
Total comprehensive (loss) income | $ | (31,215) |  |  | $ | 371 |  |  | $ | (30,844) |  |  | $ | — |  |  | $ | (30,844) |
The effects of the restatement on the consolidated statement of stockholders’ equity (deficit) for the year ended May 30, 2021 are summarized in the following table:
| Common Stock |  | Additional Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Loss |  | Total Stockholders’ Equity
| Shares |  | Amount |  |  |  |
As Reported |  |  |  |  |  |  |  |  |  |  |
Balance at May 31, 2020 | 29,224 |  |  | $ | 29 |  |  | $ | 162,578 |  |  | $ | 71,245 |  |  | $ | (2,808) |  |  | $ | 231,044 |
Issuance of stock under stock plans, net of shares withheld | 109 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Taxes paid by Company for employee stock plans | — |  |  | — |  |  | (405) |  |  | — |  |  | — |  |  | (405) |
Stock-based compensation | — |  |  | — |  |  | 3,360 |  |  | — |  |  | — |  |  | 3,360 |
Net loss | — |  |  | — |  |  | — |  |  | (32,665) |  |  | — |  |  | (32,665) |
Other comprehensive income, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | 1,450 |  |  | 1,450 |
Balance at May 30, 2021 | 29,333 |  |  | $ | 29 |  |  | $ | 165,533 |  |  | $ | 38,580 |  |  | $ | (1,358) |  |  | $ | 202,784 |
Restatements Adjustments |  |  |  |  |  |  |  |  |  |  |
Opening retained earnings | — |  |  | — |  |  | — |  |  | (1,209) |  |  | — |  |  | (1,209) |
Net income | — |  |  | — |  |  | — |  |  | 371 |  |  | — |  |  | 371 |
As Restated |  |  |  |  |  |  |  |  |  |  |
Balance at May 31, 2020 | 29,224 |  |  | $ | 29 |  |  | $ | 162,578 |  |  | $ | 70,036 |  |  | $ | (2,808) |  |  | $ | 229,835 |
Issuance of stock under stock plans, net of shares withheld | 109 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Taxes paid by Company for employee stock plans | — |  |  | — |  |  | (405) |  |  | — |  |  | — |  |  | (405) |
Stock-based compensation | — |  |  | — |  |  | 3,360 |  |  | — |  |  | — |  |  | 3,360 |
Net loss | — |  |  | — |  |  | — |  |  | (32,294) |  |  | — |  |  | (32,294) |
Other comprehensive income, net of tax | — |  |  | — |  |  | — |  |  | — |  |  | 1,450 |  |  | 1,450 |
Balance at May 30, 2021 | 29,333 |  |  | $ | 29 |  |  | $ | 165,533 |  |  | $ | 37,742 |  |  | $ | (1,358) |  |  | $ | 201,946 |
The effects of the restatement on the consolidated statement of cash flows for the year ended May 30, 2021 are summarized in the following table:
| Year Ended May 30, 2021
| As Reported |  | Restatement Adjustment |  | As Restated
Cash flows from operating activities: |  |  |  |  |
Net loss | $ | (32,665) |  |  | $ | 371 |  |  | $ | (32,294) |
Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |  |
Depreciation, amortization of intangibles, debt costs and right-of-use assets | 19,867 |  |  | — |  |  | 19,867 |
Loss on debt extinguishment | 1,110 |  |  | — |  |  | 1,110 |
Stock-based compensation expense | 3,360 |  |  | — |  |  | 3,360 |
Provision for expected credit losses | 418 |  |  | 522 |  |  | 940 |
Deferred taxes | (7,893) |  |  | 19 |  |  | (7,874) |
Change in investment in non-public company, fair value | 11,800 |  |  | (331) |  |  | 11,469 |
Net loss on disposal of property and equipment | 61 |  |  | — |  |  | 61 |
Loss on disposal of property and equipment related to restructuring, net | 10,143 |  |  | — |  |  | 10,143 |
Other, net | (74) |  |  | — |  |  | (74) |
Changes in current assets and current liabilities: |  |  |  |  |
Accounts receivable, net | 5,775 |  |  | — |  |  | 5,775 |
Inventory | (3,352) |  |  | 533 |  |  | (2,819) |
Prepaid expenses and other current assets | 7,941 |  |  | 340 |  |  | 8,281 |
Accounts payable | (5,982) |  |  | — |  |  | (5,982) |
Accrued compensation | 3,270 |  |  | — |  |  | 3,270 |
Other accrued liabilities | 460 |  |  | 350 |  |  | 810 |
