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Income Taxes (Tables) | 12 Months Ended
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May 28, 2023
Income Tax Disclosure [Abstract] |
Schedule of Benefits and Provisions for Income Taxes | The (benefit) provision for income taxes from continuing operations consisted of the following:
(in thousands) | Year Ended
| May 28, 2023 |  | May 29, 2022 |  | May 30, 2021
|  |  | As Restated |  | As Restated
Current: |  |  |  |  |
Federal | $ | (1) |  |  | $ | — |  |  | $ | (38) |
State | 55 |  |  | 23 |  |  | 74 |
Foreign | — |  |  | 356 |  |  | 56 |
Total | 54 |  |  | 379 |  |  | 92 |
Deferred: |  |  |  |  |
Federal | 234 |  |  | (4,936) |  |  | (5,983) |
State | 20 |  |  | (654) |  |  | (459) |
Total | 254 |  |  | (5,590) |  |  | (6,442) |
Income tax provision (benefit) | $ | 308 |  |  | $ | (5,211) |  |  | $ | (6,350) |
Schedule of Actual Provisions for Income Taxes | The actual (benefit) provision for income taxes from continuing operations differs from the statutory U.S. federal income tax rate as follows:
(in thousands) | Year Ended
| May 28, 2023 |  | May 29, 2022 |  | May 30, 2021
|  |  | As Restated |  | As Restated
Tax at U.S. statutory rate (1) | $ | (13,932) |  |  | $ | (4,344) |  |  | $ | (6,256) |
State income taxes, net of federal benefit | (1,805) |  |  | (638) |  |  | (830) |
Change in valuation allowance | 19,461 |  |  | (1,065) |  |  | 2,597 |
Tax credit carryforwards | (611) |  |  | (436) |  |  | (606) |
Other compensation-related activity | 283 |  |  | 234 |  |  | 249 |
Impairment of goodwill | — |  |  | 2,347 |  |  | — |
Foreign rate differential | (2,749) |  |  | (496) |  |  | (1,414) |
Other | (339) |  |  | (813) |  |  | (90) |
Income tax provision (benefit) | $ | 308 |  |  | $ | (5,211) |  |  | $ | (6,350) |
(1) Statutory rate was 21.0% for fiscal year 2023, 2022 and 2021.
Schedule of Deferred Tax Assets and Liabilities | Significant components of deferred tax assets and liabilities reported in the accompanying Consolidated Balance Sheets consisted of the following:
(in thousands) | Year Ended
| May 28, 2023 |  | May 29, 2022
|  |  | As Restated
Deferred tax assets: |  |  |
Accruals and reserves | $ | 1,798 |  |  | $ | 1,753 |
Net operating loss carryforwards | 44,618 |  |  | 28,957 |
Stock-based compensation | 984 |  |  | 880 |
Research and AMT credit carryforwards | 6,269 |  |  | 5,611 |
Lease liability | 1,843 |  |  | 2,874 |
Limitations on business interest expense | 8,614 |  |  | 3,504 |
Goodwill and other indefinite life intangibles | — |  |  | 2,745 |
Other | 434 |  |  | 752 |
Gross deferred tax assets | 64,560 |  |  | 47,076 |
Valuation allowance | (52,510) |  |  | (36,531) |
Net deferred tax assets | 12,050 |  |  | 10,545 |
Deferred tax liabilities: |  |  |
Depreciation and amortization | (10,526) |  |  | (8,594) |
Goodwill and other indefinite life intangibles | (877) |  |  | — |
Right of use asset | (1,027) |  |  | (2,077) |
Deferred tax liabilities | (12,430) |  |  | (10,671) |
Net deferred tax liabilities | $ | (380) |  |  | $ | (126) |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
(in thousands) | Year Ended
| May 28, 2023 |  | May 29, 2022 |  | May 30, 2021
|  |  | As Restated |  | As Restated
Unrecognized tax benefits – beginning of the period | $ | 1,041 |  |  | $ | 958 |  |  | $ | 836 |
Gross increases – prior-period tax positions | 16 |  |  | — |  |  | — |
Gross increases – current-period tax positions | 116 |  |  | 83 |  |  | 122 |
Unrecognized tax benefits – end of the period | $ | 1,173 |  |  | $ | 1,041 |  |  | $ | 958 |

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