v3.26.1
Income Taxes (Tables)
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Consolidated Income before Taxes from Continuing Operations
The components of consolidated income before taxes from continuing operations were as follows (in thousands):
May 31, 2026May 31, 2025May 31, 2024
United States$(181,532)$(230,963)$(149,575)
Foreign— — — 
Consolidated income before taxes from continuing operations$(181,532)$(230,963)$(149,575)
Schedule of Components of Income Tax Expense (Benefit)
Income tax expense from continuing operations for the fiscal years ended May 31, 2026, 2025, and 2024 consisted of the following (in thousands):
May 31, 2026May 31, 2025May 31, 2024
Current expense
Federal $1,419 $— $— 
Foreign
— — — 
State
368 102 96 
Total current expense
1,787 102 96 
Deferred expense (benefit)
Federal
— — — 
Foreign
— — — 
State
— — — 
Total deferred expense— — — 
Total income tax expense$1,787 $102 $96 
Schedule of Effective Income Tax Rate Reconciliation A reconciliation of the statutory income tax rate from continuing operations to the Company's effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the fiscal year ended May 31, 2026 is as follows:
Amount%
U.S. federal statutory income tax rate$(38,122)21.0 %
Tax credits— — %
Non-taxable or non-deductible items
Stock-based compensation(6,593)3.6 %
Excess officer's compensation37,952 (20.8)%
Other2,173 (1.1)%
Cross-border tax laws— — %
Other reconciling items— — %
Changes in tax laws— — %
Changes in valuation allowances6,086 (3.5)%
State and local income taxes, net of federal income tax (1)
291 (0.2)%
Foreign tax effects— — %
Changes in unrecognized tax benefits— — %
Totals$1,787 (1.0)%
(1)The state that contributes to majority of the tax effects in this category is North Dakota.
The following table reconciles the statutory rate to the Company's effective tax rate for the fiscal years ended May 31, 2025 and 2024:
May 31, 2025May 31, 2024
Expected income tax rate at the U.S. statutory rate21.0 %21.0 %
Stock-based compensation(0.9)%2.0 %
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)%
Other, net(0.5)%(1.1)%
Income tax expense (benefit)— %(0.1)%
Schedule of Cash Paid for Income Taxes
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to disclosure requirements of ASU 2023-09 for the year ending May 31, 2026 is as follows:
May 31, 2026
U.S. Federal $— 
U.S. States
Texas$148 
Massachusetts64 
Tennessee25 
Other4 
Foreign— 
Cash paid for income taxes, net of refunds received$241 
Schedule of Deferred Tax Assets and Liabilities May 31, 2026 and 2025 are as follows (in thousands):
May 31, 2026May 31, 2025
Deferred tax assets
Net operating loss$159,266 $59,963 
Stock-based compensation3,831 2,006 
Capitalized research and development4,728 13,088 
Interest expense19,008 12,759 
Lease liability15,762 17,587 
Investment in partnership23,517 — 
Other202 824 
Deferred tax assets, gross226,314 106,227 
Less: valuation allowance(176,210)(65,856)
Total deferred tax assets, net50,104 40,371 
Deferred tax liabilities
Investments(23,212)— 
Property and equipment(8,436)(18,887)
Right of use assets(18,456)(21,484)
Other— — 
Total deferred tax liability, net(50,104)(40,371)
Net deferred tax asset$— $— 
Schedule of Unrecognized Tax Benefits
The following table presents the beginning and ending balance of the Company's unrecognized tax benefits for the year ended May 31, 2026 (in thousands):
Balance, June 1, 2026$— 
Additions based on tax positions in the current year— 
Additions based on tax positions related to prior years (1)
$1,800 
Reductions for tax positions of prior years— 
Settlements with taxing authorities— 
Expiration of statue of limitations— 
Balance, May 31, 2026$1,800 
(1)The Company recognized $1.8 million of unrecognized tax benefits for the year ended May 31, 2026, all of which relate to discontinued operations from the Ekso business at ChronoScale. The Company did not have any unrecognized tax benefits for the year ended May 31, 2025.