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Income Taxes (Tables)

12 Months Ended

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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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.

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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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