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Selling, general and administrative

16,593,000

14,921,000

32,930,000

33,723,000

Operating costs and expenses:

Research and development

2,533,000

3,372,000

5,366,000

6,091,000

14,666,000

12,244,000

28,617,000

25,602,000

Total operating costs and expenses

17,199,000

15,616,000

33,983,000

31,693,000

Operating (loss) income

(606,000)

(695,000)

(1,053,000)

2,030,000

412,000

825,000

Net (loss) income from continuing operations before tax

33,000

42,000

79,000

73,000

Interest expense

(746,000)

^[1]

(480,000)

(1,504,000)

(884,000)

Other income

600,000

1,300,000

1,600,000

2,200,000

(307,000)

579,000

(53,000)

4,244,000

Income tax expense

(277,000)

(165,000)

(342,000)

(1,475,000)

Income (loss) from discontinued operations

(584,000)

414,000

(395,000)

2,769,000

141,000

(62,000)

Income tax (expense) benefit

(42,000)

18,000

Income (loss) from discontinued operations, net of tax

99,000

(44,000)

Consolidated net (loss) income

(584,000)

513,000

(395,000)

2,725,000

Non-controlling interest expense

(26,000)

(92,000)

Net (loss) income applicable to common stockholders

$ (584,000)

$ 487,000

$ (395,000)

$ 2,633,000

Basic net (loss) income per share:

(Loss) income from continuing operations (in dollars per share)

$ (0.02)

$ 0.02

$ (0.01)

$ 0.10

Income (loss) from discontinued operations (in dollars per share)

Total basic net (loss) income per share (in dollars per share)

(0.02)

0.02

(0.01)

0.10

Diluted net (loss) income per share

(Loss) income from continuing operations (in dollars per share)

(0.02)

0.02

(0.01)

0.10

Income (loss) from discontinued operations (in dollars per share)

Total diluted net (loss) income per share (in dollars per share)

$ (0.02)

$ 0.02

$ (0.01)

$ 0.10

Basic (in shares)

27,764

27,518

27,751

27,512

Diluted (in shares)

27,764

27,875

27,751

27,866

Other comprehensive income (loss), net of tax:

Net unrealized gains (losses) on interest rate swaps (net of tax effect of $53, $140, $(25), and $85)

$ 76,000

$ 239,000

$ (13,000)

$ 136,000

Other comprehensive income (loss), net of tax

76,000

239,000

(13,000)

136,000

Total comprehensive (loss) income

$ (508,000)

$ 726,000

$ (408,000)

$ 2,769,000

[1]	Beginning in first quarter of fiscal 2019, the Company began allocating interest expense to its reportable segments in information provided to its CODM to enhance visibility into how financing activities impact the discrete financial results.

Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Change in net unrealized gains on interest rate swap, tax	$ 53	$ 140	$ (25)	$ (85)

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - 6 months ended Nov. 25, 2018 - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at May. 27, 2018	27,702
Balance at May. 27, 2018	$ 28	$ 142,087	$ 109,299	$ 1,148	$ 252,562
Issuance of common stock at $6.82 to $14.39 per share, net of taxes paid by Landec on behalf of employees (in shares)	8
Issuance of common stock at $6.82 to $14.39 per share, net of taxes paid by Landec on behalf of employees
Issuance of common stock for vested restricted stock units ("RSUs") (in shares)	75
Issuance of common stock for vested restricted stock units ("RSUs")
Taxes paid by Company for employee stock plans		(247)			(247)
Stock-based compensation		1,666			1,666
Net loss			(395)		(395)
Other comprehensive loss, net of tax				(13)	(13)
Balance (in shares) at Nov. 25, 2018	27,785
Balance at Nov. 25, 2018	$ 28	$ 143,506	$ 108,904	$ 1,135	$ 253,573

Consolidated Statement of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - Common Stock [Member]	Nov. 25, 2018 $ / shares
Minimum [Member]
Issuance of common stock, per share (in dollars per share)	$ 6.82
Maximum [Member]
Issuance of common stock, per share (in dollars per share)	$ 14.39

Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands

6 Months Ended

Nov. 25, 2018

Nov. 26, 2017

Cash flows from operating activities:

Consolidated net (loss) income

$ (395)

$ 2,725

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Stock-based compensation expense

6,458

5,934

1,666

2,066

Deferred taxes

226

1,364

Change in investment in non-public company, fair value

(1,600)

(2,200)

Change in contingent consideration liability

(900)

Net loss (gain) on disposal of property and equipment

(45)

Changes in current assets and current liabilities:

Accounts receivable, net

975

(9,273)

Inventories

191

(5,546)

Prepaid expenses and other current assets

2,267

(904)

Accounts payable

(1,381)

13,621

Accrued compensation

(3,322)

(497)

Other accrued liabilities

1,575

(2,272)

Deferred revenue

(958)

1,363

Net cash provided by operating activities

4,803

6,336

Cash flows from investing activities:

Purchases of property and equipment

(18,588)

(9,437)

Issuance of note receivable

(2,099)

Proceeds from collections of notes receivable

195

Proceeds from sales of fixed assets

Net cash used in investing activities

(18,390)

(11,463)

Cash flows from financing activities:

Proceeds from sale of common stock

Taxes paid by Company for employee stock plans

(247)

(256)

Payments on long-term debt

(2,543)

Proceeds from lines of credit

15,000

14,500

Payments on lines of credit

(7,500)

Payments to non-controlling interest

(115)

Other, net

Net cash provided by financing activities

12,210

4,087

Net decrease in cash, cash equivalents and restricted cash (1)

^[1]

(1,377)

(1,040)

Cash, cash equivalents and restricted cash, beginning of period (1)

^[1]

3,216

5,734

Cash, cash equivalents and restricted cash, end of period (1)

^[1]

1,839

4,694

Supplemental disclosure of non-cash investing and financing activities:

Purchases of property and equipment on trade vendor credit

$ 1,319

$ 2,374

[1]

As a result of adopting ASU 2016-18, the Company now is required to include restricted cash as part of the change in the total cash balance. Accordingly, cash and cash equivalents at the beginning-of-period and end-of-period total amounts have been adjusted to include $325,000 of restricted cash for each of the periods presented. Refer to Note 1, "Recently Adopted Accounting Pronouncements," in the Notes to Condensed Consolidated Financial Statements for more information.

Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($)	Nov. 25, 2018	May 27, 2018	Nov. 26, 2017	May 28, 2017
Restricted cash	$ 325,000	$ 325,000	$ 325,000	$ 325,000

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies

6 Months Ended

Nov. 25, 2018

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

1.	Organization, Basis of Presentation , and Summary of Significant Accounting Policies

Organization

Landec Corporation and its subsidiaries (“Landec” or the “Company”) design, develop, manufacture, and sell differentiated products for food and biomaterials markets, and license technology applications to partners. The Company has

two

proprietary polymer technology platforms:

) Intelimer

polymers, and

) hyaluronan (“HA”) biopolymers. The Company sells specialty packaged branded Eat Smart

and GreenLine

and private label fresh-cut vegetables and whole produce to retailers, club stores, and foodservice operators, primarily in the United States, Canada, and Asia through its Apio, Inc. (“Apio”) subsidiary, and sells HA-based and non-HA biomaterials through its Lifecore Biomedical, Inc. (“Lifecore”) subsidiary. The Company’s HA biopolymers and non-HA materials are proprietary in that they are specially formulated for specific customers to meet strict regulatory requirements. The Company also sells premier California specialty olive oils and wine vinegars under its O Olive & Vinegar

(“

”) brand to natural food, conventional grocery and mass retail stores, primarily in the United States and Canada and sells pure plant-based soups under its Now Planting

brand.

The Company’s technologies, along with its customer relationships and tradenames, are the foundation and key differentiating advantages upon which Landec has built its business.

Basis of Presentation

The accompanying unaudited consolidated financial statements of Landec have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions for Form

-Q and Article

of Regulation S-

In the opinion of management, all adjustments (consisting of normal recurring accruals) have been made which are necessary to present fairly the financial position of the Company at

November 25, 2018

and the results of operations and cash flows for all periods presented. Although Landec believes that the disclosures in these financial statements are adequate to make the information presented

not

misleading, certain information normally included in financial statements and related footnotes prepared in accordance with GAAP have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission. The accompanying financial data should be reviewed in conjunction with the audited financial statements and accompanying notes included in Landec's Annual Report on Form

-K for the fiscal year ended

May 27, 2018.

The Company’s fiscal year is the

- or

-week period that ends on the last Sunday of

May

with quarters within each year ending on the last Sunday of

August,

November,

and

February;

however, in instances where the last Sunday would result in a quarter being

-weeks in length, the Company’s policy is to extend that quarter to the following Sunday. A

14th

week is included in the fiscal year every

five

six

years to realign the Company’s fiscal quarters with calendar quarters.

May 2018,

the Company discontinued the Food Export business segment. As a result, the Food Export business segment has been reclassified as a discontinued operation under the provisions of Accounting Standards Codification ("ASC")

205

20,

Presentation of Financial Statements - Discontinued Operations

("ASC

205

20"

) and ASC

360,

Property, Plant and Equipment

("ASC

360”

) for the

six

months ended

November 26, 2017.

The results of operations for the

six

months ended

November 25, 2018

are

not

necessarily indicative of the results that

may

be expected for an entire fiscal year because there is some seasonality in Apio’s food business and the order patterns of Lifecore’s customers which

may

lead to significant fluctuations in Landec’s quarterly results of operations.

As disclosed in the Company’s fiscal year

2018

Annual Report on Form

-K, the Company determined that it had improperly included accrued capital expenditures in cash used in investing activities from the purchase of property and equipment in its Statements of Cash Flows for the previous annual financial statements and the quarterly financial statements for fiscal years

2018

and

2017.

While the Company concluded that the impact of these errors was

not

material to prior annual periods, the Company concluded that the errors were material to its fiscal years’

2018

and

2017

quarterly Statements of Cash Flows. As a result, cash used in operating and investing activities were both understated. Accordingly, the Company restated its fiscal years

2018

and

2017

quarterly Statements of Cash Flows in Note

– Quarterly Consolidated Financial Information (unaudited), in the Company’s fiscal year

2018

Annual Report on Form

-K. The Statement of Cash Flows for the

six

months ended

November 26, 2017

has been restated to reflect this error correction.

Basis of Consolidation

The consolidated financial statements are presented on the accrual basis of accounting in accordance with GAAP and include the accounts of Landec Corporation and its subsidiaries, Apio and Lifecore. All intercompany transactions and balances have been eliminated.

Arrangements that are

not

controlled through voting or similar rights are reviewed under the guidance for variable interest entities (“VIEs”). A company is required to consolidate the assets, liabilities, and operations of a VIE if it is determined to be the primary beneficiary of the VIE.

An entity is a VIE and subject to consolidation, if by design: a) the total equity investment at risk is

not

sufficient to permit the entity to finance its activities without additional subordinated financial support provided by any party, including equity holders, or b) as a group the holders of the equity investment at risk lack any

one

of the following

three

characteristics: (i) the power, through voting rights or similar rights to direct the activities of an entity that most significantly impact the entity’s economic performance, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity. The Company reviewed the consolidation guidance and concluded that its equity investment in the non-public company is

not

a VIE.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition; loss contingencies; sales returns and allowances; inventories; self-insurance liabilities; recognition and measurement of current and deferred income tax assets and liabilities; the assessment of recoverability of long-lived assets including intangible assets; the valuation of investments; the valuation and recognition of stock-based compensation; the valuation of financial assets and liabilities; and the valuation of contingent consideration liabilities.

These estimates involve the consideration of complex factors and require management to make judgments. The analysis of historical and future trends can require extended periods of time to resolve and are subject to change from period to period. The actual results

may

differ from management’s estimates.

Cash and Cash Equivalents

The Company records all highly liquid securities with

three

months or less from date of purchase to maturity as cash equivalents. Cash equivalents consist mainly of money market funds. The market value of cash equivalents approximates their historical cost given their short-term nature.

Reconciliation of Cash and Cash Equivalents and

Restricted

Cash as presented on the Statements of Cash Flows

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statements of cash flows (in thousands):

	November 25, 2018		May 27, 2018			November 26, 2017			May 28, 2017
Cash and cash equivalents	$	1,514	$	2,899		$	4,602		$	5,998
Restricted cash		325		325			325			325
Cash, discontinued operations		—		(8	)		(233	)		(589	)
Cash, cash equivalents and restricted cash	$	1,839	$	3,216		$	4,694		$	5,734

Restricted Cash

The Company was required to maintain

$325,000

of restricted cash as of both

November 25, 2018

and

May 27, 2018,

related to certain collateral requirements for obligations under its workers’ compensation programs. The restricted cash is included in Other assets in the Company’s accompanying Consolidated Balance Sheets.

Inventories

Inventories are stated at the lower of cost (

first

-in,

first

-out method) or net realizable value and consist of the following (in thousands):

	November 25, 2018		May 27, 2018
Raw materials	$	14,607	$	15,286
Work in progress		3,092		3,672
Finished goods		13,929		12,861
Total	$	31,628	$	31,819

If the cost of the inventories exceeds their net realizable value, provisions are recorded currently to reduce them to net realizable value. The Company also records a provision for slow moving and obsolete inventories based on the estimate of demand for its products.

Related Party Transactions

The Company sells products to and earns license fees from Windset Holdings

2010

Ltd. (“Windset”). During the

three

months ended

November 25, 2018

and

November 26, 2017,

the Company recognized revenues of

$109,000

and

$91,000,

respectively. During the

six

months ended

November 25, 2018

and

November 26, 2017,

the Company recognized revenues of

$244,000

and

$195,000,

respectively. These amounts have been included in product sales in the accompanying Consolidated Statements of Comprehensive (Loss) Income. The related receivable balances of

$207,000

and

$334,000

are included in accounts receivable in the accompanying Consolidated Balance Sheets as of

November 25, 2018

and

May 27, 2018,

respectively.

