v3.26.1
Income Taxes (Tables)
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Loss Before Income Tax Benefit
The components of loss before income tax expense (benefit) are as follows:
Year ended May 31,
(in thousands)202620252024
Income (loss) before tax expense:
U.S.$(37,787)$(30,172)$(177,314)
Non U.S.1,487 (3,860)(14,324)
$(36,300)$(34,032)$(191,638)
Summary of Income tax Benefit
Income tax expense (benefit) is comprised of the following:
Year ended May 31,
(in thousands)202620252024
Current
Federal$— $13 $147 
State113 608 171 
Non U.S.186 328 361 
299 949 679 
Deferred
Federal— — (6,427)
State— — (612)
Non U.S.143 (988)(929)
143 (988)(7,968)
Income tax expense (benefit)$442 $(39)$(7,289)
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, 2026May 31, 2025
Deferred tax assets
Net operating loss carryforward$46,341 $34,388 
Stock-based compensation4,901 3,396 
Federal and state R&D tax credit carryforward7,852 8,275 
Inventories1,302 1,016 
Expenses incurred not currently deductible11,903 18,188 
Accrued liabilities36 34 
Gross deferred tax asset72,335 65,297 
Deferred tax liabilities
Depreciation and amortization12,072 10,915 
12,072 10,915 
Valuation allowance(65,493)(58,440)
Net deferred tax liability$(5,230)$(4,058)
Summary of Income Tax Rate Reconciliation
The reconciliation of income taxes at the federal statutory rate to the reported rate for income taxes pursuant to the disclosure requirements of ASU 2023-09 for the year ended May 31, 2026 is as follows:
Year ended May 31, 2026
(in thousands)AmountRate
Statutory Rate$(7,623)21.00 %
State & local income tax, net of federal (national) income tax effect (1)
90 (0.25)%
Foreign tax effects16 (0.05)%
Effect of cross-border tax laws104 (0.29)%
Research & development tax credit422 (1.16)%
Changes in valuation allowance6,475 (17.84)%
Nontaxable or nondeductible items756 (2.08)%
Other adjustments202 (0.56)%
Total income tax expense$442 (1.23)%
(1) State taxes in Texas make up the majority (greater than 50%) of the tax effect in this category
The reconciliation of income taxes at the federal statutory rate to the reported rate for income taxes for years prior to our adoption of ASU 2023-09 is as follows:
Year ended May 31,
(in thousands)20252024
Income tax benefit at federal statutory tax rate of 21.0% and 21.0%, respectively$(7,147)$(40,244)
State income taxes, net of Federal tax benefit10 (3,016)
Impact of Non-U.S. operations150 2,440 
Research and development tax credit(497)(907)
Meals and entertainment250 244 
Goodwill impairment— 4,867 
Non-deductible executive compensation 294 201 
Change in valuation allowance5,760 26,921 
Stock based compensation1,325 1,357 
Other(184)848 
Income tax benefit$(39)$(7,289)
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)202620252024
Unrecognized tax benefits balance at June 1 $— $— $464 
Decrease in gross amounts of tax positions related to prior years due to U.S. tax reform— — — 
Decrease due to lapse in statute of limitations— — (464)
Unrecognized tax benefits balance at May 31$— $— $— 
Schedule of Reconciliation of Income Taxes Paid, Net
A reconciliation of income taxes paid, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended May 31, 2026 is as follows:
(in thousands)Year ended May 31, 2026
Federal$— 
State and local
Texas104 
Other states37 
Foreign
Canada50 
France33 
Netherlands59 
United Kingdom84 
Other foreign38 
Total income taxes paid, net of refunds$405