INCOME TAXES (Tables)

12 Months Ended

Jun. 27, 2026

Schedule of Domestic and Foreign Components of Loss Before Income Taxes

The domestic and foreign components of loss before income taxes were:


	Fiscal Year Ended
	June 27, 2026		June 28, 2025
	(in thousands)
Domestic	$	(26,489)	$	(19,691)
Foreign	1,699		7,730
Loss before income taxes	$	(24,790)	$	(11,961)

Schedule of Components of Income Tax Benefit

Income tax provision (benefit) consists of the following:


	Fiscal Year Ended
	June 27, 2026		June 28, 2025
	(in thousands)
Current income tax provision (benefit):
U.S. Federal	$	(106)	$	(10)
State and local	29		122
Foreign	673		2,841
	$	596	$	2,953
Deferred income tax provision (benefit):
U.S. Federal	$	20,687	$	(5,101)
State and local	838		(445)
Foreign	882		(1,050)
	22,407		(6,596)
Total income tax expense (benefit)	$	23,003	$	(3,643)

Schedule of Effective Tax Rate Reconciliation

Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate to income (loss) before income taxes, as presented in conformity with ASU 2023-09 as follows:


	Fiscal Year Ended
	June 27, 2026
	(in thousands)		%
Tax at Statutory Rate	$	(5,206)	21.0	%
State and local taxes, net of federal effect (1),(2)	968		(3.9)	%
Domestic federal tax effects
Cross-border tax laws
GILTI and other foreign income inclusion	124		(0.5)	%
Withholding tax	(180)		0.7	%
Tax Credits
Research & development tax credits	(942)		3.8	%
Nontaxable and nondeductible items
Equity compensation	33		(0.1)	%
Changes in valuation allowances	27,073		(109.2)	%
Other	(65)		0.3	%
Foreign tax effects
China
Statutory income tax rate differential	(110)		0.4	%
Nondeductible expenses	4		—	%
Changes in valuation allowances	1,033		(4.2)	%
Other	3		—	%
Mexico
Statutory income tax rate differential	83		(0.3)	%
Foreign exchange	90		(0.4)	%
Inflation adjustments	65		(0.3)	%
Fixed assets	126		(0.5)	%
Nondeductible salaries	966		(3.9)	%
Maquiladora deduction	(857)		3.4	%
Other nondeductible expenses	23		(0.1)	%
Vietnam
Tax incentives	(177)		0.7	%
Statutory income tax rate differential	(35)		0.2	%
Foreign exchange	(16)		0.1	%
Income tax expense	$	23,003	(92.8)	%

(1)The states that contribute to the majority (greater than 50%) of the tax effect in this category include Mississippi, Minnesota, and Arkansas for fiscal year 2026.

(2)The State and local taxes, net of federal effect, category includes $1.3 million, or (5.4)%, related to changes in valuation allowances.

Income tax expense differed from the amounts computed by applying the U.S. Federal statutory income tax rate to loss before income taxes, as presented prior to the adoption of ASU 2023-09 as follows:


	Fiscal Year Ended
	June 28, 2025
	(in thousands)
Federal income tax provision at statutory rates	$	(2,512)
State income taxes, net of federal tax effect	(264)
Foreign tax rate differences	284
Effect of income tax credits	(569)
Inflation adjustments	115
Deferred income tax on unremitted foreign earnings	(474)
Provision to return reconciliation	(44)
Equity compensation shortfall	33
Foreign exchange gains/losses unrealized for tax purposes	(204)
Other	(8)
Income tax benefit	$	(3,643)

Schedule of Cash Paid for Income Taxes

Cash paid for income taxes (net of refunds) by jurisdiction consists of the following:

(in thousands)


	Fiscal Year Ended
	June 27, 2026
	(in thousands)
U.S. Federal	$	—
State and Local	53
Foreign
China	—
Mexico	1,137
Vietnam	469
Total Foreign	1,606
Total income taxes paid, net	$	1,659

Schedule of Deferred Income Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following at:


	June 27, 2026		June 28, 2025
	(in thousands)
Deferred tax assets:

Net operating loss	$	1,558	$	—
Tax credit carryforwards, net	9,171		8,121
Inventory	548		240
Identifiable intangibles	123		185

Accruals	4,402		2,764
Property, plant, and equipment	2,323		13
ASC 606 deferred costs	3,142		2,803
Lease liabilities	6,047		2,721
Interest expense deduction carryforward	6,853		5,362
Research and development expenses	8,733		7,818
Other	326		389
Total gross deferred income tax assets	$	43,226	$	30,416
Less: valuation allowance	(29,453)		—
Total net deferred income tax assets	$	13,773	$	30,416
Deferred tax liabilities:
Accrued withholding tax - unremitted earnings	$	(93)	$	(287)

Right-of-use assets	(6,038)		(2,737)
Tax capital lease liabilities	(2,689)		(504)
ASC 606 accelerated revenue	(3,168)		(2,826)

Other	(375)		(665)
Deferred income tax liabilities	$	(12,363)	$	(7,019)
Net deferred income tax assets	$	1,410	$	23,397
Balance sheet caption reported in:
Long-term deferred income tax asset	$	1,451	$	23,397
Long-term deferred income tax liability	(41)		—

Net deferred income tax asset	$	1,410	$	23,397

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	Fiscal Year Ended
	June 27, 2026		June 28, 2025
	(in thousands)
Beginning balance	$	2,963	$	2,899
Additions based on tax positions related to the current year	100		80
Adjustment to prior year tax positions and amended tax returns	5		(16)
Lapse of statute of limitations	—		—
Ending balance	$	3,068	$	2,963