Additionally, unrelated to the revenue transactions above, the Company purchases produce from Windset for sale to

third

parties. During the

three

and

six

months ended

November 25, 2018,

the Company recognized cost of product sales of

and

$6,000,

respectively, in the accompanying Consolidated Statements of Comprehensive (Loss) Income, from the sale of products purchased from Windset.

All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Board of Directors.

Debt Issuance Costs

The Company records its line of credit debt issuance costs as an asset, and as such,

$120,000

and

$218,000

were recorded as prepaid expenses and other current assets, and other assets, respectively, as of

November 25, 2018,

and

$120,000

and

$278,000,

respectively, as of

May 27, 2018.

The Company records its term debt issuance costs as a contra-liability, and as such,

$60,000

and

$110,000

was recorded as current portion of long-term debt, and long-term debt, net, respectively, as of

November 25, 2018

and

$60,000

and

$140,000,

respectively, as of

May 27, 2018.

See Note

– Debt, of the Notes to Consolidated Financial Statements for further information.

Financial Instruments

The Company’s financial instruments are primarily composed of commercial-term trade payables, grower advances, notes receivable, and debt instruments. For short-term instruments, the historical carrying amount approximates the fair value of the instrument. The fair value of long-term debt approximates its carrying value.

Cash Flow Hedges

The Company has entered into interest rate swap contracts to manage interest rate risk. These derivative instruments

may

offset a portion of the changes in interest expense. The Company designates these derivative instruments as cash flow hedges. The Company’s derivative instruments are subject to master netting arrangements. These arrangements include provisions to setoff positions with the same counterparties in the event of default by

one

of the parties. The Company accounts for its derivative instruments as either an asset or a liability and carries them at fair value in Other assets or Other non-current liabilities in the accompanying Consolidated Balance Sheets. The accounting for changes in the fair value of derivative instruments depends on the intended use of the derivative instrument and the resulting designation.

For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of Accumulated Other Comprehensive Income (“AOCI”) in Stockholders’ Equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in earnings in the current period. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions.

Accumulated

Other Comprehensive Income

(AOCI)

Comprehensive income consists of

two

components, net income and Other Comprehensive Income (“OCI”). OCI refers to revenue, expenses, and gains and losses that under GAAP are recorded as a component of stockholders’ equity but are excluded from the determination of net income. The Company’s AOCI consists of net deferred gains and losses on its interest rate swap contracts accounted for as cash flow hedges. The components of AOCI, net of tax, are as follows (in thousands):

	AOCI
Accumulated OCI, net, as of May 27, 2018	$	1,148
Unrealized losses on interest rate swap contracts, net of tax effect		(13	)
Amounts reclassified from OCI		—
Accumulated OCI, net, as of November 25, 2018	$	1,135

The Company does

not

expect any transactions or other events to occur that would result in the reclassification of any significant gains or losses into earnings in the next

months.

Investment in Non-Public Company

February 15, 2011,

the Company made its initial investment in Windset which is reported as an Investment in non-public company, fair value, in the accompanying Consolidated Balance Sheets as of

November 25, 2018

and

May 27, 2018.

The Company has elected to account for its investment in Windset under the fair value option. See Note

– Investment in Non-public Company, for further information.

Intangible Assets

The Company’s intangible assets are comprised of customer relationships with a finite estimated useful life of

eleven

thirteen

years, and trademarks, tradenames and goodwill with indefinite useful lives.

Finite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances occur that indicate that the carrying amount of an asset (or asset group)

may

not

be recoverable. Indefinite lived intangible assets are reviewed for impairment at least annually. For goodwill and other indefinite-lived intangible assets, the Company performs a qualitative impairment analysis in accordance with ASC

350

35.

Partial Self-Insurance on Employee Health and Workers Compensation Plans

The Company provides health insurance benefits to eligible employees under self-insured plans whereby the Company pays actual medical claims subject to certain stop loss limits and self-insures its workers compensation claims. The Company records self-insurance liabilities based on actual claims filed and an estimate of those claims incurred but

not

reported. Any projection of losses concerning the Company's liability is subject to a high degree of variability. Among the causes of this variability are unpredictable external factors such as inflation rates, changes in severity, benefit level changes, medical costs, and claims settlement patterns. This self-insurance liability is included in Other accrued liabilities in the accompanying Consolidated Balance Sheets and represents management's best estimate of the amounts that have

not

been paid as of

November 25, 2018

and

May 27, 2018.

It is reasonably possible that the expense the Company ultimately incurs could differ and adjustments to future reserves

may

be necessary.

Fair Value Measurements

The Company uses fair value measurement accounting for financial assets and liabilities and for financial instruments and certain other items measured at fair value. The Company has elected the fair value option for its investment in a non-public company. See Note

– Investment in Non-public Company for further information. The Company also measures its contingent consideration liability at fair value. See Note

– Acquisition of

for further information. The Company has

not

elected the fair value option for any of its other eligible financial assets or liabilities.

The accounting guidance established a

three

-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows:

Level

– observable inputs such as quoted prices for identical instruments in active markets.

Level

– inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.

Level

– unobservable inputs in which there is little or

market data, which would require the Company to develop its own assumptions.

As of

November 25, 2018

and

May 27, 2018,

the Company held certain assets and liabilities that are required to be measured at fair value on a recurring basis, including its interest rate swap contracts, its minority interest investment in Windset and its contingent consideration liability from the acquisition of

The fair value of the Company’s interest rate swap contracts is determined based on model inputs that can be observed in a liquid market, including yield curves, and is categorized as a Level

fair value measurement and is included in Other assets or Other non-current liabilities in the accompanying Consolidated Balance Sheets.

The fair value of the Company’s contingent consideration liability from the acquisition of

utilizes significant unobservable inputs, including projected earnings before interest, taxes, depreciation and amortization (“EBITDA”) and discount rates. As a result, the Company’s contingent consideration liability associated with the

acquisition is considered a Level

measurement liability and is included in Other non-current liabilities in the accompanying Consolidated Balance Sheets.

In determining the fair value of the Company’s contingent consideration liability, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:

	At November 25, 2018			At May 27, 2018
Cost of debt	5.3%	to	5.7%	4.7%	to	5.2%
Market price of risk adjustment		20%			20%
EBITDA volatility		24%			25%

The fair value of our contingent consideration liability is sensitive to change in forecasts and discount rates. The discounted cash flow valuation model used by the Company has the following sensitivity to changes in inputs and assumptions (in thousands):

		Impact on value of Contingent consideration liability as of November 25, 2018
10% increase in EBITDA forecast		$	300

The Company has elected the fair value option of accounting for its investment in Windset. The calculation of fair value utilizes significant unobservable inputs, including projected cash flows, growth rates, and discount rates. As a result, the Company’s investment in Windset is considered to be a Level

measurement investment. The change in the fair value of the Company’s investment in Windset for the

six

months ended

November 25, 2018

was due to the Company’s

26.9%

minority interest in the change in the fair market value of Windset during the period.

In determining the fair value of the investment in Windset, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:

	At November 25, 2018	At May 27, 2018
Revenue growth rates	6%	6%
Expense growth rates	6%	6%
Income tax rates	15%	15%
Discount rates	12%	12%

The revenue growth, expense growth, and income tax rate assumptions are considered the Company's best estimate of the trends in those items over the discount period. The discount rate assumption takes into account the risk-free rate of return, the market equity risk premium, and the company’s specific risk premium and then applies an additional discount for lack of liquidity of the underlying securities. The discounted cash flow valuation model used by the Company has the following sensitivity to changes in inputs and assumptions (in thousands):

	Impact on value of investment in Windset as of November 25, 2018
10% increase in revenue growth rates	$	9,800
10% increase in expense growth rates	$	(9,300	)
10% increase in income tax rates	$	(500	)
10% increase in discount rates	$	(3,700	)

Imprecision in estimating unobservable market inputs can affect the amount of gain or loss recorded for a particular position. The use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

The following table summarizes the fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	Fair Value at November 25, 2018						Fair Value at May 27, 2018
Assets:	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Interest rate swap contracts	$	—	$	1,512	$	—	$	—	$	1,529	$	—
Investment in non-public company		—		—		68,100		—		—		66,500
Total assets	$	—	$	1,512	$	68,100	$	—	$	1,529	$	66,500

Liabilities:
Contingent consideration liability		—		—		3,100		—		—		4,000
Total liabilities	$	—	$	—	$	3,100	$	—	$	—	$	4,000

The following table reflects the fair value rollforward reconciliation of Level

assets and liabilities measured at fair value for the

six

months ended

November 25, 2018 (

in thousands):

	Windset Investment		Contingent Consideration Liability
Balance as of May 27, 2018	$	66,500	$	4,000
Fair value change		1,600		(900	)
Balance as of November 25, 2018	$	68,100	$	3,100

Revenue Recognition

See Note

– Business Segment Reporting, for a discussion about the Company’s

three

business segments; namely, Natural Foods, Biomaterials, and Other.

The Company follows the

five

step, principles-based model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the Company expects to be entitled in exchange for those goods or services. Revenue, net of estimated allowances and returns, is recognized when the Company has completed its performance obligations under a contract and control of the product is transferred to the customer. Substantially all revenue is recognized at the time shipment is made or upon delivery as control of the product is transferred to the customer.

The revenue streams within the Company are consistent with those disclosed within Note

– Business Segment Reporting. For descriptions of the Company’s product offerings and segments refer to Note

– Business Segment Reporting in our annual report on Form

-K for the year ended

May 27, 2018.

The Company’s standard terms of sale are included in its contracts, purchase orders, and invoices. As such, all revenue is considered revenue recognized from contracts with customers. The Company has elected to account for shipping and handling as fulfillment activities, and

not

a separate performance obligation. The Company’s standard payment terms with its customers range from

days to

days. Certain customers

may

receive cash-based incentives (including: volume rebates, discounts, and slotting fees), which are accounted for as variable consideration to the Company’s variable consideration. The Company estimates these sales incentives based on the expected amount to be provided to its customers and reduces revenues recognized towards its performance obligations. The Company does

not

anticipate significant changes in its estimates for variable consideration.

Occasionally, the Company enters into bill-and-hold arrangements, where it invoices the customer for products even though it retains possession of the products until a point-in-time in the future when the products will be shipped to the customer. In these contracts, the primary performance obligation is satisfied, and revenue is generally recognized, at a point-in-time when the product is segregated from the Company’s general inventory, it's ready for shipment to the customer, and the Company does

not

have the ability to use the product or re-deploy it to another customer.

The Company disaggregates its revenue by segment product lines based on how it markets its products and reviews results of operations. The following tables disaggregate segment revenue by major product lines (in thousands):

	Three Months Ended				Six Months Ended
Natural Foods:	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Salads	$	41,950	$	44,578	$	91,030	$	86,626
Core vegetables		64,492		61,906		126,242		121,549
Other		3,024		1,864		4,245		3,790
Total	$	109,466	$	108,348	$	221,517	$	211,965

	Three Months Ended				Six Months Ended
Biomaterials:	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Aseptic	$	8,128	$	7,591	$	13,894	$	14,618
Fermentation		1,915		2,865		4,985		5,655
Development services		5,403		3,657		9,184		6,004
Total	$	15,446	$	14,113	$	28,063	$	26,277

Shipping and Handling

Shipping and handling costs are incurred to move the Company’s products from production and storage facilities to the customer. Handling costs are incurred from the point the product is segregated from the Company’s general inventory until it is provided to the shipper and generally include costs to store, move and prepare the products for shipment. The cost of shipping and handling services is recognized in Cost of product sales. When the costs of shipping and handling are passed on to a customer, the related amount is recorded in revenue.

Legal Contingencies

In the ordinary course of business, the Company is involved in various legal proceedings and claims.

The Company makes a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least each fiscal quarter and adjusted to reflect the impacts of negotiations, estimate settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Legal fees are expensed in the period in which they are incurred.

Apio has been the target of a union organizing campaign which has included

three

unsuccessful attempts to unionize Apio's Guadalupe, California processing plant. The campaign has involved a union and over

100

former and current employees of Pacific Harvest, Inc. and Rancho Harvest, Inc. (collectively "Pacific Harvest"), Apio's labor contractors at its Guadalupe, California processing facility, bringing legal actions before various state and federal agencies, the California Superior Court, and initiating over

100

individual arbitrations against Apio and Pacific Harvest.

The legal actions consisted of

three

main types of claims: (

) Unfair Labor Practice claims ("ULPs") before the National Labor Relations Board (“NLRB”), (

) discrimination/wrongful termination claims before state and federal agencies and in individual arbitrations, and (

) wage and hour claims as part of

two

Private Attorney General Act (“PAGA”) cases in state court and in over

100

individual arbitrations.

The ULP claims were settled in fiscal year

2017

for

$310,000.

Apio was responsible for half of this settlement, or

$155,000.

May 5, 2017,

the parties to the remaining actions executed a Settlement Agreement concerning the discrimination/wrongful termination claims and the wage and hour claims which covers all non-exempt employees of Pacific Harvest working at Apio's Guadalupe, California processing facility from

September 2011

through the settlement date. Under the Settlement Agreement, the plaintiffs were paid

$6.0

million in

three

installments:

$2.4

million of which was paid in

July 2017,

$1.8

million of which was paid in

November 2017

and

$1.8

million of which was paid in

July 2018,

representing the final payment due under the settlement agreement. The Company and Pacific Harvest have each agreed to pay

one

half of the settlement payments. The Company paid the entire

first

two

installments of

$4.2

million and will be reimbursed by Pacific Harvest for its

$2.1

million portion. As of

November 25, 2018,

the outstanding balance of the receivable was

$1.9

million of which

$900,000

and

$1.0

million is included in Prepaid and other current assets and Other assets, respectively, in the accompanying Consolidated Balance Sheets. This receivable will continue to be repaid through monthly payments until fully paid, which the Company expects to occur by

December 2020.

