Income Taxes (Tables)

12 Months Ended

May 31, 2014

Income Taxes (Tables):

Provision for income taxes (Tables)

The provision for income taxes includes the following for the years ended May 31 (in thousands):

		2014		2013
Federal	$	-	$	-
Foreign		-		13
State and local		2		2
Total current provision		2		15
Deferred provision		268		148
Valuation allowance		(268)		(148)
Total deferred provision		-		-
Total provision	$	2	$	15

The domestic and foreign components of income (loss) before income taxes (TABLES)

The domestic and foreign components of income (loss) before income taxes were as follows for the years ended May 31 (in thousands):

		2014		2013
Domestic	$	(562)	$	343
Foreign		(184)		32
	$	(746)	$	375

Federal and state statutory income tax rate (Tables)

The Company’s effective income tax rates can be reconciled to the federal and state statutory income tax rate for the years ended May 31 as follows:

	2014	2013
Federal statutory rate	34%	34%
State	-	-
Foreign	-	1
Permanent items	-	-
Valuation reserve	(34)	(34)
Effective tax rate	-	1%

Deferred tax assets (liabilities) (Tables)

Deferred tax assets (liabilities) were comprised of the following at May 31 (in thousands):

		2014		2013
Deferred tax assets
Net operating loss carryforwards	$	7,271	$	7,190
Tax credit carryforwards		254		254
Receivables allowances		7		11
Vacation pay accrual		9		10
Other accruals		-		-
Depreciation		37		35
Differences in book and tax basis of assets of acquired businesses		(859)		(1,050)
Total gross deferred tax assets		6,719		6,450
Valuation allowance		(6,719)		(6,450)
Net deferred tax asset	$	-	$	-