Cover
Cover - USD ($) | 12 Months Ended | ||
May 31, 2022 | Aug. 12, 2022 | Nov. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | May 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 15,079,000 | ||
Entity Common Stock, Shares Outstanding | 28,279,701 | ||
Auditor Firm ID | 483 | ||
Auditor Name | HoganTaylor LLP | ||
Auditor Location | Tulsa, Oklahoma |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 31, 2022 | May 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 3,143,257 | $ 4,387,533 |
Trade | 6,001,049 | 4,586,134 |
Related parties | 252,112 | 153,550 |
Other | 156,162 | |
Inventory | 4,112,496 | 3,441,974 |
Prepaid expenses | 148,078 | 52,315 |
Total Current Assets | 13,813,154 | 12,621,506 |
Property, Plant and Equipment, net | 31,876,765 | 30,998,988 |
Right-of-use Operating Lease Assets | 55,535 | 109,013 |
Total Assets | 45,745,454 | 43,729,507 |
Current Liabilities: | ||
Current portion of long-term debt | 4,160,403 | 3,236,113 |
Current portion of financing leases | 1,630,895 | 1,745,535 |
Current portion of operating leases | 33,881 | 56,443 |
Accounts payable and accrued expenses | 7,820,837 | 3,754,556 |
Deferred revenue | 5,329,047 | 6,430,607 |
Preferred dividends payable | 85,377 | |
Total Current Liabilities | 19,060,440 | 15,223,254 |
Long-Term Debt, net of current portion and debt issue costs | 9,306,037 | 12,971,529 |
Financing Leases, net of current portion | 532,148 | 1,848,472 |
Operating Leases, net of current portion | 21,654 | 52,570 |
Deferred Tax Liability | 1,743,694 | 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 | (39,838,449) | (43,776,927) |
Total Greystone Stockholders’ Equity | 13,697,656 | 10,016,678 |
Non-controlling interest | 1,383,825 | 1,236,362 |
Total Equity | 15,081,481 | 11,253,040 |
Total Liabilities and Equity | $ 45,745,454 | $ 43,729,507 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | May 31, 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 - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Statement [Abstract] | ||
Sales | $ 74,170,351 | $ 64,925,059 |
Cost of Sales | 66,395,792 | 53,468,239 |
Gross Profit | 7,774,559 | 11,456,820 |
Selling, General and Administrative Expenses | 5,200,387 | 5,202,231 |
Operating Income | 2,574,172 | 6,254,589 |
Other Income (Expense): | ||
Gain on the forgiveness of debt | 3,068,497 | |
Other income | 281,049 | 29,326 |
Interest expense | (841,701) | (1,177,799) |
Income before Income Taxes | 5,082,017 | 5,106,116 |
Provision for Income Taxes | 535,417 | 1,480,590 |
Net Income | 4,546,600 | 3,625,526 |
Income Attributable to Non-controlling Interest | (279,663) | (272,142) |
Preferred Dividends | (328,459) | (323,219) |
Net Income Attributable to Common Stockholders | $ 3,938,478 | $ 3,030,165 |
Income Per Share of Common Stock - | ||
Basic | $ 0.14 | $ 0.11 |
Diluted | $ 0.13 | $ 0.10 |
Weighted Average Shares of Common Stock Outstanding - | ||
Basic | 28,423,721 | 28,361,201 |
Diluted | 32,252,432 | 32,364,942 |
Consolidated Statements of Chan
Consolidated Statements of Changes inEquity - 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 | (208,800) | (208,800) | |||||
Preferred dividends, $6.57 per share | (323,219) | (323,219) | (323,219) | ||||
Net income | 3,353,384 | 3,353,384 | 272,142 | $ 3,625,526 | |||
Stock options exercised, shares | |||||||
Ending balance, value at May. 31, 2021 | $ 5 | $ 2,836 | 53,790,764 | (43,776,927) | 10,016,678 | 1,236,362 | $ 11,253,040 |
Ending balance, shares at May. 31, 2021 | 50,000 | 28,361,201 | |||||
Cash distributions | (132,200) | (132,200) | |||||
Preferred dividends, $6.57 per share | (328,459) | (328,459) | (328,459) | ||||
Net income | 4,266,937 | 4,266,937 | 279,663 | 4,546,600 | |||
Stock options exercised | $ 20 | 23,980 | 24,000 | $ 24,000 | |||
Stock options exercised, shares | 200,000 | 200,000 | |||||
Common stock purchase | $ (28) | (281,472) | (281,500) | $ (281,500) | |||
Common stock purchase, shares | (281,500) | ||||||
Ending balance, value at May. 31, 2022 | $ 5 | $ 2,828 | $ 53,533,272 | $ (39,838,449) | $ 13,697,656 | $ 1,383,825 | $ 15,081,481 |
Ending balance, shares at May. 31, 2022 | 50,000 | 28,279,701 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes inEquity (Parenthetical) - $ / shares | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Preferred Stock, Dividends, Per Share, Cash Paid | $ 6.57 | $ 6.46 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Cash Flows from Operating Activities: | ||
Net income | $ 4,546,600 | $ 3,625,526 |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation and amortization | 5,365,720 | 5,801,517 |
Change in deferred taxes | (636,948) | 1,271,590 |
Forgiveness of debt | (3,068,497) | |
Gain on sale of assets | (22,336) | |
Decrease (increase) in trade and other accounts receivable | (1,571,077) | 2,084,637 |
Increase in related party receivable | (98,562) | (59,199) |
Decrease (increase) in inventory | (670,522) | 761,171 |
Increase in prepaid expenses | (95,763) | (44,827) |
Increase (decrease) in accounts payable and accrued expenses | 3,990,306 | (895,226) |
Increase (decrease) in deferred revenue | (1,101,560) | 2,637,440 |
Net cash provided by operating activities | 6,637,361 | 15,182,629 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (6,130,521) | (2,905,640) |
Proceeds from sale of equipment | 50,000 | |
Net cash used in investing activities | (6,080,521) | (2,905,640) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt | 837,000 | |
Proceeds from revolving loan | 3,700,000 | 2,935,000 |
Payments on long-term debt and financing leases | (5,263,858) | (4,845,494) |
Payments on related party note payable and financing lease | (436,724) | (1,019,683) |
Payments on revolving loan | (5,475,000) | |
Payments for debt issuance costs | (4,752) | |
Stock options exercised | 24,000 | |
Purchase of common stock | (281,500) | |
Dividends paid on preferred stock | (243,082) | (407,329) |
Distributions paid by non-controlling interest | (132,200) | (208,800) |
Net cash used in financing activities | (1,801,116) | (9,021,306) |
Net Increase (Decrease) in Cash and Cash Equivalents | (1,244,276) | 3,255,683 |
Cash and Cash Equivalents, beginning of year | 4,387,533 | 1,131,850 |
Cash and Cash Equivalents, end of year | $ 3,143,257 | $ 4,387,533 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Greystone Logistics, Inc. (“Greystone”), through its two wholly owned subsidiaries, Greystone Manufacturing, LLC (“GSM”) and Plastic Pallet Production, Inc. (“PPP”), is engaged in the manufacturing and marketing of plastic pallets and pelletized recycled plastic resin. Principles of Consolidation The consolidated financial statements include the accounts of Greystone, its subsidiaries and entities required to be consolidated by the accounting guidance for variable interest entities (“VIE”). All material intercompany accounts and transactions have been eliminated. Greystone consolidates its VIE, Greystone Real Estate, L.L.C. (“GRE”), which owns the manufacturing facilities which are occupied by Greystone. GRE is owned by Warren F. Kruger, President and CEO, and Robert B. Rosene, Jr., a member of Greystone’s Board of Directors. Use of Estimates The preparation of Greystone’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires Greystone’s management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company maintains accounts at financial institutions which are insured by the Federal Deposit Insurance Corporation (FDIC). Cash balances at times are in excess of FDIC insurance limits. Accounts Receivable and Allowance for Uncollectible Accounts Greystone records its accounts receivable at their face value less an allowance for credit losses in an amount sufficient to absorb losses inherent in its accounts receivable portfolio based on projected expected credit losses. Greystone evaluates its accounts receivable and establishes an allowance for uncollectible accounts based on a combination of specific customer circumstances, credit conditions and history of collections. Inventory Inventory consists of finished pallets and raw materials which are stated at the lower of average cost or net realizable value. Property, Plant and Equipment Greystone’s property, plant and equipment is stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives, as follows: SCHEDULE OF USEFUL LIFE OF PROPERTY, PLANT AND EQUIPMENT Plant buildings 39 Production machinery and equipment 5 12 Leasehold improvements 5 7 Furniture & fixtures 3 5 Upon sale, retirement or other disposal, the related costs and accumulated depreciation of items of property, plant or equipment are removed from the related accounts and any gain or loss is recognized. When events or changes in circumstances indicate that long-lived assets may be impaired, an evaluation is performed comparing the estimated future undiscounted cash flows associated with the asset to the asset’s carrying amount. If the asset’s carrying amount exceeds the cash flows, a write-down to fair value is required. Leases Greystone recognizes right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. Greystone has operating and finance leases for facilities, office space and plant equipment. Operating leases are included in right-of-use (“ROU”) operating lease assets and finance lease ROU assets are included in property, plant and equipment, net in the consolidated balance sheet. The lease liabilities are included in operating leases and financing leases (current and non-current) in the consolidated balance sheet. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. For finance leases, lease expenses are the sum of interest on the lease obligations and amortization of the ROU assets. Finance lease ROU assets are amortized based on the lesser of the lease term and the useful life of the leased asset according to the capital asset accounting policy. If ownership of the ROU assets transfers to Greystone at the end of the lease term or if Greystone is reasonably certain to exercise a purchase option, amortization is calculated using the estimated useful life of the leased asset. For operating leases, the lease expenses are generally recognized on a straight-line basis over the lease term and recorded to general and administrative expenses in the consolidated statements of income. In accordance with Accounting Standards Codification 842, Greystone has made accounting policy elections (1) to not recognize right-of-use assets and lease liabilities for lease arrangements with a term of twelve months or less and (2) to combine lease and non-lease components. The non-lease components are not material and do not result in significant timing differences in the recognition of lease expense. Short-term leases include real estate and vehicles and are not significant in comparison to Greystone’s overall lease portfolio. For these leases, the Company recognizes the leases as an operating expense on a straight-line basis over the term of the lease. Debt Issuance Costs The Company capitalizes debt issuance costs as incurred and amortizes such costs on a straight-line basis across the term of the debt. Debt issuance costs are fully amortized when the debt is repaid or refinanced. Stock Options The grant-date fair value of stock options and other equity-based compensation issued to employees is amortized on the straight-line basis over the vesting period of the award as compensation cost. The fair value of new option grants is estimated using the Black-Scholes option pricing model. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option pricing models require the input of highly subjective assumptions including the expected stock price volatility, dividend yields and expected holding periods. Recognition of Revenues Revenue is recognized at the point in 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 purchases damaged pallets from its customers which are reground and used in Greystone’s pallet production process; however, damaged pallet purchases are historically insignificant. Income Taxes Greystone accounts for income taxes under the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statements and tax bases of assets and liabilities and tax loss carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Earnings Per Share Basic earnings per share is computed by dividing the earnings available to common stockholders by the weighted average number of common shares outstanding for the year. In arriving at income available to common stockholders, income attributable to non-controlling interest and preferred stock dividends are deducted from net income for the year. Basic and diluted earnings per share of common stock for the years ending May 31, are as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2022 2021 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,938,478 $ 3,030,165 Denominator - Weighted-average common shares outstanding 28,423,721 28,361,201 Income per share of common stock - Basic $ 0.14 $ 0.11 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,938,478 $ 3,030,165 Add: Preferred stock dividends due to assumed conversion 328,459 323,219 Net income allocated to common stockholders $ 4,266,937 $ 3,353,384 Denominator - Weighted-average common shares outstanding-basic 28,423,721 28,361,201 Incremental common shares from assumed conversion of warrants, options and preferred stock, as appropriate 3,828,711 4,003,741 Diluted weighted average common stock outstanding 32,252,432 32,364,942 Income per share of common stock - Diluted $ 0.13 $ 0.10 |
INVENTORY
INVENTORY | 12 Months Ended |
May 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | Note 2. INVENTORY Inventory consists of the following as of May 31: SCHEDULE OF INVENTORY 2022 2021 Raw materials $ 2,091,550 $ 2,520,654 Finished pallets 2,020,946 921,320 Total Inventory $ 4,112,496 $ 3,441,974 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
May 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 3. PROPERTY, PLANT AND EQUIPMENT A summary of the property, plant and equipment for Greystone is as follows, as of May 31: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT 2022 2021 Production machinery and equipment $ 57,341,906 $ 52,292,733 Plant buildings and land 7,020,543 6,970,949 Leasehold improvements 1,487,398 1,487,398 Furniture and fixtures 542,057 550,337 Total property, plant and equipment 66,391,904 61,301,417 Less: Accumulated depreciation (34,515,139 ) (30,302,429 ) Property, Plant and Equipment, net $ 31,876,765 $ 30,998,988 Property, plant and equipment includes production equipment with a carrying value of $ 3,175,990 Two plant buildings and land located in Bettendorf, Iowa are owned by GRE, a variable interest entity, and had a net book value of $ 2,548,933 Depreciation expense for the years ended May 31, 2022 and 2021, was $ 5,359,993 5,796,357 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
May 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | Note 4. LONG-TERM DEBT Long-term debt consists of the following as of May 31, 2022 and 2021: SCHEDULE OF LONG-TERM DEBT 2022 2021 Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 April 30, 2023 $ 753,144 $ 1,623,572 Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 August 4, 2024 635,364 905,822 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 186,710 447,551 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5 5.25 February 29, 2024 1,294,951 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 4.50 July 29, 2024 3,700,000 - Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5 27,688 April 30, 2023 1,826,361 2,049,941 Term loan payable to First Interstate Bank (formerly Great Western Bank), interest rate of 3.7 27,593 March 19, 2025 888,642 1,180,470 Term note payable to First Interstate Bank (formerly Great Western Bank), interest rate of 3.5 5,997 August 10, 2028 803,941 - Paycheck Protection Program note, principal and interest forgiven as of June 11, 2021 - 3,034,000 Note payable to Robert Rosene, 7.5 January 15, 2024 3,295,704 3,536,112 Other 111,374 147,914 Face value of long-term debt 13,496,191 16,238,368 Less: Debt issuance costs, net of amortization (29,751 ) (30,726 ) 13,466,440 16,207,642 Less: Current portion of long-term debt (4,160,403 ) (3,236,113 ) Long-term debt $ 9,306,037 $ 12,971,529 As of May 31, 2022, the prime rate of interest was 4.00 5.50 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 $ 5,727 5,160 Loan Agreement between Greystone and International Bank of Commerce (“IBC”) On January 31, 2014, Greystone and GSM (the “Borrowers”) and International Bank of Commerce (“IBC”) entered into a Loan Agreement (the “IBC Loan Agreement”). The IBC Loan Agreement, as amended, 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 vary as a result of changes in the prime rate of interest. Currently, the aggregate payments for the IBC term loans is approximately $ 190,000 The IBC Loan Agreement, as amended, provides a revolving loan in an aggregate principal amount of up to $ 4,000,000 4,000,000 0.5 4.5 July 29, 2024 300,000 The IBC Loan Agreement includes customary representations and warranties and affirmative and negative covenants which include (i) requiring the Borrowers to maintain a debt service coverage ratio of 1:25 to 1:00 and a funded debt to EBIDA ratio not exceeding 3:00 to 1:00, (ii) subject to certain exceptions, limiting the Borrowers’ combined capital expenditures on fixed assets to $ 1,500,000 500,000 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 loans 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 Robert B. Rosene, Jr., a director of Greystone. Messrs. Warren F. Kruger, President and CEO and Rosene provided a combined limited guaranty as of January 31, 2014, of the Borrowers’ obligations under the IBC Loan Agreement, with such guaranty being limited to a combined amount of $ 6,500,000 3,500,000 Amended and Restated Loan Agreement between Greystone and IBC On July 29, 2022, Greystone and GSM (collectively “Greystone”) and IBC