Unaudited Quarterly Consolidated Financial Information (Tables)

12 Months Ended

May 28, 2023

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

The quarterly financial information for fiscal years 2023 and 2022 has been reclassified to present the information after taking into effect the O Olive Sale, Yucatan Disposition, and Eat Smart Disposition as disclosed in Note 1 – Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Discontinued Operations - O Olive Sale, Yucatan Disposition, BreatheWay Disposition and Eat Smart Disposition.

The following is a summary of the unaudited quarterly results of operations for fiscal years 2023 and 2022 (in thousands, except for per share amounts).

	As restated		As restated		As restated
Fiscal Year 2023	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
Product sales	$	23,724	$	21,864	$	26,536	$	31,145	$	103,269
Gross profit	5,979		5,679		8,548		7,779		27,985
Net loss from continuing operations	(6,707)		(9,201)		(11,330)		(36,998)		(64,236)
Net loss from discontinued operations	(4,259)		(3,605)		(25,177)		(2,286)		(35,327)
Net loss per basic and diluted share from continuing operations	$	(0.23)	$	(0.31)	$	(0.37)	$	(1.23)	$	(2.14)
Net loss per basic and diluted share from discontinued operations	$	(0.14)	$	(0.12)	$	(0.83)	$	(0.09)	$	(1.18)
Total net loss per basic and diluted share	$	(0.37)	$	(0.43)	$	(1.20)	$	(1.32)	$	(3.32)

	As restated		As restated		As restated				As restated
Fiscal Year 2022	1st Quarter		2nd Quarter		3rd Quarter		4th Quarter		Annual
Product sales	$	22,330	$	25,601	$	35,232	$	28,107	$	111,270
Gross profit	5,545		11,458		11,639		10,424		39,066
Net loss from continuing operations	(8,473)		7,547		(10,920)		(3,630)		(15,476)
Net loss from discontinued operations	(914)		(46,018)		(2,666)		(51,641)		(101,239)
Net loss per basic and diluted share from continuing operations	$	(0.29)	$	0.25	$	(0.37)	$	(0.12)	$	(0.53)
Net loss per basic and diluted share from discontinued operations	$	(0.03)	$	(1.56)	$	(0.09)	$	(1.76)	$	(3.44)
Total net loss per basic and diluted share	$	(0.32)	$	(1.31)	$	(0.46)	$	(1.88)	$	(3.97)

The following is a summary of the unaudited quarterly results of operations for fiscal years 2023, 2022 and 2021 (in thousands, except for per share amounts). Refer to see Note 13 - Correction of Errors in Previously Reported Fiscal Year 2022 and 2021 Annual Financial Statements.

Description of Quarterly Restatement Tables

In lieu of filing amended quarterly reports on Form 10-Q, the tables below represent our restated unaudited consolidated financial statements for each of the previously completed quarters during the fiscal years ended May 28, 2023, May 29, 2022, May 30, 2021. The following tables present the impact of the restatement on our previously reported consolidated statements of operations, balance sheets, statements of stockholders' equity (deficit), statements of cash flows, and certain disclosures for which the values were derived from our Quarterly Reports on Form 10-Q for the interim periods of fiscal years 2023, 2022 and 2021. For further information on the restatement, refer to Note 13 - Correction of Error in Previously Reported Fiscal Year 2022 and 2021 Financial Statements.

As of and for the three and nine months ended February 26, 2023

The effects of the restatement on the consolidated balance sheet as of February 26, 2023 are summarized in the following table:

	February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	2,950	$	—	$	2,950	$	—	$	2,950
Accounts receivable, net	32,371		(671)		31,700		(726)		30,974
Inventories	48,696		(3,437)		45,259		(3,217)		42,042
Prepaid expenses and other current assets	4,422		(1,205)		3,217		(1,744)		1,473
Current assets, discontinued operations	—		—		—		5,687		5,687
Total Current Assets	88,439		(5,313)		83,126		—		83,126
Property and equipment, net	120,799		5,933		126,732		(406)		126,326
Operating lease right-of-use assets	5,924		(117)		5,807		(707)		5,100
Goodwill	13,881		—		13,881		—		13,881
Trademarks/tradenames, net	4,400		—		4,400		(200)		4,200
Other non-current assets	2,710		—		2,710		(11)		2,699
Non-current assets, discontinued operations	—		—		—		1,324		1,324
Total Assets	$	236,153	$	503	$	236,656	$	—	$	236,656
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	14,762	$	(79)	$	14,683	$	(26)	$	14,657
Accrued compensation	6,733		—		6,733		—		6,733
Other accrued liabilities	12,012		(193)		11,819		(193)		11,626
Current portion of lease liabilities	1,455		—		1,455		(239)		1,216
Deferred revenue	2,711		—		2,711		—		2,711
Current liabilities, discontinued operations	—		—		—		458		458
Total Current Liabilities	37,673		(272)		37,401		—		37,401
Line of credit	16,000		—		16,000		—		16,000
Long-term debt, net	98,964		(64)		98,900		—		98,900
Long-term lease liabilities	10,516		—		10,516		(518)		9,998
Deferred taxes, net	80		—		80		—		80
Other non-current liabilities	203		—		203		—		203
Non-current liabilities, discontinued operations	—		—		—		518		518
Total Liabilities	163,436		(336)		163,100		—		163,100
Convertible Preferred Stock	$	38,510	$	25	$	38,535	$	—	$	38,535
Stockholders’ Equity:
Common stock	30		—		30		—		30
Additional paid-in capital	174,268		(25)		174,243		—		174,243
(Accumulated deficit) Retained earnings	(140,091)		839		(139,252)		—		(139,252)
Total Stockholders’ Equity	34,207		814		35,021		—		35,021
Total Liabilities and Stockholders’ Equity	$	236,153	$	503	$	236,656	$	—	$	236,656

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months February 26, 2023 are summarized in the following table:

	Three Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	27,600	$	206	$	27,806	$	(1,270)	$	26,536
Cost of product sales	21,622		(2,263)		19,359		(1,371)		17,988
Gross profit	5,978		2,469		8,447		101		8,548
Operating costs and expenses:
Research and development	1,964		276		2,240		(6)		2,234
Selling, general and administrative	10,972		(53)		10,919		(640)		10,279
Restructuring costs	2,741		(175)		2,566		—		2,566
Total operating costs and expenses	15,677		48		15,725		(646)		15,079
Operating (loss) income	(9,699)		2,421		(7,278)		747		(6,531)
Interest income	22		—		22		—		22
Interest expense	(5,818)		963		(4,855)		—		(4,855)
Transition services income	70		8		78		—		78
Other income (expense)	34		(8)		26		—		26
Net (loss) income from continuing operations before taxes	(15,391)		3,384		(12,007)		747		(11,260)
Income tax expense	(70)		—		(70)		—		(70)
Net (loss) income from continuing operations	(15,461)		3,384		(12,077)		747		(11,330)
Discontinued operations:
(Loss) gain from discontinued operations	(24,731)		301		(24,430)		(747)		(25,177)
(Loss) gain from discontinued operations, net of tax	(24,731)		301		(24,430)		(747)		(25,177)
Consolidated net (loss) income	$	(40,192)	$	3,685	$	(36,507)	$	—	$	(36,507)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.51)	$	0.12	$	(0.39)	$	0.02	$	(0.37)
(Loss) income from discontinued operations	$	(0.82)	$	0.01	$	(0.81)	$	(0.02)	$	(0.83)
Total basic net (loss) income per share	$	(1.33)	$	0.13	$	(1.20)	$	—	$	(1.20)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.51)	$	0.12	$	(0.39)	$	0.02	$	(0.37)
(Loss) income from discontinued operations	$	(0.82)	$	0.01	$	(0.81)	$	(0.02)	$	(0.83)
Total diluted net (loss) income per share	$	(1.33)	$	0.13	$	(1.20)	$	—	$	(1.20)
Shares used in per share computation
Basic	30,304		—		30,304		—		30,304
Diluted	30,304		—		30,304		—		30,304

	Three Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(40,192)	$	3,685	$	(36,507)	$	—	$	(36,507)
Total comprehensive (loss) income	$	(40,192)	$	3,685	$	(36,507)	$	—	$	(36,507)

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the nine months February 26, 2023 are summarized in the following table:

	Nine Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	77,748	$	400	$	78,148	$	(6,025)	$	72,123
Cost of product sales	58,178		(905)		57,273		(5,356)		51,917
Gross profit	19,570		1,305		20,875		(669)		20,206
Operating costs and expenses:
Research and development	6,128		525		6,653		(32)		6,621
Selling, general and administrative	31,201		(2,417)		28,784		(2,109)		26,675
Impairment of indefinite-lived intangible assets	300		—		300		(300)		—
Gain on sale of BreatheWay	(2,108)		—		(2,108)		—		(2,108)
Restructuring costs	4,611		(435)		4,176		—		4,176
Total operating costs and expenses	40,132		(2,327)		37,805		(2,441)		35,364
Operating (loss) income	(20,562)		3,632		(16,930)		1,772		(15,158)
Interest income	53		—		53		—		53
Interest expense	(13,715)		1,990		(11,725)		—		(11,725)
Transition services income	70		76		146		—		146
Other (expense) income	(481)		5		(476)		—		(476)
Net (loss) income from continuing operations before taxes	(34,635)		5,703		(28,932)		1,772		(27,160)
Income tax expense	(78)		—		(78)		—		(78)
Net (loss) income from continuing operations	(34,713)		5,703		(29,010)		1,772		(27,238)
Discontinued operations:
(Loss) income from discontinued operations	(29,279)		(1,990)		(31,269)		(1,772)		(33,041)
(Loss) income from discontinued operations, net of tax	(29,279)		(1,990)		(31,269)		(1,772)		(33,041)
Consolidated net (loss) income	$	(63,992)	$	3,713	$	(60,279)	$	—	$	(60,279)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(1.16)	$	0.19	$	(0.97)	$	0.06	$	(0.91)
Loss from discontinued operations	$	(0.98)	$	(0.07)	$	(1.05)	$	(0.06)	$	(1.11)
Total basic net (loss) income per share	$	(2.14)	$	0.12	$	(2.02)	$	—	$	(2.02)
Diluted net (loss) income per share:

(Loss) income from continuing operations	$	(1.16)	$	0.19	$	(0.97)	$	0.06	$	(0.91)
Loss from discontinued operations	$	(0.98)	$	(0.07)	$	(1.05)	$	(0.06)	$	(1.11)
Total diluted net (loss) income per share	$	(2.14)	$	0.12	$	(2.02)	$	—	$	(2.02)
Shares used in per share computation
Basic	29,838		—		29,838		—		29,838
Diluted	29,838		—		29,838		—		29,838
	Nine Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(63,992)	$	3,713	$	(60,279)	$	—	$	(60,279)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	586		—		586		—		586
Other comprehensive income, net of tax	586		—		586		—		586
Total comprehensive (loss) income	$	(63,406)	$	3,713	$	(59,693)	$	—	$	(59,693)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders' equity (deficit) for the three and nine months ended February 26, 2023 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 29, 2022	—	$	—	29,513	$	30	$	167,352	$	(76,099)	$	(586)	$	90,697
Issuance of stock under stock plans, net of shares withheld	—	—		80	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(67)		—		—		(67)
Stock-based compensation	—	—		—	—		785		—		—		785
Net loss	—	—		—	—		—		(11,351)		—		(11,351)
Other comprehensive income, net of tax	—	—		—	—		—		—		300		300
Balance at August 28, 2022	—	$	—	29,593	$	30	$	168,070	$	(87,450)	$	(286)	$	80,364
Issuance of stock under stock plans, net of shares withheld	—	—		76	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(142)		—		—		(142)
Stock-based compensation	—	—		—	—		1,108		—		—		1,108
Net loss	—	—		—	—		—		(12,449)		—		(12,449)
Other comprehensive income, net of tax	—	—		—	—		—		—		286		286
Issuance of shares to Wynnefield Capital, Inc., net of issuance costs	—	—		628	—		5,000		—		—		5,000
Balance at November 27, 2022	—	$	—	30,297	$	30	$	174,036	$	(99,899)	$	—	$	74,167
Issuance of stock under stock plans, net of shares withheld	—	—		22	—		—		—		—		—

Proceeds of Convertible Preferred Stock, net of issuance costs	39	38,082		—	—		—		—		—		—
Convertible Preferred Stock PIK dividend	—	428		—	—		(428)		—		—		(428)
Cost of issuance of shares to Wynnefield Capital, Inc.	—	—		—	—		(178)		—		—		(178)
Taxes paid by Company for employee stock plans	—	—		—	—		(65)		—		—		(65)
Stock-based compensation	—	—		—	—		903		—		—		903
Net loss	—	—		—	—		—		(40,192)		—		(40,192)
Balance at February 26, 2023	39	$	38,510	30,319	$	30	$	174,268	$	(140,091)	$	—	$	34,207
Restatements Adjustments
Opening retained earnings (at May 29, 2022)	—	—		—	—		—		(2,874)		—		(2,874)
Net income at August 28, 2022	—	—		—	—		—		385		—		385
Opening retained earnings (at August 28, 2022)	—	—		—	—		—		(2,489)		—		(2,489)
Cost of issuance of shares to Wynnefield Capital, Inc.	—	—		—	—		(178)		—		—		(178)
Net loss at November 27, 2022	—	—		—	—		—		(357)		—		(357)
Opening retained earnings	—	—		—	—		—		(2,846)		—		(2,846)
Q3 Accretion of Preferred Stock Issue costs	—	25		—	—		(25)		—		—		(25)
Net income at February 26, 2023	—	—		—	—		—		3,685		—		3,685
As Restated
Balance at May 29, 2022	—	$	—	29,513	$	30	$	167,352	$	(78,973)	$	(586)	$	87,823
Issuance of stock under stock plans, net of shares withheld	—	—		80	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(67)		—		—		(67)
Stock-based compensation	—	—		—	—		785		—		—		785
Net loss	—	—		—	—		—		(10,966)		—		(10,966)
Other comprehensive income, net of tax	—	—		—	—		—		—		300		300
Balance at August 28, 2022	—	$	—	29,593	$	30	$	168,070	$	(89,939)	$	(286)	$	77,875
Issuance of stock under stock plans, net of shares withheld	—	—		76	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(142)		—		—		(142)
Stock-based compensation	—	—		—	—		1,108		—		—		1,108
Net loss	—	—		—	—		—		(12,806)		—		(12,806)
Other comprehensive income, net of tax	—	—		—	—		—		—		286		286
Issuance of shares to Wynnefield Capital, Inc., net of issuance costs	—	—		628	—		4,822		—		—		4,822
Balance at November 27, 2022	—	$	—	30,297	$	30	$	173,858	$	(102,745)	$	—	$	71,143
Issuance of stock under stock plans, net of shares withheld	—	—		22	—		—		—		—		—

Proceeds of Convertible Preferred Stock, net of issuance costs	39	38,082		—	—		—		—		—		—
Accretion of Convertible Preferred Stock	—	25		—	—		(25)		—		—		(25)
Convertible Preferred Stock PIK dividend	—	428		—	—		(428)		—		—		(428)
Taxes paid by Company for employee stock plans	—	—		—	—		(65)		—		—		(65)
Stock-based compensation	—	—		—	—		903		—		—		903
Net loss	—	—		—	—		—		(36,507)		—		(36,507)
Balance at February 26, 2023	39	$	38,535	30,319	$	30	$	174,243	$	(139,252)	$	—	$	35,021

The effects of the restatement on the consolidated statement of cash flows for the nine months ended February 26, 2023 are summarized in the following table:

	Nine Months Ended February 26, 2023
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net (loss) income	$	(63,992)	$	3,713	$	(60,279)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Impairment of indefinite-lived intangible assets and goodwill	300		—		300
Depreciation, amortization of intangibles, debt costs and right-of-use assets	10,392		115		10,507
Gain on sale of BreatheWay	(2,108)		—		(2,108)
Stock-based compensation expense	2,796		—		2,796
Deferred taxes	57		—		57
Provision for expected credit losses	—		200		200
Loss (gain) on sale of Yucatan	21,039		(376)		20,663
Other, net	101		—		101
Changes in current assets and current liabilities:
Accounts receivable, net	8,994		(51)		8,943
Inventories	(13,451)		(1,396)		(14,847)
Prepaid expenses and other current assets	(1,169)		(140)		(1,309)
Accounts payable	11,405		(75)		11,330
Accrued compensation	(1,895)		—		(1,895)
Other accrued liabilities	8,570		—		8,570
Deferred revenue	1,792		—		1,792
Net cash (used in) provided by operating activities	(17,169)		1,990		(15,179)
Cash flows from investing activities:
Purchases of property and equipment	(12,319)		(1,990)		(14,309)
Proceeds from the sale of BreatheWay, net	3,135		—		3,135
Proceeds from the sale of Yucatan, net	12,531		—		12,531
Net cash provided by (used in) investing activities	3,347		(1,990)		1,357
Cash flows from financing activities:
Proceeds from sale of common stock, net of issuance costs	4,822		—		4,822
Proceeds from long-term debt	3,367		—		3,367
Payments on long-term debt	(3,199)		—		(3,199)
Proceeds from line of credit	18,400		—		18,400
Payments on line of credit	(42,400)		—		(42,400)
Taxes paid for employee stock plans	(274)		—		(274)
Payments for debt issuance costs	(3,669)		—		(3,669)
Proceeds from sale of preferred stock, net of issuance costs	38,082		—		38,082
Net cash provided by financing activities	15,129		—		15,129
Net increase in cash and cash equivalents	1,307		—		1,307
Cash and cash equivalents, beginning of period	1,643		—		1,643
Cash and cash equivalents, end of period	$	2,950	$	—	$	2,950
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	3,918	$	—	$	3,918
Convertible Preferred Stock PIK dividend	$	(428)	$	—	$	(428)

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the nine months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	February 26, 2023
(in thousands)	Balance at beginning of period		Provision (benefit) for expected credit losses	Write offs, net of recoveries	Balance at end of period
Nine months ended February 26, 2023, As Reported	$	5	—	(1)	$	4
Restatement Adjustment	$	522	200	(200)	$	522
Nine months ended February 26, 2023, As Restated	$	527	200	(201)	$	526
Discontinued Operations	$	(5)	—	1	$	(4)
Nine months ended February 26, 2023, As Restated, after Discontinued Operations	$	522	200	(200)	$	522

The effects of this error on our previously reported inventories as of February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	14,636	$	189	$	14,825	$	(1,284)	$	13,541
Raw materials	22,554		(1,970)		20,584		(1,933)		18,651
Work in progress	11,506		(1,656)		9,850		—		9,850
Total inventories	$	48,696	$	(3,437)	$	45,259	$	(3,217)	$	42,042

The effects of this error on our previously reported basic and diluted net loss per share for the three months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(40,192)	$	3,685	$	(36,507)	$	—	$	(36,507)
Denominator:
Weighted average shares for basic net income per share	30,304		—		30,304		—		30,304
Weighted average shares for diluted net income per share	30,304		—		30,304		—		30,304
Diluted net (loss) income per share	$	(1.33)	$	0.13	$	(1.20)	$	—	$	(1.20)

The effects of this error on our previously reported basic and diluted net loss per share for the nine months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Nine Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(63,992)	$	3,713	$	(60,279)	$	—	$	(60,279)
Denominator:
Weighted average shares for basic net income per share	29,838		—		29,838		—		29,838
Weighted average shares for diluted net income per share	29,838		—		29,838		—		29,838
Diluted net (loss) income per share	$	(2.14)	$	0.12	$	(2.02)	$	—	$	(2.02)

The effects of this error on our previously reported disaggregated revenue for the three months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	17,809	$	206	$	18,015	$	—	$	18,015
Fermentation	8,521		—		8,521		—		8,521
Total	$	26,330	$	206	$	26,536	$	—	$	26,536
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Olive oil and vinegars	$	1,270	$	—	$	1,270	$	(1,270)	$	—
Total	$	1,270	$	—	$	1,270	$	(1,270)	$	—

The effects of this error on our previously reported disaggregated revenue for the nine months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	52,088	$	400	$	52,488	$	—	$	52,488
Fermentation	19,635		—		19,635		—		19,635
Total	$	71,723	$	400	$	72,123	$	—	$	72,123
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Olive oil and vinegars	$	6,025	$	—	$	6,025	$	(6,025)	$	—
Total	$	6,025	$	—	$	6,025	$	(6,025)	$	—

The effects of this error on our previously reported segment reporting as of and for the three months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements as of and for the three months ended February 26, 2023. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended February 26, 2023
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended February 26, 2023, As Reported
Net sales	$	26,330	$	1,270	$	—	$	27,600
Gross profit	6,072		(94)		—		5,978
Net income (loss) from continuing operations	851		280		(16,592)		(15,461)
Loss from discontinued operations, net of tax	—		(22,802)		(1,929)		(24,731)
Depreciation and amortization	1,878		243		10		2,131
Interest income	16		—		6		22
Interest expense	—		—		5,818		5,818
Income tax (benefit) expense, continuing operations	268		(3,019)		2,821		70
Corporate overhead allocation	739		241		(980)		—
Restatement Adjustments
Net sales	206		—		—		206
Gross profit	2,469		—		—		2,469
Net income from continuing operations	2,557		(2,882)		3,709		3,384
Loss from discontinued operations, net of tax	—		301		—		301
Depreciation and amortization	31		—		—		31
Interest expense	—		—		(963)		(963)
Income tax (benefit) expense, continuing operations	(288)		3,034		(2,746)		—
Three Months Ended February 26, 2023, As Restated
Net sales	$	26,536	$	1,270	$	—	$	27,806
Gross profit	8,541		(94)		—		8,447
Net income (loss) from continuing operations	3,408		(2,602)		(12,883)		(12,077)
Loss from discontinued operations, net of tax	—		(22,501)		(1,929)		(24,430)
Depreciation and amortization	1,909		243		10		2,162
Interest income	16		—		6		22
Interest expense	—		—		4,855		4,855
Income tax (benefit) expense, continuing operations	(20)		15		75		70
Corporate overhead allocation	739		241		(980)		—

The effects of this error on our previously reported segment reporting for the nine months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the nine months ended February 26, 2023. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Nine Months Ended February 26, 2023
(in thousands)	Lifecore		Curation Foods		Other		Total
Nine Months Ended February 26, 2023, As Reported
Net sales	$	71,723	$	6,025	$	—	$	77,748
Gross profit	18,847		723		—		19,570
Net income (loss) from continuing operations	2,269		(1,974)		(35,008)		(34,713)
Loss from discontinued operations, net of tax	—		(27,350)		(1,929)		(29,279)
Depreciation and amortization	5,492		2,637		31		8,160
Interest income	47		—		6		53
Interest expense	—		1		13,714		13,715
Income tax expense (benefit), continuing operations	717		(4,135)		3,496		78
Corporate overhead allocation	2,799		858		(3,657)		—
Restatement Adjustments
Net sales	400		—		—		400
Gross profit	1,355		(50)		—		1,305
Net income (loss) from continuing operations	1,883		(1,587)		5,407		5,703
Loss from discontinued operations, net of tax	—		(1,990)		—		(1,990)
Depreciation and amortization	92		—		—		92
Interest expense	—		—		(1,990)		(1,990)
Income tax (benefit) expense, continuing operations	(728)		4,145		(3,417)		—
Nine Months Ended February 26, 2023, As Restated
Net sales	$	72,123	$	6,025	$	—	$	78,148
Gross profit	20,202		673		—		20,875
Net income (loss) from continuing operations	4,152		(3,561)		(29,601)		(29,010)
Loss from discontinued operations, net of tax	—		(29,340)		(1,929)		(31,269)
Depreciation and amortization	5,584		2,637		31		8,252
Interest income	47		—		6		53
Interest expense	—		1		11,724		11,725
Income tax (benefit) expense, continuing operations	(11)		10		79		78
Corporate overhead allocation	2,799		858		(3,657)		—

The effects of this error on our previously reported discontinued operations as of February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 9, are as follows:

	Yucatan Foods - As of May 29, 2022
(in thousands)	As Reported		Restatement		As Restated
ASSETS
Cash and cash equivalents	$	652	$	—	$	652
Accounts receivable, less allowance for credit losses	8,078		—		8,078
Inventories	22,545		(120)		22,425
Prepaid expenses and other current assets	1,869		(498)		1,371
Total current assets, discontinued operations	33,144		(618)		32,526
Property and equipment, net	3,500		—		3,500
Operating lease right-of-use assets	2,061		—		2,061
Trademarks/tradenames, net	4,000		—		4,000
Customer relationships, net	1,400		—		1,400
Other assets	102		—		102
Total other assets, discontinued operations	11,063		—		11,063
Total assets, discontinued operations	$	44,207	$	(618)	$	43,589
LIABILITIES
Accounts payable	$	2,814	$	—	$	2,814
Accrued compensation	297		—		297
Other accrued liabilities	800		(36)		764
Current portion of lease liabilities	434		—		434
Total current liabilities, discontinued operations	4,345		(36)		4,309
Long-term lease liabilities	1,627		—		1,627
Non-current liabilities, discontinued operations	1,627		—		1,627
Total liabilities, discontinued operations	$	5,972	$	(36)	$	5,936

The effects of this error on our previously reported restructuring cost for the three months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Employee severance and benefit costs	$	2,362	$	(175)	$	2,187	$	—	$	2,187
Lease costs	43		—		43		—		43
Other restructuring costs	336		—		336		—		336
Total restructuring costs	$	2,741	$	(175)	$	2,566	$	—	$	2,566

	Three Months Ended February 26, 2023
	Curation		Other		Total
Total restructuring costs, As reported	$	901	$	1,840	$	2,741
Restatement adjustments	(175)		—		(175)
Total restructuring costs, As restated	$	726	$	1,840	$	2,566

The effects of this error on our previously reported restructuring cost for the nine months ended February 26, 2023 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Nine Months Ended February 26, 2023
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Employee severance and benefit costs	$	2,606	$	(324)	$	2,282	$	—	$	2,282
Lease costs	88		—		88		—		88
Other restructuring costs	1,917		(111)		1,806		—		1,806
Total restructuring costs	$	4,611	$	(435)	$	4,176	$	—	$	4,176

	Nine Months Ended February 26, 2023
	Curation		Other		Total
Total restructuring costs, As reported	$	1,509	$	3,102	$	4,611
Restatement adjustments	(435)		—		(435)
Total restructuring costs, As restated	$	1,074	$	3,102	$	4,176

As of and for the three and six months ended November 27, 2022

The effects of the restatement on the consolidated balance sheet as of November 27, 2022 are summarized in the following table:

	November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	6,830	$	—	$	6,830	$	(892)	$	5,938
Accounts receivable, net	35,689		(522)		35,167		(7,709)		27,458
Inventories	77,524		(5,936)		71,588		(33,168)		38,420
Prepaid expenses and other current assets	7,049		(1,553)		5,496		(3,823)		1,673
Current Assets, discontinued operations	—		—		—		45,592		45,592
Total Current Assets	127,092		(8,011)		119,081		—		119,081
Property and equipment, net	118,852		5,001		123,853		(3,666)		120,187
Operating lease right-of-use assets	7,951		(90)		7,861		(2,610)		5,251
Goodwill	13,881		—		13,881		—		13,881
Trademarks/tradenames, net	7,400		—		7,400		(3,200)		4,200
Customer relationships, net	1,292		—		1,292		(1,292)		—
Other assets	2,605		—		2,605		(113)		2,492
Non-current Assets, discontinued operations	—		—		—		10,881		10,881
Total Assets	$	279,073	$	(3,100)	$	275,973	$	—	$	275,973
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	27,971	$	(25)	27,946		$	(14,645)	13,301
Accrued compensation	4,602		—		4,602		(498)		4,104
Other accrued liabilities	10,426		(51)		10,375		(1,010)		9,365
Current portion of lease liabilities	5,013		—		5,013		(679)		4,334
Deferred revenue	731		—		731		—		731
Line of credit	48,000		—		48,000		—		48,000
Current portion of long-term debt	98,953		—		98,953		—		98,953
Current liabilities, discontinued operations	—		—		—		16,832		16,832
Total Current Liabilities	195,696		(76)		195,620		—		195,620
Long-term lease liabilities	8,999		—		8,999		(1,979)		7,020
Deferred taxes, net	10		—		10		—		10
Other non-current liabilities	201		—		201		—		201
Non-current liabilities, discontinued operations	—		—		—		1,979		1,979
Total Liabilities	204,906		(76)		204,830		—		204,830
Stockholders’ Equity:
Common stock	$	30	$	—	30		$	—	30
Additional paid-in capital	$	174,036	$	(178)	173,858		—		173,858
Accumulated deficit	(99,899)		(2,846)		(102,745)		—		(102,745)
Total Stockholders’ Equity	74,167		(3,024)		71,143		—		71,143
Total Liabilities and Stockholders’ Equity	$	279,073	$	(3,100)	$	275,973	$	—	$	275,973

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months November 27, 2022 are summarized in the following table:

	Three Months Ended November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	38,802	$	173	$	38,975	$	(17,111)	$	21,864
Cost of product sales	31,694		1,280		32,974		(16,789)		16,185
Gross profit	7,108		(1,107)		6,001		(322)		5,679
Operating costs and expenses:
Research and development	2,118		149		2,267		(90)		2,177
Selling, general and administrative	10,773		(23)		10,750		(2,459)		8,291
Impairment of indefinite-lived intangible assets	1,300		—		1,300		(1,300)		—
Restructuring costs	823		(260)		563		—		563
Total operating costs and expenses	15,014		(134)		14,880		(3,849)		11,031
Operating (loss) income	(7,906)		(973)		(8,879)		3,527		(5,352)
Interest income	16		—		16		—		16
Interest expense	(4,219)		595		(3,624)		—		(3,624)
Transition services income	—		24		24		—		24
Other (expense) income	(336)		75		(261)		—		(261)
Net (loss) income from continuing operations before taxes	(12,445)		(279)		(12,724)		3,527		(9,197)
Income tax expense	(4)		—		(4)		—		(4)
Net (loss) income from continuing operations	(12,449)		(279)		(12,728)		3,527		(9,201)
Discontinued operations:
Loss from discontinued operations	—		(78)		(78)		(3,527)		(3,605)
Loss from discontinued operations, net of tax	—		(78)		(78)		(3,527)		(3,605)
Consolidated net loss	$	(12,449)	$	(357)	$	(12,806)	$	—	$	(12,806)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.42)	$	(0.01)	$	(0.43)	$	0.12	$	(0.31)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.12)	$	(0.12)
Total basic net loss per share	$	(0.42)	$	(0.01)	$	(0.43)	$	—	$	(0.43)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.42)	$	(0.01)	$	(0.43)	$	0.12	$	(0.31)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.12)	$	(0.12)
Total diluted net loss per share	$	(0.42)	$	(0.01)	$	(0.43)	$	—	$	(0.43)
Shares used in per share computation
Basic	29,634		—		29,634		—		29,634
Diluted	29,634		—		29,634		—		29,634
	Three Months Ended November 27, 2022

(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net loss	$	(12,449)	$	(357)	$	(12,806)	$	—	$	(12,806)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	286		—		286		—		286
Other comprehensive income, net of tax	286		—		286		—		286
Total comprehensive loss	$	(12,163)	$	(357)	$	(12,520)	$	—	$	(12,520)

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the six months November 27, 2022 are summarized in the following table:

	Six Months Ended November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	82,157	$	194	$	82,351	$	(36,764)	$	45,587
Cost of product sales	68,797		1,358		70,155		(36,226)		33,929
Gross profit	13,360		(1,164)		12,196		(538)		11,658
Operating costs and expenses:
Research and development	4,166		391		4,557		(169)		4,388
Selling, general and administrative	21,435		1,788		23,223		(6,828)		16,395
Impairment of indefinite-lived intangible assets	1,300		—		1,300		(1,300)		—
Gain on sale of BreatheWay	—		(2,108)		(2,108)		—		(2,108)
Restructuring costs	1,870		(260)		1,610		—		1,610
Total operating costs and expenses	28,771		(189)		28,582		(8,297)		20,285
Operating (loss) income	(15,411)		(975)		(16,386)		7,759		(8,627)
Interest income	31		—		31		—		31
Interest expense	(7,897)		1,027		(6,870)		—		(6,870)
Transition services income	—		68		68		—		68
Other (expense) income	(515)		13		(502)		—		(502)
Net (loss) income from continuing operations before taxes	(23,792)		133		(23,659)		7,759		(15,900)
Income tax expense	(8)		—		(8)		—		(8)
Net (loss) income from continuing operations	(23,800)		133		(23,667)		7,759		(15,908)
Discontinued operations:
Loss from discontinued operations	—		(105)		(105)		(7,759)		(7,864)
Loss from discontinued operations, net of tax	—		(105)		(105)		(7,759)		(7,864)
Consolidated net (loss) income	$	(23,800)	$	28	$	(23,772)	$	—	$	(23,772)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.80)	$	—	$	(0.80)	$	0.26	$	(0.54)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.26)	$	(0.26)

Total basic net loss per share	$	(0.80)	$	—	$	(0.80)	$	—	$	(0.80)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.80)	$	—	$	(0.80)	$	0.26	$	(0.54)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.26)	$	(0.26)
Total diluted net loss per share	$	(0.80)	$	—	$	(0.80)	$	—	$	(0.80)
Shares used in per share computation
Basic	29,605		—		29,605		—		29,605
Diluted	29,605		—		29,605		—		29,605
	Six Months Ended November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(23,800)	$	28	$	(23,772)	$	—	$	(23,772)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	586		—		586		—		586
Other comprehensive income, net of tax	586		—		586		—		586
Total comprehensive (loss) income	$	(23,214)	$	28	$	(23,186)	$	—	$	(23,186)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended November 27, 2022 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 29, 2022	—	$	—	29,513	$	30	$	167,352	$	(76,099)	$	(586)	$	90,697
Issuance of stock under stock plans, net of shares withheld	—	—		80	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(67)		—		—		(67)
Stock-based compensation	—	—		—	—		785		—		—		785
Net loss	—	—		—	—		—		(11,351)		—		(11,351)
Other comprehensive income, net of tax	—	—		—	—		—		—		300		300
Balance at August 28, 2022	—	$	—	29,593	$	30	$	168,070	$	(87,450)	$	(286)	$	80,364
Issuance of stock under stock plans, net of shares withheld	—	—		76	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(142)		—		—		(142)
Stock-based compensation	—	—		—	—		1,108		—		—		1,108
Net loss	—	—		—	—		—		(12,449)		—		(12,449)
Other comprehensive income, net of tax	—	—		—	—		—		—		286		286

Issuance of shares to Wynnefield Capital, Inc., net of issuance costs	—	—		628	—		5,000		—		—		5,000
Balance at November 27, 2022	—	$	—	30,297	$	30	$	174,036	$	(99,899)	$	—	$	74,167
Restatements Adjustments
Opening retained earnings (at May 29, 2022)	—	—		—	—		—		(2,874)		—		(2,874)
Net income at August 28, 2022	—	—		—	—		—		385		—		385
Opening retained earnings (at August 28, 2022)	—	—		—	—		—		(2,489)		—		(2,489)
Cost of issuance of shares to Wynnefield Capital, Inc.	—	—		—	—		(178)		—		—		(178)
Net loss at November 27, 2022	—	—		—	—		—		(357)		—		(357)
As Restated
Balance at May 29, 2022	—	$	—	29,513	$	30	$	167,352	$	(78,973)	$	(586)	$	87,823
Issuance of stock under stock plans, net of shares withheld	—	—		80	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(67)		—		—		(67)
Stock-based compensation	—	—		—	—		785		—		—		785
Net loss	—	—		—	—		—		(10,966)		—		(10,966)
Other comprehensive income, net of tax	—	—		—	—		—		—		300		300
Balance at August 28, 2022	—	$	—	29,593	$	30	$	168,070	$	(89,939)	$	(286)	$	77,875
Issuance of stock under stock plans, net of shares withheld	—	—		76	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(142)		—		—		(142)
Stock-based compensation	—	—		—	—		1,108		—		—		1,108
Net loss	—	—		—	—		—		(12,806)		—		(12,806)
Other comprehensive income, net of tax	—	—		—	—		—		—		286		286
Issuance of shares to Wynnefield Capital, Inc., net of issuance costs	—	—		628	—		4,822		—		—		4,822
Balance at November 27, 2022	—	$	—	30,297	$	30	$	173,858	$	(102,745)	$	—	$	71,143

The effects of the restatement on the consolidated statement of cash flows for the six months ended November 27, 2022 are summarized in the following table:

	Six Months Ended November 27, 2022
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net (loss) income	$	(23,800)	$	28	$	(23,772)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Impairment of indefinite-lived intangible assets and goodwill	1,300		—		1,300
Depreciation, amortization of intangibles, debt costs and right-of-use assets	7,237		57		7,294
Gain on sale of BreatheWay	(2,108)		—		(2,108)
Stock-based compensation expense	1,893		—		1,893
Deferred taxes	(13)		—		(13)
Net loss on disposal of property and equipment held and used	22		—		22
Other, net	86		—		86
Changes in current assets and current liabilities:
Accounts receivable, net	12,483		—		12,483
Inventories	(10,679)		1,103		(9,576)
Prepaid expenses and other current assets	(585)		(140)		(725)
Accounts payable	11,730		(21)		11,709
Accrued compensation	(4,636)		—		(4,636)
Other accrued liabilities	2,777		—		2,777
Deferred revenue	(188)		—		(188)
Net cash (used in) provided by operating activities	(4,481)		1,027		(3,454)
Cash flows from investing activities:
Proceeds from sale of BreatheWay, net	3,135		—		3,135
Purchases of property and equipment	(6,182)		(1,027)		(7,209)
Net cash used in investing activities	(3,047)		(1,027)		(4,074)
Cash flows from financing activities:
Proceeds from sale of common stock	5,000		—		5,000
Payments on long-term debt	(76)		—		(76)
Proceeds from line of credit	8,800		—		8,800
Payments on line of credit	(800)		—		(800)
Taxes paid by Company for employee stock plans	(209)		—		(209)
Net cash provided by financing activities	12,715		—		12,715
Net increase in cash and cash equivalents	5,187		—		5,187
Cash and cash equivalents, beginning of period	1,643		—		1,643
Cash and cash equivalents, end of period	$	6,830	$	—	$	6,830
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	2,700	$	—	$	2,700

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	November 27, 2022
	Balance at beginning of period		Provision (benefit) for expected credit losses	Write offs, net of recoveries	Balance at end of period
Six months ended November 27, 2022, As Reported	$	65	—	—	$	65
Restatement Adjustment	$	522	—	—	$	522
Six months ended November 27, 2022, As Restated	$	587	—	—	$	587
Discontinued Operations	$	(65)	—	—	$	(65)
Six months ended November 27, 2022, As Restated, after Discontinued Operations	$	522	—	—	$	522

The effects of this error on our previously reported inventories as of November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	38,882	$	185	$	39,067	$	(23,408)	$	15,659
Raw materials	26,959		(2,482)		24,477		(9,000)		15,477
Work in progress	11,683		(3,639)		8,044		(760)		7,284
Total inventories	$	77,524	$	(5,936)	$	71,588	$	(33,168)	$	38,420

The effects of this error on our previously reported basic and diluted net loss per share for the three months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net loss applicable to Common Stockholders	$	(12,449)	$	(357)	$	(12,806)	$	—	$	(12,806)
Denominator:
Weighted average shares for basic net income per share	29,634		—		29,634		—		29,634
Weighted average shares for diluted net income per share	29,634		—		29,634		—		29,634
Diluted net loss per share	$	(0.42)	$	(0.01)	$	(0.43)	$	—	$	(0.43)

The effects of this error on our previously reported basic and diluted net loss per share for the six months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Six Months Ended November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(23,800)	$	28	$	(23,772)	$	—	$	(23,772)
Denominator:
Weighted average shares for basic net income per share	29,605		—		29,605		—		29,605
Weighted average shares for diluted net income per share	29,605		—		29,605		—		29,605
Diluted loss income per share	$	(0.80)	$	—	$	(0.80)	$	—	$	(0.80)

The effects of this error on our previously reported disaggregated revenue for the three months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	16,032	$	173	$	16,205	$	—	$	16,205
Fermentation	5,659		—		5,659		—		5,659
Total	$	21,691	$	173	$	21,864	$	—	$	21,864
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	14,915	$	—	$	14,915	$	(14,915)	$	—
Olive oil and vinegars	2,196		—		2,196		(2,196)		—
Total	$	17,111	$	—	$	17,111	$	(17,111)	$	—

The effects of this error on our previously reported disaggregated revenue for the six months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	34,279	$	194	$	34,473	$	—	$	34,473
Fermentation	11,114		—		11,114		—		11,114
Total	$	45,393	$	194	$	45,587	$	—	$	45,587
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	32,009	$	—	$	32,009	$	(32,009)	$	—
Olive oil and vinegars	4,755		—		4,755		(4,755)		—
Total	$	36,764	$	—	$	36,764	$	(36,764)	$	—

