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2. STOCK-BASED COMPENSATION (Tables)
3 Months Ended
Aug. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Compensation costs related to the Company's stock-based compensation

The following table summarizes the stock-based compensation expense related to the Company’s stock-based incentive plans for the three months ended August 31, 2016 and 2015 (in thousands):

 

   Three Months Ended
   August 31,
   2016  2015
Stock-based compensation in the form of employee stock options, RSUs and ESPP purchase rights, included in:      
Cost of sales  $24   $22 
Selling, general and administrative   247    238 
Research and development   48    59 
Total stock-based compensation  $319   $319 

 

Assumptions for Options Valuation Model

Fair Value. The fair value of the Company’s stock options granted to employees for the three months ended August 31, 2016 were estimated using the following weighted average assumptions in the Black-Scholes option valuation model:

 

   August 31,
   2016
      
Expected term (in years)   4 
Volatility   0.82 
Expected dividend  $0.00 
Risk-free interest rate   1.01%
Weighted average grant date fair value  $1.00 

 

Stock option and RSU transactions

The following tables summarize the Company’s stock option and RSU transactions during three months ended August 31, 2016 (in thousands):

 

   Available
   Shares
Balance, May 31, 2016   1,847 
      
  Options granted   (318)
  RSUs granted   (138)
 Shares cancelled   46 
      
Balance, August 31, 2016   1,437 
      

 

Stock option transactions

The following table summarizes the stock option transactions during the three months ended August 31, 2016 (in thousands, except per share data):

 

 

   Outstanding Options 
                
    Number of Shares    Weighted Average Exercise Price    Aggregate Intrinsic Value 
Balances, May 31, 2016   3,201   $1.66   $189 
                
Options granted   318   $1.68      
Options cancelled   (46)  $1.40      
Options exercised   (91)  $1.32      
                
Balances, August 31, 2016   3,382   $1.67   $2,694 
                
Options fully vested and expected to vest at August 31, 2016   3,314   $1.67   $2,640 
                
Options exercisable at August 31, 2016   2,379   $1.52   $2,235 

Options Outstanding

    The options outstanding and exercisable at August 31, 2016 were in the following exercise price ranges (in thousands, except per share data):

 

      Options Outstanding   Options Exercisable  
      at August 31, 2016   at August 31, 2016  
  Range of Exercise
Prices
    Number Outstanding Shares   Weighted Average Remaining Contractual Life (Years)   Weighted Average Exercise Price   Number Exercisable Shares   Weighted Average Remaining Contractual Life (Years)     Weighted Average Exercise Price     Aggregate Intrinsic Value  
$ 0.59-$0.97           565   2.57   $ 0.68       565        2.57     $ 0.68        
$ 1.09-$1.40           1,039    3.03   $ 1.28       923       2.91     $ 1.28        
$ 1.68-$2.06           548   5.88   $ 1.77       215       4.60     $ 1.90        
$ 2.10-$2.71           1,230   5.20   $ 2.43       676       5.12     $ 2.45        
$ 0.59-$2.71           3,382   4.21   $ 1.67       2,379       3.61     $ 1.52   $ 2,235