Income Taxes (Tables)

12 Months Ended

May 28, 2023

Income Tax Disclosure [Abstract]

Schedule of Benefits and Provisions for Income Taxes

The (benefit) provision for income taxes from continuing operations consisted of the following:

(in thousands)	Year Ended
	May 28, 2023		May 29, 2022		May 30, 2021
			As Restated		As Restated
Current:
Federal	$	(1)	$	—	$	(38)
State	55		23		74
Foreign	—		356		56
Total	54		379		92
Deferred:
Federal	234		(4,936)		(5,983)
State	20		(654)		(459)
Total	254		(5,590)		(6,442)
Income tax provision (benefit)	$	308	$	(5,211)	$	(6,350)

Schedule of Actual Provisions for Income Taxes

The actual (benefit) provision for income taxes from continuing operations differs from the statutory U.S. federal income tax rate as follows:

(in thousands)	Year Ended
	May 28, 2023		May 29, 2022		May 30, 2021
			As Restated		As Restated
Tax at U.S. statutory rate (1)	$	(13,932)	$	(4,344)	$	(6,256)
State income taxes, net of federal benefit	(1,805)		(638)		(830)
Change in valuation allowance	19,461		(1,065)		2,597
Tax credit carryforwards	(611)		(436)		(606)
Other compensation-related activity	283		234		249
Impairment of goodwill	—		2,347		—
Foreign rate differential	(2,749)		(496)		(1,414)
Other	(339)		(813)		(90)
Income tax provision (benefit)	$	308	$	(5,211)	$	(6,350)

(1) Statutory rate was 21.0% for fiscal year 2023, 2022 and 2021.

Schedule of Deferred Tax Assets and Liabilities

Significant components of deferred tax assets and liabilities reported in the accompanying Consolidated Balance Sheets consisted of the following:

(in thousands)	Year Ended
	May 28, 2023		May 29, 2022
			As Restated
Deferred tax assets:
Accruals and reserves	$	1,798	$	1,753
Net operating loss carryforwards	44,618		28,957
Stock-based compensation	984		880
Research and AMT credit carryforwards	6,269		5,611
Lease liability	1,843		2,874
Limitations on business interest expense	8,614		3,504
Goodwill and other indefinite life intangibles	—		2,745
Other	434		752
Gross deferred tax assets	64,560		47,076
Valuation allowance	(52,510)		(36,531)
Net deferred tax assets	12,050		10,545
Deferred tax liabilities:
Depreciation and amortization	(10,526)		(8,594)
Goodwill and other indefinite life intangibles	(877)		—
Right of use asset	(1,027)		(2,077)
Deferred tax liabilities	(12,430)		(10,671)
Net deferred tax liabilities	$	(380)	$	(126)

Reconciliation of Unrecognized Tax Benefits

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

(in thousands)	Year Ended
	May 28, 2023		May 29, 2022		May 30, 2021
			As Restated		As Restated
Unrecognized tax benefits – beginning of the period	$	1,041	$	958	$	836
Gross increases – prior-period tax positions	16		—		—
Gross increases – current-period tax positions	116		83		122
Unrecognized tax benefits – end of the period	$	1,173	$	1,041	$	958