Revenue Growth - Revenues increased by $2.0 million in HA manufacturing primarily due to higher sales volume from the largest customer[184] - CDMO revenues increased by $0.6 million, driven by $3.3 million higher sales volume from the largest customer, partially offset by $2.6 million reduction due to a customer working down inventory levels[184] Expenses and Costs - R&D expenses for the three months ended November 24, 2024 were $1.924 million, a decrease of $0.174 million (8%) compared to the prior period[177] - SG&A expenses increased by $1.777 million (19%) primarily due to $1.8 million increase in non-cash stock-based compensation expense[178] - Interest expense, net increased by $1.392 million (34%) to $5.465 million for the three months ended November 24, 2024[179] - Other expense, net decreased by $0.663 million (69%) primarily due to the end of accumulation of monetary penalties to preferred stockholders[181] Financial Liabilities and Derivatives - Change in fair value of debt derivative liability, related party decreased by $19.5 million (94%) to $1.2 million[179] Legal and Compliance - The company intends to vigorously defend against claims filed by 22NW Fund, L.P. regarding alleged material misrepresentations and breaches of the Securities Purchase Agreement[191] - The company is committed to remediating control deficiencies by adding qualified personnel, enhancing controls, and implementing a SOX Steering Committee[295][296][300] Business Relationships - The company has established long-term relationships with global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories[169]

Financial Performance - Revenues for the three months ended November 24, 2024, were $32.6 million, an increase of 8% compared to $30.2 million for the same period last year[4] - The company recorded a net loss of $22.8 million for the six months ended November 24, 2024, compared to a net income of $3.5 million for the same period last year[7] - Revenues for the six months ended November 24, 2024, were $57.3 million, an increase of 5% compared to $54.7 million for the same period last year[6] - Net loss for the three months ended November 24, 2024, was $6.6 million, compared to net income of $14.2 million for the same period last year[42] - Adjusted EBITDA for the six months ended November 24, 2024, was $4.7 million, a $1.3 million increase from $3.4 million in the prior year period[7] - Adjusted EBITDA for the three months ended November 24, 2024, was $6.5 million, an increase of $1.1 million compared to $5.4 million in the prior year period[42] - Gross profit for the three months ended November 24, 2024, was $11.1 million, compared to $10.0 million for the same period last year[41] - The company recorded a gross profit increase of $3.8 million for the six months ended November 24, 2024, compared to the same period last year[43] Expenses and Costs - Selling, general and administrative expenses for the three months ended November 24, 2024, were $11.1 million, an increase from $9.3 million for the same period last year[19] - Interest expense for the six months ended November 24, 2024, was $10.8 million, an increase from $8.0 million for the same period last year[29] - The company incurred restructuring, reorganization, and stockholder activist settlement costs of $2.9 million for the three months ended November 24, 2024[50] Strategic Developments - The company signed two new project agreements during the second quarter, enhancing its early-stage development pipeline[2] - The company successfully completed the installation of a high-speed, multi-purpose 5-head isolator filler, doubling its capacity with a potential revenue generation of up to $300 million annually[16] - The company appointed new leadership, including a new chief financial officer and senior vice president of human resources, to support its growth strategy[40] - The company is focusing on new business opportunities[52] Financing and Compliance - The company closed a $24.3 million private placement of 5,928,775 shares of its common stock with new and existing shareholders[17] - The company strengthened its balance sheet by raising approximately $24.3 million through equity financing and restructuring its credit facility[38] - The company expects a net loss for the fiscal year to be between $28.6 million and $26.6 million, an increase from previous estimates due to higher expenses[14] - The company regained compliance with Nasdaq listing requirements, ceasing any action to delist its common stock[39] Related Party Transactions - Revenues from related parties for the three months ended November 24, 2024, were $13.0 million, compared to $9.6 million in the same period last year[49] Miscellaneous - Lifecore Biomedical is a fully integrated contract development and manufacturing organization (CDMO)[51] - The financial results were announced on January 2, 2025[51] - Recorded revenues of $32.6 million for Q2 fiscal 2025[51]

Core Insights - Lifecore Biomedical, Inc. reported revenues of $32.6 million for Q2 Fiscal 2025, reflecting an 8% increase compared to $30.2 million in the same period last year [8][12] - The company signed multiple development agreements with new customers, enhancing its early-stage development pipeline [3][2] - Lifecore strengthened its balance sheet by raising approximately $24.3 million through equity financing and restructuring its credit facility with BMO [5][6] Financial Performance - Revenues for the six months ended November 24, 2024, were $57.3 million, a 5% increase from $54.7 million in the prior year [13] - Gross profit for Q2 was $11.1 million, up from $10.0 million year-over-year, driven by increased CDMO gross profit [9] - The company recorded a net loss of $6.6 million for Q2, compared to a net income of $14.2 million in the same period last year [12] Operational Developments - Lifecore successfully installed and qualified a high-speed, multi-purpose 5-head isolator filler, doubling its capacity and creating a potential revenue-generating capacity of up to $300 million annually [4] - The company appointed several key executives to support its growth strategy, including a new CFO and senior vice president of human resources [7] Business Development - Lifecore signed two new project agreements with Nirsum Laboratories, focusing on CDMO services for clinical development [3] - The business development team achieved significant milestones during the quarter, contributing to the overall growth strategy [2] Balance Sheet and Financing - The company completed a $24.3 million private placement of shares, enhancing its financial position [5] - Lifecore amended its revolving credit facility with BMO, resulting in a three-year extension and reduced interest rates [6]