Deferred revenue | 778 |  |  | (350) |  |  | 428 |
Net cash provided by operating activities | 15,017 |  |  | 1,454 |  |  | 16,471 |
Cash flows from investing activities: |  |  |  |  |
Purchases of property and equipment | (23,769) |  |  | (1,454) |  |  | (25,223) |
Proceeds from sales of property and equipment | 12,913 |  |  | — |  |  | 12,913 |
Net cash used in investing activities | (10,856) |  |  | (1,454) |  |  | (12,310) |
Cash flows from financing activities: |  |  |  |  |
Taxes paid by Company for employee stock plans | (405) |  |  | — |  |  | (405) |
Proceeds from long-term debt | 170,000 |  |  | — |  |  | 170,000 |
Payments on long-term debt | (114,130) |  |  | — |  |  | (114,130) |
Proceeds from line of credit | 100,000 |  |  | — |  |  | 100,000 |
Payments on line of credit | (148,400) |  |  | — |  |  | (148,400) |
Payments for debt issuance costs | (10,484) |  |  | — |  |  | (10,484) |
Net cash used in financing activities | (3,419) |  |  | — |  |  | (3,419) |
Net increase in cash, cash equivalents and restricted cash | 742 |  |  | — |  |  | 742 |
Cash, cash equivalents and restricted cash, beginning of period | $ | 553 |  |  | $ | — |  |  | $ | 553 |
Cash, cash equivalents and restricted cash, end of period | $ | 1,295 |  |  | $ | — |  |  | $ | 1,295 |
The effects of this error on our previously reported fiscal year 2021 changes in the Company’s allowance for sales returns and credit losses for the year ended May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 1, are as follows:
| May 30, 2021
(in thousands) | Balance at beginning of period |  | Provision (benefit) for expected credit losses |  | Write offs, net of recoveries |  |  |  | Balance at end of period
Year ended May 30, 2021, As Reported | $ | 186 |  |  | 187 |  |  | (288) |  |  |  |  | $ | 85 |
Restatement Adjustment | $ | — |  |  | 522 |  |  | — |  |  |  |  | $ | 522 |
Year ended May 30, 2021, As Restated | $ | 186 |  |  | 709 |  |  | (288) |  |  |  |  | $ | 607 |
Discontinued Operations | $ | (186) |  |  | 64 |  |  | 37 |  |  |  |  | $ | (85) |
Year ended May 30, 2021, As Restated, after Discontinued Operations | $ | — |  |  | 773 |  |  | (251) |  |  |  |  | $ | 522 |
The effects of this error on our previously reported fiscal year 2021 inventories as of May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 1, are as follows:
| May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Finished goods | $ | 40,204 |  |  | $ | 3 |  |  | $ | 40,207 |  |  | $ | (22,453) |  |  | $ | 17,754 |
Raw materials | 16,644 |  |  | (728) |  |  | 15,916 |  |  | (5,615) |  |  | 10,301 |
Work in progress | 6,228 |  |  | (328) |  |  | 5,900 |  |  | (25) |  |  | 5,875 |
Total inventories | $ | 63,076 |  |  | $ | (1,053) |  |  | $ | 62,023 |  |  | $ | (28,093) |  |  | $ | 33,930 |
The effects of this error on our previously reported fiscal year 2021 basic and diluted net loss per share for the year ended May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 1, are as follows:
| May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Numerator: |  |  |  |  |  |  |  |  |
Net (loss) income applicable to Common Stockholders | $ | (32,665) |  |  | $ | 371 |  |  | $ | (32,294) |  |  | $ | — |  |  | $ | (32,294) |
Denominator: |  |  |  |  |  |  |  |  |
Weighted average shares for basic net income per share | 29,294 |  |  | — |  |  | 29,294 |  |  | — |  |  | 29,294 |
Weighted average shares for diluted net income per share | 29,294 |  |  | — |  |  | 29,294 |  |  | — |  |  | 29,294 |
Diluted net (loss) income per share | $ | (1.12) |  |  | $ | 0.02 |  |  | $ | (1.10) |  |  | $ | — |  |  | $ | (1.10) |
The effects of this error on our previously reported fiscal year 2021 fair value measurement as of May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 1, are as follows:
