Significant Accounting Policies and Disclosures (Tables)

12 Months Ended

May 28, 2022

Schedule of Contract Liabilities and Revenue Recognized

Contract Liabilities: Contract liabilities and revenue recognized were as follows (in thousands):

May 29, 2021

Additions

Revenue

Recognized

May 28, 2022

Contract liabilities (deferred revenue)

3,313

6,917

(5,264

)

4,966

Schedule of Property, Plant and Equipment

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

	May 28, 2022			May 29, 2021
Land and improvements	$	1,385		$	1,385
Buildings and improvements		23,002			22,837
Computer, communications equipment and software		11,186			11,029
Machinery and other equipment		16,215			14,930
Construction in progress		1,991			1,429
		53,779			51,610
Accumulated depreciation		(36,818	)		(34,543	)
Property, plant, and equipment, net	$	16,961		$	17,067

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):

	May 28, 2022		May 29, 2021
Compensation and payroll taxes	$	5,519	$	4,945
Accrued severance		678		685
Professional fees		470		533
Deferred revenue		4,966		3,313
Other accrued expenses		4,477		4,706
Accrued Liabilities	$	16,110	$	14,182

Schedule of Warranty Reserve

Changes in the warranty reserve during fiscal 2022 and fiscal 2021 were as follows (in thousands):

	Warranty Reserve
Balance at May 30, 2020	$	466
Accruals for products sold		121
Utilization		(39	)
Balance at May 29, 2021	$	548
Accruals for products sold		160
Utilization		(32	)
Balance at May 28, 2022	$	676

Schedule of Share-Based Compensation, Stock Options, Activity

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 (1)
Options Outstanding at June 1, 2019		1,364		$	9.08
Granted		187			5.61
Exercised		(10	)		5.67
Cancelled		(114	)		6.87
Options Outstanding at May 30, 2020		1,427		$	8.83
Granted		188			4.26
Exercised		(49	)		5.93
Forfeited		(7	)		5.96
Cancelled		(104	)		12.53
Options Outstanding at May 29, 2021		1,455		$	8.08
Granted		185			7.66
Exercised		(373	)		8.01
Forfeited		(35	)		6.51
Cancelled		(84	)		11.65
Options Outstanding at May 28, 2022		1,148		$	7.82		5.7	$	7,082
Options Vested at May 28, 2022		676		$	8.73		4.1	$	3,551

(1)

Includes only those options that were in-the-money as of May 28, 2022. Stock options for which the exercise price exceeded the market price have been omitted. Fluctuations in the intrinsic value of both outstanding and exercisable options may result from changes in underlying stock price and timing and volume of option grants, exercises and forfeitures.

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
	May 28, 2022			May 29, 2021			May 30, 2020
Expected volatility		29.00	%		27.72	%		24.48	%
Risk-free interest rate		0.97	%		0.45	%		1.91	%
Expected lives (years)		6.50			6.50			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 May 28, 2022 (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
$4.26 to $6.47		389	$	5.11		7.2	$	3,455		152	$	5.38		6.6	$	1,310
$6.90 to $10.01		573		8.44		6.2		3,178		338		8.68		4.8		1,792
$11.14 to $13.76		186		11.57		0.9		449		186		11.57		0.9		449
Total		1,148	$	7.82		5.7	$	7,082		676	$	8.73		4.1	$	3,551

Schedule of Restricted Stock Award Transactions

As of May 28, 2022 a summary of restricted stock award transactions was as follows (in thousands):

	Unvested Restricted Shares
Unvested at May 30, 2020		142
Granted		73
Vested		(71	)
Unvested at May 29, 2021		144
Granted		72
Vested		(71	)
Unvested at May 28, 2022		145

Schedule of Earnings Per Share, Basic and Diluted

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

	For the Fiscal Year Ended
	May 28, 2022				May 29, 2021						May 30, 2020
	Basic		Diluted		Basic			Diluted			Basic			Diluted
Numerator for Basic and Diluted EPS:
Net income (loss)	$	17,927	$	17,927	$	1,655		$	1,655		$	(1,838	)	$	(1,838	)
Less dividends:
Common stock		2,745		2,745		2,669			2,669			2,648			2,648
Class B common stock		448		448		453			453			453			453
Undistributed earnings (loss)	$	14,734	$	14,734	$	(1,467	)	$	(1,467	)	$	(4,939	)	$	(4,939	)

Common stock undistributed earnings (loss)	$	12,655	$	12,720	$	(1,254	)	$	(1,255	)	$	(4,217	)	$	(4,217	)
Class B common stock undistributed earnings (loss)		2,079		2,014		(213	)		(212	)		(722	)		(722	)
Total undistributed earnings (loss)	$	14,734	$	14,734	$	(1,467	)	$	(1,467	)	$	(4,939	)	$	(4,939	)

Denominator for Basic and Diluted EPS:
Common stock weighted average shares		11,395		11,395		11,105			11,105			11,026			11,026
Effect of dilutive securities
Dilutive stock options				430					59						—
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions				11,825					11,164						11,026
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,080		2,080		2,097			2,097			2,097			2,097

Net income (loss) per share:
Common stock	$	1.35	$	1.31	$	0.13		$	0.13		$	(0.14	)	$	(0.14	)
Class B common stock	$	1.21	$	1.18	$	0.11		$	0.11		$	(0.13	)	$	(0.13	)

Note:

There were no common stock options that were anti-dilutive for fiscal 2022. For fiscal 2021 and fiscal 2020, the common stock options that were anti-dilutive and not included in diluted earnings per common share were 0 and 1,120, respectively.