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v3.25.2

Income Taxes (Tables) | 12 Months Ended
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Apr. 27, 2025
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Expense Attributable to (Loss) Income from Operations | Income tax expense consists of:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
current |  |  |  |  |  |  |  |  |
federal |  | $ | — |  |  |  | — |  |  |  | — |
state |  |  | 4 |  |  |  | — |  |  |  | 1 |
foreign |  |  | 2,199 |  |  |  | 2,584 |  |  |  | 3,053 |
uncertain income tax positions |  |  | (468 | ) |  |  | 78 |  |  |  | 78 |
|  |  | 1,735 |  |  |  | 2,662 |  |  |  | 3,132 |
deferred |  |  |  |  |  |  |  |  |
federal |  |  | (161 | ) |  |  | 1,342 |  |  |  | (1,591 | )
state |  |  | (9 | ) |  |  | 63 |  |  |  | (66 | )
undistributed earnings – foreign subsidiaries |  |  | 316 |  |  |  | 627 |  |  |  | 628 |
U.S. federal & state carryforwards and credits |  |  | (4,130 | ) |  |  | (4,734 | ) |  |  | (5,162 | )
foreign |  |  | (1,658 | ) |  |  | (240 | ) |  |  | (629 | )
valuation allowance |  |  | 4,299 |  |  |  | 3,329 |  |  |  | 6,818 |
|  |  | (1,343 | ) |  |  | 387 |  |  |  | (2 | )
|  | $ | 392 |  |  |  | 3,049 |  |  |  | 3,130 |
Schedule of (Loss) Income before Income Taxes Related to Foreign and U.S. Operations | Loss before income taxes related to our foreign and U.S. operations consists of:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
Foreign |  |  |  |  |  |  |  |  |
China |  | $ | 6,424 |  |  |  | 9,091 |  |  |  | 7,062 |
Canada |  |  | (5,098 | ) |  |  | 902 |  |  |  | 1,516 |
Haiti |  |  | (1,553 | ) |  |  | (2,127 | ) |  |  | (3,483 | )
Vietnam |  |  | (89 | ) |  |  | (22 | ) |  |  | — |
Total Foreign |  |  | (316 | ) |  |  | 7,844 |  |  |  | 5,095 |
United States |  |  | (18,395 | ) |  |  | (18,614 | ) |  |  | (33,485 | )
|  | $ | (18,711 | ) |  |  | (10,770 | ) |  |  | (28,390 | )
Summary of Differences in Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate | The following schedule summarizes the principal differences between the income tax expense at the federal income tax rate and the effective income tax rate reflected in the consolidated financial statements:
|  | 2025 |  | 2024 |  | 2023 |
U.S. federal income tax rate |  |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
valuation allowance |  |  | (23.0 | ) |  | (30.9 | ) |  | (24.0 | )
foreign tax rate differential |  |  | (1.4 | ) |  | (4.7 | ) |  | (4.0 | )
income tax effects of Chinese foreign exchange gains |  |  | (0.5 | ) |  | (3.6 | ) |  | (0.9 | )
withholding taxes associated with foreign tax jurisdictions |  |  | (1.7 | ) |  | (6.5 | ) |  | (2.4 | )
uncertain income tax positions |  |  | 2.5 |  |  | (0.7 | ) |  | (0.3 | )
U.S. state income taxes |  |  | 1.1 |  |  | 0.8 |  |  | 0.6 |
stock-based compensation |  |  | (0.3 | ) |  | (1.8 | ) |  | (0.3 | )
other (1) |  |  | 0.2 |  |  | (1.9 | ) |  | (0.7 | )
consolidated effective income tax rate (2) (3) |  |  | (2.1 | )% |  | (28.3 | )% |  | (11.0 | )%
(1) “Other” for all periods presented represents miscellaneous adjustments that pertain to U.S. permanent differences such as meals and entertainment, income tax provision to return adjustments, and other and miscellaneous items. (2) Our negative consolidated effective income tax rates during fiscal 2025, 2024, and 2023, were caused by the mix of earnings between our U.S. operations and foreign subsidiaries, as our taxable income stemmed from our operations located in China during fiscal 2025 and both our operations located in China and Canada during fiscal 2024 and 2023, which jurisdictions have higher income tax rates than the U.S. In addition, we applied a full valuation allowance against our U.S. deferred income tax assets during fiscal 2025, 2024, and 2023, respectively. Consequently, an income tax benefit was not recognized for the pre-tax losses associated with our U.S. operations totaling $(18.4) million, $(18.6) million, and $(33.5) million that were incurred during fiscal 2025, 2024, and 2023, respectively. (3) Our negative consolidated effective income tax rates during fiscal 2025, 2024, and 2023 were further caused by pre-tax losses associated with our Haitian operations, which are not subject to income tax. Our Haitian operations are located in an economic zone that permits a 0% income tax rate for the first fifteen years of operations, for which we have seven years remaining. As a result of the 0% income tax rate, an income tax benefit was not recognized for the pre-tax losses associated with our Haitian operations totaling $(1.6) million, $(2.1) million, and $(3.5) million that were incurred during fiscal 2025, 2024, and 2023, respectively.
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities consist of the following:
(dollars in thousands) |  | April 27, 2025 |  |  | April 28, 2024 |
deferred tax assets: |  |  |  |  |  |
accounts receivable |  | $ | 305 |  |  |  | 195 |
inventories |  |  | 2,128 |  |  |  | 1,972 |
compensation |  |  | 1,767 |  |  |  | 2,152 |
liabilities and other |  |  | 56 |  |  |  | 8 |
intangible assets and goodwill |  |  | 455 |  |  |  | 349 |
property, plant, and equipment |  |  | 178 |  |  |  | 171 |
operating lease liability |  |  | 744 |  |  |  | 693 |
foreign income tax credits - U.S. |  |  | 783 |  |  |  | 783 |
loss carryforwards – U.S. |  |  | 22,521 |  |  |  | 18,344 |
valuation allowance - U.S. |  |  | (26,303 | ) |  |  | (22,004 | )
total deferred tax assets |  |  | 2,634 |  |  |  | 2,663 |
deferred tax liabilities: |  |  |  |  |  |
undistributed earnings on foreign subsidiaries |  |  | (5,155 | ) |  |  | (4,840 | )
property, plant and equipment |  |  | (1,010 | ) |  |  | (2,694 | )
right of use assets |  |  | (920 | ) |  |  | (851 | )
other |  |  | (67 | ) |  |  | (139 | )
total deferred tax liabilities |  |  | (7,152 | ) |  |  | (8,524 | )
Net deferred liabilities |  | $ | (4,518 | ) |  |  | (5,861 | )
Summary of Valuation Allowances Against U.S. Net Deferred Income Tax Assets | Based on our assessments as of April 27, 2025, and April 28, 2024, valuation allowances against our U.S. net deferred income tax assets pertain to the following:
(dollars in thousands) |  | April 27, 2025 |  |  | April 28, 2024 |
U.S. federal and state net deferred income tax assets |  | $ | 23,973 |  |  | $ | 19,674 |
U.S. capital loss carryforward |  |  | 2,330 |  |  |  | 2,330 |
|  | $ | 26,303 |  |  | $ | 22,004 |
Summary of Change in Valuation Allowances Against U.S. Net Deferred Income Tax Assets | A summary of the change in the valuation allowances against our U.S. net deferred income tax assets follows:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
beginning balance |  | $ | 22,004 |  |  |  | 18,675 |  |  |  | 11,857 |
change in valuation allowance associated with current year earnings |  |  | 4,162 |  |  |  | 3,318 |  |  |  | 7,252 |
change in estimate during current year (1) |  |  | 137 |  |  |  | 11 |  |  |  | (434 | )
ending balance |  | $ | 26,303 |  |  |  | 22,004 |  |  |  | 18,675 |
(1) Amounts represent changes in our U.S. net deferred income tax asset balances during the current year that pertain to: (i) income tax provision to return adjustments; (ii) changes in estimates of our U.S. effective income tax rate that pertain to U.S. state income tax rates and apportionment percentages, (iii) expiration of certain U.S. state loss carryforwards; and (iv) other immaterial items.
Schedule of Unrecognized Tax Benefit | The following table sets forth the change in the company’s unrecognized income tax benefit:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
beginning balance |  | $ | 1,258 |  |  |  | 1,179 |  |  |  | 1,101 |
increases from prior period tax positions |  |  | 224 |  |  |  | 197 |  |  |  | 175 |
decreases from prior period tax positions |  |  | (76 | ) |  |  | (118 | ) |  |  | (97 | )
lapse of applicable statute of limitations |  |  | (616 | ) |  |  | — |  |  |  | — |
ending balance |  | $ | 790 |  |  |  | 1,258 |  |  |  | 1,179 |
Summary of Income Taxes Paid (Refunded) | The following table sets forth income taxes paid (refunded) by jurisdiction:
(dollars in thousands) |  | 2025 |  |  | 2024 |  |  | 2023 |
United States federal - Transition Tax |  | $ | 665 |  |  | $ | 499 |  |  | $ | 265 |
China - Income Taxes |  |  | 1,785 |  |  |  | 2,317 |  |  |  | 1,831 |
Canada - Income Taxes |  |  | (146 | ) |  |  | 468 |  |  |  | 228 |
|  | $ | 2,304 |  |  | $ | 3,284 |  |  | $ | 2,324 |

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