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Income Taxes (Tables)

12 Months Ended

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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