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Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Feb. 25, 2024
Accounting Policies [Abstract] |
Schedule of Disaggregation of Revenue | The following tables disaggregates revenue by major product lines and services (in thousands):
| Three Months Ended |  | Nine Months Ended |
(In thousands) | February 25, 2024 |  | February 26, 2023 |  | February 25, 2024 |  | February 26, 2023 |
Contact development and manufacturing organization | $ | 22,306 |  |  | $ | 18,015 |  |  | $ | 67,522 |  |  | $ | 52,488 |  |
HA manufacturing | 13,398 |  |  | 8,521 |  |  | 22,853 |  |  | 19,635 |  |
Total | $ | 35,704 |  |  | $ | 26,536 |  |  | $ | 90,375 |  |  | $ | 72,123 |  |
Schedule of Inventories | As of February 25, 2024 and May 28, 2023, inventories consisted of the following (in thousands):
(In thousands) | February 25, 2024 |  | May 28, 2023
Finished goods | $ | 13,113 |  |  | $ | 13,141 |
Raw materials | 18,686 |  |  | 17,735 |
Work in process | 8,802 |  |  | 10,349 |
Inventory reserve | (931) |  |  | (384) |
Total | $ | 39,670 |  |  | $ | 40,841 |
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 and non-recurring basis (in thousands):
| Fair Value at February 25, 2024 |  | Fair Value at May 28, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Level 1 |  | Level 2 |  | Level 3
Liabilities: |  |  |  |  |  |  |  |  |  |  |
Debt derivative liability(1) | — |  |  | — |  |  | 23,000 |  |  | — |  |  | — |  |  | 64,900 |
Total liabilities | — |  |  | — |  |  | 23,000 |  |  | — |  |  | — |  |  | 64,900 |
(1) As of February 25, 2024 and May 28, 2023, the fair value of the debt derivative liability is included in non-current liabilities in the Company’s Condensed Consolidated Balance Sheets.
Fair Value Measurement Inputs and Valuation Techniques | The risk adjusted discount rate as of February 25, 2024 and May 28, 2023, were as follows:
|  | February 25, 2024 |  | May 28, 2023 |
Assumptions |  |  |  |  |
Discount rate |  | 21.3% — 24.2% |  | 22.3% — 24.5% |
Implied spread |  | 17.0% |  | 18.5% |
Risk free rate |  | 4.3% — 7.2% |  | 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 for the nine months ended February 25, 2024 (in thousands):
| Debt Derivative Liability
Balance as of May 29, 2022 | $ | — |
Fair value on issuance(1) | $ | 64,900 |
Balance as of May 28, 2023 | 64,900 |
Decrease in fair value(2) | (41,900) |
Balance as of February 25, 2024 | $ | 23,000 |
(1)At May 28, 2023, the fair value of the embedded derivative liability approximated the fair value upon issuance on May 22, 2023. (2)For the nine months ended February 25, 2024, the decrease in fair value is recorded within “Change in fair value of debt derivative liability, related party” within the condensed consolidated statement of operations.

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