SCHEDULE OF INCOME TAX EXPENSE BENEFIT (Tables)

12 Months Ended

May 31, 2016

SCHEDULE OF INCOME TAX EXPENSE BENEFIT (Tables):

SCHEDULE OF PROVISION FOR INCOME TAXES

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

		2016		2015
Federal	$	-	$	-
Foreign		-		-
State and local		2		2
Total current provision		2		2
Deferred provision		27		85
Valuation allowance		(27)		(85)
Total deferred provision		-		-
Total provision	$	2	$	2

SCHEDULE OF DOMESTIC AND FOREIGN COMPONENTS OF INCOME (LOSS) BEFORE INCOME TAXES

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

		2016		2015
Domestic	$	(503)	$	(975)
Foreign		(168)		(342)
	$	(671)	$	(1,317)

SCHEDULE OF EFFECTIVE INCOME TAX RATES CAN BE RECONCILED TO FEDERAL AND STATUTORY INCOME TAX RATE

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:

	2016	2015
Federal statutory rate	34%	34%
State	-	-
Foreign	-	-
Permanent items	-	-
Valuation reserve	(34)	(34)
Effective tax rate	-%	-%

SCHEDULE OF DEFERRED TAX ASSETS (LIABILITIES)

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

		2016		2015
Deferred tax assets
Net operating loss carryforwards	$	7,597	$	7,498
Tax credit carryforwards		254		254
Receivables allowances		7		7
Vacation pay accrual		5		4
Depreciation		42		35
Differences in book and tax basis of assets of acquired businesses		(191)		(56)
Total gross deferred tax assets		7,714		7,742
Valuation allowance		(7,714)		(7,742)
Net deferred tax asset	$	-	$	-