|  | Fair Value at May 30, 2021, As Reported
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |
Current assets, discontinued operations |  |  |  |  |  |
Assets held for sale - nonrecurring |  | $ | — |  |  | $ | — |  |  | $ | 515 |
Other assets, discontinued operations |  |  |  |  |  |
Investment in non-public company |  | — |  |  | — |  |  | 45,100 |
Total assets |  | $ | — |  |  | $ | — |  |  | $ | 45,615 |
|  | Restatement Adjustments
Investment in non-public company |  | $ | — |  |  | $ | — |  |  | $ | (331) |
|  | Fair Value at May 30, 2021, As Restated
(in thousands) |  | Level 1 |  | Level 2 |  | Level 3
Assets: |  |  |  |  |  |
Current assets, continuing operations (1) |  |  |  |  |  |
Assets held for sale - nonrecurring, as restated |  | $ | — |  |  | $ | — |  |  | $ | 515 |
Other assets, continuing operations (1) |  |  |  |  |  |
Investment in non-public company, as restated |  | — |  |  | — |  |  | 44,769 |
Total assets |  | $ | — |  |  | $ | — |  |  | $ | 45,284 |
(1) The restatement adjustment also included a reclassification from discontinued operations to continuing operations. The effects of this error on our previously reported fiscal year 2021 disaggregated revenue for the year ended May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 1, are as follows:
| As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Contact development and manufacturing organization | $ | 75,297 |  |  | $ | 492 |  |  | $ | 75,789 |  |  | $ | — |  |  | $ | 75,789 |
Fermentation | 22,790 |  |  | — |  |  | 22,790 |  |  | — |  |  | 22,790 |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total | $ | 98,087 |  |  | $ | 492 |  |  | $ | 98,579 |  |  | $ | — |  |  | $ | 98,579 |
| As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Avocado Products | $ | 63,575 |  |  | $ | — |  |  | $ | 63,575 |  |  | $ | (63,575) |  |  | $ | — |
Olive oil and vinegars | 7,589 |  |  | — |  |  | 7,589 |  |  | (7,589) |  |  | — |
Technology | 2,295 |  |  | — |  |  | 2,295 |  |  | — |  |  | 2,295 |
Total | $ | 73,459 |  |  | $ | — |  |  | $ | 73,459 |  |  | $ | (71,164) |  |  | $ | 2,295 |
The effects of this error on our previously reported fiscal year 2021 property and equipment, net as of May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 4, are as follows:
| May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Land | $ | 3,670 |  |  | $ | — |  |  | $ | 3,670 |  |  | $ | — |  |  | $ | 3,670 |
Buildings | 47,880 |  |  | — |  |  | 47,880 |  |  | (1,696) |  |  | 46,184 |
Leasehold improvements | 6,465 |  |  | — |  |  | 6,465 |  |  | (2,410) |  |  | 4,055 |
Computers, capitalized software, machinery, equipment and autos | 71,832 |  |  | — |  |  | 71,832 |  |  | (13,971) |  |  | 57,861 |
Furniture and fixtures | 2,513 |  |  | — |  |  | 2,513 |  |  | (199) |  |  | 2,314 |
Construction in process | 31,383 |  |  | 2,312 |  |  | 33,695 |  |  | (2,882) |  |  | 30,813 |
Gross property and equipment | 163,743 |  |  | 2,312 |  |  | 166,055 |  |  | (21,158) |  |  | 144,897 |
Less accumulated depreciation and amortization | (43,457) |  |  | — |  |  | (43,457) |  |  | 5,691 |  |  | (37,766) |
Net property and equipment | $ | 120,286 |  |  | $ | 2,312 |  |  | $ | 122,598 |  |  | $ | (15,467) |  |  | $ | 107,131 |
The effects of this error on our previously reported fiscal year 2021 income taxes as of and for the year ended May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 8, are as follows:
| For the Year Ended May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Current: |  |  |  |  |  |  |  |  |
Federal | $ | (38) |  |  | $ | — |  |  | $ | (38) |  |  | $ | — |  |  | $ | (38) |
State | 74 |  |  | — |  |  | 74 |  |  | — |  |  | 74 |
Foreign | 56 |  |  | — |  |  | 56 |  |  | — |  |  | 56 |