The effects of this error on our previously reported segment reporting for the three months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended November 27, 2022. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended November 27, 2022
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended November 27, 2022, As Reported
Net sales	$	21,691	$	17,111	$	—	$	38,802
Gross profit	6,675		433		—		7,108
Net income (loss) from continuing operations	916		(3,295)		(10,070)		(12,449)
Depreciation and amortization	1,843		588		11		2,442
Interest income	16		—		—		16
Interest expense	—		—		4,219		4,219
Income tax expense (benefit), continuing operations	290		(836)		550		4
Corporate overhead allocation	1,022		283		(1,305)		—
Restatement Adjustments
Net sales	173		—		—		173
Gross profit	(987)		(120)		—		(1,107)
Net (loss) income from continuing operations	(697)		(724)		1,142		(279)
Loss from discontinued operations, net of tax	—		(78)		—		(78)
Depreciation and amortization	31		—		—		31
Interest expense	—		—		(595)		(595)
Income tax (benefit) expense, continuing operations	(290)		837		(547)		—
Three Months Ended November 27, 2022, As Restated
Net sales	$	21,864	$	17,111	$	—	$	38,975
Gross profit	5,688		313		—		6,001
Net loss from continuing operations	219		(4,019)		(8,928)		(12,728)
Loss from discontinued operations, net of tax	—		(78)		—		(78)
Depreciation and amortization	1,874		588		11		2,473
Interest income	16		—		—		16
Interest expense	—		—		3,624		3,624
Income tax expense, continuing operations	—		1		3		4
Corporate overhead allocation	1,022		283		(1,305)		—

The effects of this error on our previously reported segment reporting for the six months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the six months ended November 27, 2022. Refer to Note 14 for the related income statement line items

reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Six Months Ended November 27, 2022
(in thousands)	Lifecore		Curation Foods		Other		Total
Six Months Ended November 27, 2022, As Reported
Net sales	$	45,393	$	36,764	$	—	$	82,157
Gross profit	12,776		584		—		13,360
Net income (loss) from continuing operations	1,419		(6,017)		(19,202)		(23,800)
Depreciation and amortization	3,614		2,756		21		6,391
Interest income	31		—		—		31
Interest expense	—		1		7,896		7,897
Income tax (benefit) expense, continuing operations	448		(1,901)		1,461		8
Corporate overhead allocation	2,060		617		(2,677)		—
Restatement Adjustments
Net sales	194		—		—		194
Gross profit	(1,114)		(50)		—		(1,164)
Net (loss) income from continuing operations	(666)		(1,684)		2,483		133
Loss from discontinued operations, net of tax	—		(105)		—		(105)
Depreciation and amortization	61		—		—		61
Interest expense	—		—		(1,027)		(1,027)
Income tax (benefit) expense, continuing operations	(448)		1,904		(1,456)		—
Six Months Ended November 27, 2022, As Restated
Net sales	$	45,587	$	36,764	$	—	$	82,351
Gross profit	11,662		534		—		12,196
Net income (loss) from continuing operations	753		(7,701)		(16,719)		(23,667)
Loss from discontinued operations, net of tax	—		(105)		—		(105)
Depreciation and amortization	3,675		2,756		21		6,452
Interest income	31		—		—		31
Interest expense	—		1		6,869		6,870
Income tax (benefit) expense, continuing operations	—		3		5		8
Corporate overhead allocation	2,060		617		(2,677)		—

The effects of this error on our previously reported restructuring cost for the three months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Employee severance and benefit costs	$	36	$	(149)	$	(113)	$	—	$	(113)
Lease costs	25		—		25		—		25
Other restructuring costs	762		(111)		651		—		651
Total restructuring costs	$	823	$	(260)	$	563	$	—	$	563

	Three Months Ended November 27, 2022
	Curation		Other		Total
Total restructuring costs, As reported	$	186	$	637	$	823
Restatement adjustments	(260)		—		(260)
Total restructuring costs, As restated	$	(74)	$	637	$	563

The effects of this error on our previously reported restructuring cost for the six months ended November 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Six Months Ended November 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Employee severance and benefit costs	$	244	$	(149)	$	95	$	—	$	95
Lease costs	45		—		45		—		45
Other restructuring costs	1,581		(111)		1,470		—		1,470
Total restructuring costs	$	1,870	$	(260)	$	1,610	$	—	$	1,610

	Six Months Ended November 27, 2022
	Curation		Other		Total
Total restructuring costs, As reported	$	608	$	1,262	$	1,870
Restatement adjustments	(260)		—		(260)
Total restructuring costs, As restated	$	348	$	1,262	$	1,610

As of and for the three months ended August 28, 2022

The effects of the restatement on the consolidated balance sheet as of August 28, 2022 are summarized in the following table:

	August 28, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	4,222	$	—	$	4,222	$	(1,682)	$	2,540
Accounts receivable, net	40,934		(522)		40,412		(8,483)		31,929
Inventories	64,285		(4,860)		59,425		(23,271)		36,154
Prepaid expenses and other current assets	7,157		(1,711)		5,446		(3,460)		1,986
Current Assets, discontinued operations	—		—		—		36,896		36,896
Total Current Assets	116,598		(7,093)		109,505		—		109,505
Property and equipment, net	117,551		4,437		121,988		(3,798)		118,190
Operating lease right-of-use assets	8,229		(62)		8,167		(2,771)		5,396
Goodwill	13,881		—		13,881		—		13,881
Trademarks/tradenames, net	8,700		—		8,700		(4,500)		4,200
Customer relationships, net	1,346		—		1,346		(1,346)		—
Other assets	2,793		—		2,793		(113)		2,680
Non-current Assets, discontinued operations	—		—		—		12,528		12,528
Total Assets	$	269,098	$	(2,718)	$	266,380	$	—	$	266,380
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	16,366	$	—	$	16,366	$	(6,743)	$	9,623
Accrued compensation	6,373		—		6,373		(452)		5,921
Other accrued liabilities	7,832		(229)		7,603		(981)		6,622
Current portion of lease liabilities	5,021		—		5,021		(669)		4,352
Deferred revenue	803		—		803		—		803
Line of credit	44,000		—		44,000		—		44,000
Current portion of long-term debt	98,569		—		98,569		—		98,569
Current liabilities, discontinued operations	—		—		—		8,845		8,845
Total Current Liabilities	178,964		(229)		178,735		—		178,735
Long-term lease liabilities	9,447		—		9,447		(2,153)		7,294
Deferred taxes, net	124		—		124		—		124
Other non-current liabilities	199		—		199		—		199
Non-current liabilities, discontinued operations	—		—		—		2,153		2,153
Total Liabilities	188,734		(229)		188,505		—		188,505
Stockholders’ Equity:
Common stock	30		—		30		—		30
Additional paid-in capital	168,070		—		168,070		—		168,070
Accumulated deficit	(87,450)		(2,489)		(89,939)		—		(89,939)
Accumulated other comprehensive loss	(286)		—		(286)		—		(286)
Total Stockholders’ Equity	80,364		(2,489)		77,875		—		77,875
Total Liabilities and Stockholders’ Equity	$	269,098	$	(2,718)	$	266,380	$	—	$	266,380

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months August 28, 2022 are summarized in the following table:

	Three Months Ended August 28, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	43,355	$	21	$	43,376	$	(19,652)	$	23,724
Cost of product sales	37,103		78		37,181		(19,436)		17,745
Gross profit	6,252		(57)		6,195		(216)		5,979
Operating costs and expenses:
Research and development	2,048		242		2,290		(79)		2,211
Selling, general and administrative	10,661		1,811		12,472		(4,369)		8,103
Gain on sale of BreatheWay	—		(2,108)		(2,108)		—		(2,108)
Restructuring costs	1,047		—		1,047		—		1,047
Total operating costs and expenses	13,756		(55)		13,701		(4,448)		9,253
Operating (loss) income	(7,504)		(2)		(7,506)		4,232		(3,274)
Interest income	15		—		15		—		15
Interest expense	(3,678)		432		(3,246)		—		(3,246)
Transition services income	—		44		44		—		44
Other expense	(180)		(62)		(242)		—		(242)
Net (loss) income from continuing operations before taxes	(11,347)		412		(10,935)		4,232		(6,703)
Income tax expense	(4)		—		(4)		—		(4)
Net (loss) income from continuing operations	(11,351)		412		(10,939)		4,232		(6,707)
Discontinued operations:
Loss from discontinued operations	—		(27)		(27)		(4,232)		(4,259)
Loss from discontinued operations, net of tax	—		(27)		(27)		(4,232)		(4,259)
Consolidated net (loss) income	$	(11,351)	$	385	$	(10,966)	$	—	$	(10,966)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.38)	$	0.01	$	(0.37)	$	0.14	$	(0.23)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.14)	$	(0.14)
Total basic net (loss) income per share	$	(0.38)	$	0.01	$	(0.37)	$	—	$	(0.37)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.38)	$	0.01	$	(0.37)	$	0.14	$	(0.23)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.14)	$	(0.14)
Total diluted net (loss) income per share	$	(0.38)	$	0.01	$	(0.37)	$	—	$	(0.37)
Shares used in per share computation
Basic	29,577		—		29,577		—		29,577
Diluted	29,577		—		29,577		—		29,577

	Three Months Ended August 28, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(11,351)	$	385	$	(10,966)	$	—	$	(10,966)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	300		—		300		—		300
Other comprehensive income, net of tax	300		—		300		—		300
Total comprehensive (loss) income	$	(11,051)	$	385	$	(10,666)	$	—	$	(10,666)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the three months ended August 28, 2022 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 29, 2022	—	$	—	29,513	$	30	$	167,352	$	(76,099)	$	(586)	$	90,697
Issuance of stock under stock plans, net of shares withheld	—	—		80	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(67)		—		—		(67)
Stock-based compensation	—	—		—	—		785		—		—		785
Net loss	—	—		—	—		—		(11,351)		—		(11,351)
Other comprehensive income, net of tax	—	—		—	—		—		—		300		300
Balance at August 28, 2022	—	$	—	29,593	$	30	$	168,070	$	(87,450)	$	(286)	$	80,364
Restatements Adjustments
Opening retained earnings (at May 29, 2022)	—	—		—	—		—		(2,874)		—		(2,874)
Net income at August 28, 2022	—	—		—	—		—		385		—		385
As Restated
Balance at May 29, 2022	—	$	—	29,513	$	30	$	167,352	$	(78,973)	$	(586)	$	87,823
Issuance of stock under stock plans, net of shares withheld	—	—		80	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(67)		—		—		(67)
Stock-based compensation	—	—		—	—		785		—		—		785
Net loss	—	—		—	—		—		(10,966)		—		(10,966)
Other comprehensive income, net of tax	—	—		—	—		—		—		300		300
Balance at August 28, 2022	—	$	—	29,593	$	30	$	168,070	$	(89,939)	$	(286)	$	77,875

The effects of the restatement on the consolidated statement of cash flows for the three months ended August 28, 2022 are summarized in the following table:

	Three Months Ended August 28, 2022
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net (loss) income	$	(11,351)	$	385	$	(10,966)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation, amortization of intangibles, debt costs and right-of-use assets	4,356		(2)		4,354
Gain on sale of BreatheWay	(2,108)		—		(2,108)
Stock-based compensation expense	785		—		785
Deferred taxes	(17)		—		(17)
Other, net	(18)		—		(18)
Changes in current assets and current liabilities:
Accounts receivable, net	7,238		—		7,238
Inventory	2,560		27		2,587
Prepaid expenses and other current assets	(761)		22		(739)
Accounts payable	581		—		581
Accrued compensation	(2,865)		—		(2,865)
Other accrued liabilities	183		—		183
Deferred revenue	(116)		—		(116)
Net cash (used in) provided by operating activities	(1,533)		432		(1,101)
Cash flows from investing activities:
Proceeds from sale of BreatheWay, net	3,135		—		3,135
Purchases of property and equipment	(2,929)		(432)		(3,361)
Net cash provided by (used in) investing activities	206		(432)		(226)
Cash flows from financing activities:
Payments on long-term debt	(27)		—		(27)
Proceeds from line of credit	4,000		—		4,000
Taxes paid by Company for employee stock plans	(67)		—		(67)
Net cash provided by financing activities	3,906		—		3,906
Net increase in cash and cash equivalents	2,579		—		2,579
Cash and cash equivalents, beginning of period	1,643		—		1,643
Cash and cash equivalents, end of period	$	4,222	$	—	$	4,222
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	2,243	$	—	$	2,243

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended August 28, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	August 28, 2022
	Balance at beginning of period		Provision (benefit) for expected credit losses	Write offs, net of recoveries	Balance at end of period
Three months ended August 28, 2022, As Reported	$	65	—	—	$	65
Restatement Adjustment	$	522	—	—	$	522
Three months ended August 28, 2022, As Restated	$	587	—	—	$	587
Discontinued Operations	$	(65)	—	—	$	(65)
Three months ended August 28, 2022, As Restated, after Discontinued Operations	$	522	—	—	$	522

The effects of this error on our previously reported inventories as of August 28, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	August 28, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	25,266	$	(164)	$	25,102	$	(14,321)	$	10,781
Raw materials	27,402		(2,379)		25,023		(8,762)		16,261
Work in progress	11,617		(2,317)		9,300		(188)		9,112
Total inventories	$	64,285	$	(4,860)	$	59,425	$	(23,271)	$	36,154

The effects of this error on our previously reported basic and diluted net loss per share for the three months ended August 28, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended August 28, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(11,351)	$	385	$	(10,966)	$	—	$	(10,966)
Denominator:
Weighted average shares for basic net income per share	29,577		—		29,577		—		29,577
Weighted average shares for diluted net income per share	29,577		—		29,577		—		29,577
Diluted net (loss) income per share	$	(0.38)	$	0.01	$	(0.37)	$	—	$	(0.37)

The effects of this error on our previously reported disaggregated revenue for the three months ended August 28, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	18,247	$	21	$	18,268	$	—	$	18,268
Fermentation	5,456		—		5,456		—		5,456
Total	$	23,703	$	21	$	23,724	$	—	$	23,724
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	17,093	$	—	$	17,093	$	(17,093)	$	—
Olive oil and vinegars	2,559		—		2,559		(2,559)		—
Total	$	19,652	$	—	$	19,652	$	(19,652)	$	—

The effects of this error on our previously reported segment reporting for the three months ended August 28, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended August 28, 2022. Refer to Note 14 for the related income statement line items

reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended August 28, 2022
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended August 28, 2022, As Reported
Net sales	$	23,703	$	19,652	$	—	$	43,355
Gross profit	6,101		151		—		6,252
Net income (loss) from continuing operations	502		(2,721)		(9,132)		(11,351)
Depreciation and amortization	1,771		2,167		11		3,949
Interest income	15		—		—		15
Interest expense	—		—		3,678		3,678
Income tax (benefit) expense, continuing operations	158		(1,065)		911		4
Corporate overhead allocation	1,038		334		(1,372)		—
Restatement Adjustments
Net sales	21		—		—		21
Gross profit	(127)		70		—		(57)
Net (loss) income from continuing operations	31		(959)		1,340		412
Loss from discontinued operations, net of tax	—		(27)		—		(27)
Depreciation and amortization	30		—		—		30
Interest expense	—		—		(432)		(432)
Income tax (benefit) expense, continuing operations	(158)		1,066		(908)		—
Three Months Ended August 28, 2022, As Restated
Net sales	$	23,724	$	19,652	$	—	$	43,376
Gross profit	5,974		221		—		6,195
Net income (loss) from continuing operations	533		(3,680)		(7,792)		(10,939)
Loss from discontinued operations, net of tax	—		(27)		—		(27)
Depreciation and amortization	1,801		2,167		11		3,979
Interest income	15		—		—		15
Interest expense	—		—		3,246		3,246
Income tax expense, continuing operations	—		1		3		4
Corporate overhead allocation	1,038		334		(1,372)		—

As of and for the three and nine months ended February 27, 2022

The effects of the restatement on the consolidated balance sheet as of February 27, 2022 are summarized in the following table:

	February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	1,854	$	—	$	1,854	$	(753)	$	1,101
Accounts receivable, net	49,559		(522)		49,037		(9,290)		39,747
Inventories	73,700		(2,591)		71,109		(36,351)		34,758
Prepaid expenses and other current assets	6,924		(1,784)		5,140		(3,322)		1,818
Current assets, discontinued operations	—		—		—		49,716		49,716
Total Current Assets	132,037		(4,897)		127,140		—		127,140
Property and equipment, net	123,209		3,557		126,766		(16,263)		110,503
Operating lease right-of-use assets	8,796		—		8,796		(3,093)		5,703
Goodwill	33,916		—		33,916		(20,035)		13,881
Trademarks/tradenames, net	17,100		—		17,100		(12,900)		4,200
Customer relationships, net	7,476		—		7,476		(7,425)		51
Other assets	3,048		—		3,048		(113)		2,935
Non-current assets, discontinued operations	—		—		—		59,829		59,829
Total Assets	$	325,582	$	(1,340)	$	324,242	$	—	$	324,242
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	20,014	$	27	$	20,041	$	(6,747)	$	13,294
Accrued compensation	9,757		—		9,757		(339)		9,418
Other accrued liabilities	14,083		(36)		14,047		(1,054)		12,993
Current portion of lease liabilities	5,045		—		5,045		(650)		4,395
Deferred revenue	1,614		—		1,614		—		1,614
Line of credit	39,900		—		39,900		—		39,900
Current liabilities, discontinued operations	—		—		—		8,790		8,790
Total Current Liabilities	90,413		(9)		90,404		—		90,404
Long-term debt, net	79,598		—		79,598		—		79,598
Long-term lease liabilities	10,342		—		10,342		(2,494)		7,848
Deferred taxes, net	961		(165)		796		—		796
Other non-current liabilities	544		—		544		—		544
Non-current liabilities, discontinued operations	—		—		—		2,494		2,494
Total Liabilities	181,858		(174)		181,684		—		181,684
Stockholders’ Equity:
Common stock	29		—		29		—		29
Additional paid-in capital	166,943		—		166,943		—		166,943
Accumulated deficit	(22,536)		(1,166)		(23,702)		—		(23,702)
Accumulated other comprehensive loss	(712)		—		(712)		—		(712)
Total Stockholders’ Equity	143,724		(1,166)		142,558		—		142,558
Total Liabilities and Stockholders’ Equity	$	325,582	$	(1,340)	$	324,242	$	—	$	324,242

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months February 27, 2022 are summarized in the following table:

	Three Months Ended February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	37,399	$	2	$	37,401	$	(2,169)	$	35,232
Cost of product sales	24,533		793		25,326		(1,733)		23,593
Gross profit	12,866		(791)		12,075		(436)		11,639
Operating costs and expenses:
Research and development	2,000		288		2,288		(34)		2,254
Selling, general and administrative	14,163		175		14,338		(589)		13,749
Restructuring costs	5,270		4		5,274		—		5,274
Total operating costs and expenses	21,433		467		21,900		(623)		21,277
Operating loss	(8,567)		(1,258)		(9,825)		187		(9,638)
Interest income	20		—		20		—		20
Interest expense	(4,105)		429		(3,676)		—		(3,676)
Transition services income	5,473		—		5,473		—		5,473
Other income (expense)	454		(164)		290		—		290
Net loss from continuing operations before taxes	(6,725)		(993)		(7,718)		187		(7,531)
Income tax benefit (expense)	87		(2,014)		(1,927)		(1,462)		(3,389)
Net loss from continuing operations	(6,638)		(3,007)		(9,645)		(1,275)		(10,920)
Discontinued operations:
(Loss) gain from discontinued operations	(6,859)		494		(6,365)		(187)		(6,552)
Income tax benefit (expense)	411		2,013		2,424		1,462		3,886
(Loss) income from discontinued operations, net of tax	(6,448)		2,507		(3,941)		1,275		(2,666)
Consolidated net loss	$	(13,086)	$	(500)	$	(13,586)	$	—	$	(13,586)
Basic net (loss) income per share:
Loss from continuing operations	$	(0.23)	$	(0.10)	$	(0.33)	$	(0.04)	$	(0.37)
Loss from discontinued operations	$	(0.22)	$	0.09	$	(0.13)	$	0.04	$	(0.09)
Total basic net loss per share	$	(0.45)	$	(0.01)	$	(0.46)	$	—	$	(0.46)
Diluted net (loss) income per share:
Loss from continuing operations	$	(0.23)	$	(0.10)	$	(0.33)	$	(0.04)	$	(0.37)
Loss from discontinued operations	$	(0.22)	$	0.09	$	(0.13)	$	0.04	$	(0.09)
Total diluted net loss per share	$	(0.45)	$	(0.01)	$	(0.46)	$	—	$	(0.46)
Shares used in per share computation
Basic	29,482		—		29,482		—		29,482
Diluted	29,482		—		29,482		—		29,482
	Three Months Ended February 27, 2022

(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net loss	$	(13,086)	$	(500)	$	(13,586)	$	—	$	(13,586)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	104		—		104		—		104
Other comprehensive income, net of tax	104		—		104		—		104
Total comprehensive loss	$	(12,982)	$	(500)	$	(13,482)	$	—	$	(13,482)

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the nine months February 27, 2022 are summarized in the following table:

