Landec(LFCR) - 2025 Q2 - Quarterly Report

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]