Cover
Cover - shares | 9 Months Ended | |
Feb. 28, 2022 | Apr. 08, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Feb. 28, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --05-31 | |
Entity File Number | 000-26331 | |
Entity Registrant Name | GREYSTONE LOGISTICS, INC. | |
Entity Central Index Key | 0001088413 | |
Entity Tax Identification Number | 75-2954680 | |
Entity Incorporation, State or Country Code | OK | |
Entity Address, Address Line One | 1613 East 15th Street | |
Entity Address, City or Town | Tulsa | |
Entity Address, State or Province | OK | |
Entity Address, Postal Zip Code | 74120 | |
City Area Code | (918) | |
Local Phone Number | 583-7441 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,279,701 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Current Assets: | ||
Cash | $ 7,982,172 | $ 4,387,533 |
Trade | 5,585,604 | 4,586,134 |
Related parties | 112,174 | 153,550 |
Inventory | 4,288,015 | 3,441,974 |
Prepaid expenses | 629,612 | 52,315 |
Total Current Assets | 18,597,577 | 12,621,506 |
Property, Plant and Equipment, net | 32,099,676 | 30,998,988 |
Right-of-Use Operating Lease Assets | 62,242 | 109,013 |
Total Assets | 50,759,495 | 43,729,507 |
Current Liabilities: | ||
Current portion of long-term debt | 2,818,321 | 3,236,113 |
Current portion of financing leases | 1,592,166 | 1,745,535 |
Current portion of operating leases | 33,881 | 56,443 |
Accounts payable and accrued liabilities | 7,759,480 | 3,754,556 |
Deferred revenue | 10,218,357 | 6,430,607 |
Preferred dividends payable | 80,137 | |
Total Current Liabilities | 22,502,342 | 15,223,254 |
Long-Term Debt, net of current portion and debt issue costs | 11,396,240 | 12,971,529 |
Financing Leases, net of current portion | 777,911 | 1,848,472 |
Operating Leases, net of current portion | 28,361 | 52,570 |
Deferred Tax Liability | 1,938,166 | 2,380,642 |
Equity: | ||
Preferred stock, $0.0001 par value, cumulative, 20,750,000 shares authorized, 50,000 shares issued and outstanding, liquidation preference of $5,000,000 | 5 | 5 |
Common stock, $0.0001 par value, 5,000,000,000 shares authorized, 28,279,701 and 28,361,201 shares issued and outstanding, respectively | 2,828 | 2,836 |
Additional paid-in capital | 53,533,272 | 53,790,764 |
Accumulated deficit | (40,732,392) | (43,776,927) |
Total Greystone Stockholders’ Equity | 12,803,713 | 10,016,678 |
Non-controlling interest | 1,312,762 | 1,236,362 |
Total Equity | 14,116,475 | 11,253,040 |
Total Liabilities and Equity | $ 50,759,495 | $ 43,729,507 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,750,000 | 20,750,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Preferred stock, liquidation preference | $ 5,000,000 | $ 5,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 28,279,701 | 28,361,201 |
Common stock, shares outstanding | 28,279,701 | 28,361,201 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Income Statement [Abstract] | ||||
Sales | $ 22,450,682 | $ 14,511,196 | $ 53,069,648 | $ 47,602,690 |
Cost of Sales | 19,734,155 | 11,954,222 | 47,914,061 | 38,986,912 |
Gross Profit | 2,716,527 | 2,556,974 | 5,155,587 | 8,615,778 |
Selling, General and Administrative Expenses | 1,680,979 | 1,168,426 | 4,033,483 | 3,639,883 |
Operating Income | 1,035,548 | 1,388,548 | 1,122,104 | 4,975,895 |
Other Income (Expense): | ||||
Other income | 3,688 | 10,178 | 35,731 | 19,122 |
Gain from forgiveness of debt | 3,068,497 | |||
Interest expense | (201,992) | (270,229) | (631,115) | (923,289) |
Income before Income Taxes | 837,244 | 1,128,497 | 3,595,217 | 4,071,728 |
Provision for Income Taxes | (234,000) | (346,000) | (99,000) | (1,257,000) |
Net Income | 603,244 | 782,497 | 3,496,217 | 2,814,728 |
Income Attributable to Non-controlling Interest | (70,649) | (68,904) | (208,600) | (203,918) |
Preferred Dividends | (80,137) | (80,137) | (243,082) | (243,973) |
Net Income Attributable to Common Stockholders | $ 452,458 | $ 633,456 | $ 3,044,535 | $ 2,366,837 |
Income Per Share of Common Stock - | ||||
Basic | $ 0.02 | $ 0.02 | $ 0.11 | $ 0.08 |
Diluted | 0.02 | 0.02 | $ 0.10 | $ 0.08 |
Basic and Diluted | $ 0.02 | $ 0.02 | ||
Weighted Average Shares of Common Stock Outstanding - | ||||
Basic | 28,472,639 | 28,361,201 | 28,472,256 | 28,361,201 |
Diluted | 28,967,144 | 29,029,157 | 32,301,084 | 32,363,012 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at May. 31, 2020 | $ 5 | $ 2,836 | $ 53,790,764 | $ (46,807,092) | $ 6,986,513 | $ 1,173,020 | $ 8,159,533 |
Begining balance, shares at May. 31, 2020 | 50,000 | 28,361,201 | |||||
Cash distributions | (52,200) | (52,200) | |||||
Preferred dividends | (81,918) | (81,918) | (81,918) | ||||
Net income (loss) | 942,119 | 942,119 | 67,039 | 1,009,158 | |||
Ending balance, value at Aug. 31, 2020 | $ 5 | $ 2,836 | 53,790,764 | (45,946,891) | 7,846,714 | 1,187,859 | 9,034,573 |
Ending balance, shares at Aug. 31, 2020 | 50,000 | 28,361,201 | |||||
Beginning balance, value at May. 31, 2020 | $ 5 | $ 2,836 | 53,790,764 | (46,807,092) | 6,986,513 | 1,173,020 | 8,159,533 |
Begining balance, shares at May. 31, 2020 | 50,000 | 28,361,201 | |||||
Net income (loss) | 2,814,728 | ||||||
Ending balance, value at Feb. 28, 2021 | $ 5 | $ 2,836 | 53,790,764 | (44,440,255) | 9,353,350 | 1,220,338 | 10,573,688 |
Ending balance, shares at Feb. 28, 2021 | 50,000 | 28,361,201 | |||||
Beginning balance, value at Aug. 31, 2020 | $ 5 | $ 2,836 | 53,790,764 | (45,946,891) | 7,846,714 | 1,187,859 | 9,034,573 |
Begining balance, shares at Aug. 31, 2020 | 50,000 | 28,361,201 | |||||
Cash distributions | (52,200) | (52,200) | |||||
Preferred dividends | (81,918) | (81,918) | (81,918) | ||||
Net income (loss) | 955,098 | 955,098 | 67,975 | 1,023,073 | |||
Ending balance, value at Nov. 30, 2020 | $ 5 | $ 2,836 | 53,790,764 | (45,073,711) | 8,719,894 | 1,203,634 | 9,923,528 |
Ending balance, shares at Nov. 30, 2020 | 50,000 | 28,361,201 | |||||
Cash distributions | (52,200) | (52,200) | |||||
Preferred dividends | (80,137) | (80,137) | (80,137) | ||||
Net income (loss) | 713,593 | 713,593 | 68,904 | 782,497 | |||
Ending balance, value at Feb. 28, 2021 | $ 5 | $ 2,836 | 53,790,764 | (44,440,255) | 9,353,350 | 1,220,338 | 10,573,688 |
Ending balance, shares at Feb. 28, 2021 | 50,000 | 28,361,201 | |||||
Beginning balance, value at May. 31, 2021 | $ 5 | $ 2,836 | 53,790,764 | (43,776,927) | 10,016,678 | 1,236,362 | 11,253,040 |
Begining balance, shares at May. 31, 2021 | 50,000 | 28,361,201 | |||||
Cash distributions | (52,200) | (52,200) | |||||
Preferred dividends | (81,918) | (81,918) | (81,918) | ||||
Net income (loss) | 3,052,839 | 3,052,839 | 69,619 | 3,122,458 | |||
Stock options exercised | $ 20 | 23,980 | 24,000 | 24,000 | |||
Stock options exercised, shares | 200,000 | ||||||
Ending balance, value at Aug. 31, 2021 | $ 5 | $ 2,856 | 53,814,744 | (40,806,006) | 13,011,599 | 1,253,781 | 14,265,380 |
Ending balance, shares at Aug. 31, 2021 | 50,000 | 28,561,201 | |||||
Beginning balance, value at May. 31, 2021 | $ 5 | $ 2,836 | 53,790,764 | (43,776,927) | 10,016,678 | 1,236,362 | 11,253,040 |
Begining balance, shares at May. 31, 2021 | 50,000 | 28,361,201 | |||||