The Company’s recourse against non-payment by Pacific Harvest is its security interest in assets owned by Pacific Harvest. The receivable is reviewed quarterly for collectability. At

November 25, 2018,

the Company has concluded that the receivable is

not

impaired and therefore is

not

subject to an impairment loss. At

November 25, 2018,

the carrying amount of

$1.9

million is reflective of its fair value.

As of

November 25, 2018

and

May 27, 2018,

the Company had accrued

and

$1.0

million, respectively, related to these actions, which are included in Other accrued liabilities in the accompanying Consolidated Balance Sheets.

Recent Accounting Guidance

Recently Adopted Pronouncements

Income Taxes

February 2018,

the FASB issued ASU

2018

02,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

that permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in

December 2017.

The standard is effective for fiscal years beginning after

December 15, 2018.

Early adoption is permitted. The Company adopted ASU

2018

August 27, 2018.

The adoption of this ASU did

not

have a material impact on the Company’s consolidated financial statements and related disclosures.

Stock Compensation

May 2017,

the Financial Accounting Standards Board (“FASB”) issued ASU

2017

09,

Compensation—Stock Compensation (Topic

718

Scope of Modification Accountin

which provides guidance about which changes to the terms or conditions of a stock-based payment award require an entity to apply modification accounting in Topic

718.

This pronouncement is effective for annual reporting periods beginning after

December 15, 2017.

The Company adopted ASU

2017

May 28, 2018.

The adoption of this ASU did

not

have a material impact on the Company’s consolidated financial statements and related disclosures.

Restricted Cash

November 2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230

Restricted Cash

(“ASU

2016

18”

). ASU

2016

requires that entities include restricted cash and restricted cash equivalents with cash and cash equivalents in the beginning-of-period and end-of-period total amounts shown on the Statement of Cash Flows. The amendments in ASU

2016

are effective for fiscal years beginning after

December 15, 2017,

including interim reporting periods within those fiscal years. The Company adopted ASU

2016

May 28, 2018.

As a result of this retrospective adoption, the beginning-of-period and end-of-period total cash and cash equivalents in the Statement of Cash Flows have been adjusted to include restricted cash of

$325,000

for all periods presented.

Intra-Entity Transfers

November 2016,

the FASB issued ASU

2016

16,

Intra-Entity Transfers of Assets Other Than Inventory

. ASU

2016

requires companies to account for the income tax effects of intercompany transfers of assets other than inventory (e.g., intangible assets) when the transfer occurs. This pronouncement is effective for annual reporting periods beginning after

December 15, 2017,

including interim reporting periods within those annual reporting periods. Effective

May 28, 2018,

the Company adopted the ASU, without any impact to the presentation of its financial statements and disclosures.

Statement of Cash Flows

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

Classification of Certain Cash Receipts and Cash Payments

(a consensus of the Emerging Issues Task Force). ASU

2016

clarifies guidance on the classification of certain cash receipts and payments in the statement of cash flows to reduce diversity in practice. Among other things, debt prepayment or debt extinguishment costs will be presented as cash outflows for financing activities on the statement of cash flow. Effective

May 28, 2018,

the Company adopted the ASU, without any impact to the presentation of its financial statements and disclosures.

Revenue Recognition

May

2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

2014

09,

which creates FASB ASC Topic

606

, Revenue from Contracts with Customers

(“Topic

606”

) and supersedes ASC Topic

605,

Revenue Recognition

. The guidance replaces industry-specific guidance and establishes a single

five

-step model to identify and recognize revenue. The core principle of the guidance is that an entity should recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Additionally, the guidance requires the entity to disclose further quantitative and qualitative information regarding the nature and amount of revenues arising from contracts with customers, as well as other information about the significant judgments and estimates used in recognizing revenues from contracts with customers.

The Company adopted Topic

606

May 28, 2018

using the modified retrospective method. The adoption of this Topic

606

did

not

have a material impact upon the timing and measurement of revenue recognition. Additionally, the Company concluded that its historical methodology for estimation and recognition of variable consideration, i.e., rebates and other cash-based customer incentives remains consistent with the requirements of Topic

606.

Revenues from the Company’s Natural Foods segment are mostly generated from the sales of finished goods. Revenues from the Company’s Biomaterials segment are mostly generated from its supply and contract manufacturing arrangements. Such sales predominantly contain a single performance obligation and revenue is recognized at a point-in-time, when control of the product transfers from the Company to the customer.

In the notes to the consolidated financial statements, the Company has expanded its revenue recognition disclosures. Additionally, it has implemented changes to accounting policies and procedures, business processes, and controls in order to comply with the revenue recognition and disclosure requirements of Topic

606.

Recently Issued Pronouncements to be Adopted

Disclosure simplification

August 2018,

the U.S. Securities and Exchange Commission (“SEC”) adopted the final rule under SEC Release

No.

10532,

Disclosure Update and Simplification

, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements relating to the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of income is required to be filed. This final rule is effective on

November

2018.

Although this rule was effective on

November 5, 2018,

the SEC has provided for an extended transition period to implement the expanded shareholders’ equity disclosure requirements, which will be effective for the Company during the

third

quarter of fiscal

2019.

The Company continues to evaluate the impact the application of this rule will have on its future financial statements and disclosures.

Cloud Computing Arrangements

August 2018,

the FASB issued ASU

2018

15,

Customer

’

s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract

(ASU

2018

), which requires that requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification

350

to determine which implementation costs to defer and recognize as an asset. The Accounting Standards Update generally aligns the guidance on recognizing implementation costs incurred in a cloud computing arrangement that is a service contract with that for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. ASU

2018

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures.

Hedging

August 2017,

the FASB issued ASU

2017

12,

Targeted Improvements to Accounting for Hedging Activities

(ASU

2017

), which amends the presentation and disclosure requirements and changes how companies assess effectiveness. The amendments are intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU

2017

is effective for annual periods beginning after

December 15, 2018,

including interim periods within those periods. Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures.

Financial Instruments – Credit Losses

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments — Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

(ASU

2016

), which requires the measurement of all expected credit losses for financial assets including trade receivables held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU

2016

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

The adoption of ASU

2016

not

expected to have a material impact on the Company’s consolidated financial statements and related disclosures.

Leases

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

(“ASU

2016

02”

), which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use-assets. ASU

2016

also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. In

July 2018,

the FASB issued ASU

2018

11—

Leases (Topic

842

) – Targeted Improvements

. This ASU provides transition relief on comparative reporting to the previously-issued ASU

2016

and related guidance. The Company will adopt ASU

2016

beginning in the

first

quarter of fiscal year

2020

on a modified retrospective basis.

The Company is currently in the process of evaluating the impact that ASU

2016

will have upon its consolidated financial statements and related disclosures. The Company’s assessment efforts to date have included:

●

Reviewing the provisions of ASU

2016

02;

●

Gathering information to evaluate its lease population and portfolio;

●

Evaluating the nature of its real and personal property and other arrangements that

may

meet the definition of a lease; and

●

Systems’ readiness evaluations.

As a result of these efforts, the Company currently anticipates that the adoption of ASU

2016

will have a significant impact on its long-term assets and liabilities, as, at a minimum, virtually all of its leases designated as operating leases are expected to be reported on the consolidated balance sheets. The pattern of recognition for operating leases within the consolidated statements of comprehensive income is

not

anticipated to significantly change. The adoption is

not

expected to an impact on the Company’s ability to meet its loan covenants as the impact from the adoption of ASU

2016

was taken into consideration when determining its loan covenants.

Note 2 - Acquisition of O

6 Months Ended

Nov. 25, 2018

Business Combination Disclosure [Text Block]

2.	Acquisition of O

March 1, 2017,

the Company purchased substantially all of the assets of

for

$2.5

million in cash plus contingent consideration of up to

$7.5

million over fiscal years

2018

through

2020

based upon

achieving certain EBITDA targets. All accounting for this acquisition is final.

The potential earn out payment of up to

$7.5

million is based on

’s cumulative EBITDA over the Company’s fiscal years

2018

through

2020.

At the end of each fiscal year, beginning in fiscal year

2018,

the former owners of

will earn the equivalent of the EBITDA achieved by

for that fiscal year in an amount

not

to exceed

$4.6

million over the

three

year period. The former owners can also earn an additional

$2.9

million on a dollar for dollar basis for exceeding

$6.0

million of cumulative EBITDA over the

three

year period. Each quarter the Company performs, with the assistance of a

third

party appraiser, an analysis of

’s projected EBITDA over the earnout period. Based on this analysis, the Company records a contingent consideration liability, included in Other non-current liabilities. As of

November 25, 2018

and

May 27, 2018,

the contingent consideration liability was

$3.1

million and

$4.0

million, respectively, representing the present value of the expected earn out payments. The

$900,000

reduction in the contingent consideration liability was recorded as a reduction to SG&A during the

three

and

six

months ended

November 25, 2018

in the accompanying Consolidated Statements of Comprehensive Income.

Note 3 - Investment in Non-public Company

6 Months Ended

Nov. 25, 2018

Investment Holdings [Text Block]

3.	Investment in Non-public Company

February 15, 2011,

Apio entered into a share purchase agreement (the “Windset Purchase Agreement”) with Windset. Pursuant to the Windset Purchase Agreement, Apio purchased from Windset

150,000

Senior A preferred shares for

$15

million and

201

common shares for

$201.

July 15, 2014,

Apio increased its investment in Windset by purchasing from the Newell Capital Corporation an additional

common shares and

51,211

junior preferred shares of Windset for

$11

million. After this purchase, the Company’s common shares represent a

26.9%

ownership interest in Windset. The Senior A preferred shares yield a cash dividend of

7.5%

annually. The dividend is payable within

days of each anniversary of the execution of the Windset Purchase Agreement. The non-voting junior preferred stock does

not

yield a dividend unless declared by the Board of Directors of Windset and

such dividend has been declared.

The Shareholders’ Agreement between Apio and Windset, as amended on

March 15, 2017,

includes a put and call option (the “Put and Call Option”), which can be exercised on or after

March 31, 2022,

whereby Apio can exercise the put to sell its common, Senior A preferred shares, and junior preferred shares to Windset, or Windset can exercise the call to purchase those shares from Apio, in either case, at a price equal to

26.9%

of the fair market value of Windset’s common shares, plus the liquidation value of the preferred shares of

$20.1

million (

$15

million for the Senior A preferred shares and

$5.1

million for the junior preferred shares). Under the terms of the arrangement with Windset, the Company is entitled to designate

one

five

members on the Board of Directors of Windset.

October 29, 2014,

Apio further increased its investment in Windset by purchasing

70,000

shares of Senior B preferred shares for

million. The Senior B preferred shares pay an annual dividend of

7.5%

on the amount outstanding at each anniversary date of the Windset Purchase Agreement. The Senior B preferred shares purchased by Apio have a put feature whereby Apio can sell back to Windset the

million at any time after

October 29, 2017.

At any time, Windset has the right to call the Senior B preferred shares owned by Apio. Windset’s partial call provision is restricted such that a partial call cannot result in Apio holding less than

10%

of Windset’s common shares outstanding.

The investment in Windset does

not

qualify for equity method accounting as the investment does

not

meet the criteria of in-substance common stock due to returns through the annual dividend on the non-voting senior preferred shares that are

not

available to the common stockholders. As the put and call options require all of the various shares to be put or called in equal proportions, the Company has deemed that the investment, in substance, should be treated as a single security for purposes of accounting.

The fair value of the Company’s investment in Windset was determined utilizing the Windset Purchase Agreement’s put/call calculation for value and a discounted cash flow model based on projections developed by Windset, and considers the put and call conversion options. These features impact the duration of the cash flows utilized to derive the estimated fair values of the investment. These

two

discounted cash flow models’ estimate for fair value are then weighted. Assumptions included in these discounted cash flow models will be evaluated quarterly based on Windset’s actual and projected operating results to determine the change in fair value.

During each of the

three

months ended

November 25, 2018

and

November 26, 2017,

the Company recorded

$412,500

in dividend income. During each of the

six

months ended

November 25, 2018

and

November 26, 2017,

the Company recorded

$825,000

in dividend income. The increase in the fair market value of the Company’s investment in Windset for the

three

month periods ended

November 25, 2018

and

November 26, 2017

was

$600,000

and

$1.3

million, respectively. The increase in the fair market value of the Company’s investment in Windset for the

six

month periods ended

November 25, 2018

and

November 26, 2017

was

$1.6

million and

$2.2

million, respectively, and is included in Other income in the accompanying Consolidated Statements of Comprehensive Income

Note 4 - Stock-based Compensation

6 Months Ended

Nov. 25, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

4 .	Stock-Based Compensation

The Company’s stock-based awards include stock option grants and restricted stock units (“RSUs”). The Company records compensation expense for stock-based awards issued to employees and directors in exchange for services provided based on the estimated fair value of the awards on their grant dates and is recognized over the required service periods, generally the vesting period.

The following table summarizes the stock-based compensation for stock options and RSUs (in thousands):

	Three Months Ended				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Options	$	223	$	354	$	444	$	678
RSUs		715		762		1,222		1,388
Total stock-based compensation	$	938	$	1,116	$	1,666	$	2,066

The following table summarizes the stock-based compensation by income statement line item (in thousands):

	Three Months Ended				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Cost of sales	$	117	$	137	$	218	$	261
Research and development		30		23		55		42
Selling, general and administrative		791		956		1,393		1,763
Total stock-based compensation	$	938	$	1,116	$	1,666	$	2,066

The estimated fair value for stock options, which determines the Company’s calculation of stock-based compensation expense, is based on the Black-Scholes option pricing model. RSUs are valued at the closing market price of the Company’s common stock on the grant date. The Company uses the straight-line method to recognize the fair value of stock-based compensation arrangements.

