v3.25.2
Income Taxes (Tables)
 12 Months Ended
May 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense for the fiscal years ended May 31, 2025, 2024, and 2023 consisted of the following (in thousands):
May 31, 2025May 31, 2024May 31, 2023
Current expense (benefit)
Federal
$— $— $— 
Foreign
— — — 
State
102 96 18 
Total current expense
102 96 18 
Deferred expense (benefit)
Federal
— — (540)
Foreign
— — — 
State
— — — 
Total deferred (benefit) expense
— — (540)
Total income tax (benefit) expense
$102 $96 $(523)
Schedule of Effective Income Tax Rate Reconciliation
The following table reconciles the statutory rate to our effective tax rate for the fiscal years ended May 31, 2025, 2024, and 2023:
May 31, 2025May 31, 2024May 31, 2023
Expected income tax rate at the U.S. statutory rate21.0 %21.0 %21.0 %
Stock-based compensation(0.9)%2.0 %(6.0)%
State income taxes, net of federal tax benefit— %(0.1)%— %
Convertible debt instruments(12.1)%(2.1)%— %
Change in valuation allowance (7.5)%(19.8)%(13.0)%
Other, net(0.5)%(1.1)%(0.8)%
Effective income tax rate— %(0.1)%1.2 %
Schedule of Deferred Tax Assets and Liabilities The primary components of the temporary differences that gave rise to the Company's deferred tax assets and liabilities for the fiscal years ended May 31, 2025 and 2024 are as follows (in thousands):
May 31, 2025May 31, 2024
Deferred tax assets
Net operating loss$59,963 $42,810 
Stock-based compensation2,006 2,758 
Capitalized research and development13,088 4,039 
Interest expense12,759 4,854 
Convertible debt instruments— 3,101 
Lease liability17,587 29,508 
Other824 662 
Deferred tax assets, gross106,227 87,732 
Less: valuation allowance(65,856)(47,005)
Total deferred tax assets, net40,371 40,727 
Deferred tax liabilities
Property and equipment(18,887)(6,202)
Right of use assets(21,484)(34,525)
Other— — 
Total deferred tax liability, net(40,371)(40,727)
Net deferred tax asset$— $—