LIFECORE BIOMEDICAL, INC. \DE\
For the period ended Feb 23, 2025. Filed Apr 3, 2025.
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Feb 23, 2025 · Filed Apr 3, 2025
Contents
Restructuring costs
- Restructuring costs
During fiscal year 2020, the Company commenced a multi-year restructuring plan to improve profitability and to redesign the organization to focus on strategic assets so that it could compete and thrive as a standalone public CDMO business. We expect to finish incurring expenses under this plan by the end of fiscal year 2025. Types of costs associated with this plan include: (i) employee termination costs, as a result of multiple reductions-in-force; and (ii) other costs related to the sale of non-strategic assets, including contract termination costs and asset write-offs. These costs are included as a separate caption on the statements of operations.
The following table presents the restructuring costs or recovery recognized during the period:
| Three months ended | Nine months ended | |||
|---|---|---|---|---|
| February 23, 2025 | February 25, 2024 | February 23, 2025 | February 25, 2024 | |
| Employee termination costs | $472 | $76 | $1,307 | $215 |
| Other (recoveries) costs | (587) | 695 | (535) | 703 |
| Total | $(115) | $771 | $772 | $918 |
The following table presents a reconciliation of the beginning and ending restructuring liabilities:
| Employee termination costs | Other costs | Total | |
|---|---|---|---|
| Balance at May 26, 2024 | $217 | $4,554 | $4,771 |
| Expense (recoveries) | 1,307 | (535) | 772 |
| Payments | (1,204) | (59) | (1,263) |
| Balance at February 23, 2025 | $320 | $3,960 | $4,280 |
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The following table presents the balance sheet classification of restructuring liabilities:
| February 23,2025 | May 26,2024 | |
|---|---|---|
| Current portion of operating lease liabilities | $3,575 | $3,575 |
| Accrued expenses and other current liabilities – accrued compensation | 320 | 217 |
| Accrued expenses and other current liabilities – other | 385 | 979 |
| Restructuring liabilities | $4,280 | $4,771 |
The following table presents actual and expected expenses incurred or to be incurred under the plan:
| Incurred through February 23, 2025 | Expected remaining costs to be incurred | Total expected costs | |
|---|---|---|---|
| Employee termination costs | $5,640 | $535 | $6,175 |
| Other costs (recoveries) | 12,850 | (2,506) | 10,344 |
| Total | $18,490 | $(1,971) | $16,519 |
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