As of

November 25, 2018,

there was

$5.9

million of total unrecognized compensation expense related to unvested equity compensation awards granted under the Landec incentive stock plans. Total expense is expected to be recognized over the weighted-average period of

1.9

years for stock options and

2.2

years for RSUs.

Note 5 - Diluted Net Income Per Share

6 Months Ended

Nov. 25, 2018

Earnings Per Share [Text Block]

5 .	Diluted Net Income Per Share

The following table sets forth the computation of diluted net (loss) income per share (in thousands, except per share amounts):

	Three Months Ended					Six Months Ended
	November 25, 2018			November 26, 2017		November 25, 2018			November 26, 2017
Numerator:
Net (loss) income applicable to Common Stockholders	$	(584	)	$	487	$	(395	)	$	2,633
Denominator:
Weighted average shares for basic net income per share		27,764			27,518		27,751			27,512
Effect of dilutive securities:
Stock options and restricted stock units		—			357		—			354
Weighted average shares for diluted net income per share		27,764			27,875		27,751			27,866

Diluted net (loss) income per share	$	(0.02	)	$	0.02	$	(0.01	)	$	0.10

Due to the Company’s net loss for the

three

and

six

months ended

November 25, 2018,

the net loss per share includes only weighted average shares outstanding and thus excludes

1.5

million and

1.4

million, respectively, of outstanding options and RSUs as such impacts would be antidilutive for these periods.

For the

three

and

six

months ended

November 26, 2017,

the computation of the diluted net income per share excludes the impact of options to purchase

1.3

million and

1.4

million shares, respectively, of Common Stock as such impacts would be antidilutive for those periods.

Note 6 - Income Taxes

6 Months Ended

Nov. 25, 2018

Income Tax Disclosure [Text Block]

6 .	Income Taxes

December 22, 2017,

the U.S. Government enacted the reconciled tax reform bill, commonly known as the Tax Cuts and Jobs Act of

2017

(the “TCJA”). The TCJA makes broad changes to the U.S. tax code including, but

not

limited to, reducing the Company’s federal statutory tax rate from

35%,

to an average rate of

29.4%

for the fiscal year ended

May 27, 2018,

and then

21%

for the

three

and

six

months ended

November 25, 2018

and thereafter; requiring companies to pay a

one

-time transition tax on certain unrepatriated earnings of foreign subsidiaries; generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries; requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations' creating a global intangibles low-taxed income inclusion and the base erosion anti-abuse tax, a new minimum tax. The TCJA also enhances and extends through

2026

the option to claim accelerated depreciation deductions on qualified property, however, the domestic manufacturing deduction, from which the Company has historically benefitted, has been eliminated.

March 2018,

FASB issued Accounting Standards Update

No.

2018

05,

Income Taxes Topic (

740

): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

118,

("ASU

2018

05"

) to address the application of GAAP in situations when a registrant does

not

have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The Company's accounting for the Tax Act was incomplete as of

May 27, 2018.

As of

November 25, 2018,

the Company’s analysis for the Transition Tax and the re-measurement of deferred taxes due to the Tax Rate Reduction was considered to be complete and the Company does

not

expect its analysis to substantially change from its current result. The impact resulting from the completion of this analysis resulted in additional tax expense of

$347,000

for the

three

and

six

months ended

November 25, 2018.

Ongoing guidance and accounting interpretation for the Tax Act are expected over the coming months and years and the Company will consider any changes in the accounting of the TCJA in the period in which such additional guidance is issued.

The provision for income taxes for the

six

months ended

November 25, 2018

and

November 26, 2017

was

$342,000

and

$1.5

million, respectively. The effective tax rate for the

six

months ended

November 25, 2018

and

November 26, 2017

was

25%

and

35%,

respectively. The effective tax rate for the

six

months ended

November 25, 2018

was higher than the statutory federal income tax rate of

21%

primarily due to the impact of state taxes and stock-based compensation, partially offset by the generation of federal & state R&D Credits.

As of

November 25, 2018

and

May 27, 2018,

the Company had unrecognized tax benefits of approximately

$582,000

and

$479,000,

respectively. Included in the balance of unrecognized tax benefits as of

November 25, 2018

and

May 27, 2018

was approximately

$507,000

and

$372,000,

respectively, of tax benefits that, if recognized, would result in an adjustment to the Company’s effective tax rate. The Company does

not

expect its unrecognized tax benefits to change significantly within the next

twelve

months.

The Company has elected to classify interest and penalties related to uncertain tax positions as a component of its provision for income taxes. The Company has accrued an insignificant amount of interest and penalties relating to the income tax on the unrecognized tax benefits as of

November 25, 2018

and

May 27, 2018.

Due to tax attribute carryforwards, the Company is subject to examination for tax years

2015

forward for U.S. tax purposes. The Company is also subject to examination in various state jurisdictions for tax years

2012

forward,

none

of which were individually material.

The Company’s estimated annual effective tax rate

may

be subject to further uncertainty due to the recent changes in U.S. tax rates and tax laws.

Note 7 - Debt

6 Months Ended

Nov. 25, 2018

Debt Disclosure [Text Block]

Debt

Long-term debt, net consists of the following (in thousands):

	November 25, 2018			May 27, 2018
Term loan with JPMorgan Chase Bank (“JPMorgan”), BMO Harris Bank N.A. (“BMO”), and City National Bank; due in quarterly principal and interest payments of $1,250 beginning December 1, 2016 through September 23, 2021 with the remainder due on maturity, with interest based on the Company’s leverage ratio at a per annum rate of the Eurodollar rate plus a spread of between 1.25% and 2.25%	$	40,000		$	42,500
Total principal amount of long-term debt		40,000			42,500
Less: unamortized debt issuance costs		(171	)		(200	)
Total long-term debt, net of unamortized debt issuance costs		39,829			42,300
Less: current portion of long-term debt, net		(4,940	)		(4,940	)
Long-term debt, net	$	34,889		$	37,360

September 23, 2016,

the Company entered into a Credit Agreement with JPMorgan, BMO, and City National Bank, as lenders (collectively, the “Lenders”), and JPMorgan as administrative agent, pursuant to which the Lenders provided the Company with a

$100.0

million revolving line of credit (the “Revolver”) and a

$50.0

million term loan facility (the “Term Loan”), guaranteed by each of the Company’s direct and indirect subsidiaries and secured by substantially all of the Company’s assets, with the exception of the Company’s investment in Windset.

Both the Revolver and the Term Loan mature in

five

years (on

September 23, 2021),

with the Term Loan providing for quarterly principal payments of

$1.25

million commencing

December 1, 2016,

with the remainder due at maturity.

Interest on both the Revolver and the Term Loan is based on either the prime rate or Eurodollar rate, at the Company’s discretion, plus a spread based on the Company’s leverage ratio (generally defined as the ratio of the Company’s total indebtedness on such date to the Company’s consolidated EBITDA for the period of

four

consecutive fiscal quarters ended on or most recently prior to such date). The spread is at a per annum rate of (i) between

0.25%

and

1.25%

if the prime rate is elected or (ii) between

1.25%

and

2.25%

if the Eurodollar rate is elected.

The Credit Agreement provides the Company the right to increase the Revolver commitments and/or the Term Loan commitments by obtaining additional commitments either from

one

or more of the Lenders or another lending institution at an amount of up to

$75.0

million.

The Credit Agreement contains customary financial covenants and events of default under which the obligation could be accelerated and/or the interest rate increased. The Company was in compliance with all financial covenants as of

November 25, 2018.

November 1, 2016,

the Company entered into an interest rate swap contract (the

“2016

Swap”) with BMO at a notional amount of

$50

million. The

2016

Swap has the effect of changing the Company’s Term Loan obligation from a variable interest rate to a fixed

-day LIBOR rate of

1.22%.

For further discussion regarding the Company’s use of derivative instruments, see the Financial Instruments section of Note

– Organization, Basis of Presentation, and Summary of Significant Accounting Policies.

June 25, 2018,

the Company entered into an interest rate swap contract (the

“2018

Swap”) with BMO at a notional amount of

$30.0

million. The

2018

Swap has the effect of converting the

first

$30.0

million of the total outstanding amount of the Company’s

-day LIBOR borrowings from a variable interest rate to a fixed

-day LIBOR rate of

2.74%.

In connection with the Credit Agreement, the Company incurred lender and

third

-party debt issuance costs of

$897,000,

of which

$598,000

and

$299,000

was allocated to the Revolver and Term Loan, respectively.

As of

November 25, 2018,

$42.0

million was outstanding on the Revolver, at an interest rate of

4.30%

under the Eurodollar option.

Note 8 - Stockholders' Equity

6 Months Ended

Nov. 25, 2018

Stockholders' Equity Note Disclosure [Text Block]

8 .	Stockholders’ Equity

During the

three

months ended

November 25, 2018,

the Company granted options to purchase

45,000

shares of common stock and awarded

19,000

RSUs. During the

six

months ended

November 25, 2018,

the Company granted options to purchase

175,000

shares of common stock and awarded

254,000

RSUs.

As of

November 25, 2018,

the Company has reserved

2.7

million shares of Common Stock for future issuance under its current and former equity plans.

July 14, 2010,

the Company announced that the Board of Directors of the Company had approved the establishment of a stock repurchase plan authorizing the repurchase of up to

$10

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 the

six

months ended

November 25, 2018,

the Company did

not

repurchase any of its outstanding common stock.

Note 9 - Business Segment Reporting

6 Months Ended

Nov. 25, 2018

Segment Reporting Disclosure [Text Block]

9 .	Business Segment Reporting

Prior to

May 2018,

the Company managed its business operations through

three

strategic reportable business segments: Packaged Fresh Vegetables, Food Export, and Biomaterials. These segments were based upon the information reported to the Chief Executive Officer, who is the chief operating decision maker (“CODM”). However, in

May 2018,

the Company discontinued its Food Export business segment. As a result, the Company met the requirements of ASC

205

and ASC

360

to report the results of the Food Export business segment as discontinued operations. The operating results for the Food Export business segment, for the

three

and

six

months ended

November 26, 2017,

have been reclassified to discontinued operations and are

longer reported as a separate segment.

Beginning in fiscal year

2019,

the Company realigned the management of its business and now has

three

strategic reportable business segments: the Natural Foods segment, the Biomaterials segment, and the Other segment. Our Natural Foods business is comprised of our historical Packaged Fresh Vegetables and BreatheWay® activities, our

olive oils and wine vinegars business and our new Now Planting refrigerated soups business. Our Natural Foods segment includes activities to market and pack specialty packaged whole and fresh-cut fruit and vegetables, the majority of which incorporate the BreatheWay specialty packaging for the retail grocery, club store and food services industry and are sold under the Eat Smart

and GreenLine

brands. The Natural Foods segment also includes sales of BreatheWay packaging to partners for fruit and vegetable products, sales of olive oils and wine vinegars under our

brand and sales of soups under our Now Planting brand. The Biomaterials segment sells products utilizing hyaluronan, a naturally occurring polysaccharide that is widely distributed in the extracellular matrix of connective tissues in both animals and humans, and non-HA products for medical use primarily in the Ophthalmic, Orthopedic and other markets. The Other segment includes corporate general and administrative expenses, non-Natural Foods and non-Biomaterials interest income and income tax expenses. All of the assets of the Company are located within the United States of America.

The Company’s international sales by geography are based on the billing address of the customer and were as follows (in millions):

	Three Months Ended				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Canada	$	20.3	$	17.3	$	40.2	$	35.6
Belgium	$	0.5	$	0.5	$	2.5	$	2.7
Ireland	$	1.2	$	0.8	$	2.3	$	1.6
Denmark	$	—	$	0.5	$	0.2	$	0.7
Switzerland	$	0.5	$	—	$	0.6	$	—
Mexico	$	0.1	$	0.2	$	0.1	$	0.3
All Other Countries	$	0.6	$	1.1	$	1.1	$	1.2

Operations by business segment consisted of the following (in thousands):

	Natural Foods			Biomaterials		Other			Total
Three Months Ended November 25, 2018
Net sales	$	109,466		$	15,446	$	—		$	124,912
International sales	$	20,367		$	2,842	$	—		$	23,209
Gross profit	$	10,915		$	5,678	$	—		$	16,593
Net (loss) income from continuing operations	$	(418	)	$	1,298	$	(1,464	)	$	(584	)
Depreciation and amortization	$	2,196		$	978	$	139		$	3,313
Dividend income	$	412		$	—	$	—		$	412
Interest income	$	30		$	—	$	3		$	33
Interest expense, net (1)	$	276		$	—	$	470		$	746
Income tax (benefit) expense	$	(50	)	$	432	$	(105	)	$	277

Six Months Ended November 25, 2018
Net sales	$	221,517		$	28,063	$	—		$	249,580
International sales	$	40,480		$	6,558	$	—		$	47,038
Gross profit	$	24,285		$	8,645	$	—		$	32,930
Net income (loss) from continuing operations	$	1,349		$	751	$	(2,495	)	$	(395	)
Depreciation and amortization	$	4,236		$	1,954	$	268		$	6,458
Dividend income	$	825		$	—	$	—		$	825
Interest income	$	61		$	—	$	18		$	79
Interest expense, net (1)	$	863		$	—	$	641		$	1,504
Income tax expense (benefit)	$	612		$	250	$	(520	)	$	342

Three Months Ended November 26, 2017
Net sales	$	108,348		$	14,113	$	—		$	122,461
International sales	$	17,749		$	2,675	$	—		$	20,424
Gross profit	$	9,704		$	5,217	$	—		$	14,921
Net (loss) income from continuing operations	$	(435	)	$	1,260	$	(411	)	$	414
Depreciation and amortization	$	1,958		$	910	$	112		$	2,980
Dividend income	$	412		$	—	$	—		$	412
Interest income	$	18		$	—	$	24		$	42
Interest expense, net	$	—		$	—	$	480		$	480
Income tax (benefit) expense	$	(95	)	$	374	$	(114	)	$	165

Six Months Ended November 26, 2017
Net sales	$	211,965		$	26,277	$	—		$	238,242
International sales	$	35,923		$	6,174	$	—		$	42,097
Gross profit	$	24,984		$	8,739	$	—		$	33,723
Net income (loss) from continuing operations	$	3,166		$	1,105	$	(1,502	)	$	2,769
Depreciation and amortization	$	3,930		$	1,775	$	229		$	5,934
Dividend income	$	825		$	—	$	—		$	825
Interest income	$	28		$	—	$	45		$	73
Interest expense, net	$	—		$	—	$	884		$	884
Income tax expense	$	1,002		$	347	$	126		$	1,475

(

)

Beginning in

first

quarter of fiscal

2019,

the Company began allocating interest expense to its reportable segments in information provided to its CODM to enhance visibility into how financing activities impact the discrete financial results.