Net income (loss) | 3,496,217 | ||||||
Ending balance, value at Feb. 28, 2022 | $ 5 | $ 2,828 | 53,533,272 | (40,732,392) | 12,803,713 | 1,312,762 | 14,116,475 |
Ending balance, shares at Feb. 28, 2022 | 50,000 | 28,279,701 | |||||
Beginning balance, value at Aug. 31, 2021 | $ 5 | $ 2,856 | 53,814,744 | (40,806,006) | 13,011,599 | 1,253,781 | 14,265,380 |
Begining balance, shares at Aug. 31, 2021 | 50,000 | 28,561,201 | |||||
Preferred dividends | (81,027) | (81,027) | (81,027) | ||||
Net income (loss) | (297,817) | (297,817) | 68,332 | (229,485) | |||
Ending balance, value at Nov. 30, 2021 | $ 5 | $ 2,856 | 53,814,744 | (41,184,850) | 12,632,755 | 1,322,113 | 13,954,868 |
Ending balance, shares at Nov. 30, 2021 | 50,000 | 28,561,201 | |||||
Cash distributions | (80,000) | (80,000) | |||||
Preferred dividends | (80,137) | (80,137) | (80,137) | ||||
Net income (loss) | 532,595 | 532,595 | 70,649 | 603,244 | |||
Common stock purchase | $ (28) | (281,472) | (281,500) | (281,500) | |||
Common stock purchase, shares | (281,500) | ||||||
Ending balance, value at Feb. 28, 2022 | $ 5 | $ 2,828 | $ 53,533,272 | $ (40,732,392) | $ 12,803,713 | $ 1,312,762 | $ 14,116,475 |
Ending balance, shares at Feb. 28, 2022 | 50,000 | 28,279,701 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||||
Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Preferred dividends per share | $ 1.64 | $ 1.62 | $ 1.64 | $ 1.64 | $ 1.64 | $ 1.64 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Cash Flows from Operating Activities: | ||
Net income | $ 3,496,217 | $ 2,814,728 |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation and amortization | 4,015,292 | 4,400,422 |
Forgiveness of debt | (3,068,497) | |
Gain on sale of assets | (22,336) | |
Deferred tax expense | 99,000 | 1,257,000 |
Decrease (increase) in trade accounts receivable | (999,470) | 2,290,113 |
Decrease (increase) in related party receivables | 41,376 | (23,889) |
Decrease (increase) in inventory | (846,041) | 752,526 |
Increase in prepaid expenses | (577,297) | (53,564) |
Increase in accounts payable and accrued liabilities | 3,258,539 | 39,602 |
Increase (decrease) in deferred revenue | 3,787,750 | (2,911,800) |
Net cash provided by operating activities | 9,184,533 | 8,565,138 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (4,875,530) | (2,252,271) |
Proceeds from sale of assets | 50,000 | |
Net cash used in investing activities | (4,825,530) | (2,252,271) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt | 837,000 | |
Payments on long-term debt and financing leases | (4,390,444) | (3,631,852) |
Payments on related party note payable and financing lease | (353,523) | (885,206) |
Proceeds from revolving loan | 3,700,000 | 1,250,000 |
Payments on revolving loan | (3,190,003) | |
Proceeds from stock options exercised | 24,000 | |
Purchase of treasury stock | (281,500) | |
Payments for debt issuance costs | (4,752) | |
Dividends paid on preferred stock | (162,945) | (247,946) |
Distributions paid by non-controlling interest | (132,200) | (156,600) |
Net cash used in financing activities | (764,364) | (6,861,607) |
Net Increase (Decrease) in Cash | 3,594,639 | (548,740) |
Cash, beginning of period | 4,387,533 | 1,131,850 |
Cash, end of period | 7,982,172 | 583,110 |
Non-cash Activities: | ||
Acquisition of equipment through financing lease | 24,441 | |
Capital expenditures in accounts payable | 255,062 | 48,379 |
Equipment transferred from inventory | 26,750 | |
Preferred dividend accrual | 80,137 | 80,137 |
Supplemental information: | ||
Interest paid | 627,555 | 897,045 |
Income taxes paid | $ 1,015,000 |
Basis of Financial Statements
Basis of Financial Statements | 9 Months Ended |
Feb. 28, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statements | Note 1. Basis of Financial Statements In the opinion of Greystone Logistics, Inc. (“Greystone”), the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications, which are of a normal recurring nature, necessary to present fairly its financial position as of February 28, 2022, the results of its operations for the nine months and three months ended February 28, 2022 and 2021 and its cash flows for the nine months ended February 28, 2022 and 2021. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended May 31, 2021 and the notes thereto included in the Form 10-K for such period. The results of operations for the nine months and three months ended February 28, 2022 and 2021 are not necessarily indicative of the results to be expected for the full fiscal year. The consolidated financial statements of Greystone include its wholly-owned subsidiaries, Greystone Manufacturing, L.L.C. (“GSM”) and Plastic Pallet Production, Inc. (“PPP”), and the variable interest entity, Greystone Real Estate, L.L.C. (“GRE”). GRE owns two buildings located in Bettendorf, Iowa which are leased to GSM. All material intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Feb. 28, 2022 | |
Income Per Share of Common Stock - | |
Earnings Per Share | Note 2. Earnings Per Share Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income (loss) attributable to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income attributable to common stockholders by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. Greystone excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive. Instruments which have an anti-dilutive effect for the three months ended February 28, 2022 and 2021, are as follows: Schedule of Anti-dilutive Shares 2022 2021 Preferred stock convertible into common stock 3,333,333 3,333,333 The following tables set forth the computation of basic and diluted earnings per share . For the nine months ended February 28, 2022 and 2021: Schedule of Basic and Diluted Earnings Per Share 2022 2021 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,044,535 $ 2,366,837 Denominator - Weighted-average shares outstanding - basic 28,472,256 28,361,201 Income per share of common stock - basic $ 0.11 $ 0.08 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,044,535 $ 2,366,837 Add: Preferred stock dividends for assumed conversion 243,082 243,973 Net income allocated to common stockholders $ 3,287,617 $ 2,610,810 Denominator - Weighted-average shares outstanding – basic 28,472,256 28,361,201 Incremental shares from assumed conversion of options, warrants and preferred stock, as appropriate 3,828,828 4,001,811 Weighted average common stock outstanding – diluted 32,301,084 32,363,012 Income per share of common stock – diluted $ 0.10 $ 0.08 For the three months ended February 28, 2022 and 2021: 2022 2021 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 452,458 $ 633,456 Denominator - Weighted-average shares outstanding – basic 28,472,639 28,361,201 Income per share of common stock – basic $ 0.02 $ 0.02 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 452,458 $ 633,456 Denominator - Weighted-average shares outstanding - basic 28,472,639 28,361,201 Incremental shares from assumed conversion of warrants or options, as appropriate 494,505 667,956 Weighted average common stock outstanding - diluted 28,967,144 29,029,157 Income (loss) per share of common stock – diluted $ 0.02 $ 0.02 |
