2023 Q1 Form 10-Q Financial Statement

#000100528623000057 Filed on March 16, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4
Revenue $27.60M $38.80M
YoY Change -48.0% -70.04%
Cost Of Revenue $21.62M $31.69M
YoY Change -44.81% -72.79%
Gross Profit $5.978M $7.108M
YoY Change -56.98% -45.29%
Gross Profit Margin 21.66% 18.32%
Selling, General & Admin $10.97M $10.77M
YoY Change 12.82% -22.13%
% of Gross Profit 183.54% 151.56%
Research & Development $1.964M $2.118M
YoY Change -4.47% -22.08%
% of Gross Profit 32.85% 29.8%
Depreciation & Amortization $3.150M $2.880M
YoY Change -10.74% -51.23%
% of Gross Profit 52.69% 40.52%
Operating Expenses $15.68M $15.01M
YoY Change -11.16% -69.99%
Operating Profit -$9.699M -$7.906M
YoY Change 158.57% -78.65%
Interest Expense $5.818M $4.219M
YoY Change 41.73% -2.63%
% of Operating Profit
Other Income/Expense, Net $34.00K -$336.0K
YoY Change -92.51% -525.32%
Pretax Income -$15.39M -$12.45M
YoY Change 108.49% -69.84%
Income Tax $70.00K $4.000K
% Of Pretax Income
Net Earnings -$40.19M -$12.45M
YoY Change 212.78% -67.62%
Net Earnings / Revenue -145.62% -32.08%
Basic Earnings Per Share -$1.33 -$0.42
Diluted Earnings Per Share -$1.33 -$0.42
COMMON SHARES
Basic Shares Outstanding 30.32M shares 29.60M shares
Diluted Shares Outstanding 30.30M shares 29.63M shares

Balance Sheet

Concept 2023 Q1 2022 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.000M $6.800M
YoY Change 61.81% 523.28%
Cash & Equivalents $2.950M $6.830M
Short-Term Investments
Other Short-Term Assets $4.400M $7.000M
YoY Change -36.45% -19.73%
Inventory $48.70M $77.52M
Prepaid Expenses
Receivables $32.37M $35.69M
Other Receivables $0.00 $0.00
Total Short-Term Assets $88.44M $127.1M
YoY Change -33.02% -17.75%
LONG-TERM ASSETS
Property, Plant & Equipment $120.8M $118.9M
YoY Change -1.96% -33.95%
Goodwill $13.88M $13.88M
YoY Change -59.07% -62.81%
Intangibles $4.400M $7.400M
YoY Change -74.27% -70.78%
Long-Term Investments
YoY Change
Other Assets $2.710M $2.605M
YoY Change -11.09% -19.57%
Total Long-Term Assets $147.7M $152.0M
YoY Change -23.68% -43.21%
TOTAL ASSETS
Total Short-Term Assets $88.44M $127.1M
Total Long-Term Assets $147.7M $152.0M
Total Assets $236.2M $279.1M
YoY Change -27.47% -33.89%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $14.76M $27.97M
YoY Change -26.24% -52.67%
Accrued Expenses $20.20M $20.00M
YoY Change -29.21% -0.03%
Deferred Revenue $2.711M $731.0K
YoY Change 67.97% -36.98%
Short-Term Debt $0.00 $48.00M
YoY Change -100.0% 14.29%
Long-Term Debt Due $0.00 $98.95M
YoY Change
Total Short-Term Liabilities $37.67M $195.7M
YoY Change -58.17% 60.06%
LONG-TERM LIABILITIES
Long-Term Debt $98.96M $0.00
YoY Change 24.33% -100.0%
Other Long-Term Liabilities $203.0K $201.0K
YoY Change -62.68% -94.84%
Total Long-Term Liabilities $99.17M $201.0K
YoY Change 23.74% -99.84%
TOTAL LIABILITIES
Total Short-Term Liabilities $37.67M $195.7M
Total Long-Term Liabilities $99.17M $201.0K
Total Liabilities $163.4M $204.9M
YoY Change -9.96% -22.95%
SHAREHOLDERS EQUITY
Retained Earnings -$140.1M -$99.90M
YoY Change 531.38% 969.81%
Common Stock $30.00K $30.00K
YoY Change 3.45% 3.45%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $34.21M $74.17M
YoY Change
Total Liabilities & Shareholders Equity $236.2M $279.1M
YoY Change -27.47% -33.89%

Cashflow Statement

Concept 2023 Q1 2022 Q4
OPERATING ACTIVITIES
Net Income -$40.19M -$12.45M
YoY Change 212.78% -67.62%
Depreciation, Depletion And Amortization $3.150M $2.880M
YoY Change -10.74% -51.23%
Cash From Operating Activities -$12.69M -$2.950M
YoY Change -36.96% -42.57%
INVESTING ACTIVITIES
Capital Expenditures $6.140M $3.250M
YoY Change -211.05% -163.76%
Acquisitions
YoY Change
Other Investing Activities $12.53M $0.00
YoY Change -82.96%
Cash From Investing Activities $6.400M -$3.260M
YoY Change -90.59% -36.04%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.410M 8.810M
YoY Change -105.12% -10.81%
NET CHANGE
Cash From Operating Activities -12.69M -2.950M
Cash From Investing Activities 6.400M -3.260M
Cash From Financing Activities 2.410M 8.810M
Net Change In Cash -3.880M 2.600M
YoY Change -608.52% -830.34%
FREE CASH FLOW
Cash From Operating Activities -$12.69M -$2.950M
Capital Expenditures $6.140M $3.250M
Free Cash Flow -$18.83M -$6.200M
YoY Change 28.97% 15400.0%

Facts In Submission

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CY2021Q4 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2022Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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29634000 shares
CY2021Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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29471000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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542000 usd
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us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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785000 usd
CY2022Q3 us-gaap Net Income Loss
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CY2022Q3 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
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300000 usd
CY2022Q3 us-gaap Stockholders Equity
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AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation
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CY2022Q4 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
1108000 usd
CY2022Q4 us-gaap Net Income Loss
