Income Taxes (Tables)

12 Months Ended

Aug. 31, 2013

The Company's loss before income taxes for the years ended August 31, 2013 and 2012 consist of the following (in thousands):

	Years Ended August 31,

	2013			2012
U.S. operations	$	(2,152	)	$	(17,361	)
Foreign operations		(42,483	)		(32,588	)

Loss before income taxes	$	(44,635	)	$	(49,949	)

Schedule of components of income tax expense

The components of income tax expense for the years ended August 31, 2013 and 2012 consist of the following (in thousands):

	Years Ended August 31,

	2013		2012
Current:
U.S. federal	$	—	$	—
U.S. state		—		—
Foreign		3		—

Total current	$	3	$	—

Deferred:
U.S. federal	$	—	$	—
U.S. state		—		—
Foreign		—		—

Total deferred	$	—	$	—

Total income tax expense	$	3	$	—

Schedule of income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate to loss before income taxes

Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 34% to loss before income taxes for the years ended August 31, 2013 and 2012 as a result of the following (in thousands):

	Years Ended August 31,

	2013			2012
Computed "expected" income tax benefit	$	(15,176	)	$	(16,983	)
Foreign tax rate differential		3,683			2,487
Valuation allowance		11,534			14,089
Other		(38	)		407

Income tax expense	$	3		$	—

Schedule of net deferred tax assets (liabilities)

Net deferred tax assets (liabilities) as of August 31, 2013 and 2012 consist of the following (in thousands):

	August 31,

	2013			2012
Deferred tax assets:
Inventories, primarily due to inventory obsolescence and lower of cost or market provisions	$	1,747		$	1,810
Foreign income tax credit carryforwards		1,618			1,912
Allowance for doubtful accounts		527			362
Accruals and other		—			171
Property, plant and equipment		3,113			1,292
Stock-based compensation		706			651
Investments in unconsolidated entities		5,506			5,506
Net operating loss carryforwards		21,305			11,522

Total gross deferred tax assets		34,522			23,226
Less: Valuation allowance		(34,008	)		(22,474	)

Deferred tax assets, net of valuation allowance	$	514		$	752

Deferred tax liabilities:
Property, plant and equipment	$	—		$	(25	)
Intangible assets		(178	)		(180	)
Accruals and other		(336	)		(547	)

Total gross deferred tax liabilities		(514	)		(752	)

Net deferred tax assets	$	—		$	—

Schedule of unused net operating loss carryforwards and income tax credits

As of August 31, 2013, unused net operating loss carryforwards and income tax credits were as follows (in thousands):

	August 31, 2013

U.S. federal net operating loss carryforwards	$	8,262	2025-2033
U.S. state net operating loss carryforwards		489	2017-2025
Foreign net operating loss carryforwards (expiring over the next 5 years)		4,119	2014-2018
Foreign net operating loss carryforwards (expiring in more than 5 years)		53,247	2019-2023
Foreign income tax credit carryforwards		1,618	2015

Total unused net operating loss carryforwards and income tax credits	$	67,735

Schedule of reconciliation of the beginning and ending balances of unrecognized tax benefits

A reconciliation of the beginning and ending balances of the unrecognized tax benefits during the years ended August 31, 2013 and 2012 consist of the following (in thousands):

	Years Ended August 31,

	2013		2012
Unrecognized benefit—beginning of year	$	145	$	330
Settlements of prior years tax positions		—		(185	)

Unrecognized benefit—end of year	$	145	$	145

Summary of open tax years by major tax jurisdiction

		Open Tax Year

U.S. federal			2005-2012
U.S. state			2005-2012
Foreign—Taiwan			2012