entered into an Amended and Restated Loan Agreement (the “Restated IBC Loan Agreement”) as further described in a Form 8-K filed with the Securities and Exchange Commission on August 4, 2022. The Restated IBC Loan Agreement provides for IBC to make to Greystone (i) a term loan in the amount of $ 7,854,707.54 2,669,891.67 3,271,86.98 1,912,828.89 7,000,000 2,000,000 6,000,000 Loan Agreement with First Interstate Bank (formerly Great Western Bank) On August 23, 2021, Greystone and First Interstate Bank (formerly Great Western Bank) entered into a loan agreement (the “FIB Loan Agreement”) in connection with certain prior loans and a mortgage loan to refinance certain land and buildings located in Bettendorf, IA. The FIB Loan Agreement includes customary representations and warranties and affirmative and negative covenants which include (i) requiring the Borrowers to maintain a debt service coverage ratio of 1:25 to 1:00 as of the end of each fiscal year end and debt to tangible net worth ratio of 4:00 to 1:00 as of the end of each fiscal year end with a decrease of 0.50 in the ratio each year thereafter until reaching a minimum ratio of 3:00 to 1:00. In addition, the FIB Loan Agreement provides that Greystone shall not, without prior consent of the bank, incur or assume additional indebtedness or capital leases. Loan Agreement between GRE and IBC On January 31, 2014, GRE and IBC entered into a Loan Agreement, as amended, providing for a mortgage loan to GRE of $ 3,412,500 5.5 April 30, 2023 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 payable with Mr. Rosene was restated (the “Restated Note”) to aggregate the accrued interest with the outstanding principal resulting in a combined note payable in the principal amount of $ 4,541,690 7.5 Maturities Maturities of Greystone’s long-term debt for the five years subsequent to May 31, 2022, are $ 4,160,403 8,256,351 412,684 49,091 50,861 566,801 |
LEASES
LEASES | 12 Months Ended |
May 31, 2022 | |
Leases | |
LEASES | Note 5. LEASES Financing Leases Financing leases consist of the following as of May 31: SCHEDULE OF FINANCING LEASE 2022 2021 Non-cancelable financing leases $ 2,163,043 $ 3,594,007 Less: Current portion of financing leases (1,630,895 ) (1,745,535 ) Non-cancelable financing leases, net of current portion $ 532,148 $ 1,848,472 Greystone and an unrelated private company entered into three separate lease agreements which have an effective interest rate of 7.4 6.9 3.32 142,000 Yorktown and Greystone entered into a sale and leaseback agreement effective December 28, 2018, whereby Yorktown purchased certain production equipment from Greystone at its net book value of $ 968,168 27,915 7,695 10,000 Effective July 29, 2022, GRE will no longer be a variable interest entity (“VIE”) as a result certain events discussed in Note 4, Long Term Debt. Currently, the rent expense that Greystone paid to GRE, as a VIE, has beeen eliminated in the consolidated financial statements of Greystone. Upon the termination of GRE as a VIE, the lease agreement between Greystone and GRE will become a right-of-use financing lease asset and the related rent expense will be recognized in the consolidated financial statements. The production equipment under the non-cancelable financing leases as of May 31, 2022 and 2021 was as follows: SCHEDULE OF NON-CANCELABLE FINANCING LEASES 2022 2021 Production equipment under financing leases $ 8,497,798 $ 8,473,357 Less: Accumulated amortization (3,481,223 ) (2,534,688 ) Production equipment under financing leases, net $ 5,016,575 $ 5,938,669 Amortization of the carrying amount of the assets was $ 946,535 1,012,870 Operating Leases Greystone recognizes 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 statement 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 terms of 4.5 5.0 5.40 The outstanding liability for right to use assets under operating leases as of May 31, 2022 and 2021 is as follows: SCHEDULE OF OPERATING LEASES 2022 2021 Liability under operating leases $ 55,535 $ 109,013 Less: Current portion (33,881 ) (56,443 ) Long-term portion of liability under operating leases $ 21,654 $ 52,570 Lease Summary Information For the years ended May 31, 2022 and 2021, a summary of lease activity follows: SUMMARY OF LEASE ACTIVITY 1 2 2022 2021 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 946,535 $ 1,012,870 Interest on lease liabilities 127,898 267,729 Operating lease expense 61,881 77,284 Short-term lease expense 1,493,169 1,481,270 Total $ 2,629,483 $ 2,839,153 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 127,898 $ 267,729 Financing cash flows $ 1,455,404 $ 1,861,650 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 61,881 $ 77,284 Right-of-use assets obtained in exchange for lease liabilities – financing lease $ 24,441 $ - Weighted-average remaining lease term (in years) - Financing leases 1.3 2.0 Operating leases 1.6 2.1 Weighted-average discount rate - Financing leases 7.3 % 7.4 % Operating leases 5.4 % 5.3 % Future minimum lease payments under non-cancelable operating and financing leases as of May 31, 2022, are approximately: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Financing Year ended May 31, 2023 $ 33,881 $ 1,730,278 Year ended May 31, 2024 20,535 522,249 Year ended May 31, 2025 4,082 17,708 Year ended May 31, 2026 - 4,511 Total lease payments 58,498 2,274,746 Less: Imputed interest (2,963 ) (111,702 ) Present value of minimum lease payments $ 55,535 $ 2,163,044 |
REVENUE
REVENUE | 12 Months Ended |
May 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | Note 6. REVENUE 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. Mexico and other Central America countries which totaled 1.45 0.92 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 fiscal years 2022 and 2021, respectively, were as follows: SCHEDULE OF SALE OF REVENUES FOR CUSTOMER CATEGORIES Category 2022 2021 End user customers 76 % 83 % Distributors 24 % 17 % Advances from a customer pursuant to a contract for the sale of plastics pallets is recognized as deferred revenue. Revenue related to these advances is recognized by Greystone as pallets are shipped to customers. Customer advances received totaled $ 13,560,500 8,334,755 5,329,047 6,430,607 14,662,060 5,697,315 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
May 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 7. RELATED PARTY TRANSACTIONS Transactions with Warren F. Kruger, Chairman Yorktown Management & Financial Services, LLC (“Yorktown”), an entity wholly owned by Greystone’s CEO and President, 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 for manufacturing pallets. Greystone compensates Yorktown for the use of equipment as discussed below. Rental fees. 27,500 1,430,000 Yorktown provides administrative office space for Greystone in Tulsa, Oklahoma under a one-year lease at a rental rate of $ 5,200 54,000 48,000 Transactions with TriEnda Holdings, L.L.C. TriEnda Holdings, L.L.C. (“TriEnda”) is a manufacturer of plastic pallets, protective packaging and dunnage utilizing thermoform processing of which Warren F. Kruger, Greystone’s President and CEO, is the non-executive chairman of the board of directors of Kruger Family Holdings, LLC (“KFH”), which owns a majority interest in TriEnda. Greystone may purchase pallets from TriEnda for resale or sell Greystone pallets to TriEnda. During fiscal year 2022 and 2021, Greystone purchases from TriEnda totaled $ 4,222 143,589 126,037 123,166 152,152 Transactions with Green Plastic Pallets Green Plastic Pallets (“Green”) is an entity owned by James Kruger, a brother to Warren Kruger, Greystone’s President and CEO. Green purchased pallets from Greystone totaling $ 617,100 544,636 99,960 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
