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Fair value of financial instruments (Tables)

9 Months Ended

Feb. 23, 2025

Fair Value Disclosures [Abstract]

Schedule of Carrying Value and Fair Value of the Financial Instruments

The following table presents the carrying value and fair value of financial liabilities:

			February 23, 2025												May 26, 2024
			Carrying value						Fair value						Carrying value						Fair value
Term loan credit facility with related party			$	109,865					$	128,600					$	94,442					$	124,700
Debt derivative liability			23,900						23,900						25,400						25,400
Leaseback liability with related party			6,571						*						7,150						*
Contract liability, related party			4,971						*						4,703						*
Customer deposit			4,140						*						4,576						*

* Fair value approximates carrying value

Schedule of Fair Value of Assets and Liabilities

The following table summarizes the fair value of the Company’s balance sheet components that are measured at fair value on a recurring and non-recurring basis:

Type of measurement

Measurement date

Type of measurement

Level 1

Level 2

Level 3

Liabilities

Debt derivative liability

Recurring

February 23, 2025

—

—

23,900

Debt derivative liability

Recurring

May 26, 2024

—

—

25,400

Schedule of Derivative Liabilities Assumptions

Key inputs used to develop the discount rate for the fair value measurements at the balance sheet dates were as follows:

			February 23, 2025						May 26, 2024
Probability of change in control event			80		%				80		%
Weighted average discount rate			18.0		%				21.4		%

Schedule of Fair Value Reconciliation of Level 3

The following table reflects the roll forward reconciliation of Level 3 recurring fair value measurements:

			Three months ended												Nine months ended
			February 23, 2025						February 25, 2024						February 23, 2025						February 25, 2024
Balance at beginning of period			$	23,300					$	44,000					25,400						$	64,900
Change in fair value			600						(21,000)						(1,500)						(41,900)
Balance at end of period			$	23,900					$	23,000					$	23,900					$	23,000

(1) For the three and nine months ended February 23, 2025 and February 25, 2024, the decreases in fair value are recorded in the “Change in fair value of debt derivative liability, related party” line within the condensed consolidated statement of operations.

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- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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