Income Taxes (Tables)
|
12 Months Ended |
May 31, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Components of Income Before Taxes from Continuing Operations |
The components of consolidated income before taxes from continuing operations were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31, 2026 |
|
May 31, 2025 |
| United States |
$ |
(49,300) |
|
|
$ |
(72,730) |
|
| Foreign |
— |
|
|
— |
|
| Consolidated income before taxes |
$ |
(49,300) |
|
|
$ |
(72,730) |
|
|
| Schedule of Effective Income Tax Rate Reconciliation |
A reconciliation of the statutory income tax rate from continuing operations to the Company's effective tax rate pursuant to the disclosure requirements of ASU 2023-09 for the year ended May 31, 2026 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31, 2026 |
|
|
| U.S. federal statutory income tax rate |
$ |
(10,353) |
|
|
21% |
|
|
| Non-taxable or non-deductible items |
|
|
|
|
|
| Transaction costs |
453 |
|
|
(1) |
|
|
| Other |
365 |
|
|
(1) |
|
|
| Internal Reorganization |
7,722 |
|
|
(16) |
|
|
| Changes in valuation allowances |
1,813 |
|
|
(4) |
|
|
| Total |
$ |
— |
|
|
— |
% |
|
|
The following table reconciles the statutory rate to the Company's effective tax rate for the fiscal year ended May 31, 2025:
|
|
|
|
|
|
|
|
|
May 31, 2025 |
|
|
| Expected income tax at U.S. Statutory Rate |
21 |
% |
|
|
| State tax, net of federal benefit |
4 |
|
|
|
| Stock-based compensation |
— |
|
|
|
| Change in valuation allowance |
(25) |
|
|
|
| Other, net |
— |
|
|
|
| Effective tax rate |
— |
% |
|
|
|
| Schedule of Deferred Tax Assets and Liabilities |
The primary components of the temporary differences that gave rise to the Company's deferred tax assets and liabilities for the fiscal years ended May 31, 2026 and 2025 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
May 31, 2026 |
|
May 31, 2025 |
| Deferred tax assets: |
|
|
|
| Net operating losses |
$ |
60,081 |
|
|
$ |
43,712 |
|
| Stock-based compensation |
553 |
|
|
— |
|
| Capitalized research and development |
1,297 |
|
|
— |
|
| R&D credits |
2,117 |
|
|
— |
|
| Interest expense |
116 |
|
|
6,800 |
|
| Lease liability |
13,756 |
|
|
18,903 |
|
|
|
|
|
| Other deferred tax assets |
622 |
|
|
(305) |
|
| Deferred tax assets, gross |
78,542 |
|
|
69,110 |
|
| Less: Valuation allowance |
(54,521) |
|
|
(41,228) |
|
| Total deferred tax assets, net |
$ |
24,021 |
|
|
$ |
27,882 |
|
|
|
|
|
| Deferred tax liabilities: |
|
|
|
|
|
|
|
| Property and equipment |
(5,766) |
|
|
(4,702) |
|
| Intangible assets |
(1,327) |
|
|
— |
|
| Right of use assets |
(16,928) |
|
|
(23,180) |
|
|
|
|
|
| Total deferred tax liabilities, net |
(24,021) |
|
|
(27,882) |
|
| Net deferred tax assets (liabilities) |
$ |
— |
|
|
$ |
— |
|
|
| Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended May 31, 2025 and 2026, were as follows:
|
|
|
|
|
|
|
|
| Balance as of May 31, 2025 |
$ |
— |
|
|
|
| Additions based on tax positions in the current year |
— |
|
|
|
| Additions based on tax positions related to prior years |
1,754 |
|
|
|
| Reductions for tax positions of prior years |
— |
|
|
|
| Settlements with taxing authorities |
— |
|
|
|
| Expiration of statue of limitations |
— |
|
|
|
| Balance as of May 31, 2026 |
$ |
1,754 |
|
|
|
|