	Nine Months Ended February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	90,140	$	40	$	90,180	$	(7,016)	$	83,164
Cost of product sales	58,507		1,637		60,144		(5,622)		54,522
Gross profit	31,633		(1,597)		30,036		(1,394)		28,642
Operating costs and expenses:
Research and development	5,722		(17)		5,705		(81)		5,624
Selling, general and administrative	27,659		211		27,870		(1,708)		26,162
Restructuring costs	7,530		(502)		7,028		—		7,028
Total operating costs and expenses	40,911		(308)		40,603		(1,789)		38,814
Operating (loss) income	(9,278)		(1,289)		(10,567)		395		(10,172)
Interest income	66		—		66		—		66
Interest expense	(13,877)		1,304		(12,573)		—		(12,573)
Transition services income	5,473		—		5,473		—		5,473
Other income	642		24		666		—		666
Net (loss) income from continuing operations before taxes	(16,974)		39		(16,935)		395		(16,540)
Income tax benefit (expense)	5,591		—		5,591		(130)		5,461
Net loss from continuing operations	(11,383)		39		(11,344)		265		(11,079)
Discontinued operations:
Loss from discontinued operations	(49,576)		(367)		(49,943)		(395)		(50,338)
Income tax (expense) benefit	(157)		—		(157)		130		(27)
Loss from discontinued operations, net of tax	(49,733)		(367)		(50,100)		(265)		(50,365)
Consolidated net loss	$	(61,116)	$	(328)	$	(61,444)	$	—	$	(61,444)
Basic net (loss) income per share:
Loss from continuing operations	$	(0.39)	$	—	$	(0.39)	$	0.01	$	(0.38)
Loss from discontinued operations	$	(1.69)	$	(0.01)	$	(1.70)	$	(0.01)	$	(1.71)
Total basic net loss per share	$	(2.08)	$	(0.01)	$	(2.09)	$	—	$	(2.09)

Diluted net (loss) income per share:
Loss income from continuing operations	$	(0.39)	$	—	$	(0.39)	$	0.01	$	(0.38)
Loss from discontinued operations	$	(1.69)	$	(0.01)	$	(1.70)	$	(0.01)	$	(1.71)
Total diluted net loss per share	$	(2.08)	$	(0.01)	$	(2.09)	$	—	$	(2.09)
Shares used in per share computation
Basic	29,459		—		29,459		—		29,459
Diluted	29,459		—		29,459		—		29,459
	Nine Months Ended February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net loss	$	(61,116)	$	(328)	$	(61,444)	$	—	$	(61,444)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	646		—		646		—		646
Other comprehensive income, net of tax	646		—		646		—		646
Total comprehensive loss	$	(60,470)	$	(328)	$	(60,798)	$	—	$	(60,798)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended February 27, 2022 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 30, 2021	—	$	—	29,333	$	29	$	165,533	$	38,580	$	(1,358)	$	202,784
Issuance of stock under stock plans, net of shares withheld	—	—		129	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(428)		—		—		(428)
Stock-based compensation	—	—		—	—		620		—		—		620
Net loss	—	—		—	—		—		(9,477)		—		(9,477)
Other comprehensive income, net of tax	—	—		—	—		—		—		366		366
Balance at August 29, 2021	—	$	—	29,462	$	29	$	165,725	$	29,103	$	(992)	$	193,865
Issuance of stock under stock plans, net of shares withheld	—	—		19	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(84)		—		—		(84)
Stock-based compensation	—	—		—	—		686		—		—		686
Net loss	—	—		—	—		—		(38,441)		—		(38,441)
Other comprehensive income, net of tax	—	—		—	—		—		—		176		176
Balance at November 28, 2021	—	$	—	29,481	$	29	$	166,327	$	(9,338)	$	(816)	$	156,202
Issuance of stock under stock plans, net of shares withheld	—	—		1	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(6)		—		—		(6)
Stock-based compensation	—	—		—	—		622		—		—		622

Net loss	—	—		—	—		—		(13,086)		—		(13,086)
Other comprehensive income, net of tax	—	—		—	—		—		—		104		104
Balance at February 27, 2022	—	$	—	29,482	$	29	$	166,943	$	(22,424)	$	(712)	$	143,836
Restatements Adjustments
Opening retained earnings (at May 30, 2021)	—	—		—	—		—		(838)		—		(838)
Net income at August 29, 2021	—	—		—	—		—		90		—		90
Opening retained earnings (at August 29, 2021)	—	—		—	—		—		(748)		—		(748)
Net loss at November 28, 2021	—	—		—	—		—		(30)		—		(30)
Opening retained earnings (at November 28, 2021)	—	—		—	—		—		(666)		—		(666)
Net loss at February 27, 2022	—	—		—	—		—		(500)		—		(500)
As Restated
Balance at May 30, 2021	—	$	—	29,333	$	29	$	165,533	$	37,742	$	(1,358)	$	201,946
Issuance of stock under stock plans, net of shares withheld	—	—		129	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(428)		—		—		(428)
Stock-based compensation	—	—		—	—		620		—		—		620
Net loss	—	—		—	—		—		(9,387)		—		(9,387)
Other comprehensive income, net of tax	—	—		—	—		—		—		366		366
Balance at August 29, 2021	—	$	—	29,462	$	29	$	165,725	$	28,355	$	(992)	$	193,117
Issuance of stock under stock plans, net of shares withheld	—	—		19	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(84)		—		—		(84)
Stock-based compensation	—	—		—	—		686		—		—		686
Net loss	—	—		—	—		—		(38,471)		—		(38,471)
Other comprehensive income, net of tax	—	—		—	—		—		—		176		176
Balance at November 28, 2021	—	$	—	29,481	$	29	$	166,327	$	(10,116)	$	(816)	$	155,424
Issuance of stock under stock plans, net of shares withheld	—	—		1	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(6)		—		—		(6)
Stock-based compensation	—	—		—	—		622		—		—		622
Net loss	—	—		—	—		—		(13,586)		—		(13,586)
Other comprehensive income, net of tax	—	—		—	—		—		—		104		104
Balance at February 27, 2022	—	$	—	29,482	$	29	$	166,943	$	(23,702)	$	(712)	$	142,558

The effects of the restatement on the consolidated statement of cash flows for the nine months ended February 27, 2022 are summarized in the following table:

	Nine Months Ended February 27, 2022
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net loss	$	(61,116)	$	(328)	$	(61,444)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Impairment of goodwill	32,057		—		32,057
Depreciation, amortization of intangibles, debt costs and right-of-use assets	14,488		59		14,547
Loss on disposal of property and equipment related to restructuring, net	5,185		—		5,185
Deferred taxes	(5,471)		—		(5,471)
Loss on sale of Eat Smart	235		—		235
Stock-based compensation expense	1,928		—		1,928
Net loss on disposal of property and equipment held and used	25		—		25
Provision (benefit) for expected credit losses	(14)		—		(14)
Other, net	(551)		—		(551)
Changes in current assets and current liabilities:
Accounts receivable, net	(7,525)		—		(7,525)
Inventory	(11,910)		1,538		(10,372)
Prepaid expenses and other current assets	(1,448)		8		(1,440)
Accounts payable	13,507		27		13,534
Accrued compensation	(2,027)		—		(2,027)
Other accrued liabilities	(70)		—		(70)
Deferred revenue	662		—		662
Net cash (used in) provided by operating activities	(22,045)		1,304		(20,741)
Cash flows from investing activities:
Proceeds from the Sale of Eat Smart	73,500		—		73,500
Sale of investment in non-public company	45,100		—		45,100
Purchases of property and equipment	(18,539)		(1,304)		(19,843)
Eat Smart sale net working capital adjustment	(2,390)		—		(2,390)
Proceeds from sales of property and equipment	1,096		—		1,096
Net cash provided by (used in) investing activities	98,767		(1,304)		97,463
Cash flows from financing activities:
Payments on long-term debt	(86,376)		—		(86,376)
Proceeds from line of credit	45,011		—		45,011
Payments on line of credit	(34,111)		—		(34,111)
Taxes paid by Company for employee stock plans	(518)		—		(518)
Payments for debt issuance costs	(169)		—		(169)
Net cash used in financing activities	(76,163)		—		(76,163)
Net increase in cash, cash equivalents and restricted cash	559		—		559
Cash, cash equivalents and restricted cash, beginning of period	1,295		—		1,295
Cash, cash equivalents and restricted cash, end of period	$	1,854	$	—	$	1,854
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	1,764	$	—	$	1,764

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	February 27, 2022
	Balance at beginning of period		Provision (benefit) for expected credit losses	Write offs, net of recoveries	Balance at end of period
Nine months ended February 27, 2022, As Reported	$	5	—	—	$	5
Restatement Adjustment	$	522	—	—	$	522
Nine months ended February 27, 2022, As Restated	$	527	—	—	$	527
Discontinued Operations	$	(5)	—	—	$	(5)
Nine months ended February 27, 2022, As Restated, after Discontinued Operations	$	522	—	—	$	522

The effects of this error on our previously reported inventories as of February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	42,387	$	52	$	42,439	$	(29,036)	$	13,403
Raw materials	26,644		(1,937)		24,707		(7,294)		17,413
Work in progress	4,669		(706)		3,963		(21)		3,942
Total inventories	$	73,700	$	(2,591)	$	71,109	$	(36,351)	$	34,758

The effects of this error on our previously reported basic and diluted net loss per share for the three months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net loss applicable to Common Stockholders	$	(13,086)	$	(500)	$	(13,586)	$	—	$	(13,586)
Denominator:
Weighted average shares for basic net income per share	29,482		—		29,482		—		29,482
Weighted average shares for diluted net income per share	29,482		—		29,482		—		29,482
Diluted net loss per share	$	(0.45)	$	(0.01)	$	(0.46)	$	—	$	(0.46)

The effects of this error on our previously reported basic and diluted net loss per share for the nine months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Nine Months Ended February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net loss applicable to Common Stockholders	$	(61,116)	$	(328)	$	(61,444)	$	—	$	(61,444)
Denominator:
Weighted average shares for basic net income per share	29,459		—		29,459		—		29,459
Weighted average shares for diluted net income per share	29,459		—		29,459		—		29,459
Diluted net loss per share	$	(2.08)	$	(0.01)	$	(2.09)	$	—	$	(2.09)

The effects of this error on our previously reported disaggregated revenue for the three months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	24,799	$	2	$	24,801	$	—	$	24,801
Fermentation	10,009		—		10,009		—		10,009
Total	$	34,808	$	2	$	34,810	$	—	$	34,810
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Olive oil and vinegars	$	2,169	$	—	$	2,169	$	(2,169)	$	—
Technology	422		—		422		—		422
Total	$	2,591	$	—	$	2,591	$	(2,169)	$	422

The effects of this error on our previously reported disaggregated revenue for the nine months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	63,951	$	40	$	63,991	$	—	$	63,991
Fermentation	17,756		—		17,756		—		17,756
Total	$	81,707	$	40	$	81,747	$	—	$	81,747
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Olive oil and vinegars	$	7,016	$	—	$	7,016	$	(7,016)	$	—
Technology	1,417		—		1,417		—		1,417
Total	$	8,433	$	—	$	8,433	$	(7,016)	$	1,417

The effects of this error on our previously reported segment reporting for the three months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended February 27, 2022. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended February 27, 2022
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended February 27, 2022, As Reported
Net sales	$	34,808	$	2,591	$	—	$	37,399
Gross profit	12,905		(39)		—		12,866
Net income (loss) from continuing operations	5,054		(5,380)		(6,312)		(6,638)
Loss from discontinued operations, net of tax	—		(3,407)		(3,041)		(6,448)
Depreciation and amortization	1,674		304		18		1,996
Interest income	18		—		2		20
Interest expense	—		26		4,079		4,105
Income tax (benefit) expense, continuing operations	1,596		(1,678)		(5)		(87)
Corporate overhead allocation	1,175		289		(1,464)		—
Restatement Adjustments
Net sales	2		—		—		2
Gross profit	(791)		—		—		(791)
Net (loss) income from continuing operations	2,268		(4,229)		(1,046)		(3,007)
Loss from discontinued operations, net of tax	—		2,507		—		2,507
Depreciation and amortization	24		—		—		24
Interest expense	—		—		(429)		(429)
Income tax (benefit) expense, continuing operations	(3,059)		3,598		1,475		2,014
Three Months Ended February 27, 2022, As Restated
Net sales	$	34,810	$	2,591	$	—	$	37,401
Gross profit	12,114		(39)		—		12,075
Net income (loss) from continuing operations	7,322		(9,609)		(7,358)		(9,645)
Loss from discontinued operations, net of tax	—		(900)		(3,041)		(3,941)
Depreciation and amortization	1,698		304		18		2,020
Interest income	18		—		2		20
Interest expense	—		26		3,650		3,676
Income tax (benefit) expense, continuing operations	(1,463)		1,920		1,470		1,927
Corporate overhead allocation	1,175		289		(1,464)		—

The effects of this error on our previously reported segment reporting for the nine months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the nine months ended February 27, 2022. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Nine Months Ended February 27, 2022
(in thousands)	Lifecore		Curation Foods		Other		Total
Nine Months Ended February 27, 2022, As Reported
Net sales	$	81,707	$	8,433	$	—	$	90,140
Gross profit	30,384		1,249		—		31,633
Net income (loss) from continuing operations	11,317		4,640		(27,340)		(11,383)
Loss from discontinued operations, net of tax	—		(46,692)		(3,041)		(49,733)
Depreciation and amortization	4,894		364		70		5,328
Interest income	57		—		9		66
Interest expense	—		300		13,577		13,877
Income tax expense (benefit), continuing operations	3,574		(13,422)		4,257		(5,591)
Corporate overhead allocation	3,389		778		(4,167)		—
Restatement Adjustments
Net sales	40		—		—		40
Gross profit	(1,597)		—		—		(1,597)
Net (loss) income from continuing operations	(2,412)		(10,300)		12,751		39
Loss from discontinued operations, net of tax	—		(367)		—		(367)
Depreciation and amortization	59		—		—		59
Interest expense	—		—		(1,304)		(1,304)
Income tax expense (benefit), continuing operations	815		10,632		(11,447)		—
Nine Months Ended February 27, 2022, As Restated
Net sales	$	81,747	$	8,433	$	—	90,180
Gross profit	28,787		1,249		—		30,036
Net income (loss) from continuing operations	8,905		(5,660)		(14,589)		(11,344)
Loss from discontinued operations, net of tax	—		(47,059)		(3,041)		(50,100)
Depreciation and amortization	4,953		364		70		5,387
Interest income	57		—		9		66
Interest expense	—		300		12,273		12,573
Income tax expense (benefit), continuing operations	4,389		(2,790)		(7,190)		(5,591)
Corporate overhead allocation	3,389		778		(4,167)		—

The effects of this error on our previously reported discontinued operations as of February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 9, are as follows:

	Eat Smart - As of May 30, 2021
(in thousands)	As Reported		Restatement		As Restated
ASSETS
Cash and cash equivalents	$	136	$	—	$	136
Accounts receivable, less allowance for credit losses	28,583		—		28,583
Inventories	6,587		—		6,587
Prepaid expenses and other current assets	2,312		(515)		1,797
Total current assets, discontinued operations	37,618		(515)		37,103
Investment in non-public company, fair value	45,100		(45,100)		—
Property and equipment, net	59,273		—		59,273
Operating lease right-of-use assets	3,729		—		3,729
Goodwill	35,470		—		35,470
Trademarks/tradenames, net	8,228		—		8,228
Customer relationships, net	2,260		—		2,260
Other assets	80		—		80
Total other assets, discontinued operations	154,140		(45,100)		109,040
Total assets, discontinued operations	$	191,758	$	(45,615)	$	146,143
LIABILITIES
Accounts payable	31,271		—		31,271
Accrued compensation	4,550		—		4,550
Other accrued liabilities	4,041		350		4,391
Current portion of lease liabilities	2,289		—		2,289
Deferred revenue	493		(350)		143
Total current liabilities, discontinued operations	42,644		—		42,644
Long-term lease liabilities	3,252		—		3,252
Other non-current liabilities	729		—		729
Non-current liabilities, discontinued operations	3,981		—		3,981
Total liabilities, discontinued operations	$	46,625	$	—	$	46,625

The effects of this error on our previously reported restructuring cost for the three months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	3,693	$	—	$	3,693	$	—	$	3,693
Employee severance and benefit costs	—		—		—		—		—
Lease costs	1,527		—		1,527		—		1,527
Other restructuring costs	50		4		54		—		54
Total restructuring costs	$	5,270	$	4	$	5,274	$	—	$	5,274

	Three Months Ended February 27, 2022
	Curation		Other		Total
Total restructuring costs, As reported	$	5,220	$	50	$	5,270
Restatement adjustments	4		—		4
Total restructuring costs, As restated	$	5,224	$	50	$	5,274

The effects of this error on our previously reported restructuring cost for the nine months ended February 27, 2022 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Nine Months Ended February 27, 2022
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	3,693	$	(566)	$	3,127	$	—	$	3,127
Employee severance and benefit costs	—		34		34		—		34
Lease costs	1,995		—		1,995		—		1,995
Other restructuring costs	1,842		30		1,872		—		1,872
Total restructuring costs	$	7,530	$	(502)	$	7,028	$	—	$	7,028

	Nine Months Ended February 27, 2022
	Curation		Other		Total
Total restructuring costs, As reported	$	5,686	$	1,844	$	7,530
Restatement adjustments	(502)		—		(502)
Total restructuring costs, As restated	$	5,184	$	1,844	$	7,028

As of and for the three and six months ended November 28, 2021

The effects of the restatement on the consolidated balance sheet as of November 28, 2021 are summarized in the following table:

	November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	1,091	$	—	$	1,091	$	(482)	$	609
Accounts receivable, less allowance for doubtful accounts	65,276		(522)		64,754		(37,259)		27,495
Inventories	79,433		(1,824)		77,609		(37,894)		39,715
Prepaid expenses and other current assets	8,721		(1,622)		7,099		(5,658)		1,441
Current assets, discontinued operations	—		—		—		81,293		81,293
Total Current Assets	154,521		(3,968)		150,553		—		150,553
Property and equipment, net	179,929		3,152		183,081		(74,320)		108,761
Operating lease right-of-use assets	11,979		—		11,979		(4,492)		7,487
Goodwill	37,329		—		37,329		(23,448)		13,881
Trademarks/tradenames, net	25,328		—		25,328		(21,128)		4,200
Customer relationships, net	9,799		—		9,799		(9,671)		128
Other assets	3,239		—		3,239		(156)		3,083
Non-current assets, discontinued operations	—		—		—		133,215		133,215
Total Assets	$	422,124	$	(816)	$	421,308	$	—	$	421,308
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	59,098	$	52	$	59,150	$	(50,495)	$	8,655
Accrued compensation	7,214		—		7,214		(3,958)		3,256
Other accrued liabilities	9,804		76		9,880		(6,000)		3,880
Current portion of lease liabilities	2,988		—		2,988		(1,770)		1,218
Deferred revenue	1,160		—		1,160		(193)		967
Line of credit	42,000		—		42,000		—		42,000
Current Liabilities, discontinued operations	—		—		—		62,416		62,416
Total Current Liabilities	122,264		128		122,392		—		122,392
Long-term debt, net	124,194		—		124,194		—		124,194
Long-term lease liabilities	14,203		—		14,203		(2,859)		11,344
Deferred taxes, net	1,367		(166)		1,201		—		1,201
Other non-current liabilities	3,894		—		3,894		(1,962)		1,932
Non-current liabilities, discontinued operations	—		—		—		4,821		4,821
Total Liabilities	265,922		(38)		265,884		—		265,884
Stockholders’ Equity:
Common stock	29		—		29		—		29
Additional paid-in capital	166,327		—		166,327		—		166,327
Accumulated deficit	(9,338)		(778)		(10,116)		—		(10,116)
Accumulated other comprehensive loss	(816)		—		(816)		—		(816)
Total Stockholders’ Equity	156,202		(778)		155,424		—		155,424
Total Liabilities and Stockholders’ Equity	$	422,124	$	(816)	$	421,308	$	—	$	421,308

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months November 28, 2021 are summarized in the following table:

	Three Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	43,452	$	38	$	43,490	$	(17,889)	$	25,601
Cost of product sales	28,737		616		29,353		(15,210)		14,143
Gross profit	14,715		(578)		14,137		(2,679)		11,458
Operating costs and expenses:
Research and development	1,856		—		1,856		(176)		1,680
Selling, general and administrative	8,012		82		8,094		(2,633)		5,461
Restructuring costs	707		(80)		627		—		627
Total operating costs and expenses	10,575		2		10,577		(2,809)		7,768
Operating income (loss)	4,140		(580)		3,560		130		3,690
Interest income	19		—		19		—		19
Interest expense	(3,094)		327		(2,767)		—		(2,767)
Other income	79		251		330		—		330
Net income (loss) from continuing operations before taxes	1,144		(2)		1,142		130		1,272
Income tax benefit	3,085		2,147		5,232		1,043		6,275
Net income from continuing operations	4,229		2,145		6,374		1,173		7,547
Discontinued operations:
Loss from discontinued operations	(42,409)		(52)		(42,461)		(130)		(42,591)
Income tax expense	(261)		(2,123)		(2,384)		(1,043)		(3,427)
Loss from discontinued operations, net of tax	(42,670)		(2,175)		(44,845)		(1,173)		(46,018)
Consolidated net loss	$	(38,441)	$	(30)	$	(38,471)	$	—	$	(38,471)
Basic net (loss) income per share:
Income from continuing operations	$	0.14	$	0.07	$	0.21	$	0.04	$	0.25
Loss from discontinued operations	$	(1.44)	$	(0.08)	$	(1.52)	$	(0.04)	$	(1.56)
Total basic net loss per share	$	(1.30)	$	(0.01)	$	(1.31)	$	—	$	(1.31)
Diluted net (loss) income per share:
Income from continuing operations	$	0.14	$	0.07	$	0.21	$	0.04	$	0.25
Loss from discontinued operations	$	(1.44)	$	(0.08)	$	(1.52)	$	(0.04)	$	(1.56)
Total diluted net loss income per share	$	(1.30)	$	(0.01)	$	(1.31)	$	—	$	(1.31)
Shares used in per share computation
Basic	29,471		—		29,471		—		29,471
Diluted	29,471		—		29,471		—		29,471