Inventory
Inventory | 9 Months Ended |
Feb. 28, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3. Inventory Inventory consists of the following: Schedule of Inventory February 28, May 31, 2022 2021 Raw materials $ 2,054,525 $ 2,520,654 Finished goods 2,233,490 921,320 Total inventory $ 4,288,015 $ 3,441,974 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Feb. 28, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment A summary of property, plant and equipment is as follows: Schedule of Property, Plant and Equipment February 28, 2022 May 31, 2021 Production machinery and equipment $ 56,215,850 $ 52,292,733 Plant buildings and land 7,020,542 6,970,949 Leasehold improvements 1,487,398 1,487,398 Furniture and fixtures 542,057 550,337 Property plant and equipment gross 65,265,847 61,301,417 Less: Accumulated depreciation and amortization (33,166,171 ) (30,302,429 ) Net Property, Plant and Equipment $ 32,099,676 $ 30,998,988 Production machinery includes deposits on equipment in the amount of $ 2,977,230 2,577,901 Depreciation expense, including amortization expense related to financing leases, for the nine months ended February 28, 2022 and 2021 was $ 4,011,025 4,397,890 |
Related Party Transactions_Acti
Related Party Transactions/Activity | 9 Months Ended |
Feb. 28, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions/Activity | Note 5. Related Party Transactions/Activity Yorktown Management & Financial Services, LLC Yorktown Management & Financial Services, LLC (“Yorktown”), an entity wholly-owned by Greystone’s President and CEO, owns and rents to Greystone (1) grinding equipment used to grind raw materials for Greystone’s pallet production and (2) extruders for pelletizing recycled plastic into pellets for resale and for use as raw material in the manufacture of pallets. GSM pays weekly rental fees to Yorktown of $ 27,500 1,072,500 Greystone paid Yorktown office rents totaling $ 38,400 and $ 36,000 during the nine months ended February 28, 2022 and 2021, respectively. Greystone prepaid $ 99,710 50 TriEnda Holdings, L.L.C. TriEnda Holdings, L.L.C. (“TriEnda”) is a manufacturer of plastic pallets, protective packing and dunnage utilizing thermoform processing for which Warren F. Kruger, Greystone’s President and CEO, serves TriEnda as the non-executive Chairman of the Board and is a partner in a partnership which has a majority ownership interest in TriEnda. Greystone may purchase pallets from TriEnda for resale or sell Greystone pallets to TriEnda. During the nine months ended February 28, 2022 and 2021, Greystone purchases from TriEnda totaled $ 4,222 52,356 62,089 54,871 88,204 Green Plastic Pallets Greystone sells plastic pallets to Green Plastic Pallets (“Green”), an entity that is owned by James Kruger, brother to Warren Kruger, Greystone’s President and CEO. Greystone had sales to Green of $ 348,330 343,350 23,970 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note 6. Long-term Debt Debt as of February 28, 2022 and May 31, 2021 is as follows: Schedule of Long-Term Debt February 28, May 31, 2022 2021 Other 120,648 147,914 Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 April 30, 2023 $ 973,767 $ 1,623,572 Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 August 4, 2024 703,855 905,822 Term loan D payable to International Bank of Commerce, prime rate of interest plus 0.5 4.75 January 10, 2022 - 487,390 Term loan E payable to International Bank of Commerce, prime rate of interest plus 0.5 4.75 February 28, 2023 253,181 447,551 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5 5.25 February 29, 2024 1,476,551 2,035,670 Term loan G payable to International Bank of Commerce, prime rate of interest plus 0.5 5.25 April 30, 2024 - 789,926 Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5 5.5 January 31, 2024 3,700,000 - Paycheck Protection Program note, interest rate of 1.0 June 2021 - 3,034,000 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5 27,688 April 30, 2023 1,883,218 2,049,941 Term note payable to Great Western Bank, interest rate of 3.7 27,593 March 19, 2025 962,651 1,180,470 Term loan payable to Great Western Bank, interest rate of 3.5 5,997 August 10, 2028 814,758 - Note payable to Robert Rosene, 7.5 January 15, 2024 3,357,143 3,536,112 Other 120,648 147,914 Total long-term debt 14,245,772 16,238,368 Debt issuance costs, net of amortization (31,211 ) (30,726 ) Total debt, net of debt issuance costs 14,214,561 16,207,642 Less: Current portion of long-term debt (2,818,321 ) (3,236,113 ) Long-term debt, net of current portion $ 11,396,240 $ 12,971,529 The prime rate of interest as of February 28, 2022, was 3.25 %. Subsequent to February 28, 2022, the prime rate of interest was increased to 3.50 Debt issuance costs consists of the amounts paid to third parties in connection with the issuance and modification of debt instruments. These costs are shown on the consolidated balance sheet as a direct reduction to the related debt instrument. Amortization of these costs is included in interest expense. Greystone recorded amortization of debt issuance costs of $ 4,267 and $ 2,532 for the nine months ended February 28, 2022 and 2021, respectively. Loan Agreement between Greystone and IBC The Loan Agreement (“IBC Loan Agreement”), dated January 31, 2014 and as amended from time to time, among Greystone and GSM (the “Borrowers”) and International Bank of Commerce (“IBC”) provides for certain term loans and a revolver loan. The IBC term loans make equal monthly payments of principal and interest in such amounts sufficient to amortize the principal balance of the loans over the remaining lives. The monthly payments of principal and interest on the IBC term loans may vary due to changes in the prime rate of interest. Currently, the aggregate payments for the IBC term loans are approximately $ 194,000 The IBC Loan Agreement, as amended, provides a revolving loan in an aggregate principal amount of up to $ 4,000,000 (the “Revolving Loan”). The amount which can be borrowed from time to time is dependent upon the amount of the borrowing base, as defined in the IBC Loan Agreement, not to exceed $ 4,000,000 . The Revolving Loan bears interest at the greater of the prime rate of interest plus 0.5 %, or 5.50 % and matures January 31, 2024 . The Borrowers are required to pay all interest accrued on the outstanding principal balance of the Revolving Loan on a monthly basis. Any principal on the Revolving Loan that is prepaid by the Borrowers does not reduce the original amount available to the Borrowers. Greystone’s available revolving loan borrowing capacity was $ 300,000 as of February 28, 2022. The IBC Loan Agreement includes customary events of default, including events of default relating to non-payment of principal and other amounts owing under the IBC Loan Agreement from time to time, inaccuracy of representations, violation of covenants, defaults under other agreements, bankruptcy and similar events, the death of a guarantor, certain material adverse changes relating to a Borrower or guarantor, certain judgments or awards against a Borrower, or government