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OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
286000 usd
CY2022Q4 us-gaap Stock Issued During Period Value New Issues
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CY2022Q4 us-gaap Stockholders Equity
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AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation
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CY2021Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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620000 usd
CY2021Q3 us-gaap Net Income Loss
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366000 usd
CY2021Q3 us-gaap Stockholders Equity
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CY2021Q4 us-gaap Stock Issued During Period Value Share Based Compensation
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CY2021Q4 us-gaap Adjustments Related To Tax Withholding For Share Based Compensation
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation
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CY2021Q4 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
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686000 usd
CY2021Q4 us-gaap Net Income Loss
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CY2021Q4 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
176000 usd
CY2021Q4 us-gaap Stockholders Equity
StockholdersEquity
156202000 usd
us-gaap Net Income Loss
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us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
1300000 usd
us-gaap Goodwill And Intangible Asset Impairment
GoodwillAndIntangibleAssetImpairment
32057000 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
7237000 usd
us-gaap Depreciation Depletion And Amortization
DepreciationDepletionAndAmortization
10959000 usd
us-gaap Gain Loss On Sale Of Business
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2108000 usd
us-gaap Gain Loss On Sale Of Business
GainLossOnSaleOfBusiness
0 usd
us-gaap Share Based Compensation
ShareBasedCompensation
1893000 usd
us-gaap Share Based Compensation
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us-gaap Deferred Income Taxes And Tax Credits
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us-gaap Deferred Income Taxes And Tax Credits
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us-gaap Restructuring Costs And Asset Impairment Charges
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us-gaap Restructuring Costs And Asset Impairment Charges
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lndc Discontinued Operations Credit Loss Expense Reversal
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lndc Discontinued Operations Credit Loss Expense Reversal
DiscontinuedOperationsCreditLossExpenseReversal
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us-gaap Other Noncash Income Expense
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us-gaap Increase Decrease In Receivables
IncreaseDecreaseInReceivables
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us-gaap Increase Decrease In Inventories
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10679000 usd
us-gaap Increase Decrease In Inventories
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
585000 usd
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
1784000 usd
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
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us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
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us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
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us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
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us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
2777000 usd
us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
1163000 usd
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
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us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
30000 usd
us-gaap Net Cash Provided By Used In Operating Activities
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-4481000 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
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us-gaap Proceeds From Divestiture Of Businesses
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3135000 usd
us-gaap Proceeds From Divestiture Of Businesses
ProceedsFromDivestitureOfBusinesses
0 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
6182000 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
13010000 usd
us-gaap Proceeds From Sale Of Equity Method Investments
ProceedsFromSaleOfEquityMethodInvestments
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us-gaap Proceeds From Sale Of Equity Method Investments
ProceedsFromSaleOfEquityMethodInvestments
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us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
0 usd
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
1082000 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
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us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
33172000 usd
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
5000000 usd
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
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us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
76000 usd
us-gaap Repayments Of Long Term Debt