During the

six

months ended

November 25, 2018

and

November 26, 2017,

sales to the Company’s top

five

customers accounted for

45%

and

49%

of sales, respectively. The Company’s top

two

customers, Costco Wholesale Corporation and Wal-Mart Stores, Inc., from the Natural Foods segment, each accounted for

17%

respectively, of revenues for the

six

months ended

November 25, 2018,

and

19%

and

18%,

respectively, for the

six

months ended

November 26, 2017.

Note 10 - Discontinued Operations

6 Months Ended

Nov. 25, 2018

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

10.	Discontinued Operations

During the

fourth

quarter of fiscal year

2018,

the Company discontinued its Food Export business segment. As a result, the Company met the requirements of ASC

205

20¸

to report the results of the Food Export business segment as a discontinued operation and to classify the Food Export segment as a group of assets and liabilities held for abandonment. The operating results for the Food Export business segment have therefore been reclassified as a discontinued operation.

The carrying amounts of the major classes of assets and liabilities of the Food Export business segment included in assets and liabilities of discontinued operations are as follows (in thousands):

	Period Ended
	November 25, 2018		May 27, 2018
Current and other assets, discontinued operations:
Cash and cash equivalents	$	—	$	(8	)
Accounts receivable		—		518
Inventory		—		—
Other assets		—		—
Total assets, discontinued operations	$	—	$	510

Other current liabilities, discontinued operations:
Accounts payable	$	—	$	230
Accrued expenses and other current liabilities		—		228
Total other current liabilities, discontinued operations	$	—	$	458

After the Food Export business segment was discontinued, the operations associated with this business qualified for reporting as discontinued operations. Accordingly, the operating results, net of tax, from discontinued operations are presented separately in the Company’s Consolidated Statements of Comprehensive Income and the notes to the consolidated financial statements have been adjusted to exclude the food export business segment for the

three

and

six

months ended

November 26, 2017.

Components of amounts reflected in income (loss) from discontinued operations, net of tax are as follows (in thousands) for the

three

and

six

months ended:

	Three Months Ended November 26, 2017			Six Months Ended November 26, 2017
Revenues	$	13,996		$	21,572
Cost of sales		(13,165	)		(20,257	)
Selling, general and administrative		(690	)		(1,377	)
Other		—			—
Income (loss) from discontinued operations, before taxes		141			(62	)
Income tax (expense) benefit		(42	)		18
Income (loss) from discontinued operations, net of tax	$	99		$	(44	)

Note 11 - Subsequent Event

6 Months Ended

Nov. 25, 2018

Subsequent Events [Text Block]

11.	Subsequent event

Yucatan

Acquisition

December 1, 2018,

Apio entered into a capital contribution and partnership interest and stock purchase agreement (the “Purchase Agreement”) by and among Yucatan Foods, L.P., a Delaware limited partnership (“Yucatan”), Camden Fruit Corporation, a California corporation and the General Partner of Yucatan ("Camden”), the equityholders of Camden and Yucatan, the Company, in its capacity as guarantor, and Ardeshir Haerizadeh, as a representative of the equityholders. Pursuant to the Purchase Agreement, the Company acquired, on

December 1, 2018 (

the “Closing”), all of the issued and outstanding limited partnership interests of Yucatan and all of the issued and outstanding capital stock of Camden (the “Acquisition”) for initial consideration of

$60.0

million in cash and

$20.0

million in Landec common stock ("Stock Consideration"). The Stock Consideration has

-and-

-year lock-up provisions (such that

50%

of the Stock Consideration is released from lock-up on the

year anniversary of the Closing and the balance on the

year anniversary).

Given the timing of the completion of the acquisition, the Company is currently in the process of valuing the assets acquired and liabilities assumed in the acquisition. As a result, the Company is unable to provide the amount to be recorded as of the acquisition date for the major classes of assets acquired and liabilities assumed. The Company will provide these disclosures in its Quarterly Report on Form

-Q for the

third

quarter ending

February 24, 2019.

Fourth Amendment to the Credit Agreement

November 30, 2018,

Landec and certain of its subsidiaries entered into the Fourth Amendment and Joinder to Credit Agreement and Other Loan Documents (the “Amended Credit Agreement”) with JPMorgan, BMO and City National Bank, as lenders, which amended the Credit Agreement by and among Landec, certain of its subsidiaries, and the Lenders. The Amended Credit Agreement increased the capacity of the credit facility available under the Credit Agreement by

$55,000,000

to (i) a

$105,000,000

revolving line of credit (the “Amended Revolver”) and (ii) a

$100,000,000

term loan facility (the “Amended Term Loan”) from its preexisting credit facility comprised of (i) a

$100,000,000

Revolver and (ii) a

$50,000,000

Term Loan.

The Amended Credit Agreement continues to be guaranteed by certain of Landec's direct and indirect subsidiaries and secured by substantially all of Landec's and such direct and indirect subsidiaries’ personal property assets (with the exception of Apio’s equity interest in Windset Holdings

2010

Ltd.). Both the Amended Revolver and the Amended Term Loan continue to mature on

September 23, 2021,

with the Amended Term Loan requiring increased quarterly payments of

$2,500,000

and with the remainder continuing to be due at maturity. Interest on both the Amended Revolver and the Amended Term Loan continues to be based upon the Company’s “Total Leverage Ratio”, now at a per annum rate of either (i) the prime rate plus a spread of between

0.25%

and

2.25%

or (ii) the Eurodollar rate plus a spread of between

1.25%

and

3.25%,

but also now allowing for a Total Leverage Ratio of up to

4.50

1.00.

The Amended Credit Agreement also contains an “accordion” feature that provides Landec the right to increase the Amended Revolver commitments and/or the Amended Term Loan commitments by obtaining additional commitments either from

one

or more of the Lenders or another lending institution in an amount of up to

$10,000,000.

Landec entered into the Amended Credit Agreement primarily to fund its acquisition of Yucatan and its related entities on

December 1, 2018,

to pay certain fees and expenses incurred in connection with the consummation of the Amended Credit Agreement, and for other general corporate purposes.

The Amended Credit Agreement continues to contain customary events of default under which the obligation could be accelerated and/or the interest rate increased.

Significant Accounting Policies (Policies)

6 Months Ended

Nov. 25, 2018

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

-Q and Article

of Regulation S-

In the opinion of management, all adjustments (consisting of normal recurring accruals) have been made which are necessary to present fairly the financial position of the Company at

November 25, 2018

and the results of operations and cash flows for all periods presented. Although Landec believes that the disclosures in these financial statements are adequate to make the information presented

not

-K for the fiscal year ended

May 27, 2018.

The Company’s fiscal year is the

- or

-week period that ends on the last Sunday of

May

with quarters within each year ending on the last Sunday of

August,

November,

and

February;

however, in instances where the last Sunday would result in a quarter being

-weeks in length, the Company’s policy is to extend that quarter to the following Sunday. A

14th

week is included in the fiscal year every

five

six

years to realign the Company’s fiscal quarters with calendar quarters.

May 2018,

205

20,

Presentation of Financial Statements - Discontinued Operations

("ASC

205

20"

) and ASC

360,

Property, Plant and Equipment

("ASC

360”

) for the

six

months ended

November 26, 2017.

The results of operations for the

six

months ended

November 25, 2018

are

not

necessarily indicative of the results that

may

be expected for an entire fiscal year because there is some seasonality in Apio’s food business and the order patterns of Lifecore’s customers which

may

lead to significant fluctuations in Landec’s quarterly results of operations.

As disclosed in the Company’s fiscal year

2018

Annual Report on Form

2018

and

2017.

While the Company concluded that the impact of these errors was

not

material to prior annual periods, the Company concluded that the errors were material to its fiscal years’

2018

and

2017

quarterly Statements of Cash Flows. As a result, cash used in operating and investing activities were both understated. Accordingly, the Company restated its fiscal years

2018

and

2017

quarterly Statements of Cash Flows in Note

– Quarterly Consolidated Financial Information (unaudited), in the Company’s fiscal year

2018

Annual Report on Form

-K. The Statement of Cash Flows for the

six

months ended

November 26, 2017

has been restated to reflect this error correction.

Consolidation, Policy [Policy Text Block]

Basis of Consolidation

Arrangements that are

not

An entity is a VIE and subject to consolidation, if by design: a) the total equity investment at risk is

not

one

of the following

three

not

a VIE.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

may

differ from management’s estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company records all highly liquid securities with

three

Reconciliation of Cash and Cash Equivalents and

Restricted

Cash as presented on the Statements of Cash Flows

	November 25, 2018		May 27, 2018			November 26, 2017			May 28, 2017
Cash and cash equivalents	$	1,514	$	2,899		$	4,602		$	5,998
Restricted cash		325		325			325			325
Cash, discontinued operations		—		(8	)		(233	)		(589	)
Cash, cash equivalents and restricted cash

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted Cash

The Company was required to maintain

$325,000

of restricted cash as of both

November 25, 2018

and

May 27, 2018,

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost (

first

-in,

first

-out method) or net realizable value and consist of the following (in thousands):

	November 25, 2018		May 27, 2018
Raw materials	$	14,607	$	15,286
Work in progress		3,092		3,672
Finished goods		13,929		12,861
Total	$	31,628	$	31,819

Related Party Transactions

The Company sells products to and earns license fees from Windset Holdings

2010

Ltd. (“Windset”). During the

three

months ended

November 25, 2018

and

November 26, 2017,

the Company recognized revenues of

$109,000

and

$91,000,

respectively. During the

six

months ended

November 25, 2018

and

November 26, 2017,

the Company recognized revenues of

$244,000

and

$195,000,

respectively. These amounts have been included in product sales in the accompanying Consolidated Statements of Comprehensive (Loss) Income. The related receivable balances of

$207,000

and

$334,000

are included in accounts receivable in the accompanying Consolidated Balance Sheets as of

November 25, 2018

and

May 27, 2018,

respectively.

Additionally, unrelated to the revenue transactions above, the Company purchases produce from Windset for sale to

third

parties. During the

three

and

six

months ended

November 25, 2018,

the Company recognized cost of product sales of

and

$6,000,

respectively, in the accompanying Consolidated Statements of Comprehensive (Loss) Income, from the sale of products purchased from Windset.

All related party transactions are monitored quarterly by the Company and approved by the Audit Committee of the Board of Directors.

Debt, Policy [Policy Text Block]

Debt Issuance Costs

The Company records its line of credit debt issuance costs as an asset, and as such,

$120,000

and

$218,000

were recorded as prepaid expenses and other current assets, and other assets, respectively, as of

November 25, 2018,

and

$120,000

and

$278,000,

respectively, as of

May 27, 2018.

The Company records its term debt issuance costs as a contra-liability, and as such,

$60,000

and

$110,000

was recorded as current portion of long-term debt, and long-term debt, net, respectively, as of

November 25, 2018

and

$60,000

and

$140,000,

respectively, as of

May 27, 2018.

See Note

– Debt, of the Notes to Consolidated Financial Statements for further information.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments

Cash Flow Hedges

The Company has entered into interest rate swap contracts to manage interest rate risk. These derivative instruments

may

one

Accumulated

Other Comprehensive Income

(AOCI)

Comprehensive income consists of

two

	AOCI
Accumulated OCI, net, as of May 27, 2018	$	1,148
Unrealized losses on interest rate swap contracts, net of tax effect		(13	)
Amounts reclassified from OCI		—
Accumulated OCI, net, as of November 25, 2018	$	1,135

The Company does

not

expect any transactions or other events to occur that would result in the reclassification of any significant gains or losses into earnings in the next

months.

Investment In Non Public Companies [Policy Text Block]

Investment in Non-Public Company

February 15, 2011,

the Company made its initial investment in Windset which is reported as an Investment in non-public company, fair value, in the accompanying Consolidated Balance Sheets as of

November 25, 2018

and

May 27, 2018.

The Company has elected to account for its investment in Windset under the fair value option. See Note

– Investment in Non-public Company, for further information.

Goodwill and Intangible Assets, Policy [Policy Text Block]

Intangible Assets

The Company’s intangible assets are comprised of customer relationships with a finite estimated useful life of

eleven

thirteen

years, and trademarks, tradenames and goodwill with indefinite useful lives.

Finite-lived intangible assets are reviewed for possible impairment whenever events or changes in circumstances occur that indicate that the carrying amount of an asset (or asset group)

may

not

350

35.

Self Insurance Reserve [Policy Text Block]

Partial Self-Insurance on Employee Health and Workers Compensation Plans

not

been paid as of

November 25, 2018

and

May 27, 2018.

