Significant Accounting Policies and Disclosures (Tables)

12 Months Ended

Jun. 01, 2019

Schedule of Property, Plant and Equipment

Property, plant and equipment consist of the following (in thousands):

	June 1, 2019			June 2, 2018
Land and improvements	$	1,301		$	1,301
Buildings and improvements		22,986			21,673
Computer, communications equipment and software		9,943			9,652
Construction in progress		979			1,582
Machinery and other equipment		13,884			12,004
	$	49,093		$	46,212
Accumulated depreciation		(29,982	)		(27,980	)
Property, plant, and equipment, net	$	19,111		$	18,232

Schedule of Property Plant and Equipment Estimated Useful Lives

Supplemental disclosure information of the estimated useful life of the assets:

Land improvements		10 years
Buildings and improvements		10 - 30 years
Computer, communications equipment and software		3 - 10 years
Machinery and other equipment		3 - 20 years

Schedule of Accrued Liabilities

Accrued Liabilities: Accrued liabilities consist of the following (in thousands):

	June 1, 2019		June 2, 2018
Compensation and payroll taxes	$	2,846	$	3,449
Accrued severance		520		454
Professional fees		471		527
Deferred revenue		2,260		1,888
Other accrued expenses		5,176		4,025
Accrued Liabilities	$	11,273	$	10,343

Schedule of Warranty Reserve

Changes in the warranty reserve during fiscal 2019 and fiscal 2018 were as follows (in thousands):

	Warranty Reserve
Balance at May 27, 2017	$	106
Accruals for products sold		65
Utilization		(22	)
Balance at June 2, 2018	$	149
Accruals for products sold		185
Utilization		(39	)
Balance at June 1, 2019	$	295

Schedule of Share-Based Compensation, Stock Options, Activity

Stock options granted generally vest over a period of five years and have contractual terms to exercise of 10 years. A summary of stock option activity is as follows (in thousands, except option prices and years):

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Options Outstanding at May 28, 2016		1,019		$	9.93
Granted		190			6.90
Exercised		(5	)		5.61
Forfeited		(43	)		8.39
Cancelled		(88	)		11.17
Options Outstanding at May 27, 2017		1,073		$	9.38
Granted		200			6.08
Exercised		(16	)		5.85
Forfeited		(11	)		8.05
Cancelled		(51	)		9.36
Options Outstanding at June 2, 2018		1,195		$	8.89
Granted		279			9.02
Exercised		(46	)		5.61
Forfeited		(58	)		8.10
Cancelled		(6	)		5.03
Options Outstanding at June 1, 2019		1,364		$	9.08		5.6	$	—
Options Vested at June 1, 2019		888		$	9.79		4.2	$	—

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

The fair value of stock options is estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:

	Fiscal Year Ended
	June 1, 2019			June 2, 2018			May 27, 2017
Expected volatility		22.24	%		21.92	%		25.41	%
Risk-free interest rate		2.82	%		2.22	%		1.46	%
Expected lives (years)		6.36			6.31			6.50
Annual cash dividend	$	0.24		$	0.24		$	0.24

Schedule of Share-Based Compensation, Shares Outstanding Under Stock Option Plans, by Exercise Price Range

The following table summarizes information about stock options outstanding at June 1, 2019 (in thousands, except option prices and years):

	Outstanding								Vested
Exercise Price Range	Shares		Weighted Average Exercise Price		Weighted Average Life		Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Weighted Average Life		Aggregate Intrinsic Value
$5.49 to $6.90		482	$	6.16		6.2	$	—		255	$	6.05		5.0	$	—
$7.98 to $10.85		455	$	9.38		7.2	$	—		206	$	9.70		5.2	$	—
$11.14 to $13.76		427	$	12.05		3.1	$	—		427	$	12.05		3.1	$	—
Total		1,364	$	9.08		5.6	$	—		888	$	9.79		4.2	$	—

Schedule of Restricted Stock Award Transactions

As of June 1, 2019, a summary of restricted stock award transactions was as follows (in thousands):

	Unvested Restricted Shares
Unvested at May 27, 2017		—
Granted		78
Vested		—
Unvested at June 2, 2018		78
Granted		69
Vested		(26	)
Canceled		(5	)
Unvested at June 1, 2019		116

