Discontinued Operations

3 Months Ended

Aug. 27, 2023

Discontinued Operations and Disposal Groups [Abstract]

As discussed in Note 1 – Organization, Basis of Presentation, and Summary of Significant Accounting Policies – Discontinued Operations, the Company completed the disposition of Yucatan and O Olive on February 7, 2023 and April 6, 2023, respectively. Yucatan and O Olive represented components of the company’s previously operated food business and their sale represents a strategic shift in the Company going forward. Accordingly, concurrent with the execution of their respective purchase agreements, Yucatan and O Olive both met the accounting requirements for reporting as discontinued operations for all periods presented. There were no assets or liabilities of Yucatan and O Olive as of August 27, 2023.

The key components of income from discontinued operations for the three months ended August 27, 2023 and August 28, 2022, were as follows (in thousands):


	Three Months Ended
	August 27, 2023		August 28, 2022
Revenues	$	—	$	19,652
Cost of goods sold	—		19,436
Gross profit	—		216
Operating costs and expenses:
Research and development	—		79
Selling, general and administrative	—		4,369
Restructuring costs			27
Total operating costs and expenses	—		4,475
Operating loss	—		(4,259)
Other income (expense), net	1,850		—
Income (loss) from discontinued operations	1,850		(4,259)
Income tax (expense) benefit	6		—
Income (loss) from discontinued operations, net of tax	$	1,856	$	(4,259)

Cash provided by operating activities by discontinued operations totaled $1.9 million and $1.1 million for the three months ended August 27, 2023 and August 28, 2022, respectively. Cash used in investing activities of discontinued operations for the three months ended August 28, 2022 was $43.0 thousand.