May 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 8. INCOME TAXES Deferred taxes as of May 31, 2022 and 2021 are as follows: SUMMARY OF DEFERRED TAXES 2022 2021 Deferred tax asset: Net operating loss carryforward $ 1,876,710 $ 2,487,650 Income, tax reporting in excess of financial 1,497,136 - Inventory 30,480 7,620 Total deferred tax asset 3,404,326 2,495,270 Deferred tax liability: Depreciation and amortization, tax reporting in excess of financial (3,546,886 ) (3,274,778 ) Valuation allowance (1,601,134 ) (1,601,134 ) Net deferred tax liability $ (1,743,694 ) $ (2,380,642 ) A deferred tax asset is recognized for tax-deductible temporary differences and operating losses using the applicable enacted tax rate. In assessing the realizability of deferred tax assets, management considers the likelihood of whether it is more likely than not the net deferred tax asset will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which net operating losses and the reversal of timing differences may offset taxable income. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Future realization of deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in carryforward periods under the tax law. Based on this evaluation, management has determined that Greystone will not be able to realize the full effect of the deferred tax assets and a valuation allowance of $ 1,601,134 1,312,266 The net change in deferred taxes for the year ended May 31, 2022 and 2021, is as follows: SUMMARY OF NET CHANGE IN DEFERRED TAXES 2022 2021 Income, tax reporting in excess of financial $ 1,497,136 $ - Net operating loss carryforward (610,940 ) (868,195 ) Depreciation and amortization, tax reporting in excess of financial (272,108 ) (284,131 ) Accrued expenses - (35,445 ) Inventory 22,860 (83,820 ) Net change $ 636,948 $ (1,271,590 ) The provision for income taxes as of May 31, 2022 and 2021 consists of the following: SUMMARY OF PROVISION FOR INCOME TAXES 2022 2021 Current income tax - Federal $ 503,612 $ - State 668,753 208,999 Deferred income tax (636,948 ) 1,271,591 Provision for income taxes $ 535,417 $ 1,480,590 Greystone’s provision for income taxes for the years ended May 31, 2022 and 2021 differs from the federal statutory rate as follows: SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE 2022 2021 Tax provision using statutory rates 21 % 21 % State income taxes 9 9 Permanent differences (17 ) - VIE income passed to members (2 ) (1 ) Tax provision per financial statements 11 % 29 % As of May 31, 2022, Greystone had net operating losses (NOLs) for Federal income tax purposes totaling $ 8,936,713 SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX NOL Year Year ended May 31, 2003 3,088,722 2023 Year ended May 31, 2004 1,632,774 2024 Year ended May 31, 2005 4,215,217 2025 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
May 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | Note 9. STOCKHOLDERS’ EQUITY Convertible Preferred Stock In September 2003, Greystone issued 50,000 0.0001 5,000,000 100 3.25 7.25 1.50 3,333,333 Warrants to Purchase Common Stock Effective September 1, 2016, Greystone’s Board of Directors authorized the issuance of warrants to purchase 250,000 0.01 January 10, 2027 |
STOCK OPTIONS
STOCK OPTIONS | 12 Months Ended |
May 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
STOCK OPTIONS | Note 10. STOCK OPTIONS Greystone has a stock option plan that provides for the granting of options to key employees and non-employee directors. The options are to purchase common stock at not less than fair market value at the date of the grant. Stock options generally expire in ten years 25 SCHEDULE OF OPTION ACTIVITY Number Weighted Average Exercise Price Total outstanding May 31, 2020 200,000 $ 0.12 - - Total outstanding May 31, 2021 200,000 $ 0.12 Exercised (200,000 ) $ 0.12 Total outstanding May 31, 2022 -0- - |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
May 31, 2022 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | Note 11. RETIREMENT PLAN Greystone implemented a defined contribution and profit-sharing plan effective January 1, 2019. The defined contribution plan is a IRC Section 401(K) plan. Greystone matches employee contributions up to 6 322,983 330,682 The profit-sharing plan is an employer nonelective plan. Greystone’s contributions are discretionary. Vesting is earned ratably over a five-year period. Greystone has not authorized or made any discretionary contributions since inception. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
May 31, 2022 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | Note 12. FINANCIAL INSTRUMENTS The following methods and assumptions are used in estimating the fair-value disclosures for financial instruments: Cash, Accounts Receivable and Accounts Payable: The carrying amounts reported in the balance sheet for cash, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Long-Term Debt: The carrying amount of loans with floating rates of interest approximate fair value. Fixed rate loans are valued based on cash flows using estimated rates for comparable loans. As of May 31, 2022 and 2021, the carrying amounts reported in the consolidated balance sheet approximate fair value for the variable and fixed rate loans. |
SUPPLEMENTAL INFORMATION OF CAS
SUPPLEMENTAL INFORMATION OF CASH FLOWS | 12 Months Ended |
May 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL INFORMATION OF CASH FLOWS | Note 13. SUPPLEMENTAL INFORMATION OF CASH FLOWS Supplemental information of cash flows for the years ended May 31, 2022 and 2021: SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS 2022 2021 Non-cash investing and financing activities: Acquisition of equipment through financing leases $ 24,441 $ - Acquisition of equipment in accounts payable $ 126,128 $ 15,656 Equipment reclassified from inventory $ - $ 26,750 Preferred dividend accrual $ 85,377 $ - Supplemental information: Interest paid $ 836,683 $ 1,176,412 Income taxes paid $ 1,427,354 $ 178,280 |
CONCENTRATIONS, RISKS AND UNCER
CONCENTRATIONS, RISKS AND UNCERTAINTIES | 12 Months Ended |
May 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS, RISKS AND UNCERTAINTIES | Note 14. CONCENTRATIONS, RISKS AND UNCERTAINTIES For the fiscal years 2022 and 2021, Greystone had three customers (four customers in fiscal year 2021) that accounted for approximately 76 83 Greystone purchases damaged pallets from its customers at a price based on the value of the raw material content of the pallet. A majority of these purchases is from one of Greystone’s major customers which totaled approximately $ 603,000 753,000 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. |
VARIABLE INTEREST ENTITIES (VIE
VARIABLE INTEREST ENTITIES (VIE) | 12 Months Ended |
May 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VARIABLE INTEREST ENTITIES (VIE) | Note 15. VARIABLE INTEREST ENTITIES (VIE) Greystone Real Estate, L.L.C. GRE is owned by Robert B. Rosene, Jr., a member of the Board of Directors. GRE was created solely to own and lease two buildings that GSM occupies in Bettendorf, Iowa. The buildings, having a carrying value of $ 2,548,933 2,664,805 1,826,361 2,049,941 As further discussed in Note 4, Long-Term Debt, the real estate of GRE was cross collateralized with Greystone’s debt to IBC. Effective July 29, 2022, Greystone and IBC entered into an Amended and Restated Loan Agreement whereby the cross collateralized provision was terminated. In addition, the sole member of GRE made a capital contribution to GRE and the proceeds were used to retire the debt from GRE to IBC. Accordingly, the variable interest relationship between Greystone and GRE terminated effective July 29, 2022. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
May 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | Note 16. COMMITMENTS As of May 31, 2022, Greystone had outstanding commitments totaling $ 4,754,382 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
Organization | Organization Greystone Logistics, Inc. (“Greystone”), through its two wholly owned subsidiaries, Greystone Manufacturing, LLC (“GSM”) and Plastic Pallet Production, Inc. (“PPP”), is engaged in the manufacturing and marketing of plastic pallets and pelletized recycled plastic resin. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Greystone, its subsidiaries and entities required to be consolidated by the accounting guidance for variable interest entities (“VIE”). All material intercompany accounts and transactions have been eliminated. Greystone consolidates its VIE, Greystone Real Estate, L.L.C. (“GRE”), which owns the manufacturing facilities which are occupied by Greystone. GRE is owned by Warren F. Kruger, President and CEO, and Robert B. Rosene, Jr., a member of Greystone’s Board of Directors. |
Use of Estimates | Use of Estimates The preparation of Greystone’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires Greystone’s management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. The Company maintains accounts at financial institutions which are insured by the Federal Deposit Insurance Corporation (FDIC). Cash balances at times are in excess of FDIC insurance limits. |
Accounts Receivable and Allowance for Uncollectible Accounts | Accounts Receivable and Allowance for Uncollectible Accounts Greystone records its accounts receivable at their face value less an allowance for credit losses in an amount sufficient to absorb losses inherent in its accounts receivable portfolio based on projected expected credit losses. Greystone evaluates its accounts receivable and establishes an allowance for uncollectible accounts based on a combination of specific customer circumstances, credit conditions and history of collections. |
Inventory | Inventory Inventory consists of finished pallets and raw materials which are stated at the lower of average cost or net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment Greystone’s property, plant and equipment is stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives, as follows: SCHEDULE OF USEFUL LIFE OF PROPERTY, PLANT AND EQUIPMENT Plant buildings 39 Production machinery and equipment 5 12 Leasehold improvements 5 7 Furniture & fixtures 3 5 Upon sale, retirement or other disposal, the related costs and accumulated depreciation of items of property, plant or equipment are removed from the related accounts and any gain or loss is recognized. When events or changes in circumstances indicate that long-lived assets may be impaired, an evaluation is performed comparing the estimated future undiscounted cash flows associated with the asset to the asset’s carrying amount. If the asset’s carrying amount exceeds the cash flows, a write-down to fair value is required. |