It is reasonably possible that the expense the Company ultimately incurs could differ and adjustments to future reserves

may

be necessary.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

– Investment in Non-public Company for further information. The Company also measures its contingent consideration liability at fair value. See Note

– Acquisition of

for further information. The Company has

not

elected the fair value option for any of its other eligible financial assets or liabilities.

The accounting guidance established a

three

-tier hierarchy for fair value measurements, which prioritizes the inputs used in measuring fair value as follows:

Level

– observable inputs such as quoted prices for identical instruments in active markets.

Level

– inputs other than quoted prices in active markets that are observable either directly or indirectly through corroboration with observable market data.

Level

– unobservable inputs in which there is little or

market data, which would require the Company to develop its own assumptions.

As of

November 25, 2018

and

May 27, 2018,

The fair value of the Company’s interest rate swap contracts is determined based on model inputs that can be observed in a liquid market, including yield curves, and is categorized as a Level

fair value measurement and is included in Other assets or Other non-current liabilities in the accompanying Consolidated Balance Sheets.

The fair value of the Company’s contingent consideration liability from the acquisition of

acquisition is considered a Level

measurement liability and is included in Other non-current liabilities in the accompanying Consolidated Balance Sheets.

In determining the fair value of the Company’s contingent consideration liability, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:

	At November 25, 2018			At May 27, 2018
Cost of debt	5.3%	to	5.7%	4.7%	to	5.2%
Market price of risk adjustment		20%			20%
EBITDA volatility		24%			25%

		Impact on value of Contingent consideration liability as of November 25, 2018
10% increase in EBITDA forecast		$	300

measurement investment. The change in the fair value of the Company’s investment in Windset for the

six

months ended

November 25, 2018

was due to the Company’s

26.9%

minority interest in the change in the fair market value of Windset during the period.

In determining the fair value of the investment in Windset, the Company utilizes the following significant unobservable inputs in the discounted cash flow models:

	At November 25, 2018	At May 27, 2018
Revenue growth rates	6%	6%
Expense growth rates	6%	6%
Income tax rates	15%	15%
Discount rates	12%	12%

	Impact on value of investment in Windset as of November 25, 2018
10% increase in revenue growth rates	$	9,800
10% increase in expense growth rates	$	(9,300	)
10% increase in income tax rates	$	(500	)
10% increase in discount rates	$	(3,700	)

The following table summarizes the fair value of the Company’s assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	Fair Value at November 25, 2018						Fair Value at May 27, 2018
Assets:	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Interest rate swap contracts	$	—	$	1,512	$	—	$	—	$	1,529	$	—
Investment in non-public company		—		—		68,100		—		—		66,500
Total assets	$	—	$	1,512	$	68,100	$	—	$	1,529	$	66,500

Liabilities:
Contingent consideration liability		—		—		3,100		—		—		4,000
Total liabilities	$	—	$	—	$	3,100	$	—	$	—	$	4,000

The following table reflects the fair value rollforward reconciliation of Level

assets and liabilities measured at fair value for the

six

months ended

November 25, 2018 (

in thousands):

	Windset Investment		Contingent Consideration Liability
Balance as of May 27, 2018	$	66,500	$	4,000
Fair value change		1,600		(900	)
Balance as of November 25, 2018	$	68,100	$	3,100

Revenue from Contract with Customer [Policy Text Block]

Revenue Recognition

See Note

– Business Segment Reporting, for a discussion about the Company’s

three

business segments; namely, Natural Foods, Biomaterials, and Other.

The Company follows the

five

The revenue streams within the Company are consistent with those disclosed within Note

– Business Segment Reporting. For descriptions of the Company’s product offerings and segments refer to Note

– Business Segment Reporting in our annual report on Form

-K for the year ended

May 27, 2018.

not

a separate performance obligation. The Company’s standard payment terms with its customers range from

days to

days. Certain customers

may

not

anticipate significant changes in its estimates for variable consideration.

not

have the ability to use the product or re-deploy it to another customer.

	Three Months Ended				Six Months Ended
Natural Foods:	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Salads	$	41,950	$	44,578	$	91,030	$	86,626
Core vegetables		64,492		61,906		126,242		121,549
Other		3,024		1,864		4,245		3,790
Total	$	109,466	$	108,348	$	221,517	$	211,965

	Three Months Ended				Six Months Ended
Biomaterials:	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Aseptic	$	8,128	$	7,591	$	13,894	$	14,618
Fermentation		1,915		2,865		4,985		5,655
Development services		5,403		3,657		9,184		6,004
Total	$	15,446	$	14,113	$	28,063	$	26,277

Cost of Goods and Services Sold, Policy [Policy Text block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Shipping and Handling</div></div> <div style=" font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"> </div> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: justify; text-indent: 36pt;">Shipping and handling costs are incurred to move the Company’s products from production and storage facilities to the customer. Handling costs are incurred from the point the product is segregated from the Company’s general inventory until it is provided to the shipper and generally include costs to store, move and prepare the products for shipment. The cost of shipping and handling services is recognized in Cost of product sales. When the costs of shipping and handling are passed on to a customer, the related amount is recorded in revenue.</div></div></div></div></div></div></div></div>

Commitments and Contingencies, Policy [Policy Text Block]

Legal Contingencies

In the ordinary course of business, the Company is involved in various legal proceedings and claims.

Apio has been the target of a union organizing campaign which has included

three

unsuccessful attempts to unionize Apio's Guadalupe, California processing plant. The campaign has involved a union and over

100

individual arbitrations against Apio and Pacific Harvest.

The legal actions consisted of

three

main types of claims: (

) Unfair Labor Practice claims ("ULPs") before the National Labor Relations Board (“NLRB”), (

) discrimination/wrongful termination claims before state and federal agencies and in individual arbitrations, and (

) wage and hour claims as part of

two

Private Attorney General Act (“PAGA”) cases in state court and in over

100

individual arbitrations.

The ULP claims were settled in fiscal year

2017

for

$310,000.

Apio was responsible for half of this settlement, or

$155,000.

May 5, 2017,

September 2011

through the settlement date. Under the Settlement Agreement, the plaintiffs were paid

$6.0

million in

three

installments:

$2.4

million of which was paid in

July 2017,

$1.8

million of which was paid in

November 2017

and

$1.8

million of which was paid in

July 2018,

representing the final payment due under the settlement agreement. The Company and Pacific Harvest have each agreed to pay

one

half of the settlement payments. The Company paid the entire

first

two

installments of

$4.2

million and will be reimbursed by Pacific Harvest for its

$2.1

million portion. As of

November 25, 2018,

the outstanding balance of the receivable was

$1.9

million of which

$900,000

and

$1.0

December 2020.

The Company’s recourse against non-payment by Pacific Harvest is its security interest in assets owned by Pacific Harvest. The receivable is reviewed quarterly for collectability. At

November 25, 2018,

the Company has concluded that the receivable is

not

impaired and therefore is

not

subject to an impairment loss. At

November 25, 2018,

the carrying amount of

$1.9

million is reflective of its fair value.

As of

November 25, 2018

and

May 27, 2018,

the Company had accrued

and

$1.0

million, respectively, related to these actions, which are included in Other accrued liabilities in the accompanying Consolidated Balance Sheets.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Guidance

Recently Adopted Pronouncements

Income Taxes

February 2018,

the FASB issued ASU

2018

02,

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

that permits a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted in

December 2017.

The standard is effective for fiscal years beginning after

December 15, 2018.

Early adoption is permitted. The Company adopted ASU

2018

August 27, 2018.

The adoption of this ASU did

not

have a material impact on the Company’s consolidated financial statements and related disclosures.

Stock Compensation

May 2017,

the Financial Accounting Standards Board (“FASB”) issued ASU

2017

09,

Compensation—Stock Compensation (Topic

718

Scope of Modification Accountin

which provides guidance about which changes to the terms or conditions of a stock-based payment award require an entity to apply modification accounting in Topic

718.

This pronouncement is effective for annual reporting periods beginning after

December 15, 2017.

The Company adopted ASU

2017

May 28, 2018.

The adoption of this ASU did

not

have a material impact on the Company’s consolidated financial statements and related disclosures.

Restricted Cash

November 2016,

the FASB issued ASU

2016

18,

Statement of Cash Flows (Topic

230

Restricted Cash

(“ASU

2016

18”

). ASU

2016

are effective for fiscal years beginning after

December 15, 2017,

including interim reporting periods within those fiscal years. The Company adopted ASU

2016

May 28, 2018.

As a result of this retrospective adoption, the beginning-of-period and end-of-period total cash and cash equivalents in the Statement of Cash Flows have been adjusted to include restricted cash of

$325,000

for all periods presented.

Intra-Entity Transfers

November 2016,

the FASB issued ASU

2016

16,

Intra-Entity Transfers of Assets Other Than Inventory

. ASU

2016

December 15, 2017,

including interim reporting periods within those annual reporting periods. Effective

May 28, 2018,

the Company adopted the ASU, without any impact to the presentation of its financial statements and disclosures.

Statement of Cash Flows

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

Classification of Certain Cash Receipts and Cash Payments

(a consensus of the Emerging Issues Task Force). ASU

2016

May 28, 2018,

the Company adopted the ASU, without any impact to the presentation of its financial statements and disclosures.

Revenue Recognition

May

2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

2014

09,

which creates FASB ASC Topic

606

, Revenue from Contracts with Customers

(“Topic

606”

) and supersedes ASC Topic

605,

Revenue Recognition

. The guidance replaces industry-specific guidance and establishes a single

five

The Company adopted Topic

606

May 28, 2018

using the modified retrospective method. The adoption of this Topic

606

did

not

606.

Recently Issued Pronouncements to be Adopted

Disclosure simplification

August 2018,

the U.S. Securities and Exchange Commission (“SEC”) adopted the final rule under SEC Release

No.

10532,

Disclosure Update and Simplification

November

2018.

Although this rule was effective on

November 5, 2018,

the SEC has provided for an extended transition period to implement the expanded shareholders’ equity disclosure requirements, which will be effective for the Company during the

third

quarter of fiscal

2019.

The Company continues to evaluate the impact the application of this rule will have on its future financial statements and disclosures.

Cloud Computing Arrangements

August 2018,

the FASB issued ASU

2018

15,

Customer

’

s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract

(ASU

2018

), which requires that requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification

350

2018

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

Early application is permitted. The Company is currently assessing the future impact of this update on its consolidated financial statements and related disclosures.

Hedging

August 2017,

the FASB issued ASU

2017

12,

Targeted Improvements to Accounting for Hedging Activities

(ASU

2017

is effective for annual periods beginning after

December 15, 2018,

Financial Instruments – Credit Losses

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments — Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

(ASU

2016

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

The adoption of ASU

2016

not

expected to have a material impact on the Company’s consolidated financial statements and related disclosures.

Leases

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

(“ASU

2016

02”

), which requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use-assets. ASU

2016

also requires improved disclosures to help users of financial statements better understand the amount, timing and uncertainty of cash flows arising from leases. In

July 2018,

the FASB issued ASU

2018

11—

Leases (Topic

842

) – Targeted Improvements

. This ASU provides transition relief on comparative reporting to the previously-issued ASU

2016

and related guidance. The Company will adopt ASU

2016

beginning in the

first

quarter of fiscal year

2020

on a modified retrospective basis.

The Company is currently in the process of evaluating the impact that ASU

2016

will have upon its consolidated financial statements and related disclosures. The Company’s assessment efforts to date have included:

●

Reviewing the provisions of ASU

2016

02;

●

Gathering information to evaluate its lease population and portfolio;

●

Evaluating the nature of its real and personal property and other arrangements that

may

meet the definition of a lease; and

●

Systems’ readiness evaluations.

As a result of these efforts, the Company currently anticipates that the adoption of ASU

2016

not

anticipated to significantly change. The adoption is

not

expected to an impact on the Company’s ability to meet its loan covenants as the impact from the adoption of ASU

2016

was taken into consideration when determining its loan covenants.