action affecting a Borrower’s or guarantor’s ability to perform under the IBC Loan Agreement or the related loan documents. Among other things, a default under the IBC Loan Agreement would permit IBC to cease lending funds under the IBC Loan Agreement and require immediate repayment of any outstanding notes with interest and any unpaid accrued fees. The IBC Loan Agreement is secured by a lien on substantially all of the assets of the Borrowers. In addition, the IBC Loan Agreement is secured by a mortgage granted by GRE on the real property owned by GRE in Bettendorf, Iowa (the “Mortgage”). GRE is owned by Warren F. Kruger, Greystone’s President and CEO, and Robert B. Rosene, Jr., a director of Greystone. Messrs. Kruger and Rosene have provided a combined limited guaranty of the Borrowers’ obligations under the IBC Loan Agreement, with such guaranty being limited to a combined amount of $ 6,500,000 (the “Guaranty”) subsequently amended and restated as of January 7, 2016, reducing the maximum aggregate guaranty limit to $ 3,500,000 if Greystone maintained a Debt Coverage Ratio of at least 1.35:1.00 for a period of six consecutive quarters. Greystone has maintained a ratio of at least 1.35:1.00 for the specified time and has notified IBC accordingly. The Mortgage and the Guaranty also secure or guaranty, as applicable, the obligations of GRE under the Loan Agreement between GRE and IBC dated January 31, 2014, as discussed herein. Loan Agreement between GRE and IBC On August 10, 2018, GRE and IBC entered into an amended agreement to extend the maturity of the note to April 30, 2023 5.5 Loan Agreement with Great Western Bank On August 23, 2021, Greystone entered into a loan agreement with Great Western Bank (“Western Loan Agreement”) to include prior commercial loans and subsequent loans. GSM is a named guarantor under the Western Loan Agreement. The Western Loan Agreement includes customary events of default, including events of default relating to non-payment of principal and other amounts owing under the Western Loan Agreement from time to time, inaccuracy of representations, violation of covenants, defaults under other agreements, bankruptcy and similar events, certain material adverse changes relating to a Borrower, certain judgments or awards against a Borrower, or guarantor’s ability to perform under the Western Loan Agreement. Among other things, a default under the Western Loan Agreement would permit Western to cease lending funds under the Western Loan Agreement and require immediate repayment of any outstanding notes with interest and any unpaid accrued fees. The Western Loan Agreement is secured by a mortgage on two of Greystone’s warehouses. Note Payable between Greystone and Robert B. Rosene, Jr. Effective December 15, 2005, Greystone entered into an agreement with Robert B. Rosene, Jr., a member of Greystone’s board of directors, to convert $ 2,066,000 7.5 Effective June 1, 2016, the note was restated (the “Restated Note”) to combine the outstanding principal, $ 2,066,000 2,475,690 4,541,690 3,357,143 Maturities Maturities of Greystone’s long-term debt for the five years subsequent to February 28, 2022, are $ 2,818,321 10,172,715 545,176 79,502 50,430 579,628 |
Leases
Leases | 9 Months Ended |
Feb. 28, 2022 | |
Leases | |
Leases | Note 7. Leases Financing Leases Financing leases as of February 28, 2022 and May 31, 2021: Schedule of Financing Lease February 28, 2022 May 31, 2021 Non-cancellable financing leases $ 2,370,077 $ 3,594,007 Less: Current portion (1,592,166 ) (1,745,535 ) Non-cancellable financing leases, net of current portion $ 777,911 $ 1,848,472 Greystone and an unrelated private company entered into three lease agreements for certain production equipment with a total cost of approximately $ 6.9 five 7.4 3.32 130,000 Effective December 28, 2018, Yorktown purchased certain production equipment from Greystone at net book value of $ 968,168 27,915 7,695 December 27, 2022 10,000 The production equipment under the non-cancelable financing leases has a gross carrying amount of $ 8,473,357 721,923 758,902 Operating Leases Greystone recognized a lease liability for each lease based on the present value of remaining minimum fixed rental payments, using a discount rate that approximates the rate of interest for a collateralized loan over a similar term. A right-of-use asset is recognized for each lease, valued at the lease liability. Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses on the consolidated statements of income. Variable and short-term rental payments are recognized as costs and expenses as they are incurred. Greystone has two non-cancellable operating leases for equipment with a fifty-two month forty-eight month 5.40 Lease Summary Information For the periods ending February 28, 2022 and 2021: Summary of Lease Activity 2022 2021 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 721,923 $ 758,902 Interest on lease liabilities 119,000 218,088 Operating lease expense 53,411 61,411 Short-term lease expense 1,101,133 1,117,628 Total $ 1,995,467 $ 2,156,029 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 119,000 $ 218,088 Financing cash flows $ 1,248,371 $ 1,407,081 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 53,411 $ 61,411 Weighted-average remaining lease term (in years) - Financing leases 1.5 2.8 Operating leases 1.9 2.2 Weighted-average discount rate - Financing leases 7.3 % 7.4 % Operating leases 5.4 % 5.2 % Future minimum lease payments under non-cancelable leases as of February 28, 2022, are approximately: Schedule of Future Minimum Lease Payments Financing Operating Twelve months ended February 28, 2023 $ 1,709,132 $ 33,881 Twelve months ended February 29, 2024 771,741 24,550 Twelve months ended February 28, 2025 22,479 7,468 Twelve months ended February 28, 2026 7,807 - Twelve months ended February 28, 2027 502 - Total future minimum lease payments 2,511,661 65,899 Present value discount 141,584 3,657 Present value of minimum lease payments $ 2,370,077 $ 62,242 |
Deferred Revenue
Deferred Revenue | 9 Months Ended |
Feb. 28, 2022 | |
Deferred Revenue | |
Deferred Revenue | Note 8. Deferred Revenue Advances from a customer pursuant to a contract for the sale of plastic pallets is recognized as deferred revenue. Revenue related to these advances is recognized by Greystone as pallets are shipped to the customer which totaled $ 9,772,750 and $ 4,291,800 during the nine months ended February 28, 2022 and 2021, respectively. Customer advances received during the nine months ended February 28, 2022 and 2021 were $ 13,560,500 and $ 1,380,000 , respectively. The unrecognized balance of deferred revenue as of February 28, 2022 and May 31, 2021, was $ 10,218,357 and $ 6,430,607 , respectively. |
Revenue and Revenue Recognition
Revenue and Revenue Recognition | 9 Months Ended |