Schedule of Earnings Per Share, Basic and Diluted

The earnings per share (“EPS”) presented in our consolidated statements of comprehensive (loss) income are based on the following (in thousands, except per share amounts):

	For the Fiscal Year Ended
	June 1, 2019						June 2, 2018						May 27, 2017
	Basic			Diluted			Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
(Loss) income from continuing operations	$	(7,328	)	$	(7,328	)	$	2,326		$	2,326		$	(6,928	)	$	(6,928	)
Less dividends:
Common stock		2,621			2,621			2,586			2,586			2,567			2,567
Class B common stock		455			455			462			462			464			464
Undistributed losses	$	(10,404	)	$	(10,404	)	$	(722	)	$	(722	)	$	(9,959	)	$	(9,959	)
Common stock undistributed losses	$	(8,866	)	$	(8,866	)	$	(613	)	$	(613	)	$	(8,440	)	$	(8,440	)
Class B common stock undistributed losses		(1,538	)		(1,538	)		(109	)		(109	)		(1,519	)		(1,519	)
Total undistributed losses	$	(10,404	)	$	(10,404	)	$	(722	)	$	(722	)	$	(9,959	)	$	(9,959	)
Income from discontinued operations	$	—		$	—		$	1,496		$	1,496		$	—		$	—
Less dividends:
Common stock		2,621			2,621			2,586			2,586			2,567			2,567
Class B common stock		455			455			462			462			464			464
Undistributed losses	$	(3,076	)	$	(3,076	)	$	(1,552	)	$	(1,552	)	$	(3,031	)	$	(3,031	)
Common stock undistributed losses	$	(2,621	)	$	(2,621	)	$	(1,317	)	$	(1,318	)	$	(2,567	)	$	(2,567	)
Class B common stock undistributed losses		(455	)		(455	)		(235	)		(234	)		(464	)		(464	)
Total undistributed losses	$	(3,076	)	$	(3,076	)	$	(1,552	)	$	(1,552	)	$	(3,031	)	$	(3,031	)
Net (loss) income	$	(7,328	)	$	(7,328	)	$	3,822		$	3,822		$	(6,928	)	$	(6,928	)
Less dividends:
Common stock		2,621			2,621			2,586			2,586			2,567			2,567
Class B common stock		455			455			462			462			464			464
Undistributed (losses) income	$	(10,404	)	$	(10,404	)	$	774		$	774		$	(9,959	)	$	(9,959	)
Common stock undistributed (losses) income	$	(8,866	)	$	(8,866	)	$	657		$	657		$	(8,440	)	$	(8,440	)
Class B common stock undistributed (losses) income		(1,538	)		(1,538	)		117			117			(1,519	)		(1,519	)
Total undistributed (losses) income	$	(10,404	)	$	(10,404	)	$	774		$	774		$	(9,959	)	$	(9,959	)
Denominator for Basic and Diluted EPS:
Common stock weighted average shares		10,923			10,923			10,765			10,765			10,705			10,705
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,106			2,106			2,137			2,137			2,140			2,140
Effect of dilutive securities
Dilutive stock options					—						59						—
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					13,029						12,961						12,845
(Loss) income from continuing operations per share:
Common stock	$	(0.57	)	$	(0.57	)	$	0.18		$	0.18		$	(0.55	)	$	(0.55	)
Class B common stock	$	(0.51	)	$	(0.51	)	$	0.16		$	0.16		$	(0.49	)	$	(0.49	)
Income from discontinued operations per share:
Common stock	$	—		$	—		$	0.12		$	0.12		$	—		$	—
Class B common stock	$	—		$	—		$	0.11		$	0.11		$	—		$	—
Net (loss) income per share:
Common stock	$	(0.57	)	$	(0.57	)	$	0.30		$	0.30		$	(0.55	)	$	(0.55	)
Class B common stock	$	(0.51	)	$	(0.51	)	$	0.27		$	0.27		$	(0.49	)	$	(0.49	)

Note: Common stock options that were anti-dilutive and not included in diluted earnings per common share for fiscal 2019, fiscal 2018 and fiscal 2017 were 882, 0 and 848, respectively.