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Stock-based Compensation
 3 Months Ended
Aug. 25, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
Stock-Based Compensation Activity
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 and risk-free interest rate which have a significant impact on the fair value estimates. The following table displays the estimated fair value of stock options granted and the weighted average assumptions utilized:

 Three Months Ended
 August 25, 2024
Weighted-average grant date fair value$2.48 
Assumptions:
Expected life (in years)4.35
Risk-free interest rate3.88 %
Volatility53 %
Dividend yield— %
A summary of the activity under the Company’s stock option plans as of August 25, 2024 and changes during the fiscal quarter then ended is presented below:
 Options OutstandingWeighted-Average Exercise Price Per ShareTotal Intrinsic Value of Options Exercised
(in thousands)		Weighted-Average Remaining Contractual Term in YearsAggregate Intrinsic Value
(in thousands)
Options outstanding at May 26, 20242,112,591 $10.88 2.44$— 
Options granted54,150 $5.28 
Options exercised— $— $— 
Options forfeited(16,956)$10.13 
Options expired(75,000)$14.00 
Options outstanding at August 25, 20242,074,785 $10.63 2.24$39 
Options exercisable at August 25, 20241,872,086 $10.82 1.89$— 

The intrinsic values presented in the table above were calculated as the excess, if any, of the market price or closing price of the Company’s common stock over the exercise price of the options multiplied by the number of options exercised, outstanding or exercisable, as applicable.

RSUs are valued using the closing price of the Company’s common stock on their grant date and expensed ratably over the requisite vesting period of one to three years. All vesting is subject to continued service. A summary of the Company’s RSU award activity as of August 25, 2024 and changes during the fiscal quarter then ended is presented below:
 Restricted Stock Units OutstandingWeighted-Average Grant Date Fair Value Per Share
RSUs outstanding at May 26, 20241,622,004 $7.83 
Granted358,392 $5.18 
Vested(435,448)$8.54 
Forfeited(108,708)$7.06 
RSUs outstanding at August 25, 20241,436,240 $7.01 
Currently, the PSUs outstanding vest upon achievement of certain stock price hurdles and continued employment thereafter of our CEO. The PSUs have a 5-year term and any unvested awards at the end of the term will be forfeited. PSUs subject to market conditions are valued using a Monte Carlo simulation model and expensed on an accelerated attribution basis over the derived service period. If the stock price hurdles are not met, expense is not reversed as long as the requisite service period has been met. A summary of the Company’s PSU award activity as of August 25, 2024 and changes during the fiscal quarter then ended is presented below:
 Performance Share Units OutstandingWeighted-Average Grant Date Fair Value Per Share
PSUs outstanding at May 26, 20241,500,000 $4.66 
Granted— $— 
Vested— $— 
Forfeited— $— 
PSUs outstanding at August 25, 20241,500,000 $4.66 

Stock-Based Compensation Expense

The following table summarizes stock-based compensation by income statement line item:
Three Months Ended
August 25, 2024August 27, 2023
Cost of product sales$141 $184 
Research and development13 43 
Selling, general and administrative2,265 1,306 
Stock-based compensation expense2,419 1,533 
Amount capitalized into property, plant, and equipment— 8 
Total stock-based compensation costs$2,419 $1,541 

As of August 25, 2024, there was $13,049 of total unrecognized compensation expense related to unvested equity compensation awards granted under the Lifecore incentive stock plans. This total expense is expected to be recognized over a weighted-average period of 2.06 years.