Feb. 28, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Revenue Recognition | Note 9. Revenue and Revenue Recognition Revenue is recognized at the time a good or service is transferred to a customer and the customer obtains control of that good or receives the service performed. Sales arrangements with customers are short-term in nature involving single performance obligations related to the delivery of goods and generally provide for transfer of control at the time of shipment. In limited circumstances, where acceptance of the goods is subject to approval by the customer, revenue is recognized upon approval by the customer unless, historically, there have been insignificant rejections of goods by the customer. Contract liabilities associated with sales arrangements primarily relate to deferred revenue on prepaid sales of goods. Greystone generally permits returns of product due to defects; however, product returns are historically insignificant. The amount of revenue recognized reflects the consideration to which Greystone expects to be entitled to receive in exchange for its products. Greystone’s principal product is plastic pallets produced from recycled plastic resin. Sales are primarily to customers in the continental United States of America. International sales are made to customers in Canada and Mexico which totaled approximately 1.6 0.8 Greystone’s customers include stocking and non-stocking distributors and direct sales to end-user customers. Sales to the following categories of customers for the nine months ended February 28, 2022 and 2021, respectively, were as follows: Schedule of Sale of Revenues for Customer Categories Category 2022 2021 End User Customers 74 % 85 % Distributors 26 % 15 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Feb. 28, 2022 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | Note 10. Fair Value of Financial Instruments The following methods and assumptions are used in estimating the fair-value disclosures for financial instruments: Debt: The carrying amount of notes with floating rates of interest approximate fair value. Fixed rate notes are valued based on cash flows using estimated rates of comparable notes. The carrying amounts reported on the balance sheets approximate fair value. |
Concentrations, Risks and Uncer
Concentrations, Risks and Uncertainties | 9 Months Ended |
Feb. 28, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations, Risks and Uncertainties | Note 11. Concentrations, Risks and Uncertainties Greystone derived approximately 75 85 Greystone purchases damaged pallets from its customers at a price based on the value of the raw material content in the pallet. A majority of these purchases, totaling $ 313,050 524,321 Robert B. Rosene, Jr., a Greystone director, has provided financing and guarantees on Greystone’s bank debt. As of February 28, 2022, Greystone is indebted to Mr. Rosene in the amount of $ 3,357,143 January 15, 2024 COVID-19 Risks Greystone is subject to litigation, claims and other commitments and contingencies arising in the ordinary course of business. Although the asserted value of these matters may be significant, the company currently does not expect that the ultimate resolution of any open matters will have a material adverse effect on its consolidated financial position or results of operations. |
Commitments
Commitments | 9 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 12. Commitments As of February 28, 2022, Greystone had commitments totaling $ 5,308,262 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Income Per Share of Common Stock - | |
Schedule of Anti-dilutive Shares | Greystone excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive. Instruments which have an anti-dilutive effect for the three months ended February 28, 2022 and 2021, are as follows: Schedule of Anti-dilutive Shares 2022 2021 Preferred stock convertible into common stock 3,333,333 3,333,333 |
Schedule of Basic and Diluted Earnings Per Share | The following tables set forth the computation of basic and diluted earnings per share . For the nine months ended February 28, 2022 and 2021: Schedule of Basic and Diluted Earnings Per Share 2022 2021 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,044,535 $ 2,366,837 Denominator - Weighted-average shares outstanding - basic 28,472,256 28,361,201 Income per share of common stock - basic $ 0.11 $ 0.08 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,044,535 $ 2,366,837 Add: Preferred stock dividends for assumed conversion 243,082 243,973 Net income allocated to common stockholders $ 3,287,617 $ 2,610,810 Denominator - Weighted-average shares outstanding – basic 28,472,256 28,361,201 Incremental shares from assumed conversion of options, warrants and preferred stock, as appropriate 3,828,828 4,001,811 Weighted average common stock outstanding – diluted 32,301,084 32,363,012 Income per share of common stock – diluted $ 0.10 $ 0.08 For the three months ended February 28, 2022 and 2021: 2022 2021 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 452,458 $ 633,456 Denominator - Weighted-average shares outstanding – basic 28,472,639 28,361,201 Income per share of common stock – basic $ 0.02 $ 0.02 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 452,458 $ 633,456 Denominator - Weighted-average shares outstanding - basic 28,472,639 28,361,201 Incremental shares from assumed conversion of warrants or options, as appropriate 494,505 667,956 Weighted average common stock outstanding - diluted 28,967,144 29,029,157 Income (loss) per share of common stock – diluted $ 0.02 $ 0.02 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: Schedule of Inventory February 28, May 31, 2022 2021 Raw materials $ 2,054,525 $ 2,520,654 Finished goods 2,233,490 921,320 Total inventory $ 4,288,015 $ 3,441,974 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | A summary of property, plant and equipment is as follows: Schedule of Property, Plant and Equipment February 28, 2022 May 31, 2021 Production machinery and equipment $ 56,215,850 $ 52,292,733 Plant buildings and land 7,020,542 6,970,949 Leasehold improvements 1,487,398 1,487,398 Furniture and fixtures 542,057 550,337 Property plant and equipment gross 65,265,847 61,301,417 Less: Accumulated depreciation and amortization (33,166,171 ) (30,302,429 ) Net Property, Plant and Equipment $ 32,099,676 $ 30,998,988 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt as of February 28, 2022 and May 31, 2021 is as follows: Schedule of Long-Term Debt February 28, May 31, 2022 2021 Other 120,648 147,914 Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 April 30, 2023 $ 973,767 $ 1,623,572 Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 August 4, 2024 703,855 905,822 Term loan D payable to International Bank of Commerce, prime rate of interest plus 0.5 4.75 January 10, 2022 - 487,390 Term loan E payable to International Bank of Commerce, prime rate of interest plus 0.5 4.75 February 28, 2023 253,181 447,551 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5 5.25 February 29, 2024 1,476,551 2,035,670 Term loan G payable to International Bank of Commerce, prime rate of interest plus 0.5 5.25 April 30, 2024 - 789,926 Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5 5.5 January 31, 2024 3,700,000 - Paycheck Protection Program note, interest rate of 1.0 June 2021 - 3,034,000 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5 27,688 April 30, 2023 1,883,218 2,049,941 Term note payable to Great Western Bank, interest rate of 3.7 27,593 March 19, 2025 962,651 1,180,470 Term loan payable to Great Western Bank, interest rate of 3.5 5,997 August 10, 2028 814,758 - Note payable to Robert Rosene, 7.5 January 15, 2024 3,357,143 3,536,112 Other 120,648 147,914 Total long-term debt 14,245,772 16,238,368 Debt issuance costs, net of amortization (31,211 ) (30,726 ) Total debt, net of debt issuance costs 14,214,561 16,207,642 Less: Current portion of long-term debt (2,818,321 ) (3,236,113 ) Long-term debt, net of current portion $ 11,396,240 $ 12,971,529 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Leases | |
