Income Taxes (Tables)
|
12 Months Ended |
May 30, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income (Loss) Before Income Tax, Domestic and Foreign |
Income (loss) before income taxes included the following components (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 30, 2026 |
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
United States |
|
$ |
3,569 |
|
|
$ |
(5,912 |
) |
|
$ |
(3,274 |
) |
Foreign |
|
|
3,909 |
|
|
|
4,381 |
|
|
|
3,431 |
|
Income (loss) before income taxes |
|
$ |
7,478 |
|
|
$ |
(1,531 |
) |
|
$ |
157 |
|
|
| Schedule of Components of Income Tax Expense (Benefit) |
The provision (benefit) for income taxes for fiscal 2026, fiscal 2025 and fiscal 2024 consisted of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 30, 2026 |
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
Current: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(741 |
) |
|
$ |
1,858 |
|
|
$ |
(2,020 |
) |
State |
|
|
180 |
|
|
|
45 |
|
|
|
(141 |
) |
Foreign |
|
|
596 |
|
|
|
966 |
|
|
|
1,235 |
|
Total current |
|
|
35 |
|
|
|
2,869 |
|
|
|
(926 |
) |
Deferred: |
|
|
|
|
|
|
|
|
|
Federal |
|
|
1,557 |
|
|
|
(3,764 |
) |
|
|
(26 |
) |
State |
|
|
(316 |
) |
|
|
595 |
|
|
|
1,007 |
|
Foreign |
|
|
(181 |
) |
|
|
(88 |
) |
|
|
41 |
|
Total deferred |
|
|
1,060 |
|
|
|
(3,257 |
) |
|
|
1,022 |
|
Income tax provision (benefit) |
|
$ |
1,095 |
|
|
$ |
(388 |
) |
|
$ |
96 |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
The fiscal 2026 provision for income taxes results in effective rates that differ from the statutory rates. The following is a reconciliation of the income tax expense computed at the statutory federal income tax rate to the total tax expense computed at the effective tax rate (in thousands, except percentages):
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 30, 2026 |
|
|
|
Amount |
|
|
Percentage |
|
US federal statutory tax rate |
|
$ |
1,573 |
|
|
|
21.0 |
% |
State and local income taxes, net of federal benefit |
|
|
(174 |
) |
|
|
-2.3 |
% |
Foreign tax effects: |
|
|
|
|
|
|
Mexico |
|
|
(97 |
) |
|
|
-1.3 |
% |
Israel - return to provision adjustment |
|
|
(116 |
) |
|
|
-1.5 |
% |
Israel - other |
|
|
22 |
|
|
|
0.3 |
% |
Other |
|
|
50 |
|
|
|
0.7 |
% |
Effect of cross-border tax laws: |
|
|
|
|
|
|
Global intangible low-taxed income (GILTI) |
|
|
576 |
|
|
|
7.7 |
% |
Subpart F income |
|
|
185 |
|
|
|
2.5 |
% |
Section 78 gross-up on foreign exclusions |
|
|
214 |
|
|
|
2.9 |
% |
Section 250 deductions on GILTI |
|
|
(368 |
) |
|
|
-4.9 |
% |
Foreign tax credit |
|
|
(409 |
) |
|
|
-5.5 |
% |
Tax credits: |
|
|
|
|
|
|
Research and development tax credits |
|
|
(329 |
) |
|
|
-4.4 |
% |
Non-taxable or non-deductible items: |
|
|
|
|
|
|
Restricted stock |
|
|
(165 |
) |
|
|
-2.2 |
% |
Non-deductible U.S.compensation |
|
|
109 |
|
|
|
1.5 |
% |
Other |
|
|
64 |
|
|
|
0.9 |
% |
Changes in unrecognized tax benefits |
|
|
58 |
|
|
|
0.8 |
% |
Other adjustments |
|
|
(98 |
) |
|
|
-1.6 |
% |