	Three Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(38,441)	$	(30)	$	(38,471)	$	—	$	(38,471)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	176		—		176		—		176
Other comprehensive income, net of tax	176		—		176		—		176
Total comprehensive (loss) income	$	(38,265)	$	(30)	$	(38,295)	$	—	$	(38,295)

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the six months November 28, 2021 are summarized in the following table:

	Six Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	85,084	$	38	$	85,122	$	(37,191)	$	47,931
Cost of product sales	59,934		956		60,890		(29,962)		30,928
Gross profit	25,150		(918)		24,232		(7,229)		17,003
Operating costs and expenses:
Research and development	3,729		—		3,729		(360)		3,369
Selling, general and administrative	17,482		314		17,796		(5,384)		12,412
Restructuring costs	2,541		(786)		1,755		—		1,755
Total operating costs and expenses	23,752		(472)		23,280		(5,744)		17,536
Operating income (loss)	1,398		(446)		952		(1,485)		(533)
Interest income	46		—		46		—		46
Interest expense	(9,772)		875		(8,897)		—		(8,897)
Other income	188		188		376		—		376
Net (loss) income from continuing operations before taxes	(8,140)		617		(7,523)		(1,485)		(9,008)
Income tax benefit	4,736		2,014		6,750		1,332		8,082
Net (loss) income from continuing operations	(3,404)		2,631		(773)		(153)		(926)
Discontinued operations:
(Loss) gain from discontinued operations	(44,714)		(558)		(45,272)		1,485		(43,787)
Income tax benefit (provision)	200		(2,013)		(1,813)		(1,332)		(3,145)
(Loss) gain from discontinued operations, net of tax	(44,514)		(2,571)		(47,085)		153		(46,932)
Consolidated net (loss) income	$	(47,918)	$	60	$	(47,858)	$	—	$	(47,858)
Basic net (loss) income per share:

(Loss) income from continuing operations	$	(0.12)	$	0.09	$	(0.03)	$	(0.01)	$	(0.04)
(Loss) income from discontinued operations	$	(1.51)	$	(0.09)	$	(1.60)	$	0.01	$	(1.59)
Total basic net (loss) income per share	$	(1.63)	$	—	$	(1.63)	$	—	$	(1.63)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.12)	$	0.09	$	(0.03)	$	(0.01)	$	(0.04)
Loss from discontinued operations	$	(1.51)	$	(0.09)	$	(1.60)	$	0.01	$	(1.59)
Total diluted net (loss) income per share	$	(1.63)	$	—	$	(1.63)	$	—	$	(1.63)
Shares used in per share computation
Basic	29,448		—		29,448		—		29,448
Diluted	29,448		—		29,448		—		29,448
	Six Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(47,918)	$	60	$	(47,858)	$	—	$	(47,858)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	542		—		542		—		542
Other comprehensive income, net of tax	542		—		542		—		542
Total comprehensive (loss) income	$	(47,376)	$	60	$	(47,316)	$	—	$	(47,316)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the three and six months ended November 28, 2021 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 30, 2021	—	$	—	29,333	$	29	$	165,533	$	38,580	$	(1,358)	$	202,784
Issuance of stock under stock plans, net of shares withheld	—	—		129	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(428)		—		—		(428)
Stock-based compensation	—	—		—	—		620		—		—		620
Net loss	—	—		—	—		—		(9,477)		—		(9,477)
Other comprehensive income, net of tax	—	—		—	—		—		—		366		366
Balance at August 29, 2021	—	$	—	29,462	$	29	$	165,725	$	29,103	$	(992)	$	193,865
Issuance of stock under stock plans, net of shares withheld	—	—		19	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(84)		—		—		(84)
Stock-based compensation	—	—		—	—		686		—		—		686
Net loss	—	—		—	—		—		(38,441)		—		(38,441)
Other comprehensive income, net of tax	—	—		—	—		—		—		176		176

Balance at November 28, 2021	—	$	—	29,481	$	29	$	166,327	$	(9,338)	$	(816)	$	156,202
Restatements Adjustments
Opening retained earnings (at May 30, 2021)	—	—		—	—		—		(838)		—		(838)
Net income at August 29, 2021	—	—		—	—		—		90		—		90
Opening retained earnings (at August 29, 2021)	—	—		—	—		—		(748)		—		(748)
Net loss at November 28, 2021	—	—		—	—		—		(30)		—		(30)
As Restated
Balance at May 30, 2021	—	$	—	29,333	$	29	$	165,533	$	37,742	$	(1,358)	$	201,946
Issuance of stock under stock plans, net of shares withheld	—	—		129	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(428)		—		—		(428)
Stock-based compensation	—	—		—	—		620		—		—		620
Net loss	—	—		—	—		—		(9,387)		—		(9,387)
Other comprehensive income, net of tax	—	—		—	—		—		—		366		366
Balance at August 29, 2021	—	$	—	29,462	$	29	$	165,725	$	28,355	$	(992)	$	193,117
Issuance of stock under stock plans, net of shares withheld	—	—		19	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(84)		—		—		(84)
Stock-based compensation	—	—		—	—		686		—		—		686
Net loss	—	—		—	—		—		(38,471)		—		(38,471)
Other comprehensive income, net of tax	—	—		—	—		—		—		176		176
Balance at November 28, 2021	—	$	—	29,481	$	29	$	166,327	$	(10,116)	$	(816)	$	155,424

The effects of the restatement on the consolidated statement of cash flows for the six months ended November 28, 2021 are summarized in the following table:

	Six Months Ended November 28, 2021
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net (loss) income	$	(47,918)	$	60	$	(47,858)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Impairment of goodwill	32,057		—		32,057
Depreciation, amortization of intangibles, debt costs and right-of-use assets	10,959		35		10,994
Deferred taxes	(4,963)		(1)		(4,964)
Stock-based compensation expense	1,306		—		1,306
Provision for expected credit losses	196		—		196
Net loss on disposal of property and equipment held and used	22		—		22
Loss on disposal of property and equipment related to restructuring, net	(92)		—		(92)
Other, net	(111)		—		(111)
Changes in current assets and current liabilities:
Accounts receivable, net	4,541		—		4,541
Inventory	(9,770)		771		(8,999)
Prepaid expenses and other current assets	(1,784)		(154)		(1,938)
Accounts payable	15,148		52		15,200
Accrued compensation	(5,090)		—		(5,090)
Other accrued liabilities	1,163		112		1,275
Deferred revenue	30		—		30
Net cash (used in) provided by operating activities	(4,306)		875		(3,431)
Cash flows from investing activities:
Sale of investment in non-public company	45,100		—		45,100
Purchases of property and equipment	(13,010)		(875)		(13,885)
Proceeds from sales of property and equipment	1,082		—		1,082
Net cash provided by (used in) investing activities	33,172		(875)		32,297
Cash flows from financing activities:
Payments on long-term debt	(41,426)		—		(41,426)
Proceeds from line of credit	26,000		—		26,000
Payments on line of credit	(13,000)		—		(13,000)
Payments for debt issuance costs	(132)		—		(132)
Taxes paid by Company for employee stock plans	(512)		—		(512)
Net cash used in financing activities	(29,070)		—		(29,070)
Net decrease in cash, cash equivalents and restricted cash	(204)		—		(204)
Cash, cash equivalents and restricted cash, beginning of period	1,295		—		1,295
Cash, cash equivalents and restricted cash, end of period	$	1,091	$	—	$	1,091
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	1,105	$	—	$	1,105

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	November 28, 2021
	Balance at beginning of period		Provision (benefit) for expected credit losses		Write offs, net of recoveries		Balance at end of period
Six months ended November 28, 2021, As Reported	$	85	$	(14)	$	—	$	71
Restatement Adjustment	$	522	$	—	$	—	$	522
Six months ended November 28, 2021, As Restated	$	607	$	(14)	$	—	$	593
Discontinued Operations	$	(85)	$	14	$	—	$	(71)
Six months ended November 28, 2021, As Restated, after Discontinued Operations	$	522	$	—	$	—	$	522

The effects of this error on our previously reported inventories as of November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	42,967	$	227	$	43,194	$	(22,309)	$	20,885
Raw materials	31,924		(1,602)		30,322		(15,583)		14,739
Work in progress	4,542		(449)		4,093		(2)		4,091
Total inventories	$	79,433	$	(1,824)	$	77,609	$	(37,894)	$	39,715

The effects of this error on our previously reported basic and diluted net loss per share for the three and six months ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net loss applicable to Common Stockholders	$	(38,441)	$	(30)	$	(38,471)	$	—	$	(38,471)
Denominator:
Weighted average shares for basic net income per share	29,471		—		29,471		—		29,471
Weighted average shares for diluted net income per share	29,471		—		29,471		—		29,471
Diluted net loss per share	$	(1.30)	$	(0.01)	$	(1.31)	$	—	$	(1.31)

	Six Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(47,918)	$	60	$	(47,858)	$	—	$	(47,858)
Denominator:
Weighted average shares for basic net income per share	29,448		—		29,448		—		29,448
Weighted average shares for diluted net income per share	29,448		—		29,448		—		29,448
Diluted net (loss) income per share	$	(1.63)	$	—	$	(1.63)	$	—	$	(1.63)

The effects of this error on our previously reported disaggregated revenue for the three months ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	21,363	$	38	$	21,401	$	—	$	21,401
Fermentation	3,583		—		3,583		—		3,583
Total	$	24,946	$	38	$	24,984	$	—	$	24,984
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	15,381	$	—	$	15,381	$	(15,381)	$	—
Olive oil and vinegars	2,508		—		2,508		(2,508)		—
Technology	617		—		617		—		617
Total	$	18,506	$	—	$	18,506	$	(17,889)	$	617

The effects of this error on our previously reported disaggregated revenue for the six months ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	39,152	$	38	$	39,190	$	—	$	39,190
Fermentation	7,746		—		7,746		—		7,746
Total	$	46,898	$	38	$	46,936	$	—	$	46,936
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	32,343	$	—	$	32,343	$	(32,343)	$	—
Olive oil and vinegars	4,848		—		4,848		(4,848)		—
Technology	995		—		995		—		995
Total	$	38,186	$	—	$	38,186	$	(37,191)	$	995

The effects of this error on our previously reported segment reporting for the three months ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended November 28, 2021. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended November 28, 2021
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended November 28, 2021, As Reported
Net sales	$	24,946	$	18,506	$	—	$	43,452
Gross profit	11,715		3,000		—		14,715
Net income (loss) from continuing	5,682		(747)		(706)		4,229
Loss from discontinued operations, net of tax	—		(42,670)		—		(42,670)
Depreciation and amortization	1,673		886		26		2,585
Interest income	19		—		—		19
Interest expense	—		136		2,958		3,094
Income tax (benefit) expense, continuing operations	1,794		(579)		(4,300)		(3,085)
Corporate overhead allocation	1,078		1,231		(2,309)		—
Restatement Adjustments
Net sales	38		—		—		38
Gross profit	(498)		(80)		—		(578)
Net (loss) income from continuing operations	(5,293)		716		6,722		2,145
Loss from discontinued operations, net of tax	—		(2,175)		—		(2,175)
Depreciation and amortization	24		—		—		24
Interest expense	—		—		(327)		(327)
Income tax (benefit) expense, continuing operations	4,795		(547)		(6,395)		(2,147)
Three Months Ended November 28, 2021, As Restated
Net sales	$	24,984	$	18,506	$	—	$	43,490
Gross profit	11,217		2,920		—		14,137
Net income (loss) from continuing	389		(31)		6,016		6,374
Loss from discontinued operations, net of tax	—		(44,845)		—		(44,845)
Depreciation and amortization	1,697		886		26		2,609
Interest income	19		—		—		19
Interest expense	—		136		2,631		2,767
Income tax (benefit) expense, continuing operations	6,589		(1,126)		(10,695)		(5,232)
Corporate overhead allocation	1,078		1,231		(2,309)		—

The effects of this error on our previously reported segment reporting for the six months ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the six months ended November 28, 2021. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Six Months Ended November 28, 2021
(in thousands)	Lifecore		Curation Foods		Other		Total
Six Months Ended November 28, 2021, As Reported
Net sales	$	46,898	$	38,186	$	—	$	85,084
Gross profit	17,479		7,671		—		25,150
Net income (loss) from continuing operations	6,262		(1,030)		(8,636)		(3,404)
Loss from discontinued operations, net of tax	—		(44,514)		—		(44,514)
Depreciation and amortization	3,220		1,767		52		5,039
Interest income	39		—		7		46
Interest expense	—		273		9,499		9,772
Income tax (benefit) expense, continuing operations	1,977		(797)		(5,916)		(4,736)
Corporate overhead allocation	2,215		2,702		(4,917)		—
Restatement Adjustments
Net sales	38		—		—		38
Gross profit	(806)		(112)		—		(918)
Net (loss) income from continuing operations	(5,498)		899		7,230		2,631
Loss from discontinued operations, net of tax	—		(2,571)		—		(2,571)
Depreciation and amortization	35		—		—		35
Interest expense	—		—		(875)		(875)
Income tax (benefit) expense, continuing operations	4,692		(351)		(6,355)		(2,014)
Six Months Ended November 28, 2021, As Restated
Net sales	$	46,936	$	38,186	$	—	$	85,122
Gross profit	16,673		7,559		—		24,232
Net income (loss) from continuing operations	764		(131)		(1,406)		(773)
Loss from discontinued operations, net of tax	—		(47,085)		—		(47,085)
Depreciation and amortization	3,255		1,767		52		5,074
Interest income	39		—		7		46
Interest expense	—		273		8,624		8,897
Income tax (benefit) expense, continuing operations	6,669		(1,148)		(12,271)		(6,750)
Corporate overhead allocation	2,215		2,702		(4,917)		—

The effects of this error on our previously reported restructuring cost for the three months ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Other restructuring costs	$	707	$	(80)	$	627	$	—	$	627
Total restructuring costs	$	707	$	(80)	$	627	$	—	$	627

	Three Months Ended November 28, 2021
	Curation		Other		Total
Total restructuring costs, As reported	$	(2)	$	709	$	707
Restatement adjustments	(80)		—		(80)
Total restructuring costs, As restated	$	(82)	$	709	$	627

The effects of this error on our previously reported restructuring cost for the six months ended November 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Six Months Ended November 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	—	$	(566)	$	(566)	$	—	$	(566)
Employee severance and benefit costs	—		34		34		—		34
Lease costs	$	468	$	—	$	468	$	—	$	468
Other restructuring costs	2,073		(254)		1,819		—		1,819
Total restructuring costs	$	2,541	$	(786)	$	1,755	$	—	$	1,755

	Six Months Ended November 28, 2021
	Curation		Other		Total
Total restructuring costs, As reported	$	466	$	2,075	$	2,541
Restatement adjustments	(786)		—		(786)
Total restructuring costs, As restated	$	(320)	$	2,075	$	1,755

As of and for the three months ended August 29, 2021

The effects of the restatement on the consolidated balance sheet as of August 29, 2021 are summarized in the following table:

	August 29, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	1,447	$	—	$	1,447	$	(508)	$	939
Accounts receivable, less allowance for doubtful accounts	61,956		(522)		61,434		(35,218)		26,216
Inventories	69,415		(1,350)		68,065		(31,196)		36,869
Prepaid expenses and other current assets	9,591		(1,871)		7,720		(6,396)		1,324
Current assets, discontinued operations	—		—		—		73,318		73,318
Total Current Assets	142,409		(3,743)		138,666		—		138,666
Property and equipment, net	180,460		2,849		183,309		(74,909)		108,400
Operating lease right-of-use assets	14,299		—		14,299		(6,603)		7,696
Goodwill	69,386		—		69,386		(55,505)		13,881
Trademarks/tradenames, net	25,328		—		25,328		(21,128)		4,200
Customer relationships, net	10,295		—		10,295		(10,090)		205
Other assets	3,442		—		3,442		(191)		3,251
Non-current assets, discontinued operations	—		—		—		168,426		168,426
Total Assets	$	445,619	$	(894)	$	444,725	$	—	$	444,725
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	46,355	$	—	46,355		$	(37,749)	8,606
Accrued compensation	9,173		—		9,173		(4,438)		4,735
Other accrued liabilities	10,855		(4)		10,851		(6,138)		4,713
Current portion of lease liabilities	4,054		—		4,054		(2,818)		1,236
Deferred revenue	1,216		—		1,216		(147)		1,069
Line of credit	32,000		—		32,000		—		32,000
Current Liabilities, discontinued operations	—		—		—		51,290		51,290
Total Current Liabilities	103,653		(4)		103,649		—		103,649
Long-term debt, net	123,833		—		123,833		—		123,833
Long-term lease liabilities	17,072		—		17,072		(5,417)		11,655
Deferred taxes, net	4,091		(142)		3,949		—		3,949
Other non-current liabilities	3,105		—		3,105		(729)		2,376
Non-current liabilities, discontinued operations	—		—		—		6,146		6,146
Total Liabilities	251,754		(146)		251,608		—		251,608
Stockholders’ Equity:
Common stock	29		—		29		$	—	29

Additional paid-in capital	165,725		—		165,725		—		165,725
Retained earnings (accumulated deficit)	29,103		(748)		28,355		—		28,355
Accumulated other comprehensive loss	(992)		—		(992)		—		(992)
Total Stockholders’ Equity	193,865		(748)		193,117		—		193,117
Total Liabilities and Stockholders’ Equity	$	445,619	$	(894)	$	444,725	$	—	$	444,725

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months August 29, 2021 are summarized in the following table:

	Three Months Ended August 29, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	41,632	$	—	$	41,632	$	(19,302)	$	22,330
Cost of product sales	31,197		340		31,537		(14,752)		16,785
Gross profit	10,435		(340)		10,095		(4,550)		5,545
Operating costs and expenses:
Research and development	1,873		—		1,873		(184)		1,689
Selling, general and administrative	9,470		232		9,702		(2,751)		6,951
Restructuring costs	1,834		(706)		1,128		—		1,128
Total operating costs and expenses	13,177		(474)		12,703		(2,935)		9,768
Operating loss	(2,742)		134		(2,608)		(1,615)		(4,223)
Interest income	27		—		27		—		27
Interest expense	(6,678)		548		(6,130)		—		(6,130)
Other income (expense)	109		(63)		46		—		46
Net (loss) income from continuing operations before taxes	(9,284)		619		(8,665)		(1,615)		(10,280)
Income tax benefit (expense)	1,651		(133)		1,518		289		1,807
Net (loss) income from continuing operations	(7,633)		486		(7,147)		(1,326)		(8,473)
Discontinued operations:
(Loss) gain from discontinued operations	(2,305)		(506)		(2,811)		1,615		(1,196)
Income tax benefit	461		110		571		(289)		282
(Loss) gain from discontinued operations, net of tax	(1,844)		(396)		(2,240)		1,326		(914)
Consolidated net (loss) income	$	(9,477)	$	90	$	(9,387)	$	—	$	(9,387)
Basic net (loss) income per share:
Loss from continuing operations	$	(0.26)	$	0.02	$	(0.24)	$	(0.05)	$	(0.29)
Loss from discontinued operations	$	(0.06)	$	(0.02)	$	(0.08)	$	0.05	$	(0.03)
Total basic net loss per share	$	(0.32)	$	—	$	(0.32)	$	—	$	(0.32)
Diluted net (loss) income per share:
Loss from continuing operations	$	(0.26)	$	0.02	$	(0.24)	$	(0.05)	$	(0.29)

Loss from discontinued operations	$	(0.06)	$	(0.02)	$	(0.08)	$	0.05	$	(0.03)
Total diluted net loss per share	$	(0.32)	$	—	$	(0.32)	$	—	$	(0.32)
Shares used in per share computation
Basic	29,424		—		29,424		—		29,424
Diluted	29,424		—		29,424		—		29,424
	Three Months Ended August 29, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(9,477)	$	90	$	(9,387)	$	—	$	(9,387)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	366		—		366		—		366
Other comprehensive income, net of tax	366		—		366		—		366
Total comprehensive (loss) income	$	(9,111)	$	90	$	(9,021)	$	—	$	(9,021)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the three months ended August 29, 2021 are summarized in the following table:

