Significant Accounting Policies and Disclosures (Tables)

12 Months Ended

Jun. 01, 2024

Schedule of Contract Liabilities and Revenue Recognized

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


Balance May 28, 2022	$	4,966
Additions		4,293
Revenue recognized		(5,976	)
Balance May 27, 2023	$	3,283
Additions		4,629
Revenue recognized		(3,392	)
Balance June 1, 2024	$	4,520

Schedule of Property, Plant and Equipment

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


	June 1, 2024			May 27, 2023
Land and improvements	$	1,532		$	1,532
Buildings and improvements		27,885			24,206
Computer, communications equipment and software		11,900			11,692
Machinery and other equipment		19,253			18,350
Construction in progress		2,216			4,437
	$	62,786		$	60,217
Accumulated depreciation		(42,105	)		(39,394	)
Property, plant, and equipment, net	$	20,681		$	20,823

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, 2024		May 27, 2023
Compensation and payroll taxes	$	3,495	$	4,422
Accrued severance		506		486
Professional fees		487		661
Deferred revenue		4,520		3,283
Other accrued expenses		6,396		3,174
Accrued Liabilities	$	15,404	$	12,026

Schedule of Warranty Reserve

Changes in the warranty reserve during fiscal 2024 and fiscal 2023 were as follows (in thousands):


	Warranty Reserve
Balance at May 28, 2022	$	676
Accruals for products sold		91
Utilization		(42	)
Balance at May 27, 2023	$	725
Accruals for products sold		2
Utilization		(42	)
Balance at June 1, 2024	$	685

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 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
Granted		194			15.58
Exercised		(441	)		8.58
Forfeited		(20	)		8.15
Cancelled		(25	)		11.67
Options Outstanding at May 27, 2023		856		$	9.07
Granted		205			15.51
Exercised		(75	)		7.91
Forfeited		(18	)		9.32
Cancelled		(10	)		11.70
Options Outstanding at June 1, 2024		958		$	10.51		6.4	$	2,388
Options Vested at June 1, 2024		481		$	8.74		4.9	$	1,560

(1)

Includes only those options that were in-the-money as of June 1, 2024. 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
	June 1, 2024			May 27, 2023			May 28, 2022
Expected volatility		44.80	%		39.12	%		29.00	%
Risk-free interest rate		4.02	%		3.09	%		0.97	%
Expected lives (years)		5.61			5.47			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, 2024 (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		252	$	5.12		5.1	$	1,530		171	$	5.31		4.8	$	1,004
$6.90 to $10.35		294		8.27		5.0		858		209		8.53		4.1		556
$12.95 to $19.425		412		15.40		8.2		—		101		14.96		6.5		—
Total		958	$	10.51		6.4	$	2,388		481	$	8.74		4.9	$	1,560

Schedule of Restricted Stock Award Transactions

As of June 1, 2024, a summary of restricted stock award transactions was as follows (in thousands):


	Unvested Restricted Shares
Unvested at May 28, 2022		145
Granted		53
Vested		(73	)
Unvested at May 27, 2023		125
Granted		45
Vested		(66	)
Unvested at June 1, 2024		104

Schedule of Earnings Per Share, Basic and Diluted

The earnings per share (“EPS”) presented in our Consolidated Statements of Comprehensive Income are based on the following (in thousands, except per share amounts):


	For the Fiscal Year Ended
	June 1, 2024						May 27, 2023				May 28, 2022
	Basic			Diluted			Basic		Diluted		Basic		Diluted
Numerator for Basic and Diluted EPS:
Net income	$	61		$	61		$	22,333	$	22,333	$	17,927	$	17,927
Less dividends:
Common stock		2,933			2,933			2,877		2,877		2,745		2,745
Class B common stock		443			443			443		443		448		448
Undistributed (loss) earnings	$	(3,315	)	$	(3,315	)	$	19,013	$	19,013	$	14,734	$	14,734
Common stock undistributed (loss) earnings	$	(2,880	)	$	(2,887	)	$	16,467	$	16,573	$	12,655	$	12,720
Class B common stock undistributed (loss) earnings		(435	)		(428	)		2,546		2,440		2,079		2,014
Total undistributed (loss) earnings	$	(3,315	)	$	(3,315	)	$	19,013	$	19,013	$	14,734	$	14,734

Denominator for Basic and Diluted EPS:
Common stock weighted average shares		12,214			12,214			11,943		11,943		11,395		11,395
Effect of dilutive securities
Dilutive stock options					250					599				430
Denominator for diluted EPS adjusted for weighted average shares and assumed conversions					12,464					12,542				11,825
Class B common stock weighted average shares, and shares under if-converted method for diluted EPS		2,051			2,051			2,052		2,052		2,080		2,080

Net income per share:
Common stock	$	0.00		$	0.00		$	1.62	$	1.55	$	1.35	$	1.31
Class B common stock	$	0.00		$	0.00		$	1.46	$	1.40	$	1.21	$	1.18

Note: There were no common stock options that were anti-dilutive for fiscal 2024, fiscal 2023 and fiscal 2022.