Schedule of Financing Lease | Financing leases as of February 28, 2022 and May 31, 2021: Schedule of Financing Lease February 28, 2022 May 31, 2021 Non-cancellable financing leases $ 2,370,077 $ 3,594,007 Less: Current portion (1,592,166 ) (1,745,535 ) Non-cancellable financing leases, net of current portion $ 777,911 $ 1,848,472 |
Summary of Lease Activity | For the periods ending February 28, 2022 and 2021: Summary of Lease Activity 2022 2021 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 721,923 $ 758,902 Interest on lease liabilities 119,000 218,088 Operating lease expense 53,411 61,411 Short-term lease expense 1,101,133 1,117,628 Total $ 1,995,467 $ 2,156,029 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 119,000 $ 218,088 Financing cash flows $ 1,248,371 $ 1,407,081 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 53,411 $ 61,411 Weighted-average remaining lease term (in years) - Financing leases 1.5 2.8 Operating leases 1.9 2.2 Weighted-average discount rate - Financing leases 7.3 % 7.4 % Operating leases 5.4 % 5.2 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancelable leases as of February 28, 2022, are approximately: Schedule of Future Minimum Lease Payments Financing Operating Twelve months ended February 28, 2023 $ 1,709,132 $ 33,881 Twelve months ended February 29, 2024 771,741 24,550 Twelve months ended February 28, 2025 22,479 7,468 Twelve months ended February 28, 2026 7,807 - Twelve months ended February 28, 2027 502 - Total future minimum lease payments 2,511,661 65,899 Present value discount 141,584 3,657 Present value of minimum lease payments $ 2,370,077 $ 62,242 |
Revenue and Revenue Recogniti_2
Revenue and Revenue Recognition (Tables) | 9 Months Ended |
Feb. 28, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Sale of Revenues for Customer Categories | Greystone’s customers include stocking and non-stocking distributors and direct sales to end-user customers. Sales to the following categories of customers for the nine months ended February 28, 2022 and 2021, respectively, were as follows: Schedule of Sale of Revenues for Customer Categories Category 2022 2021 End User Customers 74 % 85 % Distributors 26 % 15 % |
Schedule of Anti-dilutive Share
Schedule of Anti-dilutive Shares (Details) - shares | 3 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Preferred Stock Convertible into Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Preferred stock convertible into common stock | 3,333,333 | 3,333,333 |
Schedule of Basic and Diluted E
Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Income Per Share of Common Stock - | ||||
Net income attributable to common stockholders | $ 452,458 | $ 633,456 | $ 3,044,535 | $ 2,366,837 |
Weighted-average shares outstanding - basic | 28,472,639 | 28,361,201 | 28,472,256 | 28,361,201 |
Income per share of common stock – basic | $ 0.02 | $ 0.02 | $ 0.11 | $ 0.08 |
Net income attributable to common stockholders | $ 452,458 | $ 633,456 | $ 3,044,535 | $ 2,366,837 |
Add: Preferred stock dividends for assumed conversion | 243,082 | 243,973 | ||
Net income allocated to common stockholders | $ 3,287,617 | $ 2,610,810 | ||
Incremental shares from assumed conversion of warrants or options, as appropriate | 494,505 | 667,956 | 3,828,828 | 4,001,811 |
Weighted average common stock outstanding - diluted | 28,967,144 | 29,029,157 | 32,301,084 | 32,363,012 |
Income (loss) per share of common stock – diluted | $ 0.02 | $ 0.02 | $ 0.10 | $ 0.08 |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,054,525 | $ 2,520,654 |
Finished goods | 2,233,490 | 921,320 |
Total inventory | $ 4,288,015 | $ 3,441,974 |
Schedule of Property, Plant and
Schedule of Property, Plant and Equipment (Details) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 65,265,847 | $ 61,301,417 |
Less: Accumulated depreciation and amortization | (33,166,171) | (30,302,429) |
Net Property, Plant and Equipment | 32,099,676 | 30,998,988 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 56,215,850 | 52,292,733 |
Plant Buildings and Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 7,020,542 | 6,970,949 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 1,487,398 | 1,487,398 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 542,057 | $ 550,337 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 9 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | May 31, 2021 | |
Carrying value of property, plant and equipment | $ 65,265,847 | $ 61,301,417 | |
Depreciation expense | 4,011,025 | $ 4,397,890 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Carrying value of property, plant and equipment | 2,577,901 | ||
Service [Member] | |||
Machinery and equipment | $ 2,977,230 |
Related Party Transactions_Ac_2
Related Party Transactions/Activity (Details Narrative) - USD ($) | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Yorktown's Grinding and Pelletizing Equipment [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | $ 1,072,500 | $ 1,072,500 |
Yorktown's Grinding and Pelletizing Equipment [Member] | Weekly [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | 27,500 | |
Yorktown's [Member] | ||
Related Party Transaction [Line Items] | ||
Prepayment of rent | 99,710 | |
Yorktown's [Member] | Office Space [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | $ 38,400 | 36,000 |
Reduction of office rent, percentage | 50.00% | |
Trienda Holdings LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction purchases | $ 4,222 | 52,356 |
Revenue from goods | 62,089 | 54,871 |
Due from related parties | 88,204 | |
Green Plastic Pallets [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from goods | 348,330 | $ 343,350 |
Account receivable | $ 23,970 |
Schedule of Long-Term Debt (Det
Schedule of Long-Term Debt (Details) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Short-term Debt [Line Items] | ||
Total long-term debt | $ 14,245,772 | $ 16,238,368 |
Debt issuance costs, net of amortization | (31,211) | (30,726) |
Total debt, net of debt issuance costs | 14,214,561 | 16,207,642 |
Less: Current portion of long-term debt | (2,818,321) | (3,236,113) |
Long-term debt, net of current portion and debt issue costs | 11,396,240 | 12,971,529 |
Other Note Payable [Member] | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 120,648 | 147,914 |
Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing April 30, 2023 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 973,767 | 1,623,572 |
Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing August 4, 2024 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 703,855 | 905,822 |
Term loan D payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing January 10, 2022 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 487,390 | |
Term loan E payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing February 28, 2023 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 253,181 | 447,551 |
Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing February 29, 2024 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 1,476,551 | 2,035,670 |
Term loan G payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing April 30, 2024 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 789,926 | |
Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.5%, due January 31, 2023 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 3,700,000 | |
Paycheck Protection Program note, interest rate of 1.0%, debt forgiven June 2021 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 3,034,000 | |
Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5%, monthly principal and interest payment of $27,688, due April 30, 2023 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 1,883,218 | 2,049,941 |
Term note payable to Great Western Bank, interest rate of 3.7%, monthly principal and interest payments of $27,593, due March 19, 2025, secured by certain equipment | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 962,651 | 1,180,470 |
Term loan payable to Great Western Bank, interest rate of 3.5%, monthly principal and interest payments of $5,997, due August 10, 2028, secured by certain real estate | ||
Short-term Debt [Line Items] | ||
Total long-term debt | 814,758 | |
Note payable to Robert Rosene, 7.5% interest, due January 15, 2023 | ||
Short-term Debt [Line Items] | ||
Total long-term debt | $ 3,357,143 | $ 3,536,112 |
Schedule of Long-Term Debt (D_2
Schedule of Long-Term Debt (Details) (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended |
Feb. 28, 2022 | May 31, 2021 | |
Short-term Debt [Line Items] | ||
Debt instrument maturity date | Mar. 19, 2025 | |
Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing April 30, 2023 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Apr. 30, 2023 | Apr. 30, 2023 |
Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing April 30, 2023 | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 4.00% | 4.00% |
Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing August 4, 2024 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Aug. 4, 2024 | Aug. 4, 2024 |
Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing August 4, 2024 | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 4.00% | 4.00% |
Term loan D payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing January 10, 2022 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jan. 10, 2022 | Jan. 10, 2022 |
Term loan D payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing January 10, 2022 | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 4.75% | 4.75% |
Term loan E payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing February 28, 2023 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Feb. 28, 2023 | Feb. 28, 2023 |
Term loan E payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing February 28, 2023 | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 4.75% | 4.75% |
Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing February 29, 2024 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Feb. 29, 2024 | Feb. 29, 2024 |
Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing February 29, 2024 | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 5.25% | 5.25% |
Term loan G payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing April 30, 2024 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Apr. 30, 2024 | Apr. 30, 2024 |
Term loan G payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing April 30, 2024 | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 5.25% | 5.25% |
Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.5%, due January 31, 2023 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | |
Debt instrument maturity date | Jan. 31, 2024 | |
Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.5%, due January 31, 2023 | Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 5.50% | |
Paycheck Protection Program note, interest rate of 1.0%, debt forgiven June 2021 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 1.00% | 1.00% |
Debt instrument maturity date | Jun. 30, 2021 | Jun. 30, 2021 |
Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5%, monthly principal and interest payment of $27,688, due April 30, 2023 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 5.50% | 5.50% |
Debt instrument maturity date | Apr. 30, 2023 | Apr. 30, 2023 |
Debt instrument principal and interest amount | $ 27,688 | $ 27,688 |
Term note payable to Great Western Bank, interest rate of 3.7%, monthly principal and interest payments of $27,593, due March 19, 2025, secured by certain equipment | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 3.70% | 3.70% |
Debt instrument maturity date | Mar. 19, 2025 | |
Debt instrument principal and interest amount | $ 27,593 | $ 27,593 |
Term loan payable to Great Western Bank, interest rate of 3.5%, monthly principal and interest payments of $5,997, due August 10, 2028, secured by certain real estate | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 3.50% | 3.50% |
Debt instrument maturity date | Aug. 10, 2028 | Aug. 10, 2028 |
Debt instrument principal and interest amount | $ 5,997 | $ 5,997 |
Note payable to Robert Rosene, 7.5% interest, due January 15, 2023 | ||
Short-term Debt [Line Items] | ||
Debt instrument interest rate | 7.50% | 7.50% |
Debt instrument maturity date | Jan. 15, 2024 | Jan. 15, 2024 |
Long-term Debt (Details Narrati
Long-term Debt (Details Narrative) - USD ($) | Aug. 10, 2018 | Jun. 01, 2016 | Feb. 28, 2022 | Feb. 28, 2021 | Mar. 17, 2022 | Jan. 07, 2016 | Dec. 15, 2005 |
Debt Instrument [Line Items] | |||||||
Amortization of debt issuance costs | $ 4,267 | $ 2,532 | |||||
Debt Instrument, Maturity Date | Mar. 19, 2025 | ||||||
Maturities long term debt year one | $ 2,818,321 | ||||||
Maturities long term debt year two | 10,172,715 | ||||||
Maturities long term debt year three | 545,176 | ||||||
Maturities long term debt year four | 79,502 | ||||||
Maturities long term debt year five | 50,430 | ||||||
Maturities long term debt after year five | 579,628 | ||||||
Robert B. Rosene, Jr. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument principal amount | $ 3,357,143 | ||||||
Debt Instrument, Maturity Date | Jan. 15, 2024 | ||||||
Note payable | $ 3,357,143 | ||||||
Robert B. Rosene, Jr. [Member] | Director [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 7.50% | ||||||
Note payable | $ 2,066,000 | ||||||
Revolving Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 5.50% | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000 | ||||||
Restated Note [Member] | Robert B. Rosene, Jr. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument principal amount | $ 2,066,000 | ||||||