	Convertible Preferred Stock				Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares		Amount		Shares	Amount
As Reported
Balance at May 30, 2021	—		$	—	29,333	$	29	$	165,533	$	38,580	$	(1,358)	$	202,784
Issuance of stock under stock plans, net of shares withheld	—		—		129	—		—		—		—		—
Taxes paid by Company for employee stock plans	—		—		—	—		(428)		—		—		(428)
Stock-based compensation	—		—		—	—		620		—		—		620
Net loss	—		—		—	—		—		(9,477)		—		(9,477)
Other comprehensive income, net of tax	—		—		—	—		—		—		366		366
Balance at August 29, 2021	$	—	$	—	29,462	$	29	$	165,725	$	29,103	$	(992)	$	193,865
Restatements Adjustments
Opening retained earnings (at May 30, 2021)	—		—		—	—		—		(838)		—		(838)
Net income at August 29, 2021	—		—		—	—		—		90		—		90
As Restated
Balance at May 30, 2021	—		$	—	29,333	$	29	$	165,533	$	37,742	$	(1,358)	$	201,946
Issuance of stock under stock plans, net of shares withheld	—		—		129	—		—		—		—		—
Taxes paid by Company for employee stock plans	—		—		—	—		(428)		—		—		(428)
Stock-based compensation	—		—		—	—		620		—		—		620
Net loss	—		—		—	—		—		(9,387)		—		(9,387)
Other comprehensive income, net of tax	—		—		—	—		—		—		366		366
Balance at August 29, 2021	$	—	$	—	29,462	$	29	$	165,725	$	28,355	$	(992)	$	193,117

The effects of the restatement on the consolidated statement of cash flows for the three months ended August 29, 2021 are summarized in the following table:

	Three Months Ended August 29, 2021
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net (loss) income	$	(9,477)	$	90	$	(9,387)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization of intangibles, debt costs and right-of-use assets	5,054		11		5,065
Deferred taxes	(2,138)		23		(2,115)
Stock-based compensation expense	620		—		620
Provision for expected credit losses	60		—		60
Net loss on disposal of property and equipment held and used	16		—		16
Loss on disposal of property and equipment related to restructuring, net	(92)		—		(92)
Other, net	(70)		—		(70)
Changes in current assets and current liabilities:
Accounts receivable, net	7,997		—		7,997
Inventory	248		297		545
Prepaid expenses and other current assets	(2,697)		95		(2,602)
Accounts payable	1,517		—		1,517
Accrued compensation	(3,131)		—		(3,131)
Other accrued liabilities	2,838		32		2,870
Deferred revenue	86		—		86
Net cash provided by operating activities	831		548		1,379
Cash flows from investing activities:
Sale of investment in non-public company	45,100		—		45,100
Purchases of property and equipment	(7,913)		(548)		(8,461)
Proceeds from sales of property and equipment	1,082		—		1,082
Net cash provided by (used in) investing activities	38,269		(548)		37,721
Cash flows from financing activities:
Payments on long-term debt	(41,388)		—		(41,388)
Proceeds from line of credit	8,000		—		8,000
Payments on line of credit	(5,000)		—		(5,000)
Payments for debt issuance costs	(132)		—		(132)
Taxes paid by Company for employee stock plans	(428)		—		(428)
Net cash used in financing activities	(38,948)		—		(38,948)
Net increase in cash, cash equivalents and restricted cash	152		—		152
Cash, cash equivalents and restricted cash, beginning of period	1,295		—		1,295
Cash, cash equivalents and restricted cash, end of period	$	1,447	$	—	$	1,447
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	1,994	$	—	$	1,994

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended August 29, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	August 29, 2021
	Balance at beginning of period		Provision (benefit) for expected credit losses	Write offs, net of recoveries	Balance at end of period
Three months ended August 29, 2021, As Reported	$	85	—	—	$	85
Restatement Adjustment	$	522	—	—	$	522
Three months ended August 29, 2021, As Restated	$	607	—	—	$	607
Discontinued Operations	$	(85)	—	—	$	(85)
Three months ended August 29, 2021, As Restated, after Discontinued Operations	$	522	—	—	$	522

The effects of this error on our previously reported inventories as of August 29, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	August 29, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	35,142	$	180	$	35,322	$	(16,278)	$	19,044
Raw materials	30,344		(1,088)		29,256		(14,914)		14,342
Work in progress	3,929		(442)		3,487		(4)		3,483
Total inventories	$	69,415	$	(1,350)	$	68,065	$	(31,196)	$	36,869

The effects of this error on our previously reported basic and diluted net loss per share for the three months ended August 29, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended August 29, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(9,477)	$	90	$	(9,387)	$	—	$	(9,387)
Denominator:
Weighted average shares for basic net income per share	29,424		—		29,424		—		29,424
Weighted average shares for diluted net income per share	29,424		—		29,424		—		29,424
Diluted net loss per share	$	(0.32)	$	—	$	(0.32)	$	—	$	(0.32)

The effects of this error on our previously reported disaggregated revenue for the three months ended August 29, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	17,789	$	—	$	17,789	$	—	$	17,789
Fermentation	4,163		—		4,163		—		4,163
Total	$	21,952	$	—	$	21,952	$	—	$	21,952
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	16,962	$	—	$	16,962	$	(16,962)	$	—
Olive oil and vinegars	2,340		—		2,340		(2,340)		—
Technology	378		—		378		—		378
Total	$	19,680	$	—	$	19,680	$	(19,302)	$	378

The effects of this error on our previously reported segment reporting for the three months ended August 29, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended August 29, 2021. Refer to Note 14 for the related income statement line items

reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended August 29, 2021
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended August 29, 2021, As Reported
Net sales	$	21,952	$	19,680	$	—	$	41,632
Gross profit	5,764		4,671		—		10,435
Net income (loss) from continuing operations	580		(284)		(7,929)		(7,633)
Loss from discontinued operations, net of taxes	—		(1,844)		—		(1,844)
Depreciation and amortization	1,547		881		26		2,454
Interest income	20		—		7		27
Interest expense	—		137		6,541		6,678
Income tax (benefit) expense, continuing operations	183		(218)		(1,616)		(1,651)
Corporate overhead allocation	1,137		1,471		(2,608)		—
Restatement Adjustments
Net sales	—		—		—		—
Gross profit	(308)		(32)		—		(340)
Net (loss) income from continuing operations	(205)		183		508		486
Loss from discontinued operations, net of taxes	—		(396)		—		(396)
Depreciation and amortization	11		—		—		11
Interest expense	—		—		(548)		(548)
Income tax (benefit) expense, continuing operations	(103)		196		40		133
Three Months Ended August 29, 2021, As Restated
Net sales	$	21,952	$	19,680	$	—	$	41,632
Gross profit	5,456		4,639		—		10,095
Net income (loss) from continuing operations	375		(101)		(7,421)		(7,147)
Loss from discontinued operations, net of taxes	—		(2,240)		—		(2,240)
Depreciation and amortization	1,558		881		26		2,465
Interest income	20		—		7		27
Interest expense	—		137		5,993		6,130
Income tax (benefit) expense, continuing operations	80		(22)		(1,576)		(1,518)
Corporate overhead allocation	1,137		1,471		(2,608)		—

The effects of this error on our previously reported restructuring cost for the three months ended August 29, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended August 29, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	—	$	(566)	$	(566)	$	—	$	(566)
Employee severance and benefit costs	—		34		34		—		34
Lease costs	$	468	$	—	$	468	$	—	$	468
Other restructuring costs	1,366		(174)		1,192		—		1,192
Total restructuring costs	$	1,834	$	(706)	$	1,128	$	—	$	1,128

	Three Months Ended August 29, 2021
	Curation		Other		Total
Total restructuring costs, As reported	$	468	$	1,366	$	1,834
Restatement adjustments	(706)		—		(706)
Total restructuring costs, As restated	$	(238)	$	1,366	$	1,128

As of and for the three and nine months ended February 28, 2021

The effects of the restatement on the consolidated balance sheet as of February 28, 2021 are summarized in the following table:

	February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	2,248	$	—	$	2,248	$	(395)	$	1,853
Accounts receivable, less allowance for doubtful accounts	69,577		—		69,577		(40,714)		28,863
Inventories	76,779		(1,473)		75,306		(43,865)		31,441
Prepaid expenses and other current assets	14,323		(3,132)		11,191		(5,245)		5,946
Current assets, discontinued operations	—		—		—		90,219		90,219
Total Current Assets	162,927		(4,605)		158,322		—		158,322
Investment in non-public company, fair value	45,100		—		45,100		—		45,100
Property and equipment, net	168,693		1,644		170,337		(74,548)		95,789
Operating lease right-of-use assets	23,528		—		23,528		(8,125)		15,403
Goodwill	69,386		—		69,386		(55,505)		13,881
Trademarks/tradenames, net	25,328		—		25,328		(21,128)		4,200
Customer relationships, net	11,288		—		11,288		(10,929)		359
Other assets	3,573		—		3,573		(198)		3,375
Non-current assets, discontinued operations	—		—		—		170,433		170,433
Total Assets	$	509,823	$	(2,961)	$	506,862	$	—	$	506,862
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	56,323	$	—	$	56,323	$	(47,436)	$	8,887
Accrued compensation	11,218		—		11,218		(4,794)		6,424
Other accrued liabilities	11,186		314		11,500		(5,724)		5,776
Current portion of lease liabilities	4,027		—		4,027		(3,022)		1,005
Deferred revenue	1,595		(350)		1,245		(505)		740
Line of credit	41,000		—		41,000		—		41,000
Current Liabilities, discontinued operations	—		—		—		61,481		61,481
Total Current Liabilities	125,349		(36)		125,313		—		125,313
Long-term debt, net	145,051		—		145,051		—		145,051
Long-term lease liabilities	24,430		—		24,430		(6,511)		17,919
Deferred taxes, net	6,608		(504)		6,104		—		6,104
Other non-current liabilities	3,761		—		3,761		(729)		3,032
Non-current liabilities, discontinued operations	—		—		—		7,240		7,240
Total Liabilities	305,199		(540)		304,659		—		304,659
Stockholders’ Equity:
Common stock	29		—		29		—		29
Additional paid-in capital	164,865		—		164,865		—		164,865
Retained earnings (accumulated deficit)	41,446		(2,421)		39,025		—		39,025
Accumulated other comprehensive loss	(1,716)		—		(1,716)		—		(1,716)
Total Stockholders’ Equity	204,624		(2,421)		202,203		—		202,203
Total Liabilities and Stockholders’ Equity	$	509,823	$	(2,961)	$	506,862	$	—	$	506,862

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months February 28, 2021 are summarized in the following table:

	Three Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	44,690	$	142	$	44,832	$	(17,025)	$	27,807
Cost of product sales	30,249		1,037		31,286		(14,409)		16,877
Gross profit	14,441		(895)		13,546		(2,616)		10,930
Operating costs and expenses:
Research and development	1,843		—		1,843		(206)		1,637
Selling, general and administrative	8,134		1,304		9,438		(2,289)		7,149
Restructuring costs	2,023		48		2,071		—		2,071
Total operating costs and expenses	12,000		1,352		13,352		(2,495)		10,857
Operating income (loss)	2,441		(2,247)		194		(121)		73
Interest income	13		—		13		—		13
Interest expense	(2,939)		377		(2,562)		—		(2,562)
Transition services income	(1,110)		—		(1,110)		—		(1,110)
Other income (expense)	72		233		305		—		305
Net loss from continuing operations before taxes	(1,523)		(1,637)		(3,160)		(121)		(3,281)
Income tax benefit	58		339		397		1,133		1,530
Net loss from continuing operations	(1,465)		(1,298)		(2,763)		1,012		(1,751)
Discontinued operations:
(Loss) gain from discontinued operations	(4,192)		(233)		(4,425)		121		(4,304)
Income tax benefit (provision)	159		51		210		(1,133)		(923)
(Loss) gain from discontinued operations, net of tax	(4,033)		(182)		(4,215)		(1,012)		(5,227)
Consolidated net loss	$	(5,498)	$	(1,480)	$	(6,978)	$	—	$	(6,978)
Basic net (loss) income per share:
Loss from continuing operations	$	(0.05)	$	(0.04)	$	(0.09)	$	0.03	$	(0.06)
Loss from discontinued operations	$	(0.14)	$	(0.01)	$	(0.15)	$	(0.03)	$	(0.18)
Total basic net loss per share	$	(0.19)	$	(0.05)	$	(0.24)	$	—	$	(0.24)
Diluted net (loss) income per share:
Loss from continuing operations	$	(0.05)	$	(0.04)	$	(0.09)	$	0.03	$	(0.06)
Loss from discontinued operations	$	(0.14)	$	(0.01)	$	(0.15)	$	(0.03)	$	(0.18)
Total diluted net loss per share	$	(0.19)	$	(0.05)	$	(0.24)	$	—	$	(0.24)
Shares used in per share computation
Basic	29,323		—		29,323		—		29,323
Diluted	29,323		—		29,323		—		29,323

	Three Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net loss	$	(5,498)	$	(1,480)	$	(6,978)	$	—	$	(6,978)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	387		—		387		—		387
Other comprehensive income, net of tax	387		—		387		—		387
Total comprehensive loss	$	(5,111)	$	(1,480)	$	(6,591)	$	—	$	(6,591)

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the nine months February 28, 2021 are summarized in the following table:

	Nine Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	126,629	$	394	$	127,023	$	(52,749)	$	74,274
Cost of product sales	90,739		1,347		92,086		(44,808)		47,278
Gross profit	35,890		(953)		34,937		(7,941)		26,996
Operating costs and expenses:
Research and development	5,523		—		5,523		(555)		4,968
Selling, general and administrative	27,968		1,338		29,306		(7,958)		21,348
Legal settlement charge	1,763		(1,763)		—		—		—
Restructuring costs	2,826		7,011		9,837		—		9,837
Total operating costs and expenses	38,080		6,586		44,666		(8,513)		36,153
Operating (loss) income	(2,190)		(7,539)		(9,729)		572		(9,157)
Interest income	31		—		31		—		31
Interest expense	(6,609)		786		(5,823)		—		(5,823)
Transition services income	(1,110)		—		(1,110)		—		(1,110)
Other income (expense)	64		(10,984)		(10,920)		—		(10,920)
Net (loss) income from continuing operations before taxes	(9,814)		(17,737)		(27,551)		572		(26,979)
Income tax benefit	1,025		3,877		4,902		(127)		4,775
Net (loss) income from continuing operations	(8,789)		(13,860)		(22,649)		445		(22,204)
Discontinued operations:
Loss from discontinued operations	(27,210)		16,205		(11,005)		(572)		(11,577)
Income tax benefit	6,200		(3,557)		2,643		127		2,770
Loss from discontinued operations, net of tax	(21,010)		12,648		(8,362)		(445)		(8,807)
Consolidated net loss	$	(29,799)	$	(1,212)	$	(31,011)	$	—	$	(31,011)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.30)	$	(0.47)	$	(0.77)	$	0.01	$	(0.76)
Loss from discontinued operations	$	(0.72)	$	0.43	$	(0.29)	$	(0.01)	$	(0.30)

Total basic net loss per share	$	(1.02)	$	(0.04)	$	(1.06)	$	—	$	(1.06)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.30)	$	(0.47)	$	(0.77)	$	0.01	$	(0.76)
Loss from discontinued operations	$	(0.72)	$	0.43	$	(0.29)	$	(0.01)	$	(0.30)
Total diluted net loss per share	$	(1.02)	$	(0.04)	$	(1.06)	$	—	$	(1.06)
Shares used in per share computation
Basic	29,282		—		29,282		—		29,282
Diluted	29,282		—		29,282		—		29,282
	Nine Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net loss	$	(29,799)	$	(1,212)	$	(31,011)	$	—	$	(31,011)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	1,092		—		1,092		—		1,092
Other comprehensive income, net of tax	1,092		—		1,092		—		1,092
Total comprehensive loss	$	(28,707)	$	(1,212)	$	(29,919)	$	—	$	(29,919)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the three and nine months ended February 28, 2021 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 31, 2020	—	$	—	29,224	$	29	$	162,578	$	71,245	$	(2,808)	$	231,044
Issuance of stock under stock plans	—	—		18	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(82)		—		—		(82)
Stock-based compensation	—	—		—	—		892		—		—		892
Net loss	—	—		—	—		—		(11,000)		—		(11,000)
Other comprehensive income, net of tax	—	—		—	—		—		—		304		304
Balance at August 30, 2020	—	$	—	29,242	$	29	$	163,388	$	60,245	$	(2,504)	$	221,158
Issuance of stock under stock plans	—	—		81	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(215)		—		—		(215)
Stock-based compensation	—	—		—	—		895		—		—		895
Net loss	—	—		—	—		—		(13,301)		—		(13,301)
Other comprehensive income, net of tax	—	—		—	—		—		—		401		401
Balance at November 29, 2020	—	$	—	29,323	$	29	$	164,068	$	46,944	$	(2,103)	$	208,938
Stock-based compensation	—	—		—	—		797		—		—		797
Net loss	—	—		—	—		—		(5,498)		—		(5,498)

Other comprehensive income, net of tax	—	—		—	—		—		—		387		387
Balance at February 28, 2021	—	$	—	29,323	$	29	$	164,865	$	41,446	$	(1,716)	$	204,624
Restatements Adjustments
Opening retained earnings (at May 31, 2020)	—	—		—	—		—		(1,209)		—		(1,209)
Net income (loss) at August 30, 2020	—	—		—	—		—		(1,410)		—		(1,410)
Opening retained earnings (at August 30, 2020)	—	—		—	—		—		(2,619)		—		(2,619)
Net income (loss) at November 29, 2020	—	—		—	—		—		1,678		—		1,678
Opening retained earnings (at February 28, 2021)	—	—		—	—		—		(941)		—		(941)
Net income (loss) at February 28, 2021	—	—		—	—		—		(1,480)		—		(1,480)
As Restated
Balance at May 31, 2020	—	$	—	29,224	$	29	$	162,578	$	70,036	$	(2,808)	$	229,835
Issuance of stock under stock plans	—	—		18	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(82)		—		—		(82)
Stock-based compensation	—	—		—	—		892		—		—		892
Net loss	—	—		—	—		—		(12,410)		—		(12,410)
Other comprehensive income, net of tax	—	—		—	—		—		—		304		304
Balance at August 30, 2020	—	$	—	29,242	$	29	$	163,388	$	57,626	$	(2,504)	$	218,539
Issuance of stock under stock plans	—	—		81	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(215)		—		—		(215)
Stock-based compensation	—	—		—	—		895		—		—		895
Net loss	—	—		—	—		—		(11,623)		—		(11,623)
Other comprehensive income, net of tax	—	—		—	—		—		—		401		401
Balance at November 29, 2020	—	$	—	29,323	$	29	$	164,068	$	46,003	$	(2,103)	$	207,997
Stock-based compensation	—	—		—	—		797		—		—		797
Net loss	—	—		—	—		—		(6,978)		—		(6,978)
Other comprehensive income, net of tax	—	—		—	—		—		—		387		387
Balance at February 28, 2021	—	$	—	29,323	$	29	$	164,865	$	39,025	$	(1,716)	$	202,203

The effects of the restatement on the consolidated statement of cash flows for the nine months ended February 28, 2021 are summarized in the following table:

	Nine Months Ended February 28, 2021
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net loss	$	(29,799)	$	(1,212)	$	(31,011)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization of intangibles, debt costs and right-of-use assets	14,808		—		14,808
Loss on debt refinancing	1,110		—		1,110
Stock-based compensation expense	2,584		—		2,584
Provision for expected credit losses	284		—		284
Deferred taxes	(7,307)		(320)		(7,627)
Change in investment in non-public company, fair value	11,800		—		11,800
Net loss on disposal of property and equipment held and used	39		—		39
Loss on disposal of property and equipment related to restructuring, net	7,881		—		7,881
Other, net	(12)		—		(12)
Changes in current assets and current liabilities:
Accounts receivable, net	6,345		—		6,345
Inventory	(10,468)		953		(9,515)
Prepaid expenses and other current assets	350		1,365		1,715
Accounts payable	6,372		—		6,372
Accrued compensation	2,184		—		2,184
Other accrued liabilities	3,186		350		3,536
Deferred revenue	1,243		(350)		893
Net cash provided by operating activities	10,600		786		11,386
Cash flows from investing activities:
Proceeds from sales of property and equipment	12,885		—		12,885
Purchases of property and equipment	(11,383)		(786)		(12,169)
Net cash provided by (used in) investing activities	1,502		(786)		716
Cash flows from financing activities:
Proceeds from long-term debt	150,000		—		150,000
Payments on line of credit	(119,400)		—		(119,400)
Payments on long-term debt	(114,095)		—		(114,095)
Proceeds from line of credit	83,000		—		83,000
Payments for debt issuance costs	(9,615)		—		(9,615)
Taxes paid by Company for employee stock plans	(297)		—		(297)
Net cash used in financing activities	(10,407)		—		(10,407)
Net increase in cash, cash equivalents and restricted cash	1,695		—		1,695
Cash, cash equivalents and restricted cash, beginning of period	553		—		553
Cash, cash equivalents and restricted cash, end of period	$	2,248	$	—	$	2,248
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	1,124	$	—	$	1,124

