Income Taxes (Tables)

12 Months Ended

Aug. 31, 2016

The Company’s loss before income taxes for the years ended August 31, 2016 and 2015 consist of the following (in thousands):


	Years Ended August 31,
	2016		2015
U.S. operations	$	(973)	$	(770)
Foreign operations		(20,331)		(12,547)
Loss before income taxes	$	(21,304)	$	(13,317)

Schedule of income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate to loss before income taxes

Income tax expense differed from the amounts computed by applying the statutory U.S. federal income tax rate of 34% to loss before income taxes for the years ended August 31, 2016 and 2015 as a result of the following (in thousands):


	Years Ended August 31,
	2016		2015
Computed “expected” income tax benefit	$	(7,243)	$	(4,528)
Foreign tax rate differential		2,078		1,432
Valuation allowance		5,097		3,125
Other		68		(28)
Income tax expense	$	—	$	1

Schedule of net deferred tax assets (liabilities)

Net deferred tax assets (liabilities) as of August 31, 2016 and 2015 consist of the following (in thousands):


	August 31,
	2016		2015
Deferred tax assets:
Inventories, primarily due to inventory obsolescence and lower of cost or market provisions	$	1,659	$	1,346
Allowance for doubtful accounts		155		428
Accruals and other		196		123
Property, plant and equipment		4,126		2,627
Stock-based compensation		609		617
Investments in unconsolidated entities		5,560		5,587
Net operating loss carryforwards		21,396		19,086
Net operating loss carryforwards-undistributed earnings tax		9,679		7,662
Total gross deferred tax assets		43,380		37,476
Less: Valuation allowance		(43,380)		(37,476)
Deferred tax assets, net of valuation allowance	$	—	$	—

Schedule of unused net operating loss carryforwards and income tax credits

As of August 31, 2016, unused net operating loss carryforwards were as follows (in thousands):


	August 31,		Expiration
	2016		Year
U.S. federal net operating loss carryforwards	$	11,578	2025-2036
Foreign net operating loss carryforwards (expiring over the next 5 years)		8,018	2017-2021
Foreign net operating loss carryforwards (expiring in more than 5 years)		94,431	2022-2026
Foreign net operating loss carryforwards (indefinite life)		107,540	—
Total unused net operating loss carryforwards	$	221,567

Summary of open tax years by major tax jurisdiction


		Open
		Tax Year
U.S. federal		2005-2015
U.S. state		2005-2014
Foreign—Taiwan		2013-2015