v3.26.3
INCOME TAXES (Tables)
 12 Months Ended
Aug. 01, 2026
Income Tax Disclosure [Abstract]  
Schedule of Components of Income (Loss) Before Income Taxes
The components of loss from continuing operations before income taxes were as follows:
For the Fiscal Year Ended
(in thousands)August 1, 2026August 2, 2025August 3, 2024
Loss from continuing operations before income taxes:
United States$(12,268)$(28,023)$(120,546)
Total loss from continuing operations before income taxes$(12,268)$(28,023)$(120,546)
Schedule of Effective Tax Rate From Loss from Continuing Operations
The components of the income tax provision (benefit) were as follows:
For the Fiscal Year Ended
(in thousands)August 1, 2026August 2, 2025August 3, 2024
Current:
Federal$31 $305 $(1,663)
State307 516 2 
Total current$338 $821 $(1,661)
Deferred:
Total deferred$— $— $— 
Total income tax provision (benefit)$338 $821 $(1,661)
Schedule of Reconciliation of Effective Tax Rate to the Statutory Federal Rate
Beginning in fiscal 2026, the Company adopted ASU 2023-09 prospectively. A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate pursuant to the disclosure requires of ASU 2023-09 for the year ended August 1, 2026 was as follows:
For the Fiscal Year Ended
(in thousands, except percentages)August 1, 2026
U.S. Federal Statutory Tax Rate$(2,576)21.0 %
State and Local Income Taxes, Net of Federal Income Tax Effect (1)
(100)0.8 %
Tax Credits:
Research and development tax credits(9,468)77.2 %
Changes in Valuation Allowances3,258 (26.6)%
Nontaxable or Nondeductible Items:
Share-based Compensation(961)7.8 %
Excess Officer's Compensation5,511 (44.9)%
Meals and Entertainment512 (4.2)%
Charitable Contributions599 (4.9)%
Other24 (0.2)%
Changes in Unrecognized Tax Benefits3,487 (28.4)%
Other Adjustments52 (0.4)%
Effective Tax Rate338(2.8)%
(1) State taxes in California made up the majority (greater than 50 percent) of the tax effect in this category.

The reconciliation of our effective tax rate to the statutory federal rate was as follows:
For the Fiscal Year Ended
(in thousands, except percentages)August 2, 2025August 3, 2024
Taxes at federal statutory rate$(5,885)21.0 %$(25,315)21.0 %
State taxes, net of federal effect456 (1.6)%(11)— %
Stock-based compensation1,310 (4.7)%8,376 (6.9)%
Change in valuation allowance4,579 (16.3)%22,179 (18.4)%
R&D credits(975)3.5 %(6,032)5.0 %
Uncertain tax positions— — %(1,545)1.3 %
Return to provision(52)0.2 %(207)0.2 %
Excess officer’s compensation1,032 (3.7)%376 (0.3)%
Meals and entertainment (2)
321 (1.1)%380 (0.3)%
Other35 (0.1)%138 (0.1)%
Effective tax rate (1)
$821 (2.9)%$(1,661)1.4 %
(1) Due to rounding, percentages in this table may not sum to totals.
Schedule of Components of Net Deferred Tax Assets
The components of net deferred tax assets were as follows:
(in thousands)August 1, 2026August 2, 2025August 3, 2024
Deferred tax assets:
Inventory reserve and UNICAP$13,564 $14,612 $11,816 
Accruals and reserves2,636 2,165 1,937 
Research and development credits55,222 48,304 48,424 
Capitalized research and development costs36,153 48,602 40,094 
Stock-based compensation5,334 6,724 7,892 
Deferred revenue1,103 1,148 1,661 
Operating lease liability17,880 24,473 30,889 
Net operating losses68,158 53,880 59,938 
Other994 1,719 2,071 
Gross deferred tax assets$201,044 $201,627 $204,722 
Less: valuation allowance(182,275)(179,564)(176,732)
Deferred tax assets, net of valuation allowance$18,769 $22,063 $27,990 
Deferred tax liabilities:
Depreciation and amortization$(8,150)$(8,281)$(10,747)
Operating lease right-of-use assets(10,265)(13,400)(16,767)
Other(354)(382)(476)
Gross deferred tax liabilities$(18,769)$(22,063)$(27,990)
Net deferred tax assets, net of valuation allowance$— $— $— 
Schedule of Cash Paid for Income Taxes, Net of Refunds Received
Cash paid for income taxes, net of refunds received, by jurisdiction pursuant to the disclosure requirements of ASU 2023-09 for the year ended August 1, 2026 was as follows:
For the Fiscal Year Ended
(in thousands)August 1, 2026
Federal$100 
State:
Texas179 
New York27 
Other88 
Cash paid for income taxes, net of refunds received394 
Schedule of Reconciliation of Unrecognized Tax Benefits
A reconciliation of our unrecognized tax benefits is as follows:
(in thousands)August 1, 2026August 2, 2025August 3, 2024
Balance at the beginning of the year$33,172 $32,816 $29,916 
Lapse of statute of limitations— — (377)
Increase related to prior period tax positions1,700 33 2,572 
Decrease related to prior period tax positions— (18)(1,927)
Increase related to current year tax positions1,787 341 2,632 
Balance at the end of the year
$36,659 $33,172 $32,816 
Schedule of Valuation Allowance
A reconciliation of our valuation allowance was as follows:
(in thousands)August 1, 2026August 2, 2025
Valuation allowance at the beginning of the year$179,564 $176,732 
Valuation allowance charged to expense4,518 5,632 
Valuation allowance credited to other accounts(1,807)(2,800)
Valuation allowance at the end of the year$182,275 $179,564