v3.25.2
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):

 

 

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:

 

 

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):

 

 

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