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Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)
 12 Months Ended
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 OCI772 
Other comprehensive income, net of tax effect of $(430)
772 
May 29, 2022(586)
Amounts reclassified from OCI586 
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, 2024May 28, 2023May 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, 2024May 28, 2023May 29, 2022
Beginning balance$485 $522 $522 
Provision263 163 — 
Charge-offs(37)(200)— 
Ending Balance$711 $485 $522 
Summary of Contract Liabilities
Contract liabilities consisted of the following (in millions):May 26, 2024May 28, 2023May 29, 2022
Current deferred revenues:
Non related party (1)$1.1$0.6$0.3
Related party (1)1.03.50.6
Non-current deferred revenues:
Related party (1)4.72.9—
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, 2024May 28, 2023May 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, 2024May 28, 2023
Finished goods$14,924 $13,141 
Raw materials14,555 17,735 
Work in process11,915 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, 2024May 28, 2023May 29, 2022
Numerator:   
Net Income (loss) from continuing operations$9,331 $(64,236)$(15,476)
Income (loss) from discontinued operations, net of tax2,682 (35,327)(101,239)
Net income (loss)$12,013 $(99,563)$(116,715)
Denominator:   
Weighted average shares for basic income per share30,474 29,958 29,466 
Potential preferred stock conversion to common stock5,847——
Dilutive stock options, RSUs, and PSUs337——
Weighted average shares for diluted income per share36,65829,95829,466
Basic income (loss) per share:
Income (loss) from continuing operations$0.31 $(2.14)$(0.53)
Income (loss) from discontinued operations0.09 (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 operations0.07 (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, 2024Fair Value at May 28, 2023

Level 1Level 2Level 3Level 1Level 2Level 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 EndedAs of
May 26, 2024May 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.