v2.4.0.8
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
May 31, 2014
Organization And Summary Of Significant Accounting Policies Tables  
Financial assets and liabilities measured at fair value on a recurring basis

 

    The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2014 (in thousands):

 

    Balance as of                    
    May 31, 2014     Level 1     Level 2     Level 3  
Money market funds   $ 477     $ 477     $ --     $ --  
Certificate of Deposit     50       --       50       --  
Assets   $ 527     $ 477     $ 50     $ --  
                                 
Liabilities   $ --     $ --     $ --     $ --  

 

    The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis as of May 31, 2013 (in thousands):

 

    Balance as of                    
    May 31, 2013     Level 1     Level 2     Level 3  
Money market funds   $ 102     $ 102     $ --     $ --  
Certificate of Deposit     50       --       50       --  
Assets   $ 152     $ 102     $ 50     $ --  
                                 
Liabilities   $ --     $ --     $ --     $ --  

 

 
Useful life for property and equipment

The ranges of estimated useful lives are generally as follows:

 

  Furniture and fixtures 2 to 6 years
     
  Machinery and equipment 3 to 6 years
     
  Test equipment 4 to 6 years
Compensation costs related to the Company's stock-based compensation

The following table summarizes compensation costs related to the Company’s stock-based compensation for the years ended May 31, 2014, 2013 and 2012, respectively (in thousands, except per share data):

 

    Year Ended May 31,  
    2014     2013     2012  
Stock-based compensation in the form of employee                  
  stock options and ESPP shares, included in:                  
                   
Cost of sales   $ 43     $ 36     $ 87  
Selling, general and administrative     643       446       430  
Research and development     167       119       192  
                         
Net effect on net income (loss)   $ 853     $ 601     $ 709  
                         
Effect on net income (loss) per share:                        
  Basic.   $ 0.08     $ 0.06     $ 0.08  
  Diluted   $ 0.07     $ 0.06     $ 0.08  
Fair value assumptions for Option Valuation Model

    Fair Value.  The fair values of the Company’s stock options granted to employees shares in fiscal 2014, 2013 and 2012 were estimated using the following weighted average assumptions in the Black-Scholes option valuation method:

 

    Year Ended May 31,    
    2014     2013     2012
Option Plan Shares                
Expected Term (in years)     4       5       5    
Volatility     0.95       0.91       0.84    
Expected Dividend   $ 0.00     $ 0.00     $ 0.00    
Risk-free Interest Rates     1.39 %     0.72 %     1.12 %  
Weighted Average Grant Date Fair Value   $ 1.09     $ 0.78     $ 0.60    

 

     
Fair value assumption of the ESPP Purchase Rights

     The fair value of our ESPP purchase rights for the fiscal 2014, 2013 and 2012 was estimated using the following weighted-average assumptions:

 

    Year End May 31,  
    2014     2013     2012  
Employee Stock Purchase Plan Shares                  
Expected Term (in years)     0.5 - 2.0       0.5 - 2.0       0.5 - 2.0  
Volatility     0.86 – 1.00       0.45 – 1.05       0.79 – 0.95  
Expected Dividend    $ 0.00     $ 0.00     $ 0.00  
Risk-free Interest Rates     0.04%–0.44 %     0.11%–0.23 %     0.06%–1.05 %
Weighted Average Grant Date Fair Value   $ 1.34     $ 0.54     $ 0.40  
Basic and diluted EPS

    A reconciliation of the numerator and denominator of basic and diluted EPS is provided as follows (in thousands, except per share amounts):

 

 

    Year Ended May 31,  
    2014     2013     2012  
Numerator: Net income (loss)   $ 422     $ (3,419 )   $ (3,390 )
                         
Denominator for basic net income (loss) per share:                        
  Weighted-average shares outstanding     10,877       9,549       9,016  
                         
Shares used in basic net income (loss) per share calculation     10,877       9,549       9,016  
                         
Effect of dilutive securities     1,012       --       --  
                         
                         
Denominator for diluted net income (loss) per share     11,889       9,549       9,016  
                         
Basic net income (loss) per share   $ 0.04     $ (0.36 )   $ (0.38 )
                         
Diluted net income (loss) per share   $ 0.04     $ (0.36 )   $ (0.38 )