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Nov. 25, 2018

Schedule of Cash and Cash Equivalents [Table Text Block]

	November 25, 2018		May 27, 2018			November 26, 2017			May 28, 2017
Cash and cash equivalents	$	1,514	$	2,899		$	4,602		$	5,998
Restricted cash		325		325			325			325
Cash, discontinued operations		—		(8	)		(233	)		(589	)
Cash, cash equivalents and restricted cash	$	1,839	$	3,216		$	4,694		$	5,734

Schedule of Inventory, Current [Table Text Block]

	November 25, 2018		May 27, 2018
Raw materials	$	14,607	$	15,286
Work in progress		3,092		3,672
Finished goods		13,929		12,861
Total	$	31,628	$	31,819

Comprehensive Income (Loss) [Table Text Block]

	AOCI
Accumulated OCI, net, as of May 27, 2018	$	1,148
Unrealized losses on interest rate swap contracts, net of tax effect		(13	)
Amounts reclassified from OCI		—
Accumulated OCI, net, as of November 25, 2018	$	1,135

Schedule of Effect of Significant Unobservable Inputs for Contingent Liability [Table Text Block]

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 66%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="3" rowspan="1" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 55%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">At November 25, 2018</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 1%;"> </td> <td colspan="3" rowspan="1" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 5%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">At May 27, 2018</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Cost of debt</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.3%</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">to</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.7%</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; text-align: center;"> </td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.7%</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">to</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.2%</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Market price of risk adjustment</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20%</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; text-align: center;"> </td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20%</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 66%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">EBITDA volatility</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24%</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; text-align: center;"> </td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">25%</div></td> <td style="width: 5%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>

Sensitivity Analysis [Table Text Block]

		Impact on value of Contingent consideration liability as of November 25, 2018
10% increase in EBITDA forecast		$	300

Schedule of Effect of Significant Unobservable Inputs for Investment [Table Text Block]

	At November 25, 2018	At May 27, 2018
Revenue growth rates	6%	6%
Expense growth rates	6%	6%
Income tax rates	15%	15%
Discount rates	12%	12%

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]

	Impact on value of investment in Windset as of November 25, 2018
10% increase in revenue growth rates	$	9,800
10% increase in expense growth rates	$	(9,300	)
10% increase in income tax rates	$	(500	)
10% increase in discount rates	$	(3,700	)

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Fair Value at November 25, 2018						Fair Value at May 27, 2018
Assets:	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Interest rate swap contracts	$	—	$	1,512	$	—	$	—	$	1,529	$	—
Investment in non-public company		—		—		68,100		—		—		66,500
Total assets	$	—	$	1,512	$	68,100	$	—	$	1,529	$	66,500

Liabilities:
Contingent consideration liability		—		—		3,100		—		—		4,000
Total liabilities	$	—	$	—	$	3,100	$	—	$	—	$	4,000

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Windset Investment		Contingent Consideration Liability
Balance as of May 27, 2018	$	66,500	$	4,000
Fair value change		1,600		(900	)
Balance as of November 25, 2018	$	68,100	$	3,100

Disaggregation of Revenue [Table Text Block]

	Three Months Ended				Six Months Ended
Natural Foods:	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Salads	$	41,950	$	44,578	$	91,030	$	86,626
Core vegetables		64,492		61,906		126,242		121,549
Other		3,024		1,864		4,245		3,790
Total	$	109,466	$	108,348	$	221,517	$	211,965

	Three Months Ended				Six Months Ended
Biomaterials:	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Aseptic	$	8,128	$	7,591	$	13,894	$	14,618
Fermentation		1,915		2,865		4,985		5,655
Development services		5,403		3,657		9,184		6,004
Total	$	15,446	$	14,113	$	28,063	$	26,277

Note 4 - Stock-based Compensation (Tables)

6 Months Ended

Nov. 25, 2018

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three Months Ended				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Options	$	223	$	354	$	444	$	678
RSUs		715		762		1,222		1,388
Total stock-based compensation	$	938	$	1,116	$	1,666	$	2,066

	Three Months Ended				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Cost of sales	$	117	$	137	$	218	$	261
Research and development		30		23		55		42
Selling, general and administrative		791		956		1,393		1,763
Total stock-based compensation	$	938	$	1,116	$	1,666	$	2,066

Note 5 - Diluted Net Income Per Share (Tables)

6 Months Ended

Nov. 25, 2018

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended					Six Months Ended
	November 25, 2018			November 26, 2017		November 25, 2018			November 26, 2017
Numerator:
Net (loss) income applicable to Common Stockholders	$	(584	)	$	487	$	(395	)	$	2,633
Denominator:
Weighted average shares for basic net income per share		27,764			27,518		27,751			27,512
Effect of dilutive securities:
Stock options and restricted stock units		—			357		—			354
Weighted average shares for diluted net income per share		27,764			27,875		27,751			27,866

Diluted net (loss) income per share	$	(0.02	)	$	0.02	$	(0.01	)	$	0.10

Note 7 - Debt (Tables)

6 Months Ended

Nov. 25, 2018

Schedule of Long-term Debt Instruments [Table Text Block]

	November 25, 2018			May 27, 2018
Term loan with JPMorgan Chase Bank (“JPMorgan”), BMO Harris Bank N.A. (“BMO”), and City National Bank; due in quarterly principal and interest payments of $1,250 beginning December 1, 2016 through September 23, 2021 with the remainder due on maturity, with interest based on the Company’s leverage ratio at a per annum rate of the Eurodollar rate plus a spread of between 1.25% and 2.25%	$	40,000		$	42,500
Total principal amount of long-term debt		40,000			42,500
Less: unamortized debt issuance costs		(171	)		(200	)
Total long-term debt, net of unamortized debt issuance costs		39,829			42,300
Less: current portion of long-term debt, net		(4,940	)		(4,940	)
Long-term debt, net	$	34,889		$	37,360

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Note 9 - Business Segment Reporting (Tables)

6 Months Ended

Nov. 25, 2018

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Three Months Ended				Six Months Ended
	November 25, 2018		November 26, 2017		November 25, 2018		November 26, 2017
Canada	$	20.3	$	17.3	$	40.2	$	35.6
Belgium	$	0.5	$	0.5	$	2.5	$	2.7
Ireland	$	1.2	$	0.8	$	2.3	$	1.6
Denmark	$	—	$	0.5	$	0.2	$	0.7
Switzerland	$	0.5	$	—	$	0.6	$	—
Mexico	$	0.1	$	0.2	$	0.1	$	0.3
All Other Countries	$	0.6	$	1.1	$	1.1	$	1.2

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Natural Foods			Biomaterials		Other			Total
Three Months Ended November 25, 2018
Net sales	$	109,466		$	15,446	$	—		$	124,912
International sales	$	20,367		$	2,842	$	—		$	23,209
Gross profit	$	10,915		$	5,678	$	—		$	16,593
Net (loss) income from continuing operations	$	(418	)	$	1,298	$	(1,464	)	$	(584	)
Depreciation and amortization	$	2,196		$	978	$	139		$	3,313
Dividend income	$	412		$	—	$	—		$	412
Interest income	$	30		$	—	$	3		$	33
Interest expense, net (1)	$	276		$	—	$	470		$	746
Income tax (benefit) expense	$	(50	)	$	432	$	(105	)	$	277

Six Months Ended November 25, 2018
Net sales	$	221,517		$	28,063	$	—		$	249,580
International sales	$	40,480		$	6,558	$	—		$	47,038
Gross profit	$	24,285		$	8,645	$	—		$	32,930
Net income (loss) from continuing operations	$	1,349		$	751	$	(2,495	)	$	(395	)
Depreciation and amortization	$	4,236		$	1,954	$	268		$	6,458
Dividend income	$	825		$	—	$	—		$	825
Interest income	$	61		$	—	$	18		$	79
Interest expense, net (1)	$	863		$	—	$	641		$	1,504
Income tax expense (benefit)	$	612		$	250	$	(520	)	$	342

Three Months Ended November 26, 2017
Net sales	$	108,348		$	14,113	$	—		$	122,461
International sales	$	17,749		$	2,675	$	—		$	20,424
Gross profit	$	9,704		$	5,217	$	—		$	14,921
Net (loss) income from continuing operations	$	(435	)	$	1,260	$	(411	)	$	414
Depreciation and amortization	$	1,958		$	910	$	112		$	2,980
Dividend income	$	412		$	—	$	—		$	412
Interest income	$	18		$	—	$	24		$	42
Interest expense, net	$	—		$	—	$	480		$	480
Income tax (benefit) expense	$	(95	)	$	374	$	(114	)	$	165

Six Months Ended November 26, 2017
Net sales	$	211,965		$	26,277	$	—		$	238,242
International sales	$	35,923		$	6,174	$	—		$	42,097
Gross profit	$	24,984		$	8,739	$	—		$	33,723
Net income (loss) from continuing operations	$	3,166		$	1,105	$	(1,502	)	$	2,769
Depreciation and amortization	$	3,930		$	1,775	$	229		$	5,934
Dividend income	$	825		$	—	$	—		$	825
Interest income	$	28		$	—	$	45		$	73
Interest expense, net	$	—		$	—	$	884		$	884
Income tax expense	$	1,002		$	347	$	126		$	1,475

Note 10 - Discontinued Operations (Tables)

6 Months Ended

Nov. 25, 2018

Disposal Groups, Including Discontinued Operations [Table Text Block]

	Period Ended
	November 25, 2018		May 27, 2018
Current and other assets, discontinued operations:
Cash and cash equivalents	$	—	$	(8	)
Accounts receivable		—		518
Inventory		—		—
Other assets		—		—
Total assets, discontinued operations	$	—	$	510

Other current liabilities, discontinued operations:
Accounts payable	$	—	$	230
Accrued expenses and other current liabilities		—		228
Total other current liabilities, discontinued operations	$	—	$	458

	Three Months Ended November 26, 2017			Six Months Ended November 26, 2017
Revenues	$	13,996		$	21,572
Cost of sales		(13,165	)		(20,257	)
Selling, general and administrative		(690	)		(1,377	)
Other		—			—
Income (loss) from discontinued operations, before taxes		141			(62	)
Income tax (expense) benefit		(42	)		18
Income (loss) from discontinued operations, net of tax	$	99		$	(44	)

Cash and cash equivalents

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies (Details Textual)		1 Months Ended			3 Months Ended			5 Months Ended	6 Months Ended		12 Months Ended
	May 05, 2017 USD ($)	Jul. 31, 2018 USD ($)	Nov. 30, 2017 USD ($)	Jul. 31, 2017 USD ($)	Nov. 25, 2018 USD ($)	Aug. 26, 2018	Nov. 26, 2017 USD ($)	Nov. 22, 2017 USD ($)	Nov. 25, 2018 USD ($)	Nov. 26, 2017 USD ($)	May 28, 2017 USD ($)	May 27, 2018 USD ($)	Jul. 15, 2014
Number of Proprietary Platforms					2				2
Restricted Cash, Total					$ 325,000		$ 325,000		$ 325,000	$ 325,000	$ 325,000	$ 325,000
Debt Issuance Costs, Current, Net, Total					60,000				60,000			60,000
Debt Issuance Costs, Noncurrent, Net, Total					110,000				$ 110,000			140,000
Number of Operating Segments						3			3
Legal Actions Against Apio [Member]
Loss Contingency Accrual, Ending Balance					$ 0				$ 0			1,000,000
Unfair Labor Practice Claims [Member]
Litigation Settlement, Amount Awarded to Other Party											310,000
Discrimination and Wrongful Termination and Wage and Hour Claims [Member]
Litigation Settlement, Amount Awarded to Other Party	$ 6,000,000
Payments for Legal Settlements		$ 1,800,000	$ 1,800,000	$ 2,400,000				$ 4,200,000
Apio [Member] \| Legal Actions Against Apio [Member]
Loss Contingency, Number of Plaintiffs									100
Apio [Member] \| Unfair Labor Practice Claims [Member]
Litigation Settlement, Amount Awarded to Other Party											$ 155,000
Windset [Member]
Investment Ownership Percentage					26.90%				26.90%				26.90%
Pacific Harvest [Member] \| Discrimination and Wrongful Termination and Wage and Hour Claims [Member]
Litigation Settlement, Amount to be Reimbursed								$ 2,100,000
Litigation Settlement Receivable Outstanding					$ 1,900,000				$ 1,900,000
Customer Relationships [Member] \| Minimum [Member]
Finite-Lived Intangible Asset, Useful Life									11 years
Customer Relationships [Member] \| Maximum [Member]
Finite-Lived Intangible Asset, Useful Life									13 years
Prepaid Expenses and Other Current Assets [Member]
Debt Issuance Costs, Line of Credit Arrangements, Net, Total					120,000				$ 120,000			120,000
Prepaid Expenses and Other Current Assets [Member] \| Pacific Harvest [Member] \| Discrimination and Wrongful Termination and Wage and Hour Claims [Member]
Litigation Settlement Receivable Outstanding					900,000				900,000
Other Assets [Member]
Debt Issuance Costs, Line of Credit Arrangements, Net, Total					218,000				218,000			278,000
Other Assets [Member] \| Pacific Harvest [Member] \| Discrimination and Wrongful Termination and Wage and Hour Claims [Member]
Litigation Settlement Receivable Outstanding					1,000,000				1,000,000
Windset [Member]
Accounts Receivable, Related Parties, Current					207,000				207,000			$ 334,000
Windset [Member] \| Cost of Sales [Member]
Revenue from Related Parties					109,000		$ 91,000		244,000	$ 195,000
Related Party Costs					$ 0				$ 6,000

Note 1 - Organization, Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents (Details) - USD ($)

Nov. 25, 2018

May 27, 2018

Nov. 26, 2017

May 28, 2017

$ 1,514,000

$ 2,899,000

$ 4,602,000

$ 5,998,000

Restricted cash

325,000

Cash, discontinued operations

(8,000)

(233,000)

(589,000)

Cash, cash equivalents and restricted cash

^[1]

$ 1,839,000

$ 3,216,000

$ 4,694,000

$ 5,734,000

[1]

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Components of Inventories (Details) - USD ($) $ in Thousands	Nov. 25, 2018	May 27, 2018
Raw materials	$ 14,607	$ 15,286
Work in progress	3,092	3,672
Finished goods	13,929	12,861
Total	$ 31,628	$ 31,819

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Components of Other Comprehensive Income (Details) $ in Thousands	6 Months Ended
	Nov. 25, 2018 USD ($)
Balance	$ 252,562
Balance	253,573
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]
Balance	1,148
Unrealized losses on interest rate swap contracts, net of tax effect	(13)
Amounts reclassified from OCI
Balance	$ 1,135

Note 1 - Organization, Basis of Presentation and Summary of Significant Accounting Policies - Fair Value of Contingent Consideration Liability (Details)	Nov. 25, 2018	May 27, 2018
Measurement Input, Cost of Debt [Member] \| Minimum [Member]
Measurement Input	0.053	0.047
Measurement Input, Cost of Debt [Member] \| Maximum [Member]
Measurement Input	0.057	0.052
Measurement Input, Market Price, Risk Adjustment [Member]
Measurement Input	0.2	0.2
Measurement Input, EBITDA Volatility [Member]
Measurement Input	0.24	0.25

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Sensitivity Analysis (Details) $ in Millions	Nov. 25, 2018 USD ($)
10% increase in EBITDA forecast	$ 0.3

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Significant Unobservable Inputs Used in Discounted Cash Flow Models for Investment (Details) - Windset [Member]	3 Months Ended	12 Months Ended
	Nov. 25, 2018	May 27, 2018
Measurement Input, Long-term Revenue Growth Rate [Member]
Measurement input	0.06	0.06
Measurement Input, Long-term Expense Growth Rate [Member]
Measurement input	0.06	0.06
Measurement Input, Income Tax Rates [Member]
Measurement input	0.15	0.15
Measurement Input, Discount Rate [Member]
Measurement input	0.12	0.12