| 92 |  |  | — |  |  | 92 |  |  | — |  |  | 92 |
Deferred: |  |  |  |  |  |  |  |  |
Federal | $ | (1,536) |  |  | $ | (4,899) |  |  | $ | (6,435) |  |  | $ | 452 |  |  | $ | (5,983) |
State | (459) |  |  | — |  |  | (459) |  |  | — |  |  | (459) |
| (1,995) |  |  | (4,899) |  |  | (6,894) |  |  | 452 |  |  | (6,442) |
Total provision for income taxes | (1,903) |  |  | (4,899) |  |  | (6,802) |  |  | 452 |  |  | (6,350) |
| For the Year Ended May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Tax at U.S. statutory rate | $ | (2,409) |  |  | $ | (4,245) |  |  | $ | (6,654) |  |  | $ | 398 |  |  | $ | (6,256) |
State income taxes, net of federal benefit | (304) |  |  | (580) |  |  | (884) |  |  | 54 |  |  | (830) |
Change in valuation allowance | 2,667 |  |  | (70) |  |  | 2,597 |  |  | — |  |  | 2,597 |
Tax credit carryforwards | (606) |  |  | — |  |  | (606) |  |  | — |  |  | (606) |
Other compensation-related activity | 249 |  |  | — |  |  | 249 |  |  | — |  |  | 249 |
Foreign rate differential | (1,414) |  |  | — |  |  | (1,414) |  |  | — |  |  | (1,414) |
Other | (86) |  |  | (4) |  |  | (90) |  |  | — |  |  | (90) |
Income tax expense | $ | (1,903) |  |  | $ | (4,899) |  |  | $ | (6,802) |  |  | $ | 452 |  |  | $ | (6,350) |
| As of May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Deferred tax assets: |  |  |  |  |  |  |  |  |
Accruals and reserves | $ | 3,366 |  |  | $ | 256 |  |  | $ | 3,622 |  |  | $ | — |  |  | $ | 3,622 |
Net operating loss carryforwards | 21,916 |  |  | 167 |  |  | 22,083 |  |  | — |  |  | 22,083 |
Stock-based compensation | 1,123 |  |  | — |  |  | 1,123 |  |  | — |  |  | 1,123 |
Research and AMT credit carryforwards | 5,150 |  |  | — |  |  | 5,150 |  |  | — |  |  | 5,150 |
Lease Liability | 5,902 |  |  | — |  |  | 5,902 |  |  | — |  |  | 5,902 |
Limitations on business interest expense | 2,411 |  |  | (303) |  |  | 2,108 |  |  | — |  |  | 2,108 |
Other | 927 |  |  | 13 |  |  | 940 |  |  | — |  |  | 940 |
Gross deferred tax assets | 40,795 |  |  | 133 |  |  | 40,928 |  |  | — |  |  | 40,928 |
Valuation Allowance | (10,460) |  |  | 32 |  |  | (10,428) |  |  | — |  |  | (10,428) |
Net deferred tax assets | 30,335 |  |  | 165 |  |  | 30,500 |  |  | — |  |  | 30,500 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |
Depreciation and amortization | (16,600) |  |  | — |  |  | (16,600) |  |  | — |  |  | (16,600) |
Goodwill and other indefinite life intangibles | (13,406) |  |  | — |  |  | (13,406) |  |  | — |  |  | (13,406) |
Basis difference in investment in non-public company | (1,382) |  |  | — |  |  | (1,382) |  |  | — |  |  | (1,382) |
Right of use asset | (5,087) |  |  | — |  |  | (5,087) |  |  | — |  |  | (5,087) |
Deferred tax liabilities | (36,475) |  |  | — |  |  | (36,475) |  |  | — |  |  | (36,475) |
Net deferred tax liabilities | $ | (6,140) |  |  | $ | 165 |  |  | $ | (5,975) |  |  | $ | — |  |  | $ | (5,975) |
| As of May 30, 2021
(in thousands) | As Reported |  | Restatement |  | As Restated |  | Discontinued Operations |  | As Restated, after Discontinued Operations
Unrecognized tax benefits – beginning of the period | $ | 827 |  |  | $ | 9 |  |  | $ | 836 |  |  | $ | — |  |  | $ | 836 |
Gross increases – current-period tax positions | 115 |  |  | 7 |  |  | 122 |  |  | — |  |  | 122 |
Unrecognized tax benefits – end of the period | $ | 942 |  |  | $ | 16 |  |  | $ | 958 |  |  | $ | — |  |  | $ | 958 |
The effects of this error on our previously reported fiscal year 2021 segment reporting for the year ended May 30, 2021 as presented in the Company’s fiscal year 2021 Annual Report on Form 10-K Note 11, are as follows. The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the period ending year ended May 30, 2021. Refer to Note 13 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.