Leases | Leases Greystone recognizes right-of-use assets and lease liabilities on the balance sheet and disclosure of key information about leasing arrangements. Greystone has operating and finance leases for facilities, office space and plant equipment. Operating leases are included in right-of-use (“ROU”) operating lease assets and finance lease ROU assets are included in property, plant and equipment, net in the consolidated balance sheet. The lease liabilities are included in operating leases and financing leases (current and non-current) in the consolidated balance sheet. The lease liability is initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. For finance leases, lease expenses are the sum of interest on the lease obligations and amortization of the ROU assets. Finance lease ROU assets are amortized based on the lesser of the lease term and the useful life of the leased asset according to the capital asset accounting policy. If ownership of the ROU assets transfers to Greystone at the end of the lease term or if Greystone is reasonably certain to exercise a purchase option, amortization is calculated using the estimated useful life of the leased asset. For operating leases, the lease expenses are generally recognized on a straight-line basis over the lease term and recorded to general and administrative expenses in the consolidated statements of income. In accordance with Accounting Standards Codification 842, Greystone has made accounting policy elections (1) to not recognize right-of-use assets and lease liabilities for lease arrangements with a term of twelve months or less and (2) to combine lease and non-lease components. The non-lease components are not material and do not result in significant timing differences in the recognition of lease expense. Short-term leases include real estate and vehicles and are not significant in comparison to Greystone’s overall lease portfolio. For these leases, the Company recognizes the leases as an operating expense on a straight-line basis over the term of the lease. |
Debt Issuance Costs | Debt Issuance Costs The Company capitalizes debt issuance costs as incurred and amortizes such costs on a straight-line basis across the term of the debt. Debt issuance costs are fully amortized when the debt is repaid or refinanced. |
Stock Options | Stock Options The grant-date fair value of stock options and other equity-based compensation issued to employees is amortized on the straight-line basis over the vesting period of the award as compensation cost. The fair value of new option grants is estimated using the Black-Scholes option pricing model. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. In addition, option pricing models require the input of highly subjective assumptions including the expected stock price volatility, dividend yields and expected holding periods. |
Recognition of Revenues | Recognition of Revenues Revenue is recognized at the point in 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 purchases damaged pallets from its customers which are reground and used in Greystone’s pallet production process; however, damaged pallet purchases are historically insignificant. |
Income Taxes | Income Taxes Greystone accounts for income taxes under the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the consolidated financial statements and tax bases of assets and liabilities and tax loss carryforwards using enacted tax rates in effect for the year in which the differences are expected to reverse. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing the earnings available to common stockholders by the weighted average number of common shares outstanding for the year. In arriving at income available to common stockholders, income attributable to non-controlling interest and preferred stock dividends are deducted from net income for the year. Basic and diluted earnings per share of common stock for the years ending May 31, are as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2022 2021 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,938,478 $ 3,030,165 Denominator - Weighted-average common shares outstanding 28,423,721 28,361,201 Income per share of common stock - Basic $ 0.14 $ 0.11 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,938,478 $ 3,030,165 Add: Preferred stock dividends due to assumed conversion 328,459 323,219 Net income allocated to common stockholders $ 4,266,937 $ 3,353,384 Denominator - Weighted-average common shares outstanding-basic 28,423,721 28,361,201 Incremental common shares from assumed conversion of warrants, options and preferred stock, as appropriate 3,828,711 4,003,741 Diluted weighted average common stock outstanding 32,252,432 32,364,942 Income per share of common stock - Diluted $ 0.13 $ 0.10 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
May 31, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF USEFUL LIFE OF PROPERTY, PLANT AND EQUIPMENT | Greystone’s property, plant and equipment is stated at cost. Depreciation expense is computed using the straight-line method over the estimated useful lives, as follows: SCHEDULE OF USEFUL LIFE OF PROPERTY, PLANT AND EQUIPMENT Plant buildings 39 Production machinery and equipment 5 12 Leasehold improvements 5 7 Furniture & fixtures 3 5 |
SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE | Basic and diluted earnings per share of common stock for the years ending May 31, are as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2022 2021 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,938,478 $ 3,030,165 Denominator - Weighted-average common shares outstanding 28,423,721 28,361,201 Income per share of common stock - Basic $ 0.14 $ 0.11 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 3,938,478 $ 3,030,165 Add: Preferred stock dividends due to assumed conversion 328,459 323,219 Net income allocated to common stockholders $ 4,266,937 $ 3,353,384 Denominator - Weighted-average common shares outstanding-basic 28,423,721 28,361,201 Incremental common shares from assumed conversion of warrants, options and preferred stock, as appropriate 3,828,711 4,003,741 Diluted weighted average common stock outstanding 32,252,432 32,364,942 Income per share of common stock - Diluted $ 0.13 $ 0.10 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
May 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventory consists of the following as of May 31: SCHEDULE OF INVENTORY 2022 2021 Raw materials $ 2,091,550 $ 2,520,654 Finished pallets 2,020,946 921,320 Total Inventory $ 4,112,496 $ 3,441,974 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
May 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT | A summary of the property, plant and equipment for Greystone is as follows, as of May 31: SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT 2022 2021 Production machinery and equipment $ 57,341,906 $ 52,292,733 Plant buildings and land 7,020,543 6,970,949 Leasehold improvements 1,487,398 1,487,398 Furniture and fixtures 542,057 550,337 Total property, plant and equipment 66,391,904 61,301,417 Less: Accumulated depreciation (34,515,139 ) (30,302,429 ) Property, Plant and Equipment, net $ 31,876,765 $ 30,998,988 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
May 31, 2022 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LONG-TERM DEBT | Long-term debt consists of the following as of May 31, 2022 and 2021: SCHEDULE OF LONG-TERM DEBT 2022 2021 Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 April 30, 2023 $ 753,144 $ 1,623,572 Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 August 4, 2024 635,364 905,822 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 186,710 447,551 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5 5.25 February 29, 2024 1,294,951 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 4.50 July 29, 2024 3,700,000 - Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5 27,688 April 30, 2023 1,826,361 2,049,941 Term loan payable to First Interstate Bank (formerly Great Western Bank), interest rate of 3.7 27,593 March 19, 2025 888,642 1,180,470 Term note payable to First Interstate Bank (formerly Great Western Bank), interest rate of 3.5 5,997 August 10, 2028 803,941 - Paycheck Protection Program note, principal and interest forgiven as of June 11, 2021 - 3,034,000 Note payable to Robert Rosene, 7.5 January 15, 2024 3,295,704 3,536,112 Other 111,374 147,914 Face value of long-term debt 13,496,191 16,238,368 Less: Debt issuance costs, net of amortization (29,751 ) (30,726 ) 13,466,440 16,207,642 Less: Current portion of long-term debt (4,160,403 ) (3,236,113 ) Long-term debt $ 9,306,037 $ 12,971,529 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