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	February 28, 2021
	Balance at beginning of period		Provision (benefit) for expected credit losses	Write offs, net of recoveries	Balance at end of period
Nine months ended February 28, 2021, As Reported	$	186	284	(385)	$	85
Nine months ended February 28, 2021, As Restated	$	186	284	(385)	$	85
Discontinued Operations	$	(186)	(284)	385	$	(85)
Nine months ended February 28, 2021, As Restated, after Discontinued Operations	$	—	—	—	$	—

The effects of this error on our previously reported inventories as of February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	41,533	$	(5)	$	41,528	$	(28,877)	$	12,651
Raw materials	26,855		(863)		25,992		(14,983)		11,009
Work in progress	8,391		(605)		7,786		(5)		7,781
Total inventories	$	76,779	$	(1,473)	$	75,306	$	(43,865)	$	31,441

The effects of this error on our previously reported basic and diluted net loss per share for the three and nine months ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net loss applicable to Common Stockholders	$	(5,498)	$	(1,480)	$	(6,978)	$	—	$	(6,978)
Denominator:
Weighted average shares for basic net income per share	29,323		—		29,323		—		29,323
Weighted average shares for diluted net income per share	29,323		—		29,323		—		29,323
Diluted net loss per share	$	(0.19)	$	(0.05)	$	(0.24)	$	—	$	(0.24)

	Nine Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net loss applicable to Common Stockholders	$	(29,799)	$	(1,212)	$	(31,011)	$	—	$	(31,011)
Denominator:
Weighted average shares for basic net income per share	29,282		—		29,282		—		29,282
Weighted average shares for diluted net income per share	29,282		—		29,282		—		29,282
Diluted net loss per share	$	(1.02)	$	(0.04)	$	(1.06)	$	—	$	(1.06)

The effects of this error on our previously reported disaggregated revenue for the three months ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	18,628	$	142	$	18,770	$	—	$	18,770
Fermentation	8,597		—		8,597		—		8,597
Total	$	27,225	$	142	$	27,367	$	—	$	27,367
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	15,378	$	—	$	15,378	$	(15,378)	$	—
Olive oil and vinegars	1,647		—		1,647		(1,647)		—
Technology	440		—		440		—		440
Total	$	17,465	$	—	$	17,465	$	(17,025)	$	440

The effects of this error on our previously reported disaggregated revenue for the nine months ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	53,374	$	394	$	53,768	$	—	$	53,768
Fermentation	18,874		—		18,874		—		18,874
Total	$	72,248	$	394	$	72,642	$	—	$	72,642
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Avocado Products	$	47,107	$	—	$	47,107	$	(47,107)	$	—
Olive oil and vinegars	5,642		—		5,642		(5,642)		—
Technology	1,632		—		1,632		—		1,632
Total	$	54,381	$	—	$	54,381	$	(52,749)	$	1,632

The effects of this error on our previously reported segment reporting for the three months ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended February 28, 2021. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended February 28, 2021
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended February 28, 2021, As Reported
Net sales	$	27,225	$	17,465	$	—	$	44,690
Gross profit	11,561		2,880		—		14,441
Net income (loss) from continuing operations	5,104		(394)		(6,175)		(1,465)
Loss from discontinued operations, net of tax	—		(4,033)		—		(4,033)
Depreciation and amortization	1,385		830		22		2,237
Interest income	—		—		13		13
Interest expense	—		136		2,803		2,939
Income tax (benefit) expense, continuing operations	1,612		(1,614)		(56)		(58)
Corporate overhead allocation	1,102		87		(1,189)		—
Restatement Adjustments
Net sales	142		—		—		142
Gross profit	(895)		—		—		(895)
Net income (loss) from continuing operations	(14)		(2,340)		1,056		(1,298)
Loss from discontinued operations, net of tax	—		(182)		—		(182)
Interest expense	—		—		(377)		(377)
Income tax (benefit) expense, continuing operations	(881)		1,221		(679)		(339)
Three Months Ended February 28, 2021, As Restated
Net sales	$	27,367	$	17,465	$	—	$	44,832
Gross profit	10,666		2,880		—		13,546
Net income (loss) from continuing operations	5,090		(2,734)		(5,119)		(2,763)
Loss from discontinued operations, net of tax	—		(4,215)		—		(4,215)
Depreciation and amortization	1,385		830		22		2,237
Interest income	—		—		13		13
Interest expense	—		136		2,426		2,562
Income tax (benefit) expense, continuing operations	731		(393)		(735)		(397)
Corporate overhead allocation	1,102		87		(1,189)		—

The effects of this error on our previously reported segment reporting for the nine months ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the nine months ended February 28, 2021. Refer to Note 14 for the related income statement line items

reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Nine Months Ended February 28, 2021
(in thousands)	Lifecore		Curation Foods		Other		Total
Nine Months Ended February 28, 2021, As Reported
Net sales	$	72,248	$	54,381	$	—	$	126,629
Gross profit	27,036		8,854		—		35,890
Net income (loss) from continuing operations	9,708		(1,346)		(17,151)		(8,789)
Loss from discontinued operations, net of taxes	—		(21,010)		—		(21,010)
Depreciation and amortization	4,055		2,451		76		6,582
Interest income	—		—		31		31
Interest expense	—		410		6,199		6,609
Income tax (benefit) expense, continuing operations	3,066		(2,095)		(1,996)		(1,025)
Corporate overhead allocation	3,668		621		(4,289)		—
Restatement Adjustments
Net sales	394		—		—		394
Gross profit	(953)		—		—		(953)
Net (loss) income	10		(15,927)		2,057		(13,860)
Loss from discontinued operations, net of taxes	—		12,648		—		12,648
Interest expense	—		—		(786)		(786)
Income tax (benefit) expense, continuing operations	(963)		(1,643)		(1,271)		(3,877)
Nine Months Ended February 28, 2021, As Restated
Net sales	$	72,642	$	54,381	$	—	$	127,023
Gross profit	26,083		8,854		—		34,937
Net income (loss) from continuing operations	9,718		(17,273)		(15,094)		(22,649)
Loss from discontinued operations, net of taxes	—		(8,362)		—		(8,362)
Depreciation and amortization	4,055		2,451		76		6,582
Interest income	—		—		31		31
Interest expense	—		410		5,413		5,823
Income tax (benefit) expense, continuing operations	2,103		(3,738)		(3,267)		(4,902)
Corporate overhead allocation	3,668		621		(4,289)		—

The effects of this error on our previously reported restructuring cost for the three months ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	1,897	$	(20)	$	1,877	$	—	$	1,877
Employee severance and benefit costs	—		65		65		—		65
Other restructuring costs	126		3		129		—		129
Total restructuring costs	$	2,023	$	48	$	2,071	$	—	$	2,071

	Three Months Ended February 28, 2021
	Curation		Other		Total
Total restructuring costs, As reported	$	1,908	$	115	$	2,023
Restatement adjustments	48		—		48
Total restructuring costs, As restated	$	1,956	$	115	$	2,071

The effects of this error on our previously reported restructuring cost for the nine months ended February 28, 2021 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Nine Months Ended February 28, 2021
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	1,897	$	5,985	$	7,882	$	—	$	7,882
Employee severance and benefit costs	—		116		116		—		116
Other restructuring costs	929		910		1,839		—		1,839
Total restructuring costs	$	2,826	$	7,011	$	9,837	$	—	$	9,837

	Nine Months Ended February 28, 2021
	Curation		Other		Total
Total restructuring costs, As reported	$	1,908	$	918	$	2,826
Restatement adjustments	7,011		—		7,011
Total restructuring costs, As restated	$	8,919	$	918	$	9,837

As of and for the three and six months ended November 29, 2020

The effects of the restatement on the consolidated balance sheet as of November 29, 2020 are summarized in the following table:

	November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	2,491	$	—	$	2,491	$	(15)	$	2,476
Accounts receivable, less allowance for doubtful accounts	66,545		—		66,545		(36,945)		29,600
Inventories	71,202		(578)		70,624		(38,220)		32,404
Prepaid expenses and other current assets	13,949		(1,780)		12,169		(5,374)		6,795
Current assets, discontinued operations	—		—		—		80,554		80,554
Total Current Assets	154,187		(2,358)		151,829		—		151,829
Investment in non-public company, fair value	45,100		—		45,100		—		45,100
Property and equipment, net	170,973		1,267		172,240		(77,252)		94,988
Operating lease right-of-use assets	21,070		—		21,070		(8,379)		12,691
Goodwill	69,386		—		69,386		(55,505)		13,881
Trademarks/tradenames, net	25,328		—		25,328		(21,128)		4,200
Customer relationships, net	11,784		—		11,784		(11,348)		436
Other assets	1,332		—		1,332		(200)		1,132
Non-current assets, discontinued operations	—		—		—		173,812		173,812
Total Assets	$	499,160	$	(1,091)	$	498,069	$	—	$	498,069
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	60,892	$	—	$	60,892	$	(52,907)	$	7,985
Accrued compensation	7,689		—		7,689		(3,561)		4,128
Other accrued liabilities	12,715		(36)		12,679		(6,564)		6,115
Current portion of lease liabilities	3,785		—		3,785		(3,075)		710
Deferred revenue	644		—		644		(347)		297
Line of credit	77,000		—		77,000		—		77,000
Current portion of long-term debt	11,189		—		11,189		—		11,189
Current Liabilities, discontinued operations	—		—		—		66,454		66,454
Total Current Liabilities	173,914		(36)		173,878		—		173,878
Long-term debt, net	82,000		—		82,000		—		82,000
Long-term lease liabilities	22,206		—		22,206		(6,731)		15,475
Deferred taxes, net	6,745		(114)		6,631		—		6,631
Other non-current liabilities	5,357		—		5,357		(1,333)		4,024
Non-current liabilities, discontinued operations	—		—		—		8,064		8,064
Total Liabilities	290,222		(150)		290,072		—		290,072
Stockholders’ Equity:

Common stock	29		—		29		$	—	29
Additional paid-in capital	164,068		—		164,068		—		164,068
Retained earnings (accumulated deficit)	46,944		(941)		46,003		—		46,003
Accumulated other comprehensive loss	(2,103)		—		(2,103)		—		(2,103)
Total Stockholders’ Equity	208,938		(941)		207,997		—		207,997
Total Liabilities and Stockholders’ Equity	$	499,160	$	(1,091)	$	498,069	$	—	$	498,069

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months November 29, 2020 are summarized in the following table:

	Three Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	130,904	$	24	$	130,928	$	(107,136)	$	23,792
Cost of product sales	110,267		(18)		110,249		(97,231)		13,018
Gross profit	20,637		42		20,679		(9,905)		10,774
Operating costs and expenses:
Research and development	2,572		—		2,572		(981)		1,591
Selling, general and administrative	16,106		—		16,106		(9,396)		6,710
Legal settlement charge	1,763		(1,763)		—		—		—
Restructuring costs	1,662		—		1,662		(563)		1,099
Total operating costs and expenses	22,103		(1,763)		20,340		(10,940)		9,400
Operating (loss) income	(1,466)		1,805		339		1,035		1,374
Dividend income	281		—		281		(281)		—
Interest income	10		—		10		—		10
Interest expense	(3,039)		204		(2,835)		1,239		(1,596)
Other (expense) income	(11,787)		1,800		(9,987)		281		(9,706)
Net (loss) income from continuing operations before taxes	(16,001)		3,809		(12,192)		2,274		(9,918)
Income tax benefit (expense)	2,700		(731)		1,969		(441)		1,528
Net (loss) income from continuing operations	(13,301)		3,078		(10,223)		1,833		(8,390)
Discontinued operations:
Loss from discontinued operations	—		(1,763)		(1,763)		(2,274)		(4,037)
Income tax benefit	—		363		363		441		804
Loss from discontinued operations, net of tax	—		(1,400)		(1,400)		(1,833)		(3,233)
Consolidated net (loss) income	$	(13,301)	$	1,678	$	(11,623)	$	—	$	(11,623)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.45)	$	0.10	$	(0.35)	$	0.06	$	(0.29)
Loss from discontinued operations	$	—	$	(0.05)	$	(0.05)	$	(0.06)	$	(0.11)
Total basic net (loss) income per share	$	(0.45)	$	0.05	$	(0.40)	$	—	$	(0.40)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.45)	$	0.10	$	(0.35)	$	0.06	$	(0.29)
Loss from discontinued operations	$	—	$	(0.05)	$	(0.05)	$	(0.06)	$	(0.11)
Total diluted net (loss) income per share	$	(0.45)	$	0.05	$	(0.40)	$	—	$	(0.40)

Shares used in per share computation
Basic	29,280		—		29,280		—		29,280
Diluted	29,280		—		29,280		—		29,280
	Three Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(13,301)	$	1,678	$	(11,623)	$	—	$	(11,623)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	401		—		401		—		401
Other comprehensive income, net of tax	401		—		401		—		401
Total comprehensive (loss) income	$	(12,900)	$	1,678	$	(11,222)	$	—	$	(11,222)

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the six months November 29, 2020 are summarized in the following table:

	Six Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	266,547	$	252	$	266,799	$	(220,331)	$	46,468
Cost of product sales	229,564		310		229,874		(199,473)		30,401
Gross profit	36,983		(58)		36,925		(20,858)		16,067
Operating costs and expenses:
Research and development	5,080		—		5,080		(1,750)		3,330
Selling, general and administrative	34,009		34		34,043		(19,843)		14,200
Legal settlement charge	1,763		(1,763)		—		—		—
Restructuring costs	10,066		—		10,066		(2,300)		7,766
Total operating costs and expenses	50,918		(1,729)		49,189		(23,893)		25,296
Operating (loss) income	(13,935)		1,671		(12,264)		3,035		(9,229)
Dividend income	563		—		563		(563)		—
Interest income	18		—		18		—		18
Interest expense	(6,148)		409		(5,739)		2,478		(3,261)
Other (expense) income	(11,808)		21		(11,787)		562		(11,225)
Net (loss) income from continuing operations before taxes	(31,310)		2,101		(29,209)		5,512		(23,697)
Income tax benefit (expense)	7,009		(433)		6,576		(1,260)		5,316
Net (loss) income from continuing operations	(24,301)		1,668		(22,633)		4,252		(18,381)
Discontinued operations:
Loss from discontinued operations	—		(1,763)		(1,763)		(5,512)		(7,275)
Income tax benefit	—		363		363		1,260		1,623
Loss from discontinued operations, net of tax	—		(1,400)		(1,400)		(4,252)		(5,652)
Consolidated net (loss) income	$	(24,301)	$	268	$	(24,033)	$	—	$	(24,033)

Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.83)	$	0.06	$	(0.77)	$	0.14	$	(0.63)
Loss from discontinued operations	$	—	$	(0.05)	$	(0.05)	$	(0.14)	$	(0.19)
Total basic net (loss) income per share	$	(0.83)	$	0.01	$	(0.82)	$	—	$	(0.82)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.83)	$	0.06	$	(0.77)	$	0.14	$	(0.63)
Loss from discontinued operations	$	—	$	(0.05)	$	(0.05)	$	(0.14)	$	(0.19)
Total diluted net (loss) income per share	$	(0.83)	$	0.01	$	(0.82)	$	—	$	(0.82)
Shares used in per share computation
Basic	29,261		—		29,261		—		29,261
Diluted	29,261		—		29,261		—		29,261
	Six Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net (loss) income	$	(24,301)	$	268	$	(24,033)	$	—	$	(24,033)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	705		—		705		—		705
Other comprehensive income, net of tax	705		—		705		—		705
Total comprehensive (loss) income	$	(23,596)	$	268	$	(23,328)	$	—	$	(23,328)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the six months ended November 29, 2020 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 31, 2020	—	$	—	29,224	$	29	$	162,578	$	71,245	$	(2,808)	$	231,044
Issuance of stock under stock plans	—	—		18	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(82)		—		—		(82)
Stock-based compensation	—	—		—	—		892		—		—		892
Net loss	—	—		—	—		—		(11,000)		—		(11,000)
Other comprehensive income, net of tax	—	—		—	—		—		—		304		304
Balance at August 30, 2020	—	$	—	29,242	$	29	$	163,388	$	60,245	$	(2,504)	$	221,158
Issuance of stock under stock plans	—	—		81	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(215)		—		—		(215)
Stock-based compensation	—	—		—	—		895		—		—		895
Net loss	—	—		—	—		—		(13,301)		—		(13,301)
Other comprehensive income, net of tax	—	—		—	—		—		—		401		401
Balance at November 29, 2020	—	$	—	29,323	$	29	$	164,068	$	46,944	$	(2,103)	$	208,938
Restatements Impacts
Opening retained earnings (at May 31, 2020)	—	—		—	—		—		(1,209)		—		(1,209)
Net income (loss) at August 30, 2020	—	—		—	—		—		(1,410)		—		(1,410)
Opening retained earnings (at August 30, 2020)	—	—		—	—		—		(2,619)		—		(2,619)
Net income (loss) at November 29, 2020	—	—		—	—		—		1,678		—		1,678
As Restated
Balance at May 31, 2020	—	$	—	29,224	$	29	$	162,578	$	70,036	$	(2,808)	$	229,835
Issuance of stock under stock plans	—	—		18	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(82)		—		—		(82)
Stock-based compensation	—	—		—	—		892		—		—		892
Net loss	—	—		—	—		—		(12,410)		—		(12,410)
Other comprehensive income, net of tax	—	—		—	—		—		—		304		304
Balance at August 30, 2020	—	$	—	29,242	$	29	$	163,388	$	57,626	$	(2,504)	$	218,539
Issuance of stock under stock plans	—	—		81	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(215)		—		—		(215)
Stock-based compensation	—	—		—	—		895		—		—		895
Net loss	—	—		—	—		—		(11,623)		—		(11,623)
Other comprehensive income, net of tax	—	—		—	—		—		—		401		401
Balance at November 29, 2020	—	$	—	29,323	$	29	$	164,068	$	46,003	$	(2,103)	$	207,997

The effects of the restatement on the consolidated statement of cash flows for the six months ended November 29, 2020 are summarized in the following table:

	Six Months Ended November 29, 2020
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net (loss) income	$	(24,301)	$	268	$	(24,033)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization of intangibles and amortization of debt costs	9,826		—		9,826
Stock-based compensation expense	1,787		—		1,787
Deferred taxes	(7,070)		70		(7,000)
Change in investment in non-public company, fair value	11,800		—		11,800
Net gain on disposal of property and equipment held and used	(34)		—		(34)
Loss on disposal of property and equipment related to restructuring, net	6,005		—		6,005
Other, net	21		—		21
Changes in current assets and current liabilities:
Accounts receivable, net	9,661		—		9,661
Inventory	(4,891)		58		(4,833)
Prepaid expenses and other current assets	1,539		13		1,552
Accounts payable	10,539		—		10,539
Accrued compensation	(1,345)		—		(1,345)
Other accrued liabilities	4,627		—		4,627
Deferred revenue	292		—		292
Net cash provided by operating activities	18,456		409		18,865
Cash flows from investing activities:
Proceeds from sales of property and equipment	12,885		—		12,885
Purchases of property and equipment	(7,407)		(409)		(7,816)
Net cash provided by (used in) investing activities	5,478		(409)		5,069
Cash flows from financing activities:
Taxes paid by Company for employee stock plans	(297)		—		(297)
Payments on long-term debt	(20,062)		—		(20,062)
Proceeds from line of credit	24,000		—		24,000
Payments on line of credit	(24,400)		—		(24,400)
Payments for debt issuance costs	(1,237)		—		(1,237)
Net cash used in financing activities	(21,996)		—		(21,996)
Net increase in cash, cash equivalents and restricted cash	1,938		—		1,938
Cash, cash equivalents and restricted cash, beginning of period	553		—		553
Cash, cash equivalents and restricted cash, end of period	$	2,491	$	—	$	2,491
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	1,526	$	—	$	1,526

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	November 29, 2020
	Balance at beginning of period		Provision (benefit) for expected credit losses		Write offs, net of recoveries		Balance at end of period
Six months ended November 29, 2020, As Reported	$	438	$	102	$	(263)	$	277
Restatement Adjustment	$	—	—		—		$	—
Six months ended November 29, 2020, As Restated	$	438	102		(263)		$	277
Discontinued Operations	$	(438)	(102)		263		$	(277)
Six months ended November 29, 2020, As Restated, after Discontinued Operations	$	—	$	—	$	—	$	—

The effects of this error on our previously reported inventories as of November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	36,325	$	11	$	36,336	$	(21,674)	$	14,662
Raw materials	26,983		(371)		26,612		(16,494)		10,118
Work in progress	7,894		(218)		7,676		(52)		7,624
Total inventories	$	71,202	$	(578)	$	70,624	$	(38,220)	$	32,404