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us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
8800000 usd
us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
26000000 usd
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
800000 usd
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
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us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
209000 usd
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
512000 usd
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 usd
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
132000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
12715000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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5187000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
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CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1643000 usd
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1295000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
6830000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
1091000 usd
us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
2700000 usd
us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
1105000 usd
CY2022Q4 lndc Number Of Product Category
NumberOfProductCategory
2 product
CY2022Q4 lndc Number Of Revenue Category
NumberOfRevenueCategory
2 revenue
CY2022Q4 us-gaap Inventory Finished Goods
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38882000 usd
CY2022Q2 us-gaap Inventory Finished Goods
InventoryFinishedGoods
33029000 usd
us-gaap Fiscal Period
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<div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s fiscal year is the 52- or 53-week period that ends on the last Sunday of May with quarters within each year ending on the last Sunday of August, November, and February; however, in instances where the last Sunday would result in a quarter being 12-weeks in length, the Company’s policy is to extend that quarter to the following Sunday. A 14th week is included in the fiscal year every five or six years to realign the Company’s fiscal quarters with calendar quarters.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The results of operations for the three and six months ended November 27, 2022 are not necessarily indicative of the results that may be expected for an entire fiscal year because there is some seasonality in Curation Foods’ business and the order patterns of Lifecore’s customers which may lead to significant fluctuations in Lifecore Biomedical’s quarterly results of operations.</span></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-top:10pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of financial statements in conformity with GAAP requires management to make certain estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition; loss contingencies; sales returns and credit losses; recognition and measurement of current and deferred income tax assets and liabilities; the assessment of recoverability of long-lived and indefinite lived assets (including intangible assets and goodwill), and inventory; and the valuation and recognition of stock-based compensation.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These estimates involve the consideration of complex factors and require management to make judgments. The analysis of historical and future trends can require extended periods of time to resolve and are subject to change from period to period. The actual results may differ from management’s estimates.</span></div><div style="margin-top:10pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Going Concern</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As of November 27, 2022, the Company had cash and cash equivalents of $6.8 million and outstanding borrowings of $147.0 million, net of issuance costs. The Company continues to experience unfavorable market conditions leading to lower than projected sales proceeds from the disposition of its Curation Foods businesses.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company performed an assessment, which occurred on the date of the filing of this Form 10-Q, to determine whether there were conditions or events that, considered in the aggregate, raised substantial doubt about the Company’s ability to continue as a going concern within one year following the date the accompanying consolidated financial statements are being issued (the “Filing Date”).</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s ability to meet its liquidity needs for one year following the Filing Date will largely depend on its ability to generate cash in the future. As of November 27, 2022, the Company incurred net losses of $23.8 million, and the Company’s ability to generate cash in the future is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond the Company’s control. Based on the Company’s financial projections as of the Filing Date, the Company does not believe that it will have adequate liquidity to meet its obligations for at least one year following the Filing Date.