Core Insights - Lifecore Biomedical, Inc. will report its financial results for the second quarter of fiscal year 2025 on January 2, 2025, after market close [1] - A webcast will be hosted by Lifecore's senior management team at 4:30 p.m. Eastern Time on the same day to discuss the financial results and recent corporate developments [1] Company Overview - Lifecore Biomedical is a fully integrated contract development and manufacturing organization (CDMO) specializing in the development, fill, and finish of sterile injectable pharmaceutical products, including complex formulations [3] - The company has over 40 years of expertise in manufacturing premium, injectable-grade hyaluronic acid and partners with global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories [3]

Core Insights - Lifecore Biomedical has been selected by Nirsum Laboratories to provide contract development and manufacturing organization (CDMO) services for the clinical development of NRS-033, a treatment for opioid use disorder (OUD) and alcohol use disorder (AUD) [1][2][5] - The agreement includes technology transfer and assessment of the fill and finish process for NRS-033, leveraging Lifecore's expertise in sterile injectable pharmaceutical products [1][3] - NRS-033 aims to address the high relapse rates associated with current therapies for OUD and AUD, with the potential to improve therapeutic retention for patients [3][5] Company Overview - Lifecore Biomedical is a fully integrated CDMO specializing in the development, fill, and finish of sterile injectable pharmaceutical products, including complex formulations [4] - The company has over 40 years of experience and serves global and emerging biopharmaceutical and biotechnology companies [4] - Nirsum Laboratories is a development-stage biotechnology company focused on creating curable treatments for addiction, with NRS-033 being funded in part by the NIH [5]

Company Overview - Lifecore Biomedical, Inc. is a fully integrated contract development and manufacturing organization (CDMO) specializing in the development, fill, and finish of sterile injectable pharmaceutical products [2] - The company has over 40 years of expertise in manufacturing premium, injectable-grade hyaluronic acid, serving global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories [2] Recent Developments - Lifecore hosted a virtual investor day where senior management discussed the company's business and future growth strategy [1] - The event was made accessible via a webcast, allowing investors to engage with the company's strategic direction [1]

Company Overview - Lifecore Biomedical Inc is a fully integrated contract development and manufacturing organization (CDMO) specializing in sterile injectable pharmaceutical products [3] - The company has over 40 years of expertise in manufacturing premium injectable-grade hyaluronic acid [3] - Lifecore serves global and emerging biopharmaceutical and biotechnology companies across multiple therapeutic categories [3] Upcoming Event - Lifecore will host a virtual investor day on November 21 2024 from 8:00 - 9:30 am Eastern Time [1] - The event will feature discussions on the company's business and growth strategy by senior management [1] - The webcast will be available on Lifecore's investor relations website [2]

Core Viewpoint - Johnson Fistel, LLP is investigating potential breaches of fiduciary duties by directors and officers of Lifecore Biomedical, Inc. related to financial reporting issues and class action complaints against the company [1][4]. Group 1: Investigation Details - The investigation was initiated on March 20, 2024, following Lifecore's issuance of its Annual Report on Form 10-K/A for the year ended May 29, 2022, which included restatements of financial statements due to errors in capitalized interest calculations and inventory valuations [3]. - The restatements were necessary to correct inaccuracies in several financial statements that Lifecore had previously issued, which were deemed materially false and misleading [3][4]. - A class action complaint alleges that Lifecore's management made false statements regarding the company's business operations and failed to disclose deficiencies in internal controls over financial reporting [3]. Group 2: Allegations Against Lifecore - The allegations include that Lifecore maintained deficient internal controls, leading to inaccurate financial statements that required restatement [3]. - It is claimed that Lifecore's remediation efforts regarding these deficiencies were ineffective, impairing the company's ability to file periodic reports with the SEC in compliance with NASDAQ requirements [3]. - The company's financial position and prospects were allegedly overstated, resulting in materially false and misleading public statements [3].

Exhibit 10.1 LIFECORE BIOMEDICAL, INC. STOCK PURCHASE AGREEMENT This Stock Purchase Agreement ("Agreement") is made as of October 3, 2024 (the "Effective Date"), by and among Lifecore Biomedical, Inc., a Delaware corporation (the "Company"), and each of those persons and entities, severally and not jointly, listed as a Purchaser on the Schedule of Purchasers attached as Exhibit A hereto (the "Schedule of Purchasers"). Such persons and entities are hereinafter collectively referred to herein as "Purchasers" ...

Core Points - Lifecore Biomedical, Inc. has successfully closed a $24.3 million private placement of 5,928,775 shares at a price of $4.10 per share, aimed at funding working capital, operations, and general corporate purposes [1] - The investment group consists of both new and existing shareholders, indicating confidence in the company's management and growth strategy [2] - Lifecore is a fully integrated contract development and manufacturing organization (CDMO) specializing in sterile injectable pharmaceutical products, with over 40 years of experience in manufacturing injectable-grade hyaluronic acid [5]