XML 43 R21.htm IDEA: XBRL DOCUMENT
v3.25.2

Income taxes | 12 Months Ended
--- | ---
May 25, 2025
Income Tax Disclosure [Abstract] |
Income taxes | Income taxes All of the Company’s income or loss from continuing operations before income tax is derived from its domestic operating subsidiaries. The following table presents the components of the provision for income taxes from continuing operations:
| Year ended
| May 25, 2025 |  | May 26, 2024
Current: |  |  |
Federal | $ | 14 |  |  | $ | (10) |
State | 148 |  |  | 37 |
Total | 162 |  |  | 27 |
Deferred: |  |  |
Federal | (124) |  |  | 173 |
State | 5 |  |  | (17) |
Total | (119) |  |  | 156 |
Income tax provision | $ | 43 |  |  | $ | 183 |
Income tax expense differs from the amount calculated using the 21% statutory U.S. federal income tax rate as follows:
| Year ended
| May 25, 2025 |  | May 26, 2024
Tax at U.S. statutory rate | $ | (8,122) |  |  | $ | 1,998 |
State income taxes, net of federal benefit | (197) |  |  | 52 |
Compensation-related activity | 799 |  |  | 418 |
Return to provision adjustments | 213 |  |  | 3,136 |
Deferred tax write-offs | (748) |  |  | 711 |
Tax credit carryforwards | (539) |  |  | (518) |
Other | 96 |  |  | 158 |
Change in valuation allowance | 8,541 |  |  | (5,772) |
Income tax expense | $ | 43 |  |  | $ | 183 |
The following table presents the components of deferred tax assets and liabilities reported in the balance sheets:
| Year ended
| May 25, 2025 |  | May 26, 2024
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 40,677 |  |  | $ | 40,806 |
Limitations on business interest expense | 15,573 |  |  | 11,783 |
Research credit carryforwards | 7,116 |  |  | 6,700 |
Capitalized research and development | 3,767 |  |  | 2,916 |
Other | 6,338 |  |  | 4,609 |
Deferred tax assets before valuation allowance | 73,471 |  |  | 66,814 |
Less: valuation allowance | (54,714) |  |  | (46,173) |
Deferred tax assets | 18,757 |  |  | 20,641 |
Deferred tax liabilities: |  |  |
Depreciation | (10,735) |  |  | (11,809) |
Debt derivative liability and related debt discount | (7,026) |  |  | (7,911) |
Other | (1,419) |  |  | (1,464) |
Deferred tax liabilities | (19,180) |  |  | (21,184) |
Net deferred tax liability | $ | (423) |  |  | $ | (543) |
The Company continues to maintain a full valuation allowance against its U.S. and state deferred tax assets based on available positive and negative evidence, including historical losses during the most recent three-year period. The Company will re-evaluate the need for a valuation allowance in future periods based on its operating results as a standalone entity. The following table presents the amounts and expiration dates of net operating loss and tax credit carryforwards as of May 25, 2025:
| Net operating loss carryforwards |  | Research and development credits
| Amount |  | Begin to expire |  | Amount |  | Life |  | Begin to expire
Federal | $ | 172,048 |  |  | 2028 |  | $ | 3,858 |  |  | 20 years |  | 2033
California | 52,239 |  |  | 2025 |  | 2,058 |  |  | unlimited |  | none
All other states | 16,512 |  |  | 2025 |  | 2,024 |  |  | 15 years |  | 2029
The Federal net operating loss carryforwards presented in the table above include $164,770 with no expiration date. The Company estimated utilization of $2,051 and $3,907 of Federal net operating loss carryforwards and no material state operating loss carryforwards for the fiscal years ended May 25, 2025 and May 26, 2024, respectively. As of May 25, 2025, the total amount of net unrecognized tax benefits is $1,323, of which $1,186, if recognized, would affect the effective tax rate. No interest and penalties have been accrued as of May 25, 2025. The Company has not had, and does not expect to have, any significant increase or decrease to its unrecognized tax benefits within the next twelve months. Due to tax attribute carryforwards, the Company is subject to examination for tax years 2012 forward for U.S. tax purposes. The Company was also subject to examination in various state jurisdictions for tax years 2012 forward. New tax legislation was passed subsequent to year-end, see note 18 for additional information.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration