Note 4 - Stock-based Compensation

9 Months Ended

Feb. 25, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4 .	Stock-Based Compensation

The Company

’s stock-based awards include stock option grants and RSUs. The Company records compensation expense for stock-based awards issued to employees and directors in exchange for services provided based on the estimated fair value of the awards on their grant dates and is recognized over the required service periods

, generally the vesting period.

The following table summarizes the stock-based compensation for options and RSUs (in thousands):

	Three Months Ended				Nine Months Ended
	February 25, 2018		February 26, 2017		February 25, 2018		February 26, 2017
Options	$	380	$	308	$	1,057	$	907
RSUs		762		761		2,155		1,935
Total stock-based compensation	$	1,147	$	1,069	$	3,212	$	2,842

The following table summarizes the stock-based compensation by income statement line item (in thousands):

	Three Months Ended				Nine Months Ended
	February 25, 2018		February 26, 2017		February 25, 2018		February 26, 2017
Cost of sales	$	137	$	124	$	398	$	361
Research and development		41		23		82		69
Selling, general and administrative		969		922		2,732		2,412
Total stock-based compensation	$	1,147	$	1,069	$	3,212	$	2,842

The estimated fair value for stock options, which determines the Company

’s calculation of stock-based compensation expense, is based on the Black-Scholes option pricing model. RSUs are valued at the closing market price of the Company’s common stock on the date of grant. The Company uses the straight

-line method to recognize the fair value of stock-based compensation arrangements.

As of

February 25, 2018,

there was

$5.0

million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Landec incentive stock plans. Total expense is expected to be recognized over the weighted-average period of

years for stock options and

1.9

years for restricted stock unit awards.