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Assumptions for Investment Used in Discounted Cash Flow Models (Details) $ in Millions	Nov. 25, 2018 USD ($)
10% increase in revenue growth rates	$ 9.8
10% increase in expense growth rates	(9.3)
10% increase in income tax rates	(0.5)
10% increase in discount rates	$ (3.7)

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Nov. 25, 2018	May 27, 2018
Investment in non-public company	$ 68,100	$ 66,500
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 1 [Member]
Interest rate swap contracts
Investment in non-public company
Total assets
Contingent consideration liability
Total liabilities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Interest rate swap contracts	1,512	1,529
Investment in non-public company
Total assets	1,512	1,529
Contingent consideration liability
Total liabilities
Fair Value, Measurements, Recurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Interest rate swap contracts
Investment in non-public company	68,100	66,500
Total assets	68,100	66,500
Contingent consideration liability	3,100	4,000
Total liabilities	$ 3,100	$ 4,000

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Fair Value Reconciliation of Level 3 (Details) $ in Thousands	6 Months Ended
	Nov. 25, 2018 USD ($)
Balance	$ 66,500
Balance	68,100
Windset Investment [Member]
Balance	66,500
Fair value change	1,600
Balance	68,100
Contingent Consideration Liability [Member]
Balance	4,000
Fair value change	(900)
Balance	$ 3,100

Note 1 - Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Product sales	$ 124,912	$ 122,461	$ 249,580	$ 238,242
Natural Foods [Member]
Product sales	109,466	108,348	221,517	211,965
Biomaterials [Member]
Product sales	15,446	14,113	28,063	26,277
Salads [Member] \| Natural Foods [Member]
Product sales	41,950	44,578	91,030	86,626
Aseptic [Member] \| Biomaterials [Member]
Product sales	8,128	7,591	13,894	14,618
Core Vegetables [Member] \| Natural Foods [Member]
Product sales	64,492	61,906	126,242	121,549
Fermentation [Member] \| Biomaterials [Member]
Product sales	1,915	2,865	4,985	5,655
Other [Member] \| Natural Foods [Member]
Product sales	3,024	1,864	4,245	3,790
Development Services [Member] \| Biomaterials [Member]
Product sales	$ 5,403	$ 3,657	$ 9,184	$ 6,004

Note 2 - Acquisition of O (Details Textual) - USD ($)		3 Months Ended	6 Months Ended		12 Months Ended
Note 2 - Acquisition of O (Details Textual) - USD ($)	Mar. 01, 2017	Nov. 25, 2018	Nov. 25, 2018	Nov. 26, 2017	May 27, 2018
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability			$ (900,000)
O Olive & Vinegar [Member]
Payments to Acquire Businesses, Gross	$ 2,500,000
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 7,500,000
Cumulative EBITDA Amount					$ 6,000,000
Business Combination, Contingent Consideration, Liability, Total		$ 3,100,000	3,100,000		4,000,000
O Olive & Vinegar [Member] \| Selling, General and Administrative Expenses [Member]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability		$ 900,000	$ 900,000
O Olive & Vinegar [Member] \| Initial Potential Payment Limit [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High					4,600,000
O Olive & Vinegar [Member] \| Additional Potential Payment Limit [Member]
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High					$ 2,900,000

Note 3 - Investment in Non-public Company (Details Textual) - USD ($)				1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 15, 2014	Jul. 15, 2014	Feb. 15, 2011	Oct. 29, 2014	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Investment Income, Dividend					$ 412,000	$ 412,000	$ 825,000	$ 825,000
Senior A Preferred Stock [Member]
Preferred Stock, Dividend Rate, Percentage	7.50%
Windset [Member]
Investment Ownership Percentage	26.90%	26.90%			26.90%		26.90%
Investment Income, Dividend					$ 412,500	412,500	$ 825,000	825,000
Windset [Member] \| Other Income [Member]
Change In Market Value Of Investment In Company					600,000	$ 1,300,000	1,600,000	$ 2,200,000
Windset [Member] \| Apio [Member]
Payments to Acquire Investments, Total		$ 11,000,000
Dividends on Investment, Timeframe to Be Paid After Anniversary	90 days
Investment, Preferred Stock, Liquidation Preference, Value					20,100,000		20,100,000
Windset [Member] \| Apio [Member] \| Junior Preferred Shares [Member]
Investment, Preferred Stock, Dividends Declared					0		0
Investment, Preferred Stock, Liquidation Preference, Value					5,100,000		5,100,000
Windset [Member] \| Apio [Member] \| Senior A Preferred Stock [Member]
Investment, Preferred Stock, Liquidation Preference, Value					$ 15,000,000		$ 15,000,000
Windset [Member] \| Apio [Member] \| Senior A Preferred Stock [Member]
Investment In Non Public Company Shares			150,000
Payments to Acquire Investments, Total			$ 15,000,000
Windset [Member] \| Apio [Member] \| Common Stock [Member]
Investment In Non Public Company Shares	68	68	201
Payments to Acquire Investments, Total			$ 201
Windset [Member] \| Apio [Member] \| Junior Preferred Shares [Member]
Investment In Non Public Company Shares	51,211	51,211
Windset [Member] \| Apio [Member] \| Senior B Preferred Stock [Member]
Investment In Non Public Company Shares				70,000
Payments to Acquire Investments, Total				$ 7,000,000
Preferred Stock, Dividend Rate, Percentage				7.50%

Note 4 - Stock-based Compensation (Details Textual) $ in Millions	6 Months Ended
	Nov. 25, 2018 USD ($)
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total	$ 5.9
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 328 days
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 73 days

Note 4 - Stock-based Compensation - Summary of Stock-based Compensation by Income Statement Line Item (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Stock-based compensation expense	$ 938	$ 1,116	$ 1,666	$ 2,066
Cost of Sales [Member]
Stock-based compensation expense	117	137	218	261
Research and Development Expense [Member]
Stock-based compensation expense	30	23	55	42
Selling, General and Administrative Expenses [Member]
Stock-based compensation expense	791	956	1,393	1,763
Employee Stock Option [Member]
Stock-based compensation expense	223	354	444	678
Restricted Stock Units (RSUs) [Member]
Stock-based compensation expense	$ 715	$ 762	$ 1,222	$ 1,388

Note 5 - Diluted Net Income Per Share (Details Textual) - shares shares in Millions	3 Months Ended		6 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1.5	1.3	1.4	1.4

Note 5 - Diluted Net Income Per Share - Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Numerator:
Net (loss) income applicable to Common Stockholders	$ (584)	$ 487	$ (395)	$ 2,633
Denominator:
Weighted average shares for basic net income per share (in shares)	27,764	27,518	27,751	27,512
Effect of dilutive securities:
Stock options and restricted stock units (in shares)		357		354
Weighted average shares for diluted net income per share (in shares)	27,764	27,875	27,751	27,866
Diluted net (loss) income per share (in dollars per share)	$ (0.02)	$ 0.02	$ (0.01)	$ 0.10

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note 6 - Income Taxes (Details Textual) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Note 6 - Income Taxes (Details Textual) - USD ($)	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017	May 27, 2018	May 28, 2017
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			25.00%	35.00%	29.40%	35.00%
Tax Cuts And Jobs Act Of 2017 Measurement Period Adjustment Income Tax Expense Benefit	$ 347,000		$ 347,000
Income Tax Expense (Benefit), Total	277,000	$ 165,000	342,000	$ 1,475,000
Unrecognized Tax Benefits, Ending Balance	582,000		582,000		$ 479,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 507,000		$ 507,000		$ 372,000

Note 7 - Debt (Details Textual) - USD ($)	Sep. 23, 2016	Nov. 25, 2018	Jun. 25, 2018	May 27, 2018	Nov. 01, 2016
Long-term Debt, Total		$ 39,829,000		$ 42,300,000
Debt Issuance Costs, Net, Total		171,000		$ 200,000
Interest Rate Swap [Member] \| BMO [Member]
Derivative, Notional Amount			$ 30,000,000		$ 50,000,000
London Interbank Offered Rate (LIBOR) [Member] \| Interest Rate Swap [Member] \| BMO [Member]
Derivative, Fixed Interest Rate			2.74%		1.22%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member]
Debt Instrument, Additional Borrowing Amount	$ 75,000,000
Debt Issuance Costs, Net, Total	$ 897,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Prime Rate [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	0.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Prime Rate [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Eurodollar [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Eurodollar [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Term Loan [Member]
Long-term Debt, Total	$ 50,000,000
Debt Instrument, Term	5 years
Debt Instrument, Periodic Payment, Total	$ 1,250,000
Debt Issuance Costs, Net, Total	299,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	100,000,000
Debt Issuance Costs, Net, Total	$ 598,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Revolving Credit Facility [Member] \| Prime Rate [Member]
Long-term Line of Credit, Total		$ 42,000,000
Credit Agreement With JPMorgan Chase, BMO Harris Bank, and City National Bank [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility, Interest Rate at Period End		4.30%

Note 7 - Debt - Long-term Debt (Details) - USD ($) $ in Thousands	Nov. 25, 2018	May 27, 2018
Long-term debt	$ 40,000	$ 42,500
Less: unamortized debt issuance costs	(171)	(200)
Total long-term debt, net of unamortized debt issuance costs	39,829	42,300
Less: current portion of long-term debt, net	(4,940)	(4,940)
Long-term debt, net	34,889	37,360
Term Loan [Member]
Long-term debt	$ 40,000	$ 42,500

Note 7 - Debt - Long-term Debt (Details) (Parentheticals) - Term Loan [Member] - USD ($) $ in Thousands	Nov. 25, 2018	May 27, 2018
Periodic payment	$ 1,250	$ 1,250
Minimum [Member]
Interest rate	1.25%	1.25%
Maximum [Member]
Interest rate	2.25%	2.25%

Note 8 - Stockholders' Equity (Details Textual) $ in Millions	3 Months Ended	6 Months Ended
	Nov. 25, 2018 USD ($) shares	Nov. 25, 2018 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	45,000	175,000
Common Stock, Capital Shares Reserved for Future Issuance	2,700,000	2,700,000
Stock Repurchase Program, Authorized Amount \| $	$ 10	$ 10
Treasury Stock, Shares, Acquired		0
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	19,000	254,000

Note 9 - Business Segment Reporting (Details Textual)	3 Months Ended	6 Months Ended
Note 9 - Business Segment Reporting (Details Textual)	Aug. 26, 2018	Nov. 25, 2018	Nov. 26, 2017
Number of Operating Segments	3	3
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member]
Entity Wide Revenue Major Customer Number		5	5
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Natural Foods [Member]
Entity Wide Revenue Major Customer Number		2	2
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Top Five Customers [Member]
Concentration Risk, Percentage		45.00%	49.00%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Costco [Member] \| Natural Foods [Member]
Concentration Risk, Percentage		17.00%	19.00%
Sales Revenue, Net [Member] \| Customer Concentration Risk [Member] \| Wal-mart [Member] \| Natural Foods [Member]
Concentration Risk, Percentage		17.00%	18.00%

Note 9 - Business Segment Reporting - Sales by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Nov. 25, 2018	Nov. 26, 2017	Nov. 25, 2018	Nov. 26, 2017
Segment sales	$ 124,912	$ 122,461	$ 249,580	$ 238,242
CANADA
Segment sales	20,300	17,300	40,200	35,600
BELGIUM
Segment sales	500	500	2,500	2,700
IRELAND
Segment sales	1,200	800	2,300	1,600
DENMARK
Segment sales		500	200	700
SWITZERLAND
Segment sales	500		600
MEXICO
Segment sales	100	200	100	300
All Other Countries [Member]
Segment sales	$ 600	$ 1,100	$ 1,100	$ 1,200

Note 9 - Business Segment Reporting - Operations by Business Segment (Details) - USD ($)

3 Months Ended

6 Months Ended

Nov. 25, 2018

Nov. 26, 2017

Nov. 25, 2018

Nov. 26, 2017

$ 124,912,000

$ 122,461,000

$ 249,580,000

$ 238,242,000

16,593,000

14,921,000

32,930,000

33,723,000

(584,000)

414,000

(395,000)

2,769,000

3,313,000

2,980,000

6,458,000

5,934,000

412,000

825,000

33,000

42,000

79,000

73,000

746,000

^[1]

480,000

1,504,000

884,000

277,000

165,000

342,000

1,475,000

International [Member]

23,209,000

20,424,000

47,038,000

42,097,000

Natural Foods [Member]

109,466,000

108,348,000

221,517,000

211,965,000

10,915,000

9,704,000

24,285,000

24,984,000

(418,000)

(435,000)

1,349,000

3,166,000

2,196,000

1,958,000

4,236,000

3,930,000

412,000

825,000

30,000

18,000

61,000

28,000

276,000

^[1]

863,000

Natural Foods [Member] | International [Member]

(50,000)

(95,000)

612,000

1,002,000

20,367,000

17,749,000

40,480,000

35,923,000

Biomaterials [Member]

15,446,000

14,113,000

28,063,000

26,277,000

5,678,000

5,217,000

8,645,000

8,739,000

1,298,000

1,260,000

751,000

1,105,000

978,000

910,000

1,954,000

1,775,000

^[1]

Biomaterials [Member] | International [Member]

432,000

374,000

250,000

347,000

2,842,000

2,675,000

6,558,000

6,174,000

Other Segments [Member]

(1,464,000)

(411,000)

(2,495,000)

(1,502,000)

139,000

112,000

268,000

229,000

3,000

24,000

18,000

45,000

470,000

^[1]

480,000

641,000

884,000

Other Segments [Member] | International [Member]

(105,000)

(114,000)

(520,000)

126,000