Note payable | 4,541,690 | ||||||
Accrued interest | $ 2,475,690 | ||||||
IBC Loan Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Payments of monthly principal and interest | 194,000 | ||||||
IBC Loan Agreement [Member] | Revolving Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | 4,000,000 | ||||||
IBC Loan Agreement [Member] | Revolving Loan [Member] | Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument principal amount | 4,000,000 | ||||||
IBC Loan Agreement [Member] | Guaranty [Member] | |||||||
Debt Instrument [Line Items] | |||||||
[custom:GuaranteesCombinedAmount-0] | $ 6,500,000 | $ 3,500,000 | |||||
Revolving Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Maturity Date | Jan. 31, 2024 | ||||||
Loan Agreement between GRE and IBC [Member] | Mortgage Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 5.50% | ||||||
Extended maturity date | Apr. 30, 2023 | ||||||
Prime Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 3.25% | ||||||
Prime Rate [Member] | Revolving Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 0.50% | ||||||
Prime Rate [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 3.50% |
Schedule of Financing Lease (De
Schedule of Financing Lease (Details) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Leases | ||
Non-cancellable financing leases | $ 2,370,077 | $ 3,594,007 |
Less: Current portion | (1,592,166) | (1,745,535) |
Non-cancellable financing leases, net of current portion | $ 777,911 | $ 1,848,472 |
Summary of Lease Activity (Deta
Summary of Lease Activity (Details) - USD ($) | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Leases | ||
Amortization of right-of-use assets | $ 721,923 | $ 758,902 |
Interest on lease liabilities | 119,000 | 218,088 |
Operating lease expense | 53,411 | 61,411 |
Short-term lease expense | 1,101,133 | 1,117,628 |
Total | 1,995,467 | 2,156,029 |
Operating cash flows | 119,000 | 218,088 |
Financing cash flows | 1,248,371 | 1,407,081 |
Operating cash flows | $ 53,411 | $ 61,411 |
Weighted-average remaining lease term (in years) - Financing leases | 1 year 6 months | 2 years 9 months 18 days |
Weighted-average remaining lease term (in years) - Operating leases | 1 year 10 months 24 days | 2 years 2 months 12 days |
Weighted-average discount rate - Financing leases | 7.30% | 7.40% |
Weighted-average discount rate - Operating leases | 5.40% | 5.20% |
Schedule of Future Minimum Leas
Schedule of Future Minimum Lease Payments (Details) - USD ($) | Feb. 28, 2022 | May 31, 2021 |
Leases | ||
Financing Leases Twelve months ended February 28, 2023 | $ 1,709,132 | |
Operating Leases Twelve months ended February 28, 2023 | 33,881 | |
Financing Leases Twelve months ended February 29, 2024 | 771,741 | |
Operating Leases Twelve months ended February 29, 2024 | 24,550 | |
Financing Leases Twelve months ended February 28, 2025 | 22,479 | |
Operating Leases Twelve months ended February 28, 2025 | 7,468 | |
Financing Leases Twelve months ended February 28, 2026 | 7,807 | |
Operating Leases Twelve months ended February 28, 2026 | ||
Financing Leases Twelve months ended February 28, 2027 | 502 | |
Operating Leases Twelve months ended February 28, 2027 | ||
Financing Leases Total future minimum lease payments | 2,511,661 | |
Operating Leases Total future minimum lease payments | 65,899 | |
Financing Leases Present value discount | 141,584 | |
Operating Leases Present value discount | 3,657 | |
Financing Leases Present value of minimum lease payments | 2,370,077 | $ 3,594,007 |
Operating Leases Present value of minimum lease payments | $ 62,242 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Finance lease cost | $ 1,995,467 | $ 2,156,029 |
Amortization of assets | $ 721,923 | $ 758,902 |
Equipment One [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 52 months | |
Operating lease discount rate | 5.40% | |
Equipment Two [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 48 months | |
Operating lease discount rate | 5.40% | |
Yorktown Production Equipment [Member] | Sale and Leaseback Agreement [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Value of production equipment purchased | $ 968,168 | |
Lease maturity date | Dec. 27, 2022 | |
Bargain purchase option amount | $ 10,000 | |
Yorktown Production Equipment [Member] | Sale and Leaseback Agreement [Member] | Initial Thirty Six Months [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Payments of monthly rental amount | 27,915 | |
Yorktown Production Equipment [Member] | Sale and Leaseback Agreement [Member] | Twelve Months [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Payments of monthly rental amount | 7,695 | |
Production Equipment [Member] | Non- Cancelable Financing Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Production equipment gross carrying amount | 8,473,357 | |
Three Lease Agreements with Five Year Terms [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease cost | $ 6,900,000 | |
Lease term | 5 years | |
Lease interest rate | 7.40% | |
Lease payment per invoice rate | $ 3.32 | |
Payments of monthly rental amount | $ 130,000 |
Deferred Revenue (Details Narra
Deferred Revenue (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | May 31, 2021 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 22,450,682 | $ 14,511,196 | $ 53,069,648 | $ 47,602,690 | |
Pallets [Member] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 9,772,750 | 4,291,800 | |||
Contract with Customer, Liability, Revenue Recognized | 13,560,500 | $ 1,380,000 | |||
Deferred Revenue | $ 10,218,357 | $ 10,218,357 | $ 6,430,607 |
Schedule of Sale of Revenues fo
Schedule of Sale of Revenues for Customer Categories (Details) - Revenue from Contract with Customer Benchmark [Member] - Customer Concentration Risk [Member] | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
End User Customers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 74.00% | 85.00% |
Distributors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 26.00% | 15.00% |
Revenue and Revenue Recogniti_3
Revenue and Revenue Recognition (Details Narrative) | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Canada and Mexico [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales revenue percent | 1.60% | 0.80% |
Concentrations, Risks and Unc_2
Concentrations, Risks and Uncertainties (Details Narrative) - USD ($) | 9 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Concentration Risk [Line Items] | ||
Debt instrument, maturity date | Mar. 19, 2025 | |
Robert B. Rosene, Jr. [Member] | ||
Concentration Risk [Line Items] | ||
Note payable | $ 3,357,143 | |
Debt instrument, maturity date | Jan. 15, 2024 | |
Fiscal Year 2022 [Member] | ||
Concentration Risk [Line Items] | ||
Customer purchases amount | $ 313,050 | |
Fiscal Year 2021 [Member] | ||
Concentration Risk [Line Items] | ||
Customer purchases amount | $ 524,321 | |
Three Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 75.00% | 85.00% |
Commitments (Details Narrative)
Commitments (Details Narrative) | Feb. 28, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase of production equipment | $ 5,308,262 |