May 31, 2022 | |
Leases | |
SCHEDULE OF FINANCING LEASE | Financing leases consist of the following as of May 31: SCHEDULE OF FINANCING LEASE 2022 2021 Non-cancelable financing leases $ 2,163,043 $ 3,594,007 Less: Current portion of financing leases (1,630,895 ) (1,745,535 ) Non-cancelable financing leases, net of current portion $ 532,148 $ 1,848,472 |
SCHEDULE OF NON-CANCELABLE FINANCING LEASES | The production equipment under the non-cancelable financing leases as of May 31, 2022 and 2021 was as follows: SCHEDULE OF NON-CANCELABLE FINANCING LEASES 2022 2021 Production equipment under financing leases $ 8,497,798 $ 8,473,357 Less: Accumulated amortization (3,481,223 ) (2,534,688 ) Production equipment under financing leases, net $ 5,016,575 $ 5,938,669 |
SCHEDULE OF OPERATING LEASES | The outstanding liability for right to use assets under operating leases as of May 31, 2022 and 2021 is as follows: SCHEDULE OF OPERATING LEASES 2022 2021 Liability under operating leases $ 55,535 $ 109,013 Less: Current portion (33,881 ) (56,443 ) Long-term portion of liability under operating leases $ 21,654 $ 52,570 |
SUMMARY OF LEASE ACTIVITY | For the years ended May 31, 2022 and 2021, a summary of lease activity follows: SUMMARY OF LEASE ACTIVITY 1 2 2022 2021 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 946,535 $ 1,012,870 Interest on lease liabilities 127,898 267,729 Operating lease expense 61,881 77,284 Short-term lease expense 1,493,169 1,481,270 Total $ 2,629,483 $ 2,839,153 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 127,898 $ 267,729 Financing cash flows $ 1,455,404 $ 1,861,650 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 61,881 $ 77,284 Right-of-use assets obtained in exchange for lease liabilities – financing lease $ 24,441 $ - Weighted-average remaining lease term (in years) - Financing leases 1.3 2.0 Operating leases 1.6 2.1 Weighted-average discount rate - Financing leases 7.3 % 7.4 % Operating leases 5.4 % 5.3 % |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | Future minimum lease payments under non-cancelable operating and financing leases as of May 31, 2022, are approximately: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Financing Year ended May 31, 2023 $ 33,881 $ 1,730,278 Year ended May 31, 2024 20,535 522,249 Year ended May 31, 2025 4,082 17,708 Year ended May 31, 2026 - 4,511 Total lease payments 58,498 2,274,746 Less: Imputed interest (2,963 ) (111,702 ) Present value of minimum lease payments $ 55,535 $ 2,163,044 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
May 31, 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 fiscal years 2022 and 2021, respectively, were as follows: SCHEDULE OF SALE OF REVENUES FOR CUSTOMER CATEGORIES Category 2022 2021 End user customers 76 % 83 % Distributors 24 % 17 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
May 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SUMMARY OF DEFERRED TAXES | Deferred taxes as of May 31, 2022 and 2021 are as follows: SUMMARY OF DEFERRED TAXES 2022 2021 Deferred tax asset: Net operating loss carryforward $ 1,876,710 $ 2,487,650 Income, tax reporting in excess of financial 1,497,136 - Inventory 30,480 7,620 Total deferred tax asset 3,404,326 2,495,270 Deferred tax liability: Depreciation and amortization, tax reporting in excess of financial (3,546,886 ) (3,274,778 ) Valuation allowance (1,601,134 ) (1,601,134 ) Net deferred tax liability $ (1,743,694 ) $ (2,380,642 ) |
SUMMARY OF NET CHANGE IN DEFERRED TAXES | The net change in deferred taxes for the year ended May 31, 2022 and 2021, is as follows: SUMMARY OF NET CHANGE IN DEFERRED TAXES 2022 2021 Income, tax reporting in excess of financial $ 1,497,136 $ - Net operating loss carryforward (610,940 ) (868,195 ) Depreciation and amortization, tax reporting in excess of financial (272,108 ) (284,131 ) Accrued expenses - (35,445 ) Inventory 22,860 (83,820 ) Net change $ 636,948 $ (1,271,590 ) |
SUMMARY OF PROVISION FOR INCOME TAXES | The provision for income taxes as of May 31, 2022 and 2021 consists of the following: SUMMARY OF PROVISION FOR INCOME TAXES 2022 2021 Current income tax - Federal $ 503,612 $ - State 668,753 208,999 Deferred income tax (636,948 ) 1,271,591 Provision for income taxes $ 535,417 $ 1,480,590 |
SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE | Greystone’s provision for income taxes for the years ended May 31, 2022 and 2021 differs from the federal statutory rate as follows: SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE 2022 2021 Tax provision using statutory rates 21 % 21 % State income taxes 9 9 Permanent differences (17 ) - VIE income passed to members (2 ) (1 ) Tax provision per financial statements 11 % 29 % |
SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX | As of May 31, 2022, Greystone had net operating losses (NOLs) for Federal income tax purposes totaling $ 8,936,713 SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX NOL Year Year ended May 31, 2003 3,088,722 2023 Year ended May 31, 2004 1,632,774 2024 Year ended May 31, 2005 4,215,217 2025 |
STOCK OPTIONS (Tables)
STOCK OPTIONS (Tables) | 12 Months Ended |
May 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
SCHEDULE OF OPTION ACTIVITY | SCHEDULE OF OPTION ACTIVITY Number Weighted Average Exercise Price Total outstanding May 31, 2020 200,000 $ 0.12 - - Total outstanding May 31, 2021 200,000 $ 0.12 Exercised (200,000 ) $ 0.12 Total outstanding May 31, 2022 -0- - |
SUPPLEMENTAL INFORMATION OF C_2
SUPPLEMENTAL INFORMATION OF CASH FLOWS (Tables) | 12 Months Ended |
May 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS | Supplemental information of cash flows for the years ended May 31, 2022 and 2021: SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS 2022 2021 Non-cash investing and financing activities: Acquisition of equipment through financing leases $ 24,441 $ - Acquisition of equipment in accounts payable $ 126,128 $ 15,656 Equipment reclassified from inventory $ - $ 26,750 Preferred dividend accrual $ 85,377 $ - Supplemental information: Interest paid $ 836,683 $ 1,176,412 Income taxes paid $ 1,427,354 $ 178,280 |
SCHEDULE OF USEFUL LIFE OF PROP
SCHEDULE OF USEFUL LIFE OF PROPERTY, PLANT AND EQUIPMENT (Details) | 12 Months Ended |
May 31, 2022 | |
Plant Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property plant and equipment | 39 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property plant and equipment | 5 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property plant and equipment | 12 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property plant and equipment | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property plant and equipment | 7 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property plant and equipment | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life of property plant and equipment | 5 years |
SCHEDULE OF BASIC AND DILUTED E
SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Accounting Policies [Abstract] | ||
Net income attributable to common stockholders | $ 3,938,478 | $ 3,030,165 |
Weighted-average common shares outstanding-basic | 28,423,721 | 28,361,201 |
Income per share of common stock - Basic | $ 0.14 | $ 0.11 |
Net income attributable to common stockholders | $ 3,938,478 | $ 3,030,165 |
Add: Preferred stock dividends due to assumed conversion | 328,459 | 323,219 |
Net income allocated to common stockholders | $ 4,266,937 | $ 3,353,384 |
Incremental common shares from assumed conversion of warrants, options and preferred stock, as appropriate | 3,828,711 | 4,003,741 |
Diluted weighted average common stock outstanding | 32,252,432 | 32,364,942 |
Income per share of common stock - Diluted | $ 0.13 | $ 0.10 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | May 31, 2022 | May 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,091,550 | $ 2,520,654 |
Finished pallets | 2,020,946 | 921,320 |
Total Inventory | $ 4,112,496 | $ 3,441,974 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | May 31, 2022 | May 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 66,391,904 | $ 61,301,417 |
Less: Accumulated depreciation | (34,515,139) | (30,302,429) |
Property, Plant and Equipment, net | 31,876,765 | 30,998,988 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 57,341,906 | 52,292,733 |
Plant Buildingsand Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 7,020,543 | 6,970,949 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,487,398 | 1,487,398 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 542,057 | $ 550,337 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Carrying value of property, plant and equipment | $ 66,391,904 | $ 61,301,417 |
Depreciation expense | 5,359,993 | $ 5,796,357 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Carrying value of property, plant and equipment | 2,548,933 | |
