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Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)

9 Months Ended

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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