The effects of this error on our previously reported basic and diluted net loss per share for the three and six months ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(13,301)	$	1,678	$	(11,623)	$	—	$	(11,623)
Denominator:
Weighted average shares for basic net income per share	29,280		—		29,280		—		29,280
Weighted average shares for diluted net income per share	29,280		—		29,280		—		29,280
Diluted net (loss) income per share	$	(0.45)	$	0.05	$	(0.40)	$	—	$	(0.40)

	Six Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net (loss) income applicable to Common Stockholders	$	(24,301)	$	268	$	(24,033)	$	—	$	(24,033)
Denominator:
Weighted average shares for basic net income per share	29,261		—		29,261		—		29,261
Weighted average shares for diluted net income per share	29,261		—		29,261		—		29,261
Diluted net (loss) income per share	$	(0.83)	$	0.01	$	(0.82)	$	—	$	(0.82)

The effects of this error on our previously reported disaggregated revenue for the three months ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	18,259	$	24	$	18,283	$	—	$	18,283
Fermentation	4,960		—		4,960		—		4,960
Total	$	23,219	$	24	$	23,243	$	—	$	23,243
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Fresh packaged salads and vegetables	$	92,423	$	—	$	92,423	$	(92,423)	$	—
Avocado products	14,713		—		14,713		(14,713)		—
Technology	549		—		549		—		549
Total	$	107,685	$	—	$	107,685	$	(107,136)	$	549

The effects of this error on our previously reported disaggregated revenue for the six months ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	34,747	$	252	$	34,999	$	—	$	34,999
Fermentation	10,277		—		10,277		—		10,277
Total	$	45,024	$	252	$	45,276	$	—	$	45,276
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Fresh packaged salads and vegetables	$	188,601	$	—	$	188,601	$	(188,601)	$	—
Avocado products	31,730		—		31,730		(31,730)		—
Technology	1,192		—		1,192		—		1,192
Total	$	221,523	$	—	$	221,523	$	(220,331)	$	1,192

The effects of this error on our previously reported segment reporting for the three months ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended November 29, 2020. Refer to Note 14 for the related income statement line items reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended November 29, 2020
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended November 29, 2020, As Reported
Net sales	$	23,219	$	107,685	$	—	$	130,904
Gross profit	10,474		10,163		—		20,637
Net income (loss) from continuing operations	4,492		(12,383)		(5,410)		(13,301)
Depreciation and amortization	1,360		2,906		26		4,292
Dividend Income	—		281		—		281
Interest income	—		—		10		10
Interest expense	—		1,376		1,663		3,039
Income tax (benefit) expense, continuing operations	1,419		(3,911)		(208)		(2,700)
Corporate overhead allocation	1,162		1,402		(2,564)		—
Restatement Adjustments
Net sales	24		—		—		24
Gross profit	42		—		—		42
Net (loss) income	500		1,708		870		3,078
Loss from discontinued operations	—		(1,400)		—		(1,400)
Interest expense	—		—		(204)		(204)
Income tax (benefit) expense, continuing operations	(458)		1,855		(666)		731
Three Months Ended November 29, 2020, As Restated
Net sales	$	23,243	$	107,685	$	—	$	130,928
Gross profit	10,516		10,163		—		20,679
Net income (loss) from continuing operations	4,992		(10,675)		(4,540)		(10,223)
Loss from discontinued operations	$	—	$	(1,400)	$	—	(1,400)
Depreciation and amortization	1,360		2,906		26		4,292
Dividend Income	—		281		—		281
Interest income	—		—		10		10
Interest expense	—		1,376		1,459		2,835
Income tax (benefit) expense, continuing operations	961		(2,056)		(874)		(1,969)
Corporate overhead allocation	1,162		1,402		(2,564)		—

The effects of this error on our previously reported segment reporting for the six months ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the six months ended November 29, 2020. Refer to Note 14 for the related income statement line items

reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Six Months Ended November 29, 2020
(in thousands)	Lifecore		Curation Foods		Other		Total
Six Months Ended November 29, 2020, As Reported
Net sales	$	45,024	$	221,523	$	—	$	266,547
Gross profit	15,476		21,507		—		36,983
Net income (loss) from continuing operations	4,604		(20,654)		(8,251)		(24,301)
Loss from discontinued operations	—		—		—		—
Depreciation and amortization	2,669		6,316		54		9,039
Dividend Income	—		563		—		563
Interest income	—		—		18		18
Interest expense	—		2,751		3,397		6,148
Income tax (benefit) expense, continuing operations	1,454		(6,523)		(1,940)		(7,009)
Corporate overhead allocation	2,565		3,258		(5,823)		—
Restatement Adjustments
Net sales	252		—		—		252
Gross profit	(58)		—		—		(58)
Net income (loss) from continuing operations	45		953		670		1,668
Loss from discontinued operations	—		(1,400)		—		(1,400)
Interest expense	—		—		(409)		(409)
Income tax (benefit) expense, continuing operations	(103)		797		(261)		433
Six Months Ended November 29, 2020, As Restated
Net sales	45,276		221,523		—		266,799
Gross profit	15,418		21,507		—		36,925
Net income (loss) from continuing operations	4,649		(19,701)		(7,581)		(22,633)
Loss from discontinued operations	$	—	$	(1,400)	$	—	(1,400)
Depreciation and amortization	2,669		6,316		54		9,039
Dividend Income	—		563		—		563
Interest income	—		—		18		18
Interest expense	—		2,751		2,988		5,739
Income tax (benefit) expense, continuing operations	1,351		(5,726)		(2,201)		(6,576)
Corporate overhead allocation	2,565		3,258		(5,823)		—

The effects of this error on our previously reported restructuring cost for the three months ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Employee severance and benefit costs	211		—		211		(160)		51
Other restructuring costs	1,451		—		1,451		(403)		1,048
Total restructuring costs	$	1,662	$	—	$	1,662	$	(563)	$	1,099

	Three Months Ended November 29, 2020
	Curation		Other		Total
Total restructuring costs, As reported	$	1,506	$	156	$	1,662
Discontinued Operations adjustments	(563)		—		(563)
Total restructuring costs, As restated	$	943	$	156	$	1,099

The effects of this error on our previously reported restructuring cost for the six months ended November 29, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Six Months Ended November 29, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	6,005	$	—	$	6,005	$	—	$	6,005
Employee severance and benefit costs	1,115		—		1,115		(1,064)		51
Other restructuring costs	2,946		—		2,946		(1,236)		1,710
Total restructuring costs	$	10,066	$	—	$	10,066	$	(2,300)	$	7,766

	Six Months Ended November 29, 2020
	Curation		Other		Total
Total restructuring costs, As reported	$	9,263	$	803	$	10,066
Discontinued Operations adjustments	(2,300)		—		(2,300)
Total restructuring costs, As restated	$	6,963	$	803	$	7,766

As of and for the three months ended August 30, 2020

The effects of the restatement on the consolidated balance sheet as of August 30, 2020 are summarized in the following table:

	August 30, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
ASSETS
Current Assets:
Cash and cash equivalents	$	589	$	—	$	589	$	(150)	$	439
Accounts receivable, less allowance for doubtful accounts	65,027		—		65,027		(37,855)		27,172
Inventories	59,998		(620)		59,378		(30,469)		28,909
Prepaid expenses and other current assets	21,753		(1,780)		19,973		(6,039)		13,934
Current assets, discontinued operations	—		—		—		74,513		74,513
Total Current Assets	147,367		(2,400)		144,967		—		144,967
Investment in non-public company, fair value	56,900		(1,800)		55,100		—		55,100
Property and equipment, net	171,413		1,063		172,476		(78,712)		93,764
Operating lease right-of-use assets	22,109		—		22,109		(8,750)		13,359
Goodwill	69,386		—		69,386		(55,505)		13,881
Trademarks/tradenames, net	25,328		—		25,328		(21,128)		4,200
Customer relationships, net	12,281		—		12,281		(11,767)		514
Other assets	1,396		—		1,396		(203)		1,193
Non-current assets, discontinued operations	—		—		—		176,065		176,065
Total Assets	$	506,180	$	(3,137)	$	503,043	$	—	$	503,043
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable	$	50,722	$	—	50,722		$	(44,371)	6,351
Accrued compensation	8,895		—		8,895		(4,921)		3,974
Other accrued liabilities	9,607		(36)		9,571		(5,902)		3,669
Current portion of lease liabilities	4,001		—		4,001		(3,290)		711
Deferred revenue	477		—		477		(477)		—
Line of credit	69,000		—		69,000		—		69,000
Current portion of long-term debt	11,027		—		11,027		—		11,027
Current Liabilities, discontinued operations	—		—		—		58,961		58,961
Total Current Liabilities	153,729		(36)		153,693		—		153,693
Long-term debt, net	93,919		—		93,919		—		93,919
Long-term lease liabilities	23,018		—		23,018		(7,002)		16,016
Deferred taxes, net	9,359		(482)		8,877		—		8,877
Other non-current liabilities	4,997		—		4,997		(859)		4,138
Non-current liabilities, discontinued operations	—		—		—		7,861		7,861
Total Liabilities	285,022		(518)		284,504		—		284,504
Stockholders’ Equity:

Common stock	$	29	$	—	29		$	—	29
Additional paid-in capital	163,388		—		163,388		—		163,388
Retained earnings (Accumulated deficit)	60,245		(2,619)		57,626		—		57,626
Accumulated other comprehensive loss	(2,504)		—		(2,504)		—		(2,504)
Total Stockholders’ Equity	221,158		(2,619)		218,539		—		218,539
Total Liabilities and Stockholders’ Equity	$	506,180	$	(3,137)	$	503,043	$	—	$	503,043

The effects of the restatement on the consolidated statement of operations and comprehensive income (loss) for the three months August 30, 2020 are summarized in the following table:

	Three Months Ended August 30, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Product sales	$	135,643	$	228	$	135,871	$	(113,196)	$	22,675
Cost of product sales	119,296		328		119,624		(102,243)		17,381
Gross profit	16,347		(100)		16,247		(10,953)		5,294
Operating costs and expenses:
Research and development	2,508		—		2,508		(769)		1,739
Selling, general and administrative	17,903		34		17,937		(10,447)		7,490
Restructuring costs	8,404		—		8,404		(1,737)		6,667
Total operating costs and expenses	28,815		34		28,849		(12,953)		15,896
Operating (loss) income	(12,468)		(134)		(12,602)		2,000		(10,602)
Dividend income	281		—		281		(281)		—
Interest income	8		—		8		—		8
Interest expense	(3,109)		205		(2,904)		1,239		(1,665)
Other expense	(21)		(1,779)		(1,800)		281		(1,519)
Net (loss) income from continuing operations before taxes	(15,309)		(1,708)		(17,017)		3,239		(13,778)
Income tax benefit (expense)	4,309		298		4,607		(819)		3,788
Net (loss) income from continuing operations	(11,000)		(1,410)		(12,410)		2,420		(9,990)
Discontinued operations:
Loss from discontinued operations	—		—		—		(3,239)		(3,239)
Income tax benefit	—		—		—		819		819
Loss from discontinued operations, net of tax	—		—		—		(2,420)		(2,420)
Consolidated net loss	$	(11,000)	$	(1,410)	$	(12,410)	$	—	$	(12,410)
Basic net (loss) income per share:
(Loss) income from continuing operations	$	(0.38)	$	(0.04)	$	(0.42)	$	0.08	$	(0.34)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.08)	$	(0.08)
Total basic net loss per share	$	(0.38)	$	(0.04)	$	(0.42)	$	—	$	(0.42)
Diluted net (loss) income per share:
(Loss) income from continuing operations	$	(0.38)	$	(0.04)	$	(0.42)	$	0.08	$	(0.34)
Loss from discontinued operations	$	—	$	—	$	—	$	(0.08)	$	(0.08)
Total diluted net loss per share	$	(0.38)	$	(0.04)	$	(0.42)	$	—	$	(0.42)

Shares used in per share computation
Basic	29,242		—		29,242		—		29,242
Diluted	29,242		—		29,242		—		29,242
	Three Months Ended August 30, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Net loss	$	(11,000)	$	(1,410)	$	(12,410)	$	—	$	(12,410)
Other comprehensive (loss) income, net of tax:
Net unrealized gains on interest rate swaps, net of tax	304		—		304		—		304
Other comprehensive income, net of tax	304		—		304		—		304
Total comprehensive loss	$	(10,696)	$	(1,410)	$	(12,106)	$	—	$	(12,106)

The effects of the restatement on the consolidated statement of convertible preferred stock and stockholders’ equity (deficit) for the three months ended August 30, 2020 are summarized in the following table:

	Convertible Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Loss		Total Stockholders’ Equity
	Shares	Amount		Shares	Amount
As Reported
Balance at May 31, 2020	—	$	—	29,224	$	29	$	162,578	$	71,245	$	(2,808)	$	231,044
Issuance of stock under stock plans	—	—		18	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(82)		—		—		(82)
Stock-based compensation	—	—		—	—		892		—		—		892
Net loss	—	—		—	—		—		(11,000)		—		(11,000)
Other comprehensive income, net of tax	—	—		—	—		—		—		304		304
Balance at August 30, 2020	—	$	—	29,242	$	29	$	163,388	$	60,245	$	(2,504)	$	221,158
Restatements Impacts
Opening retained earnings (at May 31, 2020)	—	—		—	—		—		(1,209)		—		(1,209)
Net income (loss) at August 30, 2020	—	—		—	—		—		(1,410)		—		(1,410)
As Restated
Balance at May 31, 2020	—	$	—	29,224	$	29	$	162,578	$	70,036	$	(2,808)	$	229,835
Issuance of stock under stock plans	—	—		18	—		—		—		—		—
Taxes paid by Company for employee stock plans	—	—		—	—		(82)		—		—		(82)
Stock-based compensation	—	—		—	—		892		—		—		892
Net loss	—	—		—	—		—		(12,410)		—		(12,410)
Other comprehensive income, net of tax	—	—		—	—		—		—		304		304
Balance at August 30, 2020	—	$	—	29,242	$	29	$	163,388	$	57,626	$	(2,504)	$	218,539

The effects of the restatement on the consolidated statement of cash flows for the three months ended August 30, 2020 are summarized in the following table:

	Three Months Ended August 30, 2020
	As Reported		Restatement Adjustment		As Restated
Cash flows from operating activities:
Net loss	$	(11,000)	$	(1,410)	$	(12,410)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, amortization of intangibles and amortization of debt costs	5,102		—		5,102
Stock-based compensation expense	892		—		892
Deferred taxes	(4,349)		(298)		(4,647)
Net gain on disposal of property and equipment held and used	(11)		—		(11)
Loss on Windset	—		1,800		1,800
Loss on disposal of property and equipment related to restructuring, net	6,005		—		6,005
Other, net	21		—		21
Changes in current assets and current liabilities:
Accounts receivable, net	11,179		—		11,179
Inventory	6,313		100		6,413
Prepaid expenses and other current assets	1,353		13		1,366
Accounts payable	917		—		917
Accrued compensation	(139)		—		(139)
Other accrued liabilities	613		—		613
Deferred revenue	125		—		125
Net cash provided by operating activities	17,021		205		17,226
Cash flows from investing activities:
Purchases of property and equipment	(4,623)		(205)		(4,828)
Proceeds from sales of property and equipment	4,855		—		4,855
Net cash provided by (used in) investing activities	232		(205)		27
Cash flows from financing activities:
Taxes paid by Company for employee stock plans	(82)		—		(82)
Payments on long-term debt	(8,030)		—		(8,030)
Proceeds from line of credit	11,000		—		11,000
Payments on line of credit	(19,400)		—		(19,400)
Payments for debt issuance costs	(512)		—		(512)
Net cash used in financing activities	(17,024)		—		(17,024)
Net increase in cash, cash equivalents and restricted cash	229		—		229
Cash, cash equivalents and restricted cash, beginning of period	360		—		360
Cash, cash equivalents and restricted cash, end of period	$	589	$	—	$	589
Supplemental disclosure of non-cash investing and financing activities:
Purchases of property and equipment on trade vendor credit	$	978	$	—	$	978

The effects of this error on our previously reported changes in the Company’s allowance for sales returns and credit losses for the quarter ended August 30, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	August 30, 2020
	Balance at beginning of period		Provision (benefit) for expected credit losses	Write offs, net of recoveries	Balance at end of period
Three months ended August 30, 2020, As Reported	$	438	35	(169)	$	304
Three months ended August 30, 2020, As Restated	$	438	35	(169)	$	304
Discontinued Operations	$	(438)	(35)	169	$	(304)
Three months ended August 30, 2020, As Restated, after Discontinued Operations	$	—	—	—	$	—

The effects of this error on our previously reported inventories as of August 30, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	August 30, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Finished goods	$	27,635	$	(2)	$	27,633	$	(14,727)	$	12,906
Raw materials	25,794		(479)		25,315		(15,675)		9,640
Work in progress	6,569		(139)		6,430		(67)		6,363
Total inventories	$	59,998	$	(620)	$	59,378	$	(30,469)	$	28,909

The effects of this error on our previously reported basic and diluted net loss per share for the three months ended August 30, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	Three Months Ended August 30, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Numerator:
Net loss applicable to Common Stockholders	$	(11,000)	$	(1,410)	$	(12,410)	$	—	$	(12,410)
Denominator:
Weighted average shares for basic net income per share	29,242		—		29,242		—		29,242
Weighted average shares for diluted net income per share	29,242		—		29,242		—		29,242
Diluted net loss per share	$	(0.38)	$	(0.04)	$	(0.42)	$	—	$	(0.42)

The effects of this error on our previously reported disaggregated revenue for the three months ended August 30, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 1, are as follows:

	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Contact development and manufacturing organization	$	16,488	$	228	$	16,716	$	—	$	16,716
Fermentation	5,316		—		5,316		—		5,316
Total	$	21,804	$	228	$	22,032	$	—	$	22,032
	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Fresh packaged salads and vegetables	$	96,179	$	—	$	96,179	$	(96,179)	$	—
Avocado Products	17,017		—		17,017		(17,017)		—
Technology	643		—		643		—		643
Total	$	113,839	$	—	$	113,839	$	(113,196)	$	643

The effects of this error on our previously reported segment reporting as of and for the three months ended August 30, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 7, are as follows.

The segment table below has been restated to reflect the correction of accounting errors within the consolidated financial statements for the three months ended August 30, 2020. Refer to Note 14 for the related income statement line items

reported in the segment table of the Company after giving effect to the discontinued operations previously reported under the Curation segment. The Company disclosed Other to reconcile the segment information to the consolidated financial statements.

	Three Months Ended August 30, 2020
(in thousands)	Lifecore		Curation Foods		Other		Total
Three Months Ended August 30, 2020, As Reported
Net sales	$	21,804	$	113,839	$	—	$	135,643
Gross profit	5,002		11,345		—		16,347
Net income (loss) from continuing operations	112		(8,271)		(2,841)		(11,000)
Depreciation and amortization	1,310		3,410		28		4,748
Dividend Income	—		281		—		281
Interest income	—		—		8		8
Interest expense	—		1,376		1,733		3,109
Income tax (benefit) expense, continuing operations	35		(2,612)		(1,732)		(4,309)
Corporate overhead allocation	1,403		1,856		(3,259)		—
Restatement Adjustments
Net sales	228		—		—		228
Gross profit	(100)		—		—		(100)
Net (loss) income	(78)		(988)		(344)		(1,410)
Interest expense	—		—		(205)		(205)
Income tax (benefit) expense, continuing operations	(22)		(825)		549		(298)
Three Months Ended August 30, 2020, As Restated
Net sales	$	22,032	$	113,839	$	—	$	135,871
Gross profit	4,902		11,345		—		16,247
Net income (loss) from continuing operations	34		(9,259)		(3,185)		(12,410)
Depreciation and amortization	1,310		3,410		28		4,748
Dividend Income	—		281		—		281
Interest income	—		—		8		8
Interest expense	—		1,376		1,528		2,904
Income tax (benefit) expense, continuing operations	13		(3,437)		(1,183)		(4,607)
Corporate overhead allocation	1,403		1,856		(3,259)		—

The effects of this error on our previously reported restructuring cost for the three months ended August 30, 2020 as presented in the Company’s Quarterly Report on Form 10-Q Note 8, are as follows:

	Three Months Ended August 30, 2020
(in thousands)	As Reported		Restatement		As Restated		Discontinued Operations		As Restated, after Discontinued Operations
Asset write-off costs	$	6,005	$	—	$	6,005	$	—	$	6,005
Employee severance and benefit costs	905		—		905		(905)		—
Other restructuring costs	1,494		—		1,494		(832)		662
Total restructuring costs	$	8,404	$	—	$	8,404	$	(1,737)	$	6,667

	Three Months Ended August 30, 2020
	Curation		Other		Total
Total restructuring costs, As reported	$	7,757	$	647	$	8,404
Discontinued Operations Adjustment	(1,737)		—		(1,737)
Total restructuring costs, As restated	$	6,020	$	647	$	6,667