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Stock-based Compensation and Stockholders’ Equity
 12 Months Ended
May 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation and Stockholders’ Equity Stock-based Compensation and Stockholders’ Equity
Common Stock and Stock Option Plans
On October 16, 2019, following stockholder approval at the Annual Meeting of Stockholders of the Company, the 2019 Stock Incentive Plan (the “Plan”) became effective and replaced the Company’s 2013 Stock Incentive Plan (the “2013 Plan”). Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates are eligible to participate in the Plan.
The Plan provides for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Awards under the Plan will be evidenced by an agreement with the Plan participants and 2.0 million shares of the Company’s Common Stock (“Shares”) were initially available for award under the Plan. Under the Plan, no recipient may receive awards during any fiscal year that exceeds the following amounts: (i) stock options covering in excess of 500,000 Shares in the aggregate; (ii) stock grants and stock units covering in excess of 250,000 Shares in the aggregate; or (iii) stock appreciation rights covering more than 500,000 Shares in the aggregate. In addition, awards to non-employee directors are discretionary. However, a non-employee director may not be granted awards in excess of an aggregate fair market value of $120,000 during any fiscal year. The exercise price of the options is the fair market value of the Company’s Common Stock on the date the options are granted. As of May 31, 2020, 579,000 options to purchase shares and restricted stock units (“RSUs”) were outstanding.
On October 10, 2013, following stockholder approval at the Annual Meeting of Stockholders of the Company, the 2013 Plan became effective and replaced the Company’s 2009 Stock Incentive Plan. Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates were eligible to participate in the 2013 Plan. The 2013 Plan provided for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Under the 2013 Plan, 2.0 million shares were initially available for awards and as of May 31, 2020, 1,478,405 options to purchase shares and RSUs were outstanding.
On October 15, 2009, following stockholder approval at the Annual Meeting of Stockholders of the Company, the 2009 Stock Incentive Plan (the “2009 Plan”) became effective and replaced the Company’s 2005 Stock Incentive Plan. Employees (including officers), consultants and directors of the Company and its subsidiaries and affiliates were eligible to participate in the 2009 Plan. The 2009 Plan provided for the grant of stock options (both nonstatutory and incentive stock options), stock grants, stock units and stock appreciation rights. Under the 2009 Plan, 1.9 million shares were initially available for awards. On October 19, 2017, 1.0 million shares were added to the 2013 Plan following stockholder approval at the 2017 Annual Meeting of Stockholders. As of May 31, 2020, 128,500 options to purchase shares and RSUs were outstanding.
At May 31, 2020, the Company had 4.8 million common shares reserved for future issuance under Landec stock incentive plans.
Convertible Preferred Stock
The Company has authorized 2.0 million shares of preferred stock, and as of May 31, 2020 has no outstanding preferred stock.
Grant Date Fair Value
The Company uses the Black-Scholes option pricing model to calculate the grant date fair value of stock option awards. The use of an option pricing model requires the Company to make estimates and assumptions, including the expected stock price volatility, expected life of option awards, risk-free interest rate, and expected dividend yield which have a significant impact on the fair value estimates. As of May 31, 2020, May 26, 2019, and May 27, 2018, the fair value of stock option grants was estimated using the following weighted average assumptions:
 Year Ended
 May 31, 2020May 26, 2019May 27, 2018
Options granted435,000  368,264  498,000  
Weighted-average exercise price$10.42$11.85$12.93
Weighted-average grant date fair value$2.55$2.80$2.90
Assumptions:
Expected life (in years)3.503.503.50
Risk-free interest rate1.01 %2.47 %1.73 %
Volatility31 %27 %27 %
Dividend yield— %— %— %

Stock-Based Compensation Activity
A summary of the activity under the Company’s stock option plans as of May 31, 2020 and changes during the fiscal year then ended is presented below:
 Options OutstandingWeighted-Average Exercise Price Per ShareTotal Intrinsic Value of Options ExercisedWeighted-Average Remaining Contractual Term in YearsAggregate Intrinsic Value
Options outstanding at May 28, 20171,571,542  $13.20  
Options granted498,000  $12.93  
Options exercised(29,333) $7.36  $177,921  
Options forfeited and canceled(23,334) $12.55  
Options expired(61,540) $14.23  
Options outstanding at May 27, 20181,955,335  $13.20  
Options granted368,264  $11.85  
Options exercised(116,834) $11.82  $265,911  
Options forfeited and canceled(71,669) $13.75  
Options expired(135,000) $14.18  
Options outstanding at May 26, 20192,000,096  $12.94  
Options granted435,000  $10.42  
Options exercised(163,333) $11.16  $169,066  
Options forfeited and canceled(55,806) $13.08  
Options expired(499,599) $14.04  
Options outstanding at May 31, 20201,716,358  $12.15  3.75$416,090  
Options exercisable at May 31, 20201,113,441  $13.05  2.30$70,567  
A summary of the Company’s restricted stock unit award activity as of May 31, 2020 and changes during the fiscal year then ended is presented below:
 Restricted Stock Units OutstandingWeighted-Average Grant Date Fair Value Per Share
Restricted stock units outstanding at May 28, 2017509,355  $13.53  
Granted200,288  $13.12  
Vested(270,656) $14.06  
Forfeited(30,950) $11.75  
Restricted stock units outstanding at May 27, 2018408,037  $12.99  
Granted333,486  $13.15  
Vested(237,946) $13.27  
Forfeited(75,150) $13.92  
Restricted stock units outstanding at May 26, 2019428,427  $12.80  
Granted296,527  $9.79  
Vested(124,045) $11.82  
Forfeited(131,361) $12.49  
Restricted stock units outstanding at May 31, 2020469,548  $11.24  

Stock-Based Compensation Expense
The following table summarizes the stock-based compensation by statement of operations line item:
 Year Ended
(in thousands)May 31, 2020May 26, 2019May 27, 2018
Cost of sales$162  $449  $535  
Research and development158  114  131  
Selling, general and administrative2,099  2,997  3,737  
Total stock-based compensation$2,419  $3,560  $4,403  

As of May 31, 2020, there was $4.1 million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Landec stock incentive plans. Total expense is expected to be recognized over the weighted-average period of 2.40 years for stock options and 1.98 years for restricted stock unit awards.
Stock Repurchase Plan
On July 14, 2010, the Board of Directors of the Company approved the establishment of a stock repurchase plan which allows for the repurchase of up to $10.0 million of the Company’s Common Stock. The Company may repurchase its Common Stock from time to time in open market purchases or in privately negotiated transactions. The timing and actual number of shares repurchased is at the discretion of management of the Company and will depend on a variety of factors, including stock price, corporate and regulatory requirements, market conditions, the relative attractiveness of other capital deployment opportunities and other corporate priorities. The stock repurchase program does not obligate Landec to acquire any amount of its Common Stock and the program may be modified, suspended or terminated at any time at the Company’s discretion without prior notice. During fiscal years 2020, 2019 and 2018, the Company did not purchase any shares on the open market.