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Income Taxes (Tables) | 12 Months Ended
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May 31, 2023
Income Tax Disclosure [Abstract] |
Components of income (loss) before income tax provision | The components of loss before income tax benefit are as follows:
| Year ended May 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Loss before tax expense: |  |  |  |  |
U.S. | $ | (45,240) |  |  | $ | (28,495) |  |  | $ | (31,595) |
Non-U.S. | (9,197) |  |  | (1,454) |  |  | (4,457) |
| $ | (54,437) |  |  | $ | (29,949) |  |  | $ | (36,052) |
Summary of Income tax (benefit) provision analyzed by category | Income tax benefit is comprised of the following:
| Year ended May 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Current |  |  |  |  |
U.S. | 129 |  |  | 120 |  |  | 100 |
Non U.S. | 187 |  |  | 186 |  |  | 201 |
| 316 |  |  | 306 |  |  | 301 |
Deferred |  |  |  |  |
U.S. | (207) |  |  | (3,415) |  |  | (3,375) |
Non U.S. | (2,104) |  |  | (293) |  |  | (1,430) |
| (2,311) |  |  | (3,708) |  |  | (4,805) |
Income tax benefit | $ | (1,995) |  |  | $ | (3,402) |  |  | $ | (4,504) |
Summary of deferred tax asset and liabilities | Temporary differences that give rise to deferred tax assets and liabilities are summarized as follows:
(in thousands) | May 31, 2023 |  | May 31, 2022
Deferred tax assets |  |  |
Net operating loss carryforward | $ | 40,460 |  |  | $ | 40,759 |
Stock-based compensation | 4,263 |  |  | 4,617 |
Federal and state R&D tax credit carryforward | 7,311 |  |  | 6,320 |
Inventories | 724 |  |  | 853 |
Expenses incurred not currently deductible | 6,986 |  |  | 1,914 |
Accrued liabilities | 78 |  |  | 72 |
Gross deferred tax asset | 59,822 |  |  | 54,535 |
Deferred tax liabilities |  |  |
Depreciation and amortization | 46,828 |  |  | 50,320 |
| 46,828 |  |  | 50,320 |
Valuation allowance | (25,759) |  |  | (20,203) |
Net deferred tax liability | $ | (12,765) |  |  | $ | (15,988) |
Summary of Income tax rate reconciliation | The Company's consolidated income tax expense has differed from the amount that would be provided by applying the U.S. Federal statutory income tax rate to the Company's income before income taxes for the following reasons:
| Year ended May 31,
(in thousands) | 2023 |  | 2022 |  | 2021
Income tax benefit at federal statutory tax rate of 21.0%, 21.0% and 21.0%, respectively | $ | (11,432) |  |  | $ | (6,289) |  |  | $ | (7,571) |
State income taxes, net of Federal tax benefit | (353) |  |  | (536) |  |  | (462) |
Impact of Non-U.S. operations | 14 |  |  | 199 |  |  | (293) |
Research and development tax credit | (991) |  |  | 395 |  |  | (1,303) |
Meals and entertainment | 258 |  |  | 179 |  |  | 116 |
Goodwill impairment | 3,055 |  |  | — |  |  | — |
Non-deductible executive compensation | 366 |  |  | 686 |  |  | 107 |
Change in valuation allowance | 5,556 |  |  | 3,168 |  |  | 3,921 |
Stock based compensation | 505 |  |  | (1,616) |  |  | 526 |
Other | 1,027 |  |  | 412 |  |  | 455 |
Income tax benefit | $ | (1,995) |  |  | $ | (3,402) |  |  | $ | (4,504) |
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) | 2023 |  | 2022 |  | 2021
Unrecognized tax benefits balance at June 1 | $ | 464 |  |  | $ | 464 |  |  | $ | 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 | — |  |  | — |  |  | — |
Unrecognized tax benefits balance at May 31 | $ | 464 |  |  | $ | 464 |  |  | $ | 464 |

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