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Income Taxes (Tables)

12 Months Ended

May 26, 2024

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 26, 2024						May 28, 2023						May 29, 2022
Current:
Federal			$	(10)					$	(1)					$	—
State			37						55						23
Foreign			—						—						356
Total			27						54						379
Deferred:
Federal			173						234						(4,936)
State			(17)						20						(654)
Total			156						254						(5,590)
Income tax provision (benefit)			$	183					$	308					$	(5,211)

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 26, 2024						May 28, 2023						May 29, 2022
Tax at U.S. statutory rate (1)			$	1,999					$	(13,932)					$	(4,344)
State income taxes, net of federal benefit			52						(1,805)						(638)
Change in valuation allowance			(5,773)						19,461						(1,065)
Tax credit carryforwards			(518)						(611)						(436)
Other compensation-related activity			418						283						234
Impairment of goodwill			—						—						2,347
Foreign rate differential			—						(2,749)						(496)
Net operating loss write-off from final state return filings			711						—						—
Provision to return			3,136						—						—
Other			158						(339)						(813)
Income tax provision (benefit)			$	183					$	308					$	(5,211)

(1) Statutory rate was 21.0% for all fiscal years presented.

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 26, 2024						May 28, 2023
Deferred tax assets:
Net operating loss carryforwards			$	40,806					$	44,618
Limitations on business interest expense			11,783						8,614
Research credit carryforwards			6,700						6,269
Amortization of research development expenses			2,916						1,805
Lease liability			1,218						1,843
Other			2,492						3,216
Gross deferred tax assets			65,915						66,365
Valuation allowance			(46,173)						(52,510)
Net deferred tax assets			19,742						13,855
Deferred tax liabilities:
Depreciation and amortization			(11,809)						(13,208)
Debt Derivative/Debt Discount			(7,911)						—
Right-of-use asset			(565)						(1,027)
Deferred tax liabilities			(20,285)						(14,235)
Net deferred tax liabilities			$	(543)					$	(380)

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 26, 2024						May 28, 2023						May 29, 2022
Unrecognized tax benefits – beginning of the period			$	1,173					$	1,041					$	958
Gross increases – prior-period tax positions			—						16						—
Gross increases – current-period tax positions			98						116						83
Unrecognized tax benefits – end of the period			$	1,271					$	1,173					$	1,041

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

+ References

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-Topic 740
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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of the change in unrecognized tax benefits.

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