| As of May 30, 2021
(in thousands) | Lifecore |  | Curation Foods |  | Other |  | Total
Year Ended May 30, 2021, As Reported |  |  |  |  |  |  |
Net sales | $ | 98,087 |  |  | $ | 73,459 |  |  | $ | — |  |  | $ | 171,546 |
Gross profit | 38,265 |  |  | 12,206 |  |  | — |  |  | 50,471 |
Net income (loss) from continuing operations | 14,461 |  |  | (357) |  |  | (23,673) |  |  | (9,569) |
Loss from discontinued operations, net of tax | — |  |  | (23,096) |  |  | — |  |  | (23,096) |
Total assets | 185,417 |  |  | 121,069 |  |  | 4,680 |  |  | 311,166 |
Depreciation and amortization | 5,502 |  |  | 2,972 |  |  | 97 |  |  | 8,571 |
Capital expenditures | 16,222 |  |  | 3,042 |  |  | — |  |  | 19,264 |
Interest income | — |  |  | — |  |  | 48 |  |  | 48 |
Interest expense | — |  |  | (545) |  |  | (9,842) |  |  | (10,387) |
Income tax (benefit) expense, continuing operations | 4,568 |  |  | (3,020) |  |  | (3,451) |  |  | (1,903) |
Corporate overhead allocation | 4,773 |  |  | 946 |  |  | (5,719) |  |  | — |
Restatement Adjustments |  |  |  |  |  |  |
Net sales | 492 |  |  | — |  |  | — |  |  | 492 |
Gross profit | (533) |  |  | — |  |  | — |  |  | (533) |
Net (loss) income from continuing operations | (573) |  |  | (16,816) |  |  | 3,839 |  |  | (13,550) |
Loss from discontinued operations, net of tax | — |  |  | 13,921 |  |  | — |  |  | 13,921 |
Total assets | 737 |  |  | (1,776) |  |  | — |  |  | (1,039) |
Interest expense | — |  |  | — |  |  | (1,454) |  |  | (1,454) |
Income tax (benefit) expense, continuing operations | (482) |  |  | (2,032) |  |  | (2,385) |  |  | (4,899) |
Year Ended May 30, 2021, As Restated |  |  |  |  |  |  |
Net sales | $ | 98,579 |  |  | $ | 73,459 |  |  | $ | — |  |  | $ | 172,038 |
Gross profit | 37,732 |  |  | 12,206 |  |  | — |  |  | 49,938 |
Net income (loss) from continuing operations | 13,888 |  |  | (17,173) |  |  | (19,834) |  |  | (23,119) |
Loss from discontinued operations, net of tax | — |  |  | (9,175) |  |  | — |  |  | (9,175) |
Total assets | 186,154 |  |  | 119,293 |  |  | 4,680 |  |  | 310,127 |
Depreciation and amortization | 5,502 |  |  | 2,972 |  |  | 97 |  |  | 8,571 |
Capital expenditures | 16,222 |  |  | 3,042 |  |  | — |  |  | 19,264 |
Interest income | — |  |  | — |  |  | 48 |  |  | 48 |
Interest expense | — |  |  | (545) |  |  | (8,388) |  |  | (8,933) |
Income tax (benefit) expense, continuing operations | 4,086 |  |  | (5,052) |  |  | (5,836) |  |  | (6,802) |
Corporate overhead allocation | 4,773 |  |  | 946 |  |  | (5,719) |  |  | — |

X
- References No definition available. + Details
Name: | us-gaap_AccountingChangesAndErrorCorrectionsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-8 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-7 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147483443/250-10-50-9 + Details
Name: | us-gaap_ScheduleOfErrorCorrectionsAndPriorPeriodAdjustmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration