Note 4 - Stock-based Compensation

6 Months Ended

Nov. 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 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				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Options	$	223	$	354	$	444	$	678
RSUs		715		762		1,222		1,388
Total stock-based compensation	$	938	$	1,116	$	1,666	$	2,066

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

	Three Months Ended				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Cost of sales	$	117	$	137	$	218	$	261
Research and development		30		23		55		42
Selling, general and administrative		791		956		1,393		1,763
Total stock-based compensation	$	938	$	1,116	$	1,666	$	2,066

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

November 25, 2018,

there was

$5.9

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

1.9

years for stock options and

2.2

years for RSUs.