Related party transactions |
7 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Related Party Transactions [Abstract] | |
| Related party transactions | Related party transactions Alcon has been and continues to be the Company's largest customer, comprising 42%, 44% and 39% of its revenues for the transition period ended December 31, 2025 the fiscal years ended May 25, 2025 and May 26, 2024, respectively. On May 22, 2023, Alcon entered into the Term Loan Credit Facility with the Company as described in note 10. This relationship as the Company's largest creditor, combined with its position as the Company's largest customer, caused management to conclude that Alcon has the ability to exert significant influence over the Company and therefore meets the definition of a related party beginning in May 2023 through the present. Alcon’s transactions with the Company are as follows: •Customary current financial positions for a customer of Alcon's size, including accounts receivable, contract assets and liabilities, and revenue, each as presented in the consolidated balance sheets and statements of operations and the notes thereto. Alcon has provided the Company guaranteed contractual minimum purchasing commitments through 2031, and the Company is required to maintain certain manufacturing capacity levels through 2033; •Cash advances Alcon provided to the Company to purchase and install Alcon-owned equipment on the Company's premises totaling $307 and $1,207 at May 25, 2025 and May 26, 2024, respectively; •A significant individual prepayment that Alcon made to the Company in May 2024 of $5,500. The prepayment was accounted for as a contract liability and initially discounted to present value due to the existence of a significant financing component. The discount is being amortized over the life of the contract liability via charges to interest expense, related party. This contract liability is being realized beginning January 2026 by delivering goods to Alcon at a discount equal to twelve monthly credit memos totaling $5,500. As of December 31, 2025, the entire contract liability balance of $5,286 which is net of the unamortized discount, is included in accrued expenses and other current liabilities on the consolidated balance sheet; •Proceeds of $142,270 from term loans issued in May 2023 that were used to repay prior borrowings. The term loan principal plus accrued interest has grown to $184,087 through December 31, 2025 as a result of 10% interest paid-in-kind. See note 10 for additional information; •Alcon purchased equipment in May 2023 for $7,730 that it is leasing back to the Company in exchange for quarterly payments over a ten-year period. Payments to Alcon under the lease were $858, $1,185 and $970 for the transition period months ended December 31, 2025 and the fiscal years ended May 25, 2025 and May 26, 2024, respectively. See note 10 for additional information; •Interest expense incurred from the Alcon instruments noted above, net of capitalized interest, was $14,621, $18,879 and $14,662 for the transition period ended December 31, 2025 and the fiscal years ended May 25, 2025 May 26, 2024, respectively. Included in those amounts was non-cash interest expense of $14,407, $18,473 and $14,186 for the transition period ended December 31, 2025 and the fiscal years ended May 25, 2025 and May 26, 2024, respectively; and •Contract assets of $850 and $110 as of December 31, 2025 and May 25, 2025, respectively, for the recognition of revenue as the result of performance obligations satisfied.
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