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Income Taxes (Tables) | 12 Months Ended
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May 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of (Loss) Income Before Income Tax, Domestic and Foreign | (Loss) income before income taxes included the following components (in thousands):
|  | Fiscal Year Ended |
|  | May 31, 2025 |  |  | June 1, 2024 |  |  | May 27, 2023 |
United States |  | $ | (5,912 | ) |  | $ | (3,274 | ) |  | $ | 22,258 |
Foreign |  |  | 4,381 |  |  |  | 3,431 |  |  |  | 2,772 |
(Loss) income before income taxes |  | $ | (1,531 | ) |  | $ | 157 |  |  | $ | 25,030 |
Schedule of Components of Income Tax Expense (Benefit) | The (benefit) provision for income taxes for fiscal 2025, fiscal 2024 and fiscal 2023 consisted of the following (in thousands):
|  | Fiscal Year Ended |
|  | May 31, 2025 |  |  | June 1, 2024 |  |  | May 27, 2023 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | 1,858 |  |  | $ | (2,020 | ) |  | $ | 954 |
State |  |  | 45 |  |  |  | (141 | ) |  |  | 1,212 |
Foreign |  |  | 966 |  |  |  | 1,235 |  |  |  | 547 |
Total current |  |  | 2,869 |  |  |  | (926 | ) |  |  | 2,713 |
Deferred: |  |  |  |  |  |  |  |  |
Federal |  |  | (3,764 | ) |  |  | (26 | ) |  |  | — |
State |  |  | 595 |  |  |  | 1,007 |  |  |  | — |
Foreign |  |  | (88 | ) |  |  | 41 |  |  |  | (16 | )
Total deferred |  |  | (3,257 | ) |  |  | 1,022 |  |  |  | (16 | )
Income tax (benefit) provision |  | $ | (388 | ) |  | $ | 96 |  |  | $ | 2,697 |
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 2025, fiscal 2024 and fiscal 2023 and the reported income tax provision for fiscal 2025, fiscal 2024 and fiscal 2023, are summarized as follows:
|  | Fiscal Year Ended |
|  | May 31, 2025 |  |  | June 1, 2024 |  |  | May 27, 2023 |
Federal statutory rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
Effect of: |  |  |  |  |  |  |  |  |
State income taxes, net of federal tax benefit |  |  | 16.8 |  |  |  | (90.1 | ) |  |  | 3.6 |
Foreign income inclusion |  |  | (3.2 | ) |  |  | 149.0 |  |  |  | 0.5 |
Foreign taxes at other rates |  |  | (10.8 | ) |  |  | 189.0 |  |  |  | 0.4 |
Permanent tax differences |  |  | (3.0 | ) |  |  | (93.0 | ) |  |  | 0.1 |
Tax reserves |  |  | (18.2 | ) |  |  | 63.7 |  |  |  | 0.1 |
Change in valuation allowance for deferred tax assets |  |  | (40.3 | ) |  |  | 548.6 |  |  |  | (7.0 | )
Foreign return to provision adjustments |  |  | 13.5 |  |  |  | 179.9 |  |  |  | (0.7 | )
Restricted stock |  |  | 3.3 |  |  |  | (33.6 | ) |  |  | (3.1 | )
Research and development credit |  |  | 28.9 |  |  |  | (302.1 | ) |  |  | (3.7 | )
U.S. return to provision adjustments |  |  | 18.1 |  |  |  | (648.6 | ) |  |  | — |
Other |  |  | (0.7 | ) |  |  | 77.6 |  |  |  | (0.4 | )
Effective tax rate |  |  | 25.4 | % |  |  | 61.4 | % |  |  | 10.8 | %
Schedule of Deferred Tax Assets and Liabilities |
|  | Fiscal Year Ended |
|  | May 31, 2025 |  |  | June 1, 2024 |
Deferred tax assets: |  |  |  |  |  |
Net operating loss carryforwards - foreign and domestic |  | $ | 1,969 |  |  | $ | 1,940 |
Inventory valuations |  |  | 1,883 |  |  |  | 1,475 |
Goodwill |  |  | 107 |  |  |  | 895 |
Research and Development tax credits |  |  | 125 |  |  |  | — |
Deferred revenue |  |  | 319 |  |  |  | — |
Severance reserve |  |  | 154 |  |  |  | 131 |
Foreign capital loss |  |  | 1,063 |  |  |  | 949 |
Section 174 capitalization |  |  | 3,643 |  |  |  | 2,305 |
Other |  |  | 3,325 |  |  |  | 1,926 |
Subtotal |  |  | 12,588 |  |  |  | 9,621 |
Valuation allowance - foreign and domestic |  |  | (2,804 | ) |  |  | (2,116 | )
Net deferred tax assets after valuation allowance |  |  | 9,784 |  |  |  | 7,505 |
Deferred tax liabilities: |  |  |  |  |  |
Accelerated depreciation |  |  | (1,120 | ) |  |  | (2,071 | )
Tax on undistributed earnings |  |  | — |  |  |  | (24 | )
Other |  |  | (1 | ) |  |  | — |
Subtotal |  |  | (1,121 | ) |  |  | (2,095 | )
Net deferred tax assets |  | $ | 8,663 |  |  | $ | 5,410 |
Supplemental disclosure of net deferred tax assets, excluding valuation allowance: |  |  |  |  |  |
Domestic |  | $ | 10,205 |  |  | $ | 6,405 |
Foreign |  |  | 1,263 |  |  |  | 1,121 |
Total |  | $ | 11,468 |  |  | $ | 7,526 |
Schedule of Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits (in thousands):
|  | Fiscal Year Ended |
|  | May 31, 2025 |  |  | June 1, 2024 |
Unrecognized tax benefits, beginning of period |  | $ | 93 |  |  | $ | — |
Reserve on R&D credits |  |  | 242 |  |  |  | 93 |
Unrecognized tax benefits, end of period |  | $ | 335 |  |  | $ | 93 |

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