Service [Member] | ||
Machinery and equipment | $ 3,175,990 |
SCHEDULE OF LONG-TERM DEBT (Det
SCHEDULE OF LONG-TERM DEBT (Details) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Debt Instrument [Line Items] | ||
Debt issuance costs, net of amortization | $ (29,751) | $ (30,726) |
Total Debt, net of Debt issuance costs, net of amortization | 13,466,440 | 16,207,642 |
Less: Current portion of long-term debt | (4,160,403) | (3,236,113) |
Long-term debt, net of current portion and debt issue costs | $ 9,306,037 | $ 12,971,529 |
Notes Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Apr. 30, 2023 | Apr. 30, 2023 |
Face value of long-term debt | $ 753,144 | $ 1,623,572 |
Notes Payable One [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4% | 4% |
Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Aug. 04, 2024 | Aug. 04, 2024 |
Face value of long-term debt | $ 635,364 | $ 905,822 |
Notes Payable Two [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4% | 4% |
Notes Payable Three [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | Jan. 10, 2022 | Jan. 10, 2022 |
Face value of long-term debt | $ 487,390 | |
Notes Payable Three [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.75% | 4.75% |
Notes Payable Four [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Feb. 28, 2023 | Feb. 28, 2023 |
Face value of long-term debt | $ 186,710 | $ 447,551 |
Notes Payable Four [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.75% | 4.75% |
Notes Payable Five [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Feb. 29, 2024 | Feb. 29, 2024 |
Face value of long-term debt | $ 1,294,951 | $ 2,035,670 |
Notes Payable Five [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.25% | 5.25% |
Note Payable Six [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Apr. 30, 2024 | Apr. 30, 2024 |
Face value of long-term debt | $ 789,926 | |
Note Payable Six [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.25% | 5.25% |
Notes Payable Seven [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jul. 29, 2024 | Jul. 29, 2024 |
Face value of long-term debt | $ 3,700,000 | |
Notes Payable Seven [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 4.50% | 4.50% |
Notes Payable Eight [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.50% | 5.50% |
Debt instrument maturity date | Apr. 30, 2023 | Apr. 30, 2023 |
Face value of long-term debt | $ 1,826,361 | $ 2,049,941 |
Debt instrument principal and interest amount | $ 27,688 | $ 27,688 |
Notes Payable Nine [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.70% | |
Debt instrument maturity date | Mar. 19, 2025 | |
Face value of long-term debt | $ 888,642 | $ 1,180,470 |
Debt instrument principal and interest amount | $ 27,593 | $ 27,593 |
Notes Payable Ten [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.50% | 3.50% |
Debt instrument maturity date | Aug. 10, 2028 | Aug. 10, 2028 |
Face value of long-term debt | $ 803,941 | |
Debt instrument principal and interest amount | $ 5,997 | $ 5,997 |
Notes Payable Eleven [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | Jun. 11, 2021 | Jun. 11, 2021 |
Face value of long-term debt | $ 3,034,000 | |
Notes Payable Twelve [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.50% | 7.50% |
Debt instrument maturity date | Jan. 15, 2024 | Jan. 15, 2024 |
Face value of long-term debt | $ 3,295,704 | $ 3,536,112 |
Other Note Payable [Member] | ||
Debt Instrument [Line Items] | ||
Face value of long-term debt | 111,374 | 147,914 |
Face Value Of Longterm Debt [Member] | ||
Debt Instrument [Line Items] | ||
Face value of long-term debt | $ 13,496,191 | $ 16,238,368 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) | 12 Months Ended | |||||||
Jul. 29, 2022 | Jan. 31, 2014 | May 31, 2022 | May 31, 2021 | Jul. 28, 2022 | Jun. 01, 2016 | Jan. 07, 2016 | Dec. 15, 2005 | |
Debt Instrument [Line Items] | ||||||||
Amortization of debt issuance costs | $ 5,727 | $ 5,160 | ||||||
Preferred stock dividend amount | 328,459 | $ 323,219 | ||||||
Maturities long term debt year one | 4,160,403 | |||||||
Maturities long term debt year two | 8,256,351 | |||||||
Maturities long term debt year three | 412,684 | |||||||
Maturities long term debt year four | 49,091 | |||||||
Maturities long term debt year five | 50,861 | |||||||
Long-Term Debt, Maturity, after Year Five | $ 566,801 | |||||||
Robert B. Rosene, Jr. [Member] | Director [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 7.50% | |||||||
Note payable | $ 2,066,000 | |||||||
Restated Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan amount | $ 7,854,707.54 | |||||||
Existing term loan amount | 2,669,891.67 | |||||||
Note payable | 327,186.98 | |||||||
Purchase of asset | 1,912,828.89 | |||||||
Aggregate amount | 7,000,000 | |||||||
Revolving loan | 2,000,000 | |||||||
Revolving loan borrowed | $ 6,000,000 | |||||||
Revolving Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 4.50% | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000 | |||||||
Restated Note [Member] | Robert B. Rosene, Jr. [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 750% | |||||||
Debt instrument principal amount | $ 4,541,690 | |||||||
IBC Loan Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments of monthly principal and interest | 190,000 | |||||||
Capital expenditure on fixed assets | 1,500,000 | |||||||
Preferred stock dividend amount | 500,000 | |||||||
IBC Loan Agreement [Member] | Revolving Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument principal amount | 4,000,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000,000 | |||||||
IBC Loan Agreement [Member] | Guaranty [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Guarantees combined amount | $ 6,500,000 | $ 3,500,000 | ||||||
Revolving Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Maturity Date | Jul. 29, 2024 | |||||||
Loan Agreement between GRE and IBC [Member] | Mortgage Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 5.50% | |||||||
Mortgage loan | $ 3,412,500 | |||||||
Extended maturity date | Apr. 30, 2023 | |||||||
Prime Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument interest rate | 4% | |||||||
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 | 5.50% |
SCHEDULE OF FINANCING LEASE (De
SCHEDULE OF FINANCING LEASE (Details) - USD ($) | May 31, 2022 | May 31, 2021 |
Leases | ||
Non-cancelable financing leases | $ 2,163,043 | $ 3,594,007 |
Less: Current portion of financing leases | (1,630,895) | (1,745,535) |
Non-cancelable financing leases, net of current portion | $ 532,148 | $ 1,848,472 |
SCHEDULE OF NON-CANCELABLE FINA
SCHEDULE OF NON-CANCELABLE FINANCING LEASES (Details) - USD ($) | May 31, 2022 | May 31, 2021 |
Leases | ||
Production equipment under financing leases | $ 8,497,798 | $ 8,473,357 |
Less: Accumulated amortization | (3,481,223) | (2,534,688) |
Production equipment under financing leases, net | $ 5,016,575 | $ 5,938,669 |
SCHEDULE OF OPERATING LEASES (D
SCHEDULE OF OPERATING LEASES (Details) - USD ($) | May 31, 2022 | May 31, 2021 |
Leases | ||
Liability under operating leases | $ 55,535 | $ 109,013 |
Less: Current portion | (33,881) | (56,443) |
Long-term portion of liability under operating leases | $ 21,654 | $ 52,570 |
SUMMARY OF LEASE ACTIVITY (Deta
SUMMARY OF LEASE ACTIVITY (Details) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Leases | ||
Amortization of right-of-use assets | $ 946,535 | $ 1,012,870 |
Interest on lease liabilities | 127,898 | 267,729 |
Operating lease expense | 61,881 | 77,284 |
Short-term lease expense | 1,493,169 | 1,481,270 |
Total | 2,629,483 | 2,839,153 |
Operating cash flows | 127,898 | 267,729 |
Financing cash flows | 1,455,404 | 1,861,650 |
Operating cash flows | 61,881 | 77,284 |
Right-of-use assets obtained in exchange for lease liabilities – financing lease | $ 24,441 | |
Weighted-average remaining lease term (in years) - Financing leases | 1 year 3 months 18 days | 2 years |
Weighted-average remaining lease term (in years) - Operating leases | 1 year 7 months 6 days | 2 years 1 month 6 days |
Weighted-average discount rate - Financing leases | 7.30% | 7.40% |
Weighted-average discount rate - Operating leases | 5.40% | 5.30% |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) - USD ($) | May 31, 2022 | May 31, 2021 |
Leases | ||
Operating Leases Year ended May 31, 2023 | $ 33,881 | |
Financing Leases Year ended May 31, 2023 | 1,730,278 | |
Operating Leases Year ended May 31, 2024 | 20,535 | |
Financing Leases Year ended May 31, 2024 | 522,249 | |
Operating Leases Year ended May 31, 2025 | 4,082 | |
Financing Leases Year ended May 31, 2025 | 17,708 | |
Operating Leases Year ended May 31, 2026 | ||
Financing Leases Year ended May 31, 2026 | 4,511 | |
Operating lease total lease payments | 58,498 | |
Financing lease total lease payments | 2,274,746 | |
Operating lease imputed interest | (2,963) | |
Financing lease Imputed interest | (111,702) | |
Operating Leases Present value of minimum lease payments | 55,535 | $ 109,013 |
