v3.25.2
Income Taxes (Tables)
 12 Months Ended
May 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Loss Before Income Tax Benefit
The components of loss before income tax benefit are as follows:
Year ended May 31,
(in thousands)202520242023
Loss before tax expense:
U.S.$(30,172)$(177,314)$(45,240)
Non-U.S.(3,860)(14,324)(9,197)
$(34,032)$(191,638)$(54,437)
Summary of Income tax Benefit
Income tax benefit is comprised of the following:
Year ended May 31,
(in thousands)202520242023
Current
U.S.621 318 129 
Non U.S.328 361 187 
949 679 316 
Deferred
U.S.— (7,039)(207)
Non U.S.(988)(929)(2,104)
(988)(7,968)(2,311)
Income tax benefit$(39)$(7,289)$(1,995)
Summary of Deferred Tax Assets and Liabilities
Temporary differences that give rise to deferred tax assets and liabilities are summarized as follows:
(in thousands)May 31, 2025May 31, 2024
Deferred tax assets
Net operating loss carryforward$34,388 $28,243 
Stock-based compensation3,396 3,796 
Federal and state R&D tax credit carryforward8,275 7,777 
Inventories1,016 762 
Expenses incurred not currently deductible18,188 15,694 
Accrued liabilities34 39 
Gross deferred tax asset65,297 56,311 
Deferred tax liabilities
Depreciation and amortization10,915 8,443 
10,915 8,443 
Valuation allowance(58,440)(52,680)
Net deferred tax liability$(4,058)$(4,812)
Summary of Income Tax Rate Reconciliation
The Company's consolidated income tax expense has differed from the amount that would be provided by applying the U.S. Federal statutory income tax rate to the Company's income before income taxes for the following reasons:
Year ended May 31,
(in thousands)202520242023
Income tax benefit at federal statutory tax rate of 21.0%, 21.0% and 21.0%, respectively$(7,147)$(40,244)$(11,432)
State income taxes, net of Federal tax benefit10 (3,016)(353)
Impact of Non-U.S. operations150 2,440 14 
Research and development tax credit(497)(907)(991)
Meals and entertainment250 244 258 
Goodwill impairment— 4,867 3,055 
Non-deductible executive compensation 294 201 366 
Change in valuation allowance5,760 26,921 5,556 
Stock based compensation1,325 1,357 505 
Other(184)848 1,027 
Income tax benefit$(39)$(7,289)$(1,995)
Summary of Unrecognized Tax Benefits Reconciliation
The following table provides a reconciliation of the beginning and ending amount of unrecognized tax benefits:
Year ended May 31,
(in thousands)202520242023
Unrecognized tax benefits balance at June 1 $— $464 $464 
Decrease in gross amounts of tax positions related to prior years due to U.S. tax reform— — — 
Decrease due to lapse in statute of limitations— (464)— 
Unrecognized tax benefits balance at May 31$— $— $464