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Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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May 26, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Components of AOCL, Net of Tax | The components of accumulated other comprehensive income (“AOCI”), net of tax, are as follows (in thousands):
| AOCI
May 30, 2021 | $ | (1,358) |
Amounts reclassified from OCI | 772 |
Other comprehensive income, net of tax effect of $(430) | 772 |
May 29, 2022 | (586) |
Amounts reclassified from OCI | 586 |
Other comprehensive income, net of tax effect of $16 | 586 |
May 28, 2023 | — |
Schedule of Accounts, Notes, Loans and Financing Receivable | The accounts receivable balances are as follows (in thousands):
| Year Ended
| May 26, 2024 |  | May 28, 2023 |  | May 29, 2022
Accounts receivable | $ | 31,864 |  |  | $ | 29,509 |  |  | $ | 38,836 |
Less: Allowance for credit losses | (711) |  |  | (485) |  |  | (522) |
Accounts receivable, less allowance for credit losses | $ | 31,153 |  |  | $ | 29,024 |  |  | $ | 38,314 |
The changes in the allowance for credit losses related to accounts receivable are as follows (in thousands):
| Year Ended
| May 26, 2024 |  | May 28, 2023 |  | May 29, 2022
Beginning balance | $ | 485 |  |  | $ | 522 |  |  | $ | 522 |
Provision | 263 |  |  | 163 |  |  | — |
Charge-offs | (37) |  |  | (200) |  |  | — |
Ending Balance | $ | 711 |  |  | $ | 485 |  |  | $ | 522 |
Summary of Contract Liabilities |
Contract liabilities consisted of the following (in millions): | May 26, 2024 |  | May 28, 2023 |  | May 29, 2022
Current deferred revenues: |  |  |  |  |
Non related party (1) | $1.1 |  | $0.6 |  | $0.3
Related party (1) | 1.0 |  | 3.5 |  | 0.6
Non-current deferred revenues: |  |  |  |  |
Related party (1) | 4.7 |  | 2.9 |  | —
Non-current customer deposit (2) | 0.3 |  | — |  | —
Total contract liabilities | $7.1 |  | $7.0 |  | $0.9
(1) These are separate lines on the consolidated balance sheet for these deferred revenues. (2) This is with a non-related party and is included within other non-current liabilities on the consolidated balance sheet.
Schedule of Disaggregation of Revenue | The Company disaggregates its revenue based on how it markets its products and services and reviews results of operations. The following tables disaggregates revenue by major product lines and services (in thousands):
| Year Ended
| May 26, 2024 |  | May 28, 2023 |  | May 29, 2022
CDMO | $ | 96,616 |  |  | $ | 76,378 |  |  | $ | 86,353 |
Fermentation | 31,645 |  |  | 26,891 |  |  | 23,007 |
Other | — |  |  | — |  |  | 1,910 |
Total | $ | 128,261 |  |  | $ | 103,269 |  |  | $ | 111,270 |
Schedule of Inventories | As of May 26, 2024 and May 28, 2023, inventories consisted of the following (in thousands):
| Year Ended
| May 26, 2024 |  | May 28, 2023
Finished goods | $ | 14,924 |  |  | $ | 13,141 |
Raw materials | 14,555 |  |  | 17,735 |
Work in process | 11,915 |  |  | 10,349 |
Inventory reserve | (1,415) |  |  | (384) |
Total inventories | $ | 39,979 |  |  | $ | 40,841 |
Schedule of Diluted Net Income (Loss) Per Share | The following table sets forth the computation of diluted net income (loss) per share:
| Year Ended
(in thousands, except per share amounts) | May 26, 2024 |  | May 28, 2023 |  | May 29, 2022
Numerator: |  |  |  |  |
Net Income (loss) from continuing operations | $ | 9,331 |  |  | $ | (64,236) |  |  | $ | (15,476) |
Income (loss) from discontinued operations, net of tax | 2,682 |  |  | (35,327) |  |  | (101,239) |
Net income (loss) | $ | 12,013 |  |  | $ | (99,563) |  |  | $ | (116,715) |
Denominator: |  |  |  |  |
Weighted average shares for basic income per share | 30,474 |  |  | 29,958 |  |  | 29,466 |
Potential preferred stock conversion to common stock | 5,847 |  | — |  | —
Dilutive stock options, RSUs, and PSUs | 337 |  | — |  | —
Weighted average shares for diluted income per share | 36,658 |  | 29,958 |  | 29,466
Basic income (loss) per share: |  |  |  |  |
Income (loss) from continuing operations | $ | 0.31 |  |  | $ | (2.14) |  |  | $ | (0.53) |
Income (loss) from discontinued operations | 0.09 |  |  | (1.18) |  |  | (3.44) |
Total basic income (loss) per share | $ | 0.40 |  |  | $ | (3.32) |  |  | $ | (3.97) |
Diluted income (loss) per share: |  |  |  |  |
Income (loss) from continuing operations | $ | 0.25 |  |  | $ | (2.14) |  |  | $ | (0.53) |
Income (loss) from discontinued operations | 0.07 |  |  | (1.18) |  |  | (3.44) |
Total diluted income (loss) per share | $ | 0.32 |  |  | $ | (3.32) |  |  | $ | (3.97) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands):
| Fair Value at May 26, 2024 |  | Fair Value at May 28, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Debt derivative liability, related party(1) | $ | — |  |  | $ | — |  |  | $ | 25,400 |  |  | $ | — |  |  | $ | — |  |  | $ | 64,900 |
Total liabilities | $ | — |  |  | $ | — |  |  | $ | 25,400 |  |  | $ | — |  |  | $ | — |  |  | $ | 64,900 |
(1) As of May 26, 2024 and May 28, 2023, the fair value of the debt derivative liability, related party, is included in non-current liabilities in the Company’s Consolidated Balance Sheets.
Fair Value Measurement Inputs and Valuation Techniques | Key inputs into the discount rate assumptions during the years ended May 26, 2024 and May 28, 2023 were as follows:
|  | Year Ended |  | As of
|  | May 26, 2024 |  | May 28, 2023
Assumptions |  |  |  |
Discount rate |  | 21.3% — 23.5% |  | 22.3% — 24.5%
Implied spread |  | 16.8% — 17.9% |  | 18.5%
Risk free rate |  | 4.3% — 5.6% |  | 3.8% — 6.0%
Schedule of Fair Value Reconciliation of Level 3 | The following table reflects the fair value roll forward reconciliation of Level 3 assets and liabilities measured at fair value (in thousands):
| Debt Derivative Liability |  |
Balance as of May 29, 2022 | $ | — |  |  |
Fair value on issuance | 64,900 |  |  |
Balance as of May 28, 2023(1) | $ | 64,900 |  |  |
Decrease in fair value(2) | $ | (39,500) |  |  |
Balance as of May 26, 2024 | $ | 25,400 |  |  |
(1) At May 28, 2023, the fair value of the embedded derivative liability, related party, approximated the fair value upon issuance on May 22, 2023. (2)For the year ended May 26, 2024, the decrease in fair value is recorded within “Change in fair value of debt derivative liability, related party” within the consolidated statement of operations.

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