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company further considered how these factors and uncertainties have and could impact its ability to meet the obligations specified in the New Credit Agreements with the Lenders (as defined in Note 6 - Debt) for at least one year following the Filing Date. As of the Filing Date, the Company determined that it was not in compliance with the covenant under the New </span></div><div style="margin-top:10pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Credit Agreements requiring the timely filing of financial statements. In addition, the inclusion of a going concern explanatory paragraph in the auditor’s report issued by Ernst and Young LLP in connection with the restated audited financial statements for the year ended May 29, 2022 included in the Company’s Annual Report on Form 10-K/A for the year ended May 29, 2022 filed on the date of this report also violates the covenants under the New Credit Agreements.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In addition, based on the Company’s current financial projections for the one-year period following the Filing Date, the Company anticipates that it will not be in compliance with certain financial covenants under the New Credit Agreements during the one-year period following the Filing Date, including the minimum fixed charge coverage ratio covenant for the fiscal quarters ending May 30, 2023 through November 30, 2023; the maximum leverage ratio covenant as of the fiscal quarters ending May 30, 2023 through November 30, 2023; the minimum liquidity covenant for each of the fiscal quarters ended as of February 26, 2023 through May 30, 2024; and the minimum Lifecore gross profit covenant for the fiscal quarters ending February 26, 2023 through August 30, 2023. Pursuant to the terms of the New Credit Agreements, as a result of the Company’s failure to comply with the covenants described above, the agents and the lenders under the New Credit Agreements are entitled to immediately cancel all unfunded commitments and to accelerate the maturity of all of the outstanding debt thereunder, at which time all such outstanding borrowings would become immediately due and payable by the Company. In addition, as a result of such defaults, under the New Credit Agreements, the Company will be subject to increased interest rates for any outstanding borrowings thereunder prior to repayment and, even if the agent and the lenders under the Revolving Credit Facility (as defined in Note 6 – Debt) do not exercise their rights to immediately accelerate all outstanding obligations, such lenders may refuse to fund additional borrowings thereunder, which the Company relies upon for short-term liquidity needs.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Although the Company is currently in default, as of the Filing Date, the agents and the Lenders have not taken any action to accelerate the maturity of the debt under the New Credit Agreements, nor have the Lenders under the Revolving Credit Facility indicated that they intend to prevent the Company from incurring additional borrowings thereunder. In such an event, however, the Company does not currently have sufficient liquidity to fund payment of the amounts that would be due under the New Credit Agreements nor does management have projected future cash flows to repay these outstanding borrowings under the New Credit Agreements if such amounts were to become payable. The Company’s inability to raise additional capital on acceptable terms in the near future, whether for purposes of funding payments required under the New Credit Agreements or providing additional liquidity needed for its operations, could have a material adverse effect on its business, results of operations, liquidity and financial condition. </span></div><div style="text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:112%">In response to these conditions, the Company is currently in negotiations with the Lenders to seek a forbearance and amendment agreement to remedy the Company’s current and anticipated noncompliance with its covenants under the New Credit Agreements. The Company also intends to conduct a review of its strategic alternatives, which may involve seeking additional or alternative financing or the sale of all or a portion of the Company. These processes are ongoing, however, and there can be no assurances that they will result in the completion of any such amendment, transaction or other alternative that would alleviate such conditions under the New Credit Agreements or the circumstances that give rise to substantial doubt about the Company’s ability to continue as a going concern for the twelve-month period following the Filing Date.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Accordingly, the Company determined that it cannot be certain that the Company’s plans and initiatives would be effectively implemented within one year after the Filing Date. Without giving effect to the Company’s plans and initiatives, it is unlikely that the Company will be able to generate sufficient cash flows to meet its required financial obligations, including its debt service and other obligations due to third parties within one year after the Filing Date. The existence of these conditions and events raise substantial doubt about the Company’s ability to continue as a going concern for the twelve-month period following the Filing Date.</span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">These unaudited consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business for one year following the Filing Date. As such, the accompanying unaudited consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should the Company be unable to continue as a going concern. </span></div><div style="margin-top:10pt;text-align:justify;text-indent:36pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">As a result, all outstanding borrowings under the New Credit Agreements are classified as short term on the Consolidated Balance Sheets as of November 27, 2022 and May 29, 2022 contained in these unaudited consolidated financial statements.</span></div>
CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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us-gaap Net Income Loss
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CY2022Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
6830000 usd
CY2022Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
1643000 usd
CY2021Q4 us-gaap Cash And Cash Equivalents At Carrying Value
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1091000 usd
CY2021Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
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CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Disposal Group Including Discontinued Operations
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CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Disposal Group Including Discontinued Operations
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CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Disposal Group Including Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations
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CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Disposal Group Including Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations
136000 usd
CY2022Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
6830000 usd
CY2022Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
1643000 usd
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
1091000 usd
CY2021Q2 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
1295000 usd
CY2022Q4 us-gaap Inventory Raw Materials
InventoryRawMaterials
26959000 usd
CY2022Q2 us-gaap Inventory Raw Materials
InventoryRawMaterials
24221000 usd
CY2022Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
11683000 usd
CY2022Q2 us-gaap Inventory Work In Process
InventoryWorkInProcess
9595000 usd
CY2022Q4 us-gaap Inventory Net
InventoryNet
77524000 usd
CY2022Q2 us-gaap Inventory Net
InventoryNet
66845000 usd
CY2022Q2 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
65000 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 usd
us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
0 usd
CY2022Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
65000 usd
CY2021Q2 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
85000 usd
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-14000 usd
us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
0 usd
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
71000 usd
CY2022Q4 us-gaap Deferred Finance Costs Current Net
DeferredFinanceCostsCurrentNet
4700000 usd
CY2022Q2 us-gaap Deferred Finance Costs Noncurrent Net
DeferredFinanceCostsNoncurrentNet
5500000 usd
CY2022Q2 us-gaap Long Term Debt
LongTermDebt
98178000 usd
CY2022Q4 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
100000 usd
us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
400000 usd
CY2021Q2 us-gaap Insurance Recoveries
InsuranceRecoveries
1600000 usd
CY2022Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
98953000 usd
CY2022Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
17850 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
743050 shares
CY2022Q4 us-gaap Common Stock Capital Shares Reserved For Future Issuance
CommonStockCapitalSharesReservedForFutureIssuance
3400000 shares
CY2022Q4 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1108000 usd
CY2021Q4 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
686000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1893000 usd
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
1306000 usd
CY2010Q3 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
10000000 usd
CY2022Q4 us-gaap Stock Repurchase Program Authorized Amount1
StockRepurchaseProgramAuthorizedAmount1
3800000 usd
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0 shares
us-gaap Stock Repurchased During Period Shares
StockRepurchasedDuringPeriodShares
0 shares
CY2022Q4 us-gaap Net Income Loss
NetIncomeLoss
-12449000 usd
CY2021Q4 us-gaap Net Income Loss
NetIncomeLoss
-38441000 usd
us-gaap Net Income Loss
NetIncomeLoss
-23800000 usd
us-gaap Net Income Loss
NetIncomeLoss
-47918000 usd
CY2022Q4 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
29634000 shares
CY2021Q4 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
29471000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
29605000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
29448000 shares
CY2022Q4 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2021Q4 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
0 shares
CY2022Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29634000 shares
CY2021Q4 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29471000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29605000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
29448000 shares
CY2022Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.42
CY2021Q4 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.30
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-0.80
us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
-1.63
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
8000.0 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-4700000 usd
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.001
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.094
