v3.26.1
Income taxes
 7 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
All of the Company’s income or loss before income tax is derived from its domestic operating subsidiaries. The following table presents the components of the provision for income taxes from continuing operations:
May 26, 2025 throughYear endedYear ended
December 31, 2025May 25, 2025May 26, 2024
Current:
Federal$(26)$14 $(10)
State208 148 37 
Total182 162 27 
Deferred:
Federal160 (124)173 
State(5)5 (17)
Total155 (119)156 
Income tax provision
$337 $43 $183 
Income tax expense differs from the amount calculated using the 21% statutory U.S. federal income tax rate as follows:
May 26, 2025 through
December 31, 2025
Amount%
Tax at U.S. statutory rate
$(3,701)21.0 %
State and local income taxes, net of federal income tax effect160 (0.9)%
Research & development tax credits(188)1.1 %
Changes in federal valuation allowances
2,723 (15.5)%
Nontaxable or nondeductible items210 (1.2)%
Changes in unrecognized tax benefits34 (0.2)%
Deferred tax write-offs
664 (3.8)%
Return to provision
59 (0.3)%
Capital loss expiration
376 (2.1)%
Income tax expense
$337 (1.9)%
Year ended
May 25, 2025May 26, 2024
Tax at U.S. statutory rate
$(8,122)$1,998 
State income taxes, net of federal benefit(197)52 
Compensation-related activity
799 418 
Return to provision adjustments
213 3,136 
Deferred tax write-offs
(748)711 
Tax credit carryforwards(539)(518)
Other96 158 
Change in valuation allowance8,541 (5,772)
Income tax expense
$43 $183 
The following table presents the components of deferred tax assets and liabilities reported in the balance sheets:
May 26, 2025 throughYear endedYear ended
December 31, 2025May 25, 2025May 26, 2024
Deferred tax assets:
Net operating loss carryforwards$42,091 $40,677 $40,806 
Limitations on business interest expense17,831 15,573 11,783 
Research credit carryforwards7,344 7,116 6,700 
Capitalized research and development
1,874 3,767 2,916 
Other5,000 6,338 4,609 
Deferred tax assets before valuation allowance
74,140 73,471 66,814 
Less: valuation allowance
(57,538)(54,714)(46,173)
Deferred tax assets
16,602 18,757 20,641 
Deferred tax liabilities:
Depreciation
(10,007)(10,735)(11,809)
Debt derivative liability and related debt discount
(5,799)(7,026)(7,911)
Other
(1,374)(1,419)(1,464)
Deferred tax liabilities(17,180)(19,180)(21,184)
Net deferred tax liability
$(578)$(423)$(543)
The Company continues to maintain a full valuation allowance against its U.S. and state deferred tax assets based on available positive and negative evidence, including historical losses during the most recent three-year period. The Company will re-evaluate the need for a valuation allowance in future periods based on its operating results as a stand-alone entity.
The following table presents the amounts and expiration dates of net operating loss and tax credit carryforwards as of December 31, 2025:
Net operating loss carryforwards
Research and development credits
Amount
Begin to expire
Amount
Life
Begin to expire
Federal, not subject to §382 limitation$174,674 no expiration$4,001 20 years2033
Federal, subject to §382 limitation3,867 2032— ——
California52,636 20382,058 unlimitednone
All other states16,907 20292,132 15 years2029
The Company estimated no utilization of Federal net operating loss carryforwards and no material state operating loss carryforwards for the transition period ended December 31, 2025. The Company estimated utilization of $2,051 and $3,907 of Federal net operating loss carryforwards and no material state operating loss carryforwards for the fiscal years ended May 25, 2025 and May 26, 2024, respectively.
As of December 31, 2025, the total amount of net unrecognized tax benefits is $1,461, which is fully offset by valuation allowances. The Company has not had, and does not expect to have, any significant increase or decrease to its unrecognized tax benefits within the next twelve months.
Due to tax attribute carryforwards, the Company is subject to examination for tax years 2013 forward for U.S. tax purposes. The Company was also subject to examination in various state jurisdictions for tax years 2012 forward.