FinancingLeases Present value of minimum lease payments | $ 2,163,044 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||
May 31, 2022 | May 31, 2021 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Finance lease cost | $ 2,629,483 | $ 2,839,153 | |
Finance lease cost | $ 946,535 | $ 1,012,870 | |
Equipment One [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 4 years 6 months | ||
Operating lease discount rate | 5.40% | ||
Equipment Two [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 5 years | ||
Operating lease discount rate | 5.40% | ||
Sale and Leaseback Agreement [Member] | Yorktown Production Equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Value of production equipment purchased | $ 968,168 | ||
Bargain purchase option amount | $ 10,000 | ||
Sale and Leaseback Agreement [Member] | Yorktown Production Equipment [Member] | Initial Thirty Nine Months [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Payments of monthly rental amount | 27,915 | ||
Sale and Leaseback Agreement [Member] | Yorktown Production Equipment [Member] | Remaining Twelve Months [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Payments of monthly rental amount | $ 7,695 | ||
Three Lease Agreements with Five Year Terms [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease interest rate | 7.40% | ||
Finance lease cost | $ 6,900,000 | ||
Lease payment per invoice rate | $ 3.32 | ||
Payments of monthly rental amount | $ 142,000 |
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] | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
End User Customers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 76% | 83% |
Distributors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Total | 24% | 17% |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Unrecognized deferred revenue | $ 5,329,047 | $ 6,430,607 |
Recognized revenue | 14,662,060 | 5,697,315 |
Pallets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Customer advances | $ 13,560,500 | $ 8,334,755 |
Canada and Mexico [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales revenue percent | 1.45% | 0.92% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Related Party Transaction [Line Items] | ||
Rental rate | $ 5,200 | |
Rent expenses | 54,000 | $ 48,000 |
Yorktown's Grinding and Pelletizing Equipment [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | 1,430,000 | 1,430,000 |
Yorktown's Grinding and Pelletizing Equipment [Member] | Weekly [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | 27,500 | |
Trienda Holdings LLC [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction purchases | 4,222 | 143,589 |
Revenue from goods | 126,037 | 123,166 |
Due from related parties | 152,152 | |
Green Plastic Pallets [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from goods | 617,100 | $ 544,636 |
Rent owed | $ 99,960 |
SUMMARY OF DEFERRED TAXES (Deta
SUMMARY OF DEFERRED TAXES (Details) - USD ($) | May 31, 2022 | May 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 1,876,710 | $ 2,487,650 |
Income, tax reporting in excess of financial | 1,497,136 | |
Inventory | 30,480 | 7,620 |
Total deferred tax asset | 3,404,326 | 2,495,270 |
Depreciation and amortization, tax reporting in excess of financial | 3,546,886 | 3,274,778 |
Valuation allowance | (1,601,134) | (1,601,134) |
Net deferred tax liability | $ (1,743,694) | $ (2,380,642) |
SUMMARY OF NET CHANGE IN DEFERR
SUMMARY OF NET CHANGE IN DEFERRED TAXES (Details) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income, tax reporting in excess of financial | $ 1,497,136 | |
Net operating loss carryforward | (610,940) | (868,195) |
Depreciation and amortization, tax reporting in excess of financial | (272,108) | (284,131) |
Accrued expenses | (35,445) | |
Inventory | 22,860 | (83,820) |
Net change | $ 636,948 | $ (1,271,590) |
SUMMARY OF PROVISION FOR INCOME
SUMMARY OF PROVISION FOR INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Federal | $ 503,612 | |
State | 668,753 | 208,999 |
Deferred income tax | (636,948) | 1,271,591 |
Provision for income taxes | $ 535,417 | $ 1,480,590 |
SUMMARY OF PROVISION FOR INCO_2
SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE (Details) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Tax provision using statutory rates | 21% | 21% |
State income taxes | 9% | 9% |
Permanent differences | (17.00%) | |
VIE income passed to members | (2.00%) | (1.00%) |
Tax provision per financial statements | 11% | 29% |
SUMMARY OF NET OPERATING LOSS F
SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX (Details) | 12 Months Ended |
May 31, 2022 USD ($) | |
Tax Year 2003 [Member] | |
Operating Loss Carryforwards [Line Items] | |
NOL Carryforward | $ 3,088,722 |
Year Expiring | 2023 |
Tax Year 2004 [Member] | |
Operating Loss Carryforwards [Line Items] | |
NOL Carryforward | $ 1,632,774 |
Year Expiring | 2024 |
Tax Year 2005 [Member] | |
Operating Loss Carryforwards [Line Items] | |
NOL Carryforward | $ 4,215,217 |
Year Expiring | 2025 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | May 31, 2022 | May 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 1,601,134 | $ 1,601,134 |
Utilization of NOL's accumulated | $ 1,312,266 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2003 | May 31, 2022 | May 31, 2021 | Sep. 01, 2016 | |
Class of Stock [Line Items] | ||||
Preferred stock par value | $ 0.0001 | $ 0.0001 | ||
Number of shares issued, value | $ 281,500 | |||
Warren F. Kruger [Member] | ||||
Class of Stock [Line Items] | ||||
Issuance of warrants to purchase shares of common stock | 250,000 | |||
Warrants exercise price per share | $ 0.01 | |||
Warrants expiration date | Jan. 10, 2027 | |||
Robert B. Rosene, Jr. [Member] | ||||
Class of Stock [Line Items] | ||||
Issuance of warrants to purchase shares of common stock | 250,000 | |||
Warrants exercise price per share | $ 0.01 | |||
Warrants expiration date | Jan. 10, 2027 | |||
Convertible Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Number of shares issued | 50,000 | |||
Preferred stock par value | $ 0.0001 | |||
Number of shares issued, value | $ 5,000,000 | |||
Preferred stock stated value | $ 100 | |||
Preferred stock dividend rate | 3.25% | 7.25% | ||
Debt conversion price | $ 1.50 | |||
Number of common stock issued upon conversion | 3,333,333 |
SCHEDULE OF OPTION ACTIVITY (De
SCHEDULE OF OPTION ACTIVITY (Details) - $ / shares | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Other Liabilities Disclosure [Abstract] | ||
Number of options outstanding, beginning balance | 200,000 | 200,000 |
Weighted average exercise price outstanding, beginning balance | $ 0.12 | $ 0.12 |
Number of options outstanding, exercised | (200,000) | |
Weighted average exercise price outstanding, exercised | $ 0.12 | |
Number of options outstanding, ending balance | 0 | 200,000 |
Weighted average exercise price outstanding, ending balance | $ 0.12 |
STOCK OPTIONS (Details Narrativ
STOCK OPTIONS (Details Narrative) | 12 Months Ended |
May 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period | 10 years |
Stock option annual installment percentage | 25% |
RETIREMENT PLAN (Details Narrat
RETIREMENT PLAN (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Retirement Benefits [Abstract] | ||
Employers contribution percentage, description | The defined contribution plan is a IRC Section 401(K) plan. Greystone matches employee contributions up to 6% of employee contributions with a maximum employer contribution of 4% based on 100% of the first 3% and 50% of the next 2%. The employee is 100% vested for employer contributions to the 401(K) plan. | |
Maximum annual contributions per employee, percent | 6% | |
Employer discretionary contribution amount | $ 322,983 | $ 330,682 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | ||
Acquisition of equipment through financing leases | $ 24,441 | |
Acquisition of equipment in accounts payable | 126,128 | 15,656 |
Equipment reclassified from inventory | 26,750 | |
Preferred dividend accrual | 85,377 | |
Interest paid | 836,683 | 1,176,412 |
Income taxes paid | $ 1,427,354 | $ 178,280 |
CONCENTRATIONS, RISKS AND UNC_2
CONCENTRATIONS, RISKS AND UNCERTAINTIES (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2022 | May 31, 2021 | |
Concentration Risk [Line Items] | ||
Customer purchases amount | $ 603,000 | $ 753,000 |
Three Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 76% | |
Four Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 83% |
VARIABLE INTEREST ENTITIES (V_2
VARIABLE INTEREST ENTITIES (VIE) (Details Narrative) - USD ($) | May 31, 2022 | May 31, 2021 |
Debt [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Carrying value of liabilities | $ 1,826,361 | $ 2,049,941 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Carrying value of assets | $ 2,548,933 | $ 2,664,805 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | May 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase of production equipment | $ 4,754,382 |