Good morning, and thank you for joining us today to discuss Lifecore Biomedical's Third Quarter Fiscal 2023 Earnings Results. Hosting the call today from the company are Jim Hall, President and Chief Executive Officer; and John Morberg, Chief Financial Officer. Before we begin today, I'd like to remind everyone of the Safe Harbor statement. Certain statements made in the course of this conference call contain forward-looking statements. It is important to note that the company's actual results could differ materially from those projected in such forward-looking statements. Additional information concerning risk factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the company's filings with the SEC, including, but not limited to, the company's Form 10-K/A for fiscal year 2022 and their subsequent periodic reports. Finally, in light of the company's ongoing exploration of strategic alternatives, management will not be conducting a live Q&A session on today's call. With that, I'd like to turn the call over to Jim Hall, Chief Executive Officer. Jim, go ahead.

Thank you, Jeff. Good morning, everyone. And thank you for joining us for our fiscal third quarter update. As announced last week, we took a meaningful step forward with the execution of an enhanced supply agreement with our significant and long-term customer Alcon as well as completing a comprehensive restructuring of our debt arrangements also with Alcon. These transactions allow us to clear the existing Going Concern qualification and create a more stable and sustainable business model. In combination with the sale of our remaining Curation Foods segment business in early April, Lifecore is beginning a new chapter as a standalone CDMO. Going forward, we remain focused on continuing to execute on our business plan and evaluate potential strategic alternatives, so as to determine the best path forward to maximize value for our stockholders. Today, I'll briefly touch on our fiscal third quarter results and review some of the commercial aspects of these new agreements I mentioned and provide an update on our development portfolio. In the fiscal '23 third quarter, we generated Lifecore segment revenue of $26.3 million and segment adjusted EBITDA of $3 million, both of which were consistent with our expectations and the cadence that we disclosed during our second quarter call. Both the second and third quarter results largely reflect the shift in timing of commercial launches by our customers, which impacted prelaunch production timing as well as planned commercial revenues. And when combined with the shifting mix of revenues within our development portfolio, temporarily slowed our growth. The good news here is that the launches of products are progressing well. On the point of our shifting mix of revenues, we are working through the maturation of certain projects that are being replaced by early-stage smaller projects, which are less impactful in terms of current revenue…

Thank you, Jim. I'll begin with a brief review of our financial results before transitioning to the balance sheet and the impacts from our recent refinancing. For the fiscal third quarter of 2023, Lifecore segment revenues decreased 24% to $26.3 million driven by a 28% decrease in our CDMO business and a 15% decrease in our hyaluronic acid, HA, raw material manufacturing or fermentation business. The decrease in CDMO revenue was primarily due to a shift in the timing of a scaled-up process for a commercial product as well as a higher mix of earlier-stage projects with lower net revenue, but strong runway in future periods. The decrease in HA raw material manufacturing revenue was primarily due to the timing of customer shipments in the current period compared to channel inventory build in the prior year period. Lifecore segment gross profit decreased $6.8 million to $6.1 million for the third quarter of 2023, representing a gross margin of 23.1%, which compares to 37.1% in the prior year period. The gross profit decline was primarily due to an unfavorable volume variance of $3.1 million due to the year-over-year revenue decline and an unfavorable rate variance of $3.7 million due to an unfavorable mix in current year commercial products and lower development in HA fermentation revenues. Lifecore segment adjusted EBITDA was $3 million for the third quarter of 2023, representing an adjusted EBITDA margin of 11.6%. With the divestment of the remaining Curation Foods business in Q3, I will not comment on those segment results. On the Corporate & Other segment, adjusted EBITDA was approximately negative $2 million for Q3 fiscal year '23, which was slightly above our expectations. We will continue to report the corporate other segment in the fourth quarter and full fiscal year 2023 before collapsing this segment into…

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