7. INCOME TAXES (Tables)

12 Months Ended

May. 31, 2015

Income Tax Disclosure [Abstract]

Domestic and foreign components of loss before income tax benefit (expenses)

    Domestic and foreign components of loss before income tax benefit (expense) are as follows (in thousands):

	Year Ended May 31,
	2015			2014			2013
Domestic	$	(6,871	)	$	438		$	(3,392	)
Foreign		258			(31	)		3
	$	(6,613	)	$	407		$	(3,389	)

Income tax benefit (expense)

    The income tax benefit (expense) consists of the following (in thousands):

	Year Ended May 31,
	2015			2014			2013
Federal income taxes:
Current	$	--		$	--		$	--
Deferred		--			--			--
State income taxes:
Current		(19	)		(30	)		(21	)
Deferred		--			--			--
Foreign income taxes:
Current		(15	)		45			(9	)
Deferred		--			--			--
	$	(34	)	$	15		$	(30	)

Income tax reconciliation

    The Company’s effective tax rate differs from the U.S. federal statutory tax rate, as follows:

	Year Ended May 31,
	2015			2014			2013
U.S. federal statutory tax rate		34.0	%		34.0	%		34.0	%
State taxes, net of federal tax effect		(0.2	)		4.7			(0.4	)
Foreign rate differential		1.4			(11.9	)		0.2
Stock-based compensation		(2.2	)		34.5			(4.4	)
Research and development credit		1.1			(20.5	)		3.0
Change in valuation allowance		(34.4	)		(45.8	)		(33.0	)
Other		(0.2	)		1.3			(0.3	)
Effective tax rate		( 0.5	)%		(3.7	)%		(0.9	)%

Net deferred tax assets

     The components of the net deferred tax assets are as follows (in thousands):

	Year Ended May 31,
	2015			2014
Net operating losses	$	15,063		$	12,368
Credit carryforwards		3,946			4,192
Inventory reserves		1,429			1,822
Reserves and accruals		2,809			2,899
Other		960			703
		24,207			21,984
Less: Valuation allowance		(24,207	)		(21,984	)
Net deferred tax assets	$	--		$	--

Unrecognized tax benefits

The aggregate changes in the balance of gross unrecognized tax benefits are as follows (in thousands):

Beginning balance as of May 31, 2012	$	1,022
Decreases related to prior year tax positions		--
Decreases related to lapse of statute of limitations		(15	)
Balance at May 31, 2013	$	1,007
Decreases related to prior year tax positions		--
Decreases related to lapse of statute of limitations		(34	)
Balance at May 31, 2014	$	973
Decreases related to prior year tax positions		--
Decreases related to lapse of statute of limitations		(54	)
Balance at May 31, 2015	$	919