Total income tax provision and effective tax rate |
|
$ |
1,095 |
|
|
|
14.6 |
% |
As previously disclosed for fiscal 2025 and fiscal 2024, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
Federal statutory rate |
|
|
21.0 |
% |
|
|
21.0 |
% |
Effect of: |
|
|
|
|
|
|
State income taxes, net of federal tax benefit |
|
|
16.8 |
|
|
|
(90.1 |
) |
Foreign income inclusion |
|
|
(3.2 |
) |
|
|
149.0 |
|
Foreign taxes at other rates |
|
|
(10.8 |
) |
|
|
189.0 |
|
Permanent tax differences |
|
|
(3.0 |
) |
|
|
(93.0 |
) |
Tax reserves |
|
|
(18.2 |
) |
|
|
63.7 |
|
Change in valuation allowance for deferred tax assets |
|
|
(40.3 |
) |
|
|
548.6 |
|
Foreign return to provision adjustments |
|
|
13.5 |
|
|
|
179.9 |
|
Restricted stock |
|
|
3.3 |
|
|
|
(33.6 |
) |
Research and development credit |
|
|
28.9 |
|
|
|
(302.1 |
) |
U.S. return to provision adjustments |
|
|
18.1 |
|
|
|
(648.6 |
) |
Other |
|
|
(0.7 |
) |
|
|
77.6 |
|
Effective tax rate |
|
|
25.4 |
% |
|
|
61.4 |
% |
|
| Schedule of Deferred Tax Assets and Liabilities |
Our deferred tax assets and liabilities reflect operations as of May 30, 2026 and May 31, 2025. Significant components were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 30, 2026 |
|
|
May 31, 2025 |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards - foreign and domestic |
|
$ |
2,127 |
|
|
$ |
1,969 |
|
Inventory reserves |
|
|
3,140 |
|
|
|
3,795 |
|
Foreign capital loss |
|
|
1,371 |
|
|
|
1,063 |
|
Capitalized research and development |
|
|
2,659 |
|
|
|
3,643 |
|
Share-based compensation |
|
|
1,854 |
|
|
|
1,435 |
|
Other |
|
|
1,831 |
|
|
|
1,550 |
|
Subtotal |
|
|
12,982 |
|
|
|
13,455 |
|
Valuation allowance - foreign and domestic |
|
|
(2,769 |
) |
|
|
(2,804 |
) |
Net deferred tax assets after valuation allowance |
|
|
10,213 |
|
|
|
10,651 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Accelerated depreciation |
|
|
(1,133 |
) |
|
|
(1,120 |
) |
Other |
|
|
(911 |
) |
|
|
(868 |
) |
Subtotal |
|
|
(2,044 |
) |
|
|
(1,988 |
) |
Deferred income tax assets, net |
|
$ |
8,169 |
|
|
$ |
8,663 |
|
|
| Schedule of Unrecognized Tax Benefits |
The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 30, 2026 |
|
|
May 31, 2025 |
|
|
June 1, 2024 |
|
Unrecognized tax benefits, beginning of period |
|
$ |
335 |
|
|
$ |
93 |
|
|
$ |
— |
|
Tax positions taken during the year |
|
|
36 |
|
|
|
242 |
|
|
|
242 |
|
Unrecognized tax benefits, end of period |
|
$ |
371 |
|
|
$ |
335 |
|
|
$ |
93 |
|
|
| Summary of Cash Paid for Income Taxes (Net of Refunds) |
Cash paid for income taxes (net of refunds) for fiscal 2026 consisted of the following (in thousands):
|
|
|
|
|
|
|
Fiscal Year Ended |
|
|
|
May 30, 2026 |
|
Federal |
|
$ |
— |
|
State: |
|
|
|
Other states |
|
|
45 |
|
Total state |
|
|
45 |
|
Foreign: |
|
|
|
China |
|
|
182 |
|
Germany |
|
|
707 |
|
Israel |
|
|
401 |
|
United Kingdom |
|
|
136 |
|
Other foreign |
|
|
267 |
|
Total foreign |
|
|
1,693 |
|
Income tax paid |
|
$ |
1,738 |
|
|