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Income Taxes (Tables) | 12 Months Ended
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May 27, 2023
Income Tax Disclosure [Abstract] |
Schedule of Income Before Income Tax, Domestic and Foreign | Income before income taxes included the following components (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2023 |  |  | May 28, 2022 |  |  | May 29, 2021 |
United States |  | $ | 22,258 |  |  | $ | 12,299 |  |  | $ | 1,077 |
Foreign |  |  | 2,772 |  |  |  | 3,460 |  |  |  | 1,231 |
Income before income taxes |  | $ | 25,030 |  |  | $ | 15,759 |  |  | $ | 2,308 |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for fiscal 2023, fiscal 2022 and fiscal 2021 consisted of the following (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2023 |  |  | May 28, 2022 |  |  | May 29, 2021 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 954 |  |  | $ | (4,213 | ) |  | $ | 108 |
State |  |  | 1,212 |  |  |  | 950 |  |  |  | — |
Foreign |  |  | 547 |  |  |  | 1,038 |  |  |  | 665 |
Total current |  |  | 2,713 |  |  |  | (2,225 | ) |  |  | 773 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | — |  |  |  | — |  |  |  | — |
Foreign |  |  | (16 | ) |  |  | 57 |  |  |  | (120 | )
Total deferred |  |  | (16 | ) |  |  | 57 |  |  |  | (120 | )
Income tax provision (benefit) |  | $ | 2,697 |  |  | $ | (2,168 | ) |  | $ | 653 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between income taxes at the U.S. federal statutory income tax rate of 21.0% for fiscal 2023, fiscal 2022 and fiscal 2021 and the reported income tax provision for fiscal 2023, fiscal 2022 and fiscal 2021, are summarized as follows:
|  | Fiscal Year Ended |
|  | May 27, 2023 |  |  | May 28, 2022 |  |  | May 29, 2021 |
Federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Effect of: |  |  |  |  |  |  |  |  |
State income taxes, net of federal tax benefit |  |  | 3.6 |  |  |  | 5.5 |  |  |  | 21.6 |
Foreign taxes at other rates |  |  | 0.9 |  |  |  | 4.5 |  |  |  | 10.5 |
Permanent tax differences |  |  | 0.1 |  |  |  | (2.0 | ) |  |  | 18.3 |
Change in valuation allowance for deferred tax assets |  |  | (7.0 | ) |  |  | (43.1 | ) |  |  | (49.7 | )
Return to provision adjustments |  |  | (0.7 | ) |  |  | 0.2 |  |  |  | 2.2 |
R&D credit |  |  | (3.7 | ) |  |  | — |  |  |  | — |
Other |  |  | (3.4 | ) |  |  | 0.2 |  |  |  | 4.4 |
Effective tax rate |  |  | 10.8 | % |  |  | (13.7 | )% |  |  | 28.3 | %
Schedule of Deferred Tax Assets and Liabilities |
|  | Fiscal Year Ended |
|  | May 27, 2023 |  |  | May 28, 2022 |
Deferred tax assets: |  |  |  |  |  |
NOL carryforwards - foreign and domestic |  | $ | 2,324 |  |  | $ | 2,796 |
Inventory valuations |  |  | 1,506 |  |  |  | 1,571 |
Goodwill |  |  | 1,056 |  |  |  | 1,182 |
Foreign tax credits |  |  | 26 |  |  |  | 1,782 |
Severance reserve |  |  | 131 |  |  |  | 183 |
Foreign capital loss |  |  | 944 |  |  |  | 1,224 |
Section 174 capitalization |  |  | 1,215 |  |  |  | — |
Lease liability |  |  | 381 |  |  |  | 520 |
Other |  |  | 1,067 |  |  |  | 1,480 |
Subtotal |  |  | 8,650 |  |  |  | 10,738 |
Valuation allowance - foreign and domestic |  |  | (1,375 | ) |  |  | (3,474 | )
Net deferred tax assets after valuation allowance |  |  | 7,275 |  |  |  | 7,264 |
Deferred tax liabilities: |  |  |  |  |  |
Accelerated depreciation |  |  | (2,441 | ) |  |  | (2,406 | )
Tax on undistributed earnings |  |  | (24 | ) |  |  | (24 | )
ROU assets |  |  | (381 | ) |  |  | (520 | )
Other |  |  | (1 | ) |  |  | (1 | )
Subtotal |  |  | (2,847 | ) |  |  | (2,951 | )
Net deferred tax assets |  | $ | 4,428 |  |  | $ | 4,313 |
Supplemental disclosure of net deferred tax assets, excluding valuation allowance: |  |  |  |  |  |
Domestic |  | $ | 4,517 |  |  | $ | 6,017 |
Foreign |  |  | 1,285 |  |  |  | 1,770 |
Total |  | $ | 5,802 |  |  | $ | 7,787 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
|  | Fiscal Year Ended |
|  | May 27, 2023 |  |  | May 28, 2022 |
Unrecognized tax benefits, beginning of period |  | $ | 125 |  |  | $ | 142 |
Currency translation adjustment |  |  | (4 | ) |  |  | (17 | )
Release German reserve |  |  | (121 | ) |  |  | — |
Unrecognized tax benefits, end of period |  | $ | — |  |  | $ | 125 |

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