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Income Taxes (Tables)
12 Months Ended
May 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) Before Income Tax, Domestic and Foreign

Income (loss) before income taxes included the following components (in thousands):

 

 

 

Fiscal Year Ended

 

 

 

May 30, 2026

 

 

May 31, 2025

 

 

June 1, 2024

 

United States

 

$

3,569

 

 

$

(5,912

)

 

$

(3,274

)

Foreign

 

 

3,909

 

 

 

4,381

 

 

 

3,431

 

Income (loss) before income taxes

 

$

7,478

 

 

$

(1,531

)

 

$

157

 

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for fiscal 2026, fiscal 2025 and fiscal 2024 consisted of the following (in thousands):

 

 

 

Fiscal Year Ended

 

 

 

May 30, 2026

 

 

May 31, 2025

 

 

June 1, 2024

 

Current:

 

 

 

 

 

 

 

 

 

Federal

 

$

(741

)

 

$

1,858

 

 

$

(2,020

)

State

 

 

180

 

 

 

45

 

 

 

(141

)

Foreign

 

 

596

 

 

 

966

 

 

 

1,235

 

Total current

 

 

35

 

 

 

2,869

 

 

 

(926

)

Deferred:

 

 

 

 

 

 

 

 

 

Federal

 

 

1,557

 

 

 

(3,764

)

 

 

(26

)

State

 

 

(316

)

 

 

595

 

 

 

1,007

 

Foreign

 

 

(181

)

 

 

(88

)

 

 

41

 

Total deferred

 

 

1,060

 

 

 

(3,257

)

 

 

1,022

 

Income tax provision (benefit)

 

$

1,095

 

 

$

(388

)

 

$

96

 

 

Schedule of Effective Income Tax Rate Reconciliation

The fiscal 2026 provision for income taxes results in effective rates that differ from the statutory rates. The following is a reconciliation of the income tax expense computed at the statutory federal income tax rate to the total tax expense computed at the effective tax rate (in thousands, except percentages):

 

 

 

Fiscal Year Ended

 

 

 

May 30, 2026

 

 

 

Amount

 

 

Percentage

 

US federal statutory tax rate

 

$

1,573

 

 

 

21.0

%

State and local income taxes, net of federal benefit

 

 

(174

)

 

 

-2.3

%

Foreign tax effects:

 

 

 

 

 

 

    Mexico

 

 

(97

)

 

 

-1.3

%

    Israel - return to provision adjustment

 

 

(116

)

 

 

-1.5

%

    Israel - other

 

 

22

 

 

 

0.3

%

    Other

 

 

50

 

 

 

0.7

%

Effect of cross-border tax laws:

 

 

 

 

 

 

Global intangible low-taxed income (GILTI)

 

 

576

 

 

 

7.7

%

Subpart F income

 

 

185

 

 

 

2.5

%

Section 78 gross-up on foreign exclusions

 

 

214

 

 

 

2.9

%

Section 250 deductions on GILTI

 

 

(368

)

 

 

-4.9

%

Foreign tax credit

 

 

(409

)

 

 

-5.5

%

Tax credits:

 

 

 

 

 

 

Research and development tax credits

 

 

(329

)

 

 

-4.4

%

Non-taxable or non-deductible items:

 

 

 

 

 

 

Restricted stock

 

 

(165

)

 

 

-2.2

%

Non-deductible U.S.compensation

 

 

109

 

 

 

1.5

%

Other

 

 

64

 

 

 

0.9

%

Changes in unrecognized tax benefits

 

 

58

 

 

 

0.8

%

Other adjustments

 

 

(98

)

 

 

-1.6

%

Total income tax provision and effective tax rate

 

$

1,095

 

 

 

14.6

%

 

As previously disclosed for fiscal 2025 and fiscal 2024, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows:

 

 

 

Fiscal Year Ended

 

 

 

May 31, 2025

 

 

June 1, 2024

 

Federal statutory rate

 

 

21.0

%

 

 

21.0

%

Effect of:

 

 

 

 

 

 

State income taxes, net of federal tax benefit

 

 

16.8

 

 

 

(90.1

)

Foreign income inclusion

 

 

(3.2

)

 

 

149.0

 

Foreign taxes at other rates

 

 

(10.8

)

 

 

189.0

 

Permanent tax differences

 

 

(3.0

)

 

 

(93.0

)

Tax reserves

 

 

(18.2

)

 

 

63.7

 

Change in valuation allowance for deferred tax assets

 

 

(40.3

)

 

 

548.6

 

Foreign return to provision adjustments

 

 

13.5

 

 

 

179.9

 

Restricted stock

 

 

3.3

 

 

 

(33.6

)

Research and development credit

 

 

28.9

 

 

 

(302.1

)

U.S. return to provision adjustments

 

 

18.1

 

 

 

(648.6

)

Other

 

 

(0.7

)

 

 

77.6

 

Effective tax rate

 

 

25.4

%

 

 

61.4

%

 

Schedule of Deferred Tax Assets and Liabilities Our deferred tax assets and liabilities reflect operations as of May 30, 2026 and May 31, 2025. Significant components were as follows (in thousands):

 

 

 

Fiscal Year Ended

 

 

 

May 30, 2026

 

 

May 31, 2025

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards - foreign and domestic

 

$

2,127

 

 

$

1,969

 

Inventory reserves

 

 

3,140

 

 

 

3,795

 

Foreign capital loss

 

 

1,371

 

 

 

1,063

 

Capitalized research and development

 

 

2,659

 

 

 

3,643

 

Share-based compensation

 

 

1,854

 

 

 

1,435

 

Other

 

 

1,831

 

 

 

1,550

 

Subtotal

 

 

12,982

 

 

 

13,455

 

Valuation allowance - foreign and domestic

 

 

(2,769

)

 

 

(2,804

)

Net deferred tax assets after valuation allowance

 

 

10,213

 

 

 

10,651

 

Deferred tax liabilities:

 

 

 

 

 

 

Accelerated depreciation

 

 

(1,133

)

 

 

(1,120

)

Other

 

 

(911

)

 

 

(868

)

Subtotal

 

 

(2,044

)

 

 

(1,988

)

Deferred income tax assets, net

 

$

8,169

 

 

$

8,663

 

Schedule of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):

 

 

Fiscal Year Ended

 

 

 

May 30, 2026

 

 

May 31, 2025

 

 

June 1, 2024

 

Unrecognized tax benefits, beginning of period

 

$

335

 

 

$

93

 

 

$

 

Tax positions taken during the year

 

 

36

 

 

 

242

 

 

 

242

 

Unrecognized tax benefits, end of period

 

$

371

 

 

$

335

 

 

$

93

 

Summary of Cash Paid for Income Taxes (Net of Refunds)

Cash paid for income taxes (net of refunds) for fiscal 2026 consisted of the following (in thousands):

 

 

 

Fiscal Year Ended

 

 

 

May 30, 2026

 

Federal

 

$

 

State:

 

 

 

Other states

 

 

45

 

Total state

 

 

45

 

Foreign:

 

 

 

China

 

 

182

 

Germany

 

 

707

 

Israel

 

 

401

 

United Kingdom

 

 

136

 

Other foreign

 

 

267

 

Total foreign

 

 

1,693

 

Income tax paid

 

$

1,738