CY2022Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1000000 usd
CY2022Q2 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
1000000 usd
CY2022Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
1000000 usd
CY2022Q2 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
900000 usd
CY2022Q4 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
103712000 usd
CY2022Q2 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
103712000 usd
CY2022Q4 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
103712000 usd
CY2022Q2 us-gaap Debt Instrument Carrying Amount
DebtInstrumentCarryingAmount
103712000 usd
CY2022Q4 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
4759000 usd
CY2022Q2 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
5534000 usd
CY2022Q4 us-gaap Long Term Debt
LongTermDebt
98953000 usd
CY2022Q2 us-gaap Long Term Debt Current
LongTermDebtCurrent
98178000 usd
CY2022Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
0 usd
CY2022Q2 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
0 usd
CY2020Q4 lndc Number Of Credit Agreements
NumberOfCreditAgreements
2 creditagreement
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
3 segment
CY2022Q4 lndc Number Of Natural Food Brands
NumberOfNaturalFoodBrands
3 brand
CY2022Q4 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
38802000 usd
CY2022Q4 us-gaap Gross Profit
GrossProfit
7108000 usd
CY2022Q4 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-12449000 usd
CY2022Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax
IncomeLossFromDiscontinuedOperationsNetOfTax
0 usd
CY2022Q4 us-gaap Cost Of Goods And Services Sold Depreciation And Amortization
CostOfGoodsAndServicesSoldDepreciationAndAmortization
2442000 usd
CY2022Q4 us-gaap Investment Income Interest
InvestmentIncomeInterest
16000 usd
CY2022Q4 us-gaap Interest Expense
InterestExpense
4219000 usd
CY2022Q4 lndc Corporate Overhead Expense Benefit
CorporateOverheadExpenseBenefit
0 usd
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
82157000 usd
us-gaap Gross Profit
GrossProfit
13360000 usd
us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-23800000 usd
us-gaap Income Loss From Discontinued Operations Net Of Tax
IncomeLossFromDiscontinuedOperationsNetOfTax
0 usd
us-gaap Cost Of Goods And Services Sold Depreciation And Amortization
CostOfGoodsAndServicesSoldDepreciationAndAmortization
6391000 usd
us-gaap Investment Income Dividend
InvestmentIncomeDividend
0 usd
us-gaap Investment Income Interest
InvestmentIncomeInterest
31000 usd
us-gaap Interest Expense
InterestExpense
7897000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
8000 usd
lndc Corporate Overhead Expense Benefit
CorporateOverheadExpenseBenefit
0 usd
CY2021Q4 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
43452000 usd
CY2021Q4 us-gaap Gross Profit
GrossProfit
14715000 usd
CY2021Q4 us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
4229000 usd
CY2021Q4 us-gaap Income Loss From Discontinued Operations Net Of Tax
IncomeLossFromDiscontinuedOperationsNetOfTax
-42670000 usd
CY2021Q4 us-gaap Cost Of Goods And Services Sold Depreciation And Amortization
CostOfGoodsAndServicesSoldDepreciationAndAmortization
2585000 usd
CY2021Q4 us-gaap Investment Income Interest
InvestmentIncomeInterest
19000 usd
CY2021Q4 us-gaap Interest Expense
InterestExpense
3094000 usd
CY2021Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-3085000 usd
CY2021Q4 lndc Corporate Overhead Expense Benefit
CorporateOverheadExpenseBenefit
0 usd
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
85084000 usd
us-gaap Gross Profit
GrossProfit
25150000 usd
us-gaap Income Loss From Continuing Operations
IncomeLossFromContinuingOperations
-3404000 usd
us-gaap Income Loss From Discontinued Operations Net Of Tax
IncomeLossFromDiscontinuedOperationsNetOfTax
-44514000 usd
us-gaap Cost Of Goods And Services Sold Depreciation And Amortization
CostOfGoodsAndServicesSoldDepreciationAndAmortization
5039000 usd
us-gaap Investment Income Dividend
InvestmentIncomeDividend
0 usd
us-gaap Investment Income Interest
InvestmentIncomeInterest
46000 usd
us-gaap Interest Expense
InterestExpense
9772000 usd
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-4736000 usd
lndc Corporate Overhead Expense Benefit
CorporateOverheadExpenseBenefit
0 usd
CY2022Q4 us-gaap Restructuring Costs
RestructuringCosts
823000 usd
us-gaap Restructuring Costs
RestructuringCosts
1870000 usd
us-gaap Restructuring Costs
RestructuringCosts
18648000 usd
CY2022Q4 us-gaap Restructuring And Related Cost Expected Cost1
RestructuringAndRelatedCostExpectedCost1
23000000 usd

Files In Submission

Name View Source Status
lndc-20221127_def.xml Edgar Link unprocessable
lndc-20221127_cal.xml Edgar Link unprocessable
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0001005286-23-000057-index.html Edgar Link pending
0001005286-23-000057.txt Edgar Link pending
0001005286-23-000057-xbrl.zip Edgar Link pending
Financial_Report.xlsx Edgar Link pending
lndc-20221127.htm Edgar Link pending
lndc-20221127.xsd Edgar Link pending
lndc-20221127xexx311.htm Edgar Link pending
FilingSummary.xml Edgar Link unprocessable
lndc-20221127xexx312.htm Edgar Link pending
lndc-20221127xexx321.htm Edgar Link pending
lndc-20221127xexx322.htm Edgar Link pending
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lndc-20221127_lab.xml Edgar Link unprocessable
lndc-20221127_pre.xml Edgar Link unprocessable
lndc-20221127_htm.xml Edgar Link completed
R8.htm Edgar Link pending
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