Income Taxes (Tables)
|
12 Months Ended |
May 31, 2025 |
Income Tax Disclosure [Abstract] |
|
Schedule of (Loss) Income Before Income Tax, Domestic and Foreign |
(Loss) income before income taxes included the following components (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
|
May 27, 2023 |
|
United States |
|
$ |
(5,912 |
) |
|
$ |
(3,274 |
) |
|
$ |
22,258 |
|
Foreign |
|
|
4,381 |
|
|
|
3,431 |
|
|
|
2,772 |
|
(Loss) income before income taxes |
|
$ |
(1,531 |
) |
|
$ |
157 |
|
|
$ |
25,030 |
|
|
Schedule of Components of Income Tax Expense (Benefit) |
The (benefit) provision for income taxes for fiscal 2025, fiscal 2024 and fiscal 2023 consisted of the following (in thousands):
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|
|
|
|
|
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|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
|
May 27, 2023 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
1,858 |
|
|
$ |
(2,020 |
) |
|
$ |
954 |
|
State |
|
|
45 |
|
|
|
(141 |
) |
|
|
1,212 |
|
Foreign |
|
|
966 |
|
|
|
1,235 |
|
|
|
547 |
|
Total current |
|
|
2,869 |
|
|
|
(926 |
) |
|
|
2,713 |
|
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(3,764 |
) |
|
|
(26 |
) |
|
|
— |
|
State |
|
|
595 |
|
|
|
1,007 |
|
|
|
— |
|
Foreign |
|
|
(88 |
) |
|
|
41 |
|
|
|
(16 |
) |
Total deferred |
|
|
(3,257 |
) |
|
|
1,022 |
|
|
|
(16 |
) |
Income tax (benefit) provision |
|
$ |
(388 |
) |
|
$ |
96 |
|
|
$ |
2,697 |
|
|
Schedule of Effective Income Tax Rate Reconciliation |
The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for fiscal 2025, fiscal 2024 and fiscal 2023 and the reported income tax provision for fiscal 2025, fiscal 2024 and fiscal 2023, are summarized as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
|
May 27, 2023 |
|
Federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
|
|
21.0 |
% |
Effect of: |
|
|
|
|
|
|
|
|
|
State income taxes, net of federal tax benefit |
|
|
16.8 |
|
|
|
(90.1 |
) |
|
|
3.6 |
|
Foreign income inclusion |
|
|
(3.2 |
) |
|
|
149.0 |
|
|
|
0.5 |
|
Foreign taxes at other rates |
|
|
(10.8 |
) |
|
|
189.0 |
|
|
|
0.4 |
|
Permanent tax differences |
|
|
(3.0 |
) |
|
|
(93.0 |
) |
|
|
0.1 |
|
Tax reserves |
|
|
(18.2 |
) |
|
|
63.7 |
|
|
|
0.1 |
|
Change in valuation allowance for deferred tax assets |
|
|
(40.3 |
) |
|
|
548.6 |
|
|
|
(7.0 |
) |
Foreign return to provision adjustments |
|
|
13.5 |
|
|
|
179.9 |
|
|
|
(0.7 |
) |
Restricted stock |
|
|
3.3 |
|
|
|
(33.6 |
) |
|
|
(3.1 |
) |
Research and development credit |
|
|
28.9 |
|
|
|
(302.1 |
) |
|
|
(3.7 |
) |
U.S. return to provision adjustments |
|
|
18.1 |
|
|
|
(648.6 |
) |
|
|
— |
|
Other |
|
|
(0.7 |
) |
|
|
77.6 |
|
|
|
(0.4 |
) |
Effective tax rate |
|
|
25.4 |
% |
|
|
61.4 |
% |
|
|
10.8 |
% |
|
Schedule of Deferred Tax Assets and Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards - foreign and domestic |
|
$ |
1,969 |
|
|
$ |
1,940 |
|
Inventory valuations |
|
|
1,883 |
|
|
|
1,475 |
|
Goodwill |
|
|
107 |
|
|
|
895 |
|
Research and Development tax credits |
|
|
125 |
|
|
|
— |
|
Deferred revenue |
|
|
319 |
|
|
|
— |
|
Severance reserve |
|
|
154 |
|
|
|
131 |
|
Foreign capital loss |
|
|
1,063 |
|
|
|
949 |
|
Section 174 capitalization |
|
|
3,643 |
|
|
|
2,305 |
|
Other |
|
|
3,325 |
|
|
|
1,926 |
|
Subtotal |
|
|
12,588 |
|
|
|
9,621 |
|
Valuation allowance - foreign and domestic |
|
|
(2,804 |
) |
|
|
(2,116 |
) |
Net deferred tax assets after valuation allowance |
|
|
9,784 |
|
|
|
7,505 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Accelerated depreciation |
|
|
(1,120 |
) |
|
|
(2,071 |
) |
Tax on undistributed earnings |
|
|
— |
|
|
|
(24 |
) |
Other |
|
|
(1 |
) |
|
|
— |
|
Subtotal |
|
|
(1,121 |
) |
|
|
(2,095 |
) |
Net deferred tax assets |
|
$ |
8,663 |
|
|
$ |
5,410 |
|
Supplemental disclosure of net deferred tax assets, excluding valuation allowance: |
|
|
|
|
|
|
Domestic |
|
$ |
10,205 |
|
|
$ |
6,405 |
|
Foreign |
|
|
1,263 |
|
|
|
1,121 |
|
Total |
|
$ |
11,468 |
|
|
$ |
7,526 |
|
|
Schedule of Unrecognized Tax Benefits |
The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
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|
Fiscal Year Ended |
|
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
Unrecognized tax benefits, beginning of period |
|
$ |
93 |
|
|
$ |
— |
|
Reserve on R&D credits |
|
|
242 |
|
|
|
93 |
|
Unrecognized tax benefits, end of period |
|
$ |
335 |
|
|
$ |
93 |
|
|