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INCOME TAXES (Tables) | 12 Months Ended
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May 31, 2024
INCOME TAXES |
Domestic and foreign components of loss before income tax (expense) benefit |
|  | Year Ended May 31, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Domestic |  | $ | 12,355 |  |  | $ | 14,541 |  |  | $ | 9,416 |
Foreign |  |  | 103 |  |  |  | 76 |  |  |  | 125 |
|  | $ | 12,458 |  |  | $ | 14,617 |  |  | $ | 9,541 |
Income tax (expense) benefit |
|  | Year Ended May 31, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Federal income taxes: |  |  |  |  |  |  |  |  |
Current |  | $ | 6 |  |  | $ | 28 |  |  | $ | 59 |
Deferred |  |  | (14,377 | ) |  |  | - |  |  |  | - |
State income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 14 |  |  |  | - |  |  |  | 5 |
Deferred |  |  | (6,396 | ) |  |  | - |  |  |  | - |
Foreign income taxes: |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  | 55 |  |  |  | 32 |  |  |  | 27 |
Deferred |  |  | - |  |  |  | - |  |  |  | - |
|  | $ | (20,698 | ) |  | $ | 60 |  |  | $ | 91 |
Income tax reconciliation |
|  | Year Ended May 31, |
(In thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
U.S. federal statutory tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
State taxes, net of federal tax effect |  |  | (51.1 | ) |  |  | - |  |  |  | 0.1 |
Foreign rate differential |  |  | 0.2 |  |  |  | 0.7 |  |  |  | 0.3 |
Stock-based compensation |  |  | (8.4 | ) |  |  | (9.1 | ) |  |  | (11.0 | )
Research and development credit |  |  | (1.5 | ) |  |  | (2.3 | ) |  |  | (1.3 | )
Change in valuation allowance |  |  | (126.0 | ) |  |  | (9.3 | ) |  |  | (4.7 | )
PPP Loan |  |  | - |  |  |  | - |  |  |  | (3.7 | )
Other |  |  | (0.3 | ) |  |  | (0.6 | ) |  |  | 0.4 |
Effective tax rate |  |  | (166.1 | )% |  |  | 0.4 | % |  |  | 1.1 | %
Net deferred tax assets and liabilities |
|  | May 31, |
(In thousands) |  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 9,344 |  |  | $ | 11,964 |
Lease liability |  |  | 1,310 |  |  |  | 1,335 |
Credit carryforwards |  |  | 6,739 |  |  |  | 6,235 |
Inventory reserves |  |  | 1,070 |  |  |  | 938 |
Reserves and accruals |  |  | 855 |  |  |  | 1,200 |
Capitalized research and development |  |  | 2,645 |  |  |  | 1,187 |
Other |  |  | 23 |  |  |  | 297 |
Less: valuation allowance |  |  | - |  |  |  | (21,859 | )
|  |  | 21,986 |  |  |  | 1,297 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  |  | (1,213 | ) |  |  | (1,297 | )
Net deferred tax assets |  | $ | 20,773 |  |  | $ | - |
Unrecognized tax benefits |
(In thousands) |  |  |
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 |
Increases related to prior year tax positions |  |  | 90 |
Increases related to current year tax positions |  |  | 168 |
Balance at May 31, 2023 |  |  | 2,276 |
Increases related to prior year tax positions |  |  | 35 |
Decreases related to prior year tax positions |  |  | (28 | )
Increases related to current year tax positions |  |  | 233 |
Decreases related to current year tax positions |  |  | (32 | )
Balance at May 31, 2024 |  | $ | 2,484 |

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