Note 4 - Stock-based Compensation

3 Months Ended

Aug. 26, 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 restricted stock units (“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 stock options and RSUs (in thousands):

	Three Months Ended
	August 26, 2018		August 27, 2017
Options	$	221	$	324
RSUs		507		626
Total stock-based compensation	$	728	$	950

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

	Three Months Ended
	August 26, 2018		August 27, 2017
Cost of sales	$	101	$	124
Research and development		25		20
Selling, general and administrative		602		806
Total stock-based compensation	$	728	$	950

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 grant date. The Company uses the straight-line method to recognize the fair value of stock-based compensation arrangements.

As of

August 26, 2018,

there was

$6.7

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

2.1

years for stock options and

2.3

years for RSUs.