XML 48 R35.htm IDEA: XBRL DOCUMENT
v3.22.2.2

INCOME TAXES (Tables) | 12 Months Ended
--- | ---
May 31, 2022
INCOME TAXES |
Domestic and foreign components of loss before income tax (expense) benefit | Domestic and foreign components of income (loss) before income tax (expense) benefit are as follows (in thousands):
|  | Year Ended May 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | 9,416 |  |  | $ | (13,064 | ) |  | $ | (2,751 | )
Foreign |  |  | 125 |  |  |  | 10,860 |  |  |  | (15 | )
|  | $ | 9,541 |  |  | $ | (2,204 | ) |  | $ | (2,766 | )
Income tax (expense) benefit | The income tax (expense) benefit consists of the following (in thousands):
|  | Year Ended May 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Federal income taxes: |  |  |  |  |  |  |  |  |
Current |  | $ | (59 | ) |  | $ | 163 |  |  | $ | - |
Deferred |  |  | - |  |  |  | - |  |  |  | - |
State income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | (5 | ) |  |  | 13 |  |  |  | (30 | )
Deferred |  |  | - |  |  |  | - |  |  |  | - |
Foreign income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | (27 | ) |  |  | 1 |  |  |  | (6 | )
Deferred |  |  | - |  |  |  | - |  |  |  | - |
|  | $ | (91 | ) |  | $ | 177 |  |  | $ | (36 | )
Income tax reconciliation | The Company’s effective tax rate differs from the U.S. federal statutory tax rate, as follows:
|  | Year Ended May 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
US federal statutory tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal tax effect |  |  | 0.1 |  |  |  | 0.6 |  |  |  | 1.4 |
Foreign rate differential |  |  | 0.3 |  |  |  | 9.8 |  |  |  | (21.5 | )
Stock-based compensation |  |  | (11.0 | ) |  |  | (4.7 | ) |  |  | (4.0 | )
Research and development credit |  |  | (1.3 | ) |  |  | 4.0 |  |  |  | - |
Change in valuation allowance |  |  | (4.7 | ) |  |  | (32.1 | ) |  |  | 4.3 |
Controlled Foreign Corporation Liquidation |  |  | - |  |  |  | 9.8 |  |  |  | - |
PPP Loan |  |  | (3.7 | ) |  |  | - |  |  |  | - |
Other |  |  | 0.4 |  |  |  | (0.4 | ) |  |  | (2.5 | )
Effective tax rate |  |  | 1.1 | % |  |  | 8.0 | % |  |  | (1.3 | )%
Net deferred tax assets and liabilities | The components of the net deferred tax assets and liabilities are as follows (in thousands):
|  | Year Ended May 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 14,912 |  |  | $ | 15,584 |
Lease Liability |  |  | 218 |  |  |  | 372 |
Credit carryforwards |  |  | 5,535 |  |  |  | 5,298 |
Inventory reserves |  |  | 934 |  |  |  | 1,006 |
Reserves and accruals |  |  | 1,360 |  |  |  | 890 |
Other |  |  | 220 |  |  |  | 450 |
|  |  | 23,179 |  |  |  | 23,600 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  |  | (199 | ) |  |  | (342 | )
Less: Valuation allowance |  |  | (22,980 | ) |  |  | (23,258 | )
Net deferred tax assets (liabilities) |  | $ | - |  |  | $ | - |
Unrecognized tax benefits | The aggregate changes in the balance of gross unrecognized tax benefits are as follows (in thousands):
Beginning balance as of May 31, 2019 |  | $ | 1,809 |
Decreases related to prior year tax positions |  |  | (11 | )
Increases related to current year tax positions |  |  | 54 |
Balance at May 31, 2020 |  | $ | 1,852 |
Increases related to prior year tax positions |  |  | 11 |
Increases related to current year tax positions |  |  | 65 |
Balance at May 31, 2021 |  | $ | 1,928 |
Increases related to prior year tax positions |  |  | 12 |
Increases related to current year tax positions |  |  | 78 |
Balance at May 31, 2022 |  | $ | 2,018 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI https://asc.fasb.org/extlink&oid=126976462&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration