Cover
Cover - USD ($) | 12 Months Ended | ||
May 31, 2023 | Aug. 18, 2023 | Nov. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | May 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
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 | $ 11,638,000 | ||
Entity Common Stock, Shares Outstanding | 28,279,701 | ||
Documents Incorporated by Reference [Text Block] | None | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 483 | ||
Auditor Name | HoganTaylor LLP | ||
Auditor Location | Tulsa, Oklahoma |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | May 31, 2023 | May 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 695,951 | $ 3,143,257 |
Trade | 4,857,504 | 6,001,049 |
Other | 386,877 | |
Inventory | 4,484,106 | 4,112,496 |
Prepaid expenses | 528,962 | 304,240 |
Total Current Assets | 11,009,950 | 13,813,154 |
Property, Plant and Equipment, net | 33,184,706 | 31,876,765 |
Right-of-use Operating Lease Assets | 5,335,714 | 55,535 |
Total Assets | 49,530,370 | 45,745,454 |
Current Liabilities: | ||
Current portion of long-term debt | 2,249,570 | 4,160,403 |
Current portion of financing leases | 31,981 | 1,630,895 |
Current portion of operating leases | 240,346 | 33,881 |
Accounts payable and accrued expenses | 3,337,410 | 7,820,837 |
Deferred revenue | 23,007 | 5,329,047 |
Preferred dividends payable | 134,414 | 85,377 |
Total Current Liabilities | 6,016,728 | 19,060,440 |
Long-Term Debt, net of current portion and debt issuance costs | 14,919,687 | 9,306,037 |
Financing Leases, net of current portion | 28,504 | 532,148 |
Operating Leases, net of current portion | 5,119,688 | 21,654 |
Deferred Tax Liability | 3,905,279 | 1,743,694 |
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 shares issued and outstanding | 2,828 | 2,828 |
Additional paid-in capital | 53,533,272 | 53,533,272 |
Accumulated deficit | (33,995,621) | (39,838,449) |
Total Greystone Stockholders’ Equity | 19,540,484 | 13,697,656 |
Non-controlling interest | 1,383,825 | |
Total Equity | 19,540,484 | 15,081,481 |
Total Liabilities and Equity | 49,530,370 | 45,745,454 |
Related Party [Member] | ||
Current Assets: | ||
Related parties | $ 56,550 | $ 252,112 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | May 31, 2023 | May 31, 2022 |
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 | 28,279,701 |
Common stock, shares outstanding | 28,279,701 | 28,279,701 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Income Statement [Abstract] | ||
Sales | $ 60,758,962 | $ 74,170,351 |
Cost of Sales | 51,427,409 | 66,395,792 |
Gross Profit | 9,331,553 | 7,774,559 |
Selling, General and Administrative Expenses | 5,100,170 | 5,200,387 |
Operating Income | 4,231,383 | 2,574,172 |
Other Income (Expense): | ||
Federal tax credits realized | 4,911,863 | 241,814 |
Gain on the forgiveness of debt | 3,068,497 | |
Gain on deconsolidation of variable interest entity | 569,997 | |
Other income | 325,599 | 39,235 |
Interest expense | (1,189,034) | (841,701) |
Income before Income Taxes | 8,849,808 | 5,082,017 |
Provision for Income Taxes | 2,461,700 | 535,417 |
Net Income | 6,388,108 | 4,546,600 |
Income Attributable to Non-controlling Interest | (49,599) | (279,663) |
Preferred Dividends | (495,681) | (328,459) |
Net Income Attributable to Common Stockholders | $ 5,842,828 | $ 3,938,478 |
Income Per Share of Common Stock - | ||
Basic | $ 0.21 | $ 0.14 |
Diluted | $ 0.20 | $ 0.13 |
Weighted Average Shares of Common Stock Outstanding - | ||
Basic | 28,279,701 | 28,423,721 |
Diluted | 32,105,515 | 32,252,432 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance at May. 31, 2021 | $ 5 | $ 2,836 | $ 53,790,764 | $ (43,776,927) | $ 10,016,678 | $ 1,236,362 | $ 11,253,040 |
Balance, shares at May. 31, 2021 | 50,000 | 28,361,201 | |||||
Stock options exercised | $ 20 | 23,980 | 24,000 | 24,000 | |||
Stock options exercised, shares | 200,000 | ||||||
Common stock purchase | $ (28) | (281,472) | (281,500) | (281,500) | |||
Common stock purchase, shares | (281,500) | ||||||
Cash contribution by non-controlling interest | (132,200) | (132,200) | |||||
Preferred dividends | (328,459) | (328,459) | (328,459) | ||||
Net income | 4,266,937 | 4,266,937 | 279,663 | 4,546,600 | |||
Balance at May. 31, 2022 | $ 5 | $ 2,828 | 53,533,272 | (39,838,449) | 13,697,656 | 1,383,825 | 15,081,481 |
Balance, shares at May. 31, 2022 | 50,000 | 28,279,701 | |||||
Cash contribution by non-controlling interest | 1,669,000 | 1,669,000 | |||||
Preferred dividends | (495,681) | (495,681) | (495,681) | ||||
Net income | 6,338,509 | 6,338,509 | 49,599 | 6,388,108 | |||
Deconsolidation of variable interest entity | (3,102,424) | (3,102,424) | |||||
Balance at May. 31, 2023 | $ 5 | $ 2,828 | $ 53,533,272 | $ (33,995,621) | $ 19,540,484 | $ 19,540,484 | |
Balance, shares at May. 31, 2023 | 50,000 | 28,279,701 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Preferred stock dividends per share cash paid | $ 9.91 | $ 6.57 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 6,388,108 | $ 4,546,600 |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation and amortization | 5,210,357 | 5,365,720 |
Change in deferred taxes | 2,161,585 | (636,948) |
Gain on deconsolidation of variable interest entity | (569,997) | |
Forgiveness of debt | (3,068,497) | |
Gain on disposition of property, plant and equipment | (154,984) | (22,336) |
Decrease (increase) in trade accounts receivable | 1,021,400 | (1,414,915) |
Decrease (increase) in related party receivable | 195,562 | (98,562) |
Increase in inventory | (371,610) | (670,522) |
Increase in prepaid expenses | (224,722) | (251,925) |
Increase (decrease) in accounts payable and accrued expenses | (4,478,041) | 3,990,306 |
Decrease in deferred revenue | (5,306,040) | (1,101,560) |
Net cash provided by operating activities | 3,871,618 | 6,637,361 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (9,179,370) | (6,130,521) |
Deconsolidation of variable interest entity | (2,806) | |
Proceeds from sale of equipment | 55,000 | 50,000 |
Net cash used in investing activities | (9,127,176) | (6,080,521) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt | 13,184,816 | 837,000 |
Proceeds from revolving loan | 2,525,000 | 3,700,000 |
Payments on revolving loan | (4,725,000) | |
Payments on long-term debt and financing leases | (5,982,108) | (5,263,858) |
Payments on related party note payable and financing lease | (3,348,178) | (436,724) |
Payments for debt issuance costs | (68,634) | (4,752) |
Stock options exercised | 24,000 | |
Purchase of common stock | (281,500) | |
Dividends paid on preferred stock | (446,644) | (243,082) |
Capital contribution by non-controlling interest | 1,669,000 | |
Distributions paid by non-controlling interest | (132,200) | |
Net cash provided by (used in) financing activities | 2,808,252 | (1,801,116) |
Net Decrease in Cash and Cash Equivalents | (2,447,306) | (1,244,276) |
Cash and Cash Equivalents, beginning of year | 3,143,257 | 4,387,533 |
Cash and Cash Equivalents, end of year | $ 695,951 | $ 3,143,257 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
May 31, 2023 | |
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. Prior to July 29, 2022, Greystone was required to consolidate its VIE, Greystone Real Estate, L.L.C. (“GRE”) which owns two primary manufacturing facilities occupied by Greystone and is wholly owned by a member of Greystone’s board of directors. Effective July 29, 2022 GRE paid off its mortgage payable and, in conjunction with Greystone’s refinancing described in Note 5, GRE was removed from cross collateralization in the loan agreement between Greystone and International Bank of Commerce (“IBC”). Following these transactions, Greystone was no longer determined to be the primary beneficiary of GRE. Accordingly, GRE was deconsolidated from Greystone’s consolidated financial statements as of July 29, 2022, resulting in the recognition of a gain in the amount of $ 569,997 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 Leasehold improvements are amortized over the shorter of the useful lives or the term of the lease agreement. 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 consolidated balance sheets 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 sheets. The lease liabilities are included in operating leases and financing leases (current and non-current) in the consolidated balance sheets. 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, lease expense is generally recognized on a straight-line basis over the lease term and recorded to cost of sales in the consolidated statements of income. In accordance with Accounting Standards Codification (ASC) 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 equipment, 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. Equity Based Compensation The grant-date fair value of warrants, 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. Diluted earnings per share is calculated by dividing net income attributable to common stockholders plus preferred dividends, unless the assumed conversion of the preferred stock is anti-dilutive, 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. Reclassifications Certain prior year amounts have been reclassified to conform with the current year’s presentation. These reclassifications had no effect on previously reported net income or accumulated deficit. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
May 31, 2023 | |
Income Per Share of Common Stock - | |
EARNINGS PER SHARE | Note 2. EARNINGS PER SHARE Basic and diluted earnings per share of common stock for the years ended May 31, are as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 5,842,828 $ 3,938,478 Denominator - Weighted-average common shares outstanding 28,279,701 28,423,721 Income per share of common stock - Basic $ 0.21 $ 0.14 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 5,842,828 $ 3,938,478 Add: Preferred stock dividends due to assumed conversion 495,681 328,459 Net income allocated to common stockholders $ 6,338,509 $ 4,266,937 Denominator - Weighted-average common shares outstanding-basic 28,279,701 28,423,721 Incremental common shares from assumed conversion of warrants and preferred stock, as appropriate 3,825,814 3,828,711 Diluted weighted average common stock outstanding 32,105,515 32,252,432 Income per share of common stock - Diluted $ 0.20 $ 0.13 |
INVENTORY
INVENTORY | 12 Months Ended |
May 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | Note 3. INVENTORY Inventory consists of the following as of May 31: SCHEDULE OF INVENTORY 2023 2022 Raw materials $ 2,299,911 $ 2,091,550 Finished pallets 2,184,195 2,020,946 Total Inventory $ 4,484,106 $ 4,112,496 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | Note 4. 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 2023 2022 Production machinery and equipment $ 66,068,625 $ 57,341,906 Plant buildings and land 2,364,089 7,020,543 Leasehold improvements 1,553,138 1,487,398 Furniture and fixtures 542,057 542,057 Total property, plant and equipment 70,527,909 66,391,904 Less: Accumulated depreciation (37,343,203 ) (34,515,139 ) Property, Plant and Equipment, net $ 33,184,706 $ 31,876,765 Property, plant and equipment includes production equipment with a carrying value of $ 503,721 Depreciation expense for the fiscal years ended May 31, 2023 and 2022, was $ 5,195,994 5,359,993 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | Note 5. LONG-TERM DEBT Long-term debt consists of the following as of May 31, 2023 and 2022: SCHEDULE OF LONG TERM DEBT 2023 2022 Term loan A dated July 29, 2022, payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.50%, maturing July 29, 2027 $ 7,065,283 $ - Term loan A dated July 29, 2022, payable to International Bank of Commerce, prime rate of interest plus 0.5 4.50 July 29, 2027 $ 7,065,283 $ - Term loan B dated July 29, 2022, payable to International Bank of Commerce, prime rate of interest plus 0.5 4.50 July 29, 2027 7,269,453 - Term loans payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 5.25 - 2,870,169 Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5 4.50 July 29, 2024 1,500,000 3,700,000 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5 July 27, 2022 - 1,826,361 Term loan payable to First Interstate Bank, interest rate of 3.7 27,593 March 19, 2025 585,536 888,642 Term loan payable to First Interstate Bank, interest rate of 3.5 5,997 August 10, 2028 759,639 803,941 Note payable to Robert Rosene, 7.5 August 3, 2022 - 3,295,704 Other 73,368 111,374 Face value of long-term debt 17,253,279 13,496,191 Less: Debt issuance costs, net of amortization (84,022 ) (29,751 ) 17,169,257 13,466,440 Less: Current portion of long-term debt (2,249,570 ) (4,160,403 ) Long-term debt $ 14,919,687 $ 9,306,037 As of May 31, 2023, the prime rate of interest was 8.25 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 sheets 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 $ 17,723 5,727 Restated and Amended Loan Agreement between Greystone and IBC On July 29, 2022, Greystone and GSM (collectively “Borrowers”) and IBC entered into an Amended and Restated Loan Agreement (“IBC Restated Loan Agreement”) that provided for consolidation of certain term loans and a renewed revolver loan. The IBC Restated Loan Agreement provided for IBC to make to Greystone (i) a term loan in the amount of $ 7,854,708 2,669,892 3,271,987 1,912,829 7,000,000 1,000,000 2,000,000 6,000,000 3,500,000 The IBC term loans require 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 $ 251,000 The IBC Restated Loan Agreement includes customary events of default, including events of default relating to non-payment of principal and other amounts owing under the IBC Restated 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 Restated Loan Agreement or the related loan documents. In addition, without prior written consent, Greystone shall not declare or pay any dividends, redemptions, distributions and withdrawals with respect to its equity interest other than distributions to holders of its preferred stock in the aggregate of $ 500,000 The IBC Restated Loan Agreement is secured by a lien on substantially all assets of the Borrowers. Warren F. Kruger, President and CEO, and Robert B. Rosene, Jr. have provided limited guaranties of the Borrowers’ obligations under the IBC Restated Loan Agreement. Mr. Kruger’s guarantee is limited to 32.4 3,500,000 Loan Agreement with First Interstate Bank On August 23, 2021, Greystone and First Interstate 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. Maturities Maturities of Greystone’s long-term debt for the five years subsequent to May 31, 2023, are $ 2,249,570 3,901,140 2,275,921 2,471,322 5,841,391 513,935 |
LEASES
LEASES | 12 Months Ended |
May 31, 2023 | |
Leases | |
LEASES | Note 6. LEASES Financing Leases Financing leases consist of the following as of May 31: SCHEDULE OF FINANCING LEASE 2023 2022 Non-cancelable financing leases $ 60,485 $ 2,163,043 Less: Current portion of financing leases (31,981 ) (1,630,895 ) Non-cancelable financing leases, net of current portion $ 28,504 $ 532,148 Greystone and an unrelated private company entered into three lease agreements for certain production equipment with a total cost of approximately $ 6.9 five 7.40 1,527,293 Effective December 29, 2022, Greystone exercised its option under a lease agreement dated December 28, 2017, with Yorktown to purchase the production equipment therein for $ 10,000 The production equipment under the non-cancelable financing leases as of May 31, 2023 and 2022 was as follows: SCHEDULE OF NON-CANCELABLE FINANCING LEASES 2023 2022 Production equipment under financing leases $ 176,565 $ 8,497,798 Less: Accumulated amortization (95,447 ) (3,481,223 ) Production equipment under financing leases, net $ 81,118 $ 5,016,575 Amortization of the carrying amount of the assets was $ 197,626 946,535 Operating Leases Greystone has three non-cancellable operating leases for (i) equipment with a fifty-two forty-eight 5.40 6.00 Effective August 1, 2022, Greystone and GRE entered into a non-cancellable ten-year lease agreement with a five-year extension for which Greystone recorded a right-of-use asset and liability based on the present value of the lease payments in the amount of $ 5,516,006 180 6.00 The outstanding liability for right to use assets under operating leases as of May 31, 2023 and 2022 is as follows: SCHEDULE OF OPERATING LEASES 2023 2022 Liability under operating leases $ 5,360,034 $ 55,535 Less: Current portion (240,346 ) (33,881 ) Long-term portion of liability under operating leases $ 5,119,688 $ 21,654 Lease Summary Information For the years ended May 31, 2023 and 2022, a summary of lease activity follows: SUMMARY OF LEASE ACTIVITY 2023 2022 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 197,626 $ 946,535 Interest on lease liabilities 24,927 127,898 Operating lease expense 501,712 61,881 Short-term lease expense 1,532,005 1,493,169 Total $ 2,256,270 $ 2,629,483 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 24,927 $ 127,898 Financing cash flows $ 578,151 $ 1,455,404 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 478,881 $ 61,881 Right-of-use assets obtained in exchange for lease liabilities – financing lease - $ 24,441 Weighted-average remaining lease term (in years) - Financing leases 1.7 1.3 Operating leases 14.1 1.6 Weighted-average discount rate - Financing leases 4.4 % 7.3 % Operating leases 6.0 % 5.4 % Future minimum lease payments under non-cancelable operating and financing leases as of May 31, 2023, are approximately: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Leases Financing Leases Year ending May 31, 2024 $ 552,557 $ 39,062 Year ending May 31, 2025 535,291 19,173 Year ending May 31, 2026 534,000 4,512 Year ending May 31, 2027 534,000 - Year ending May 31, 2028 556,300 - Thereafter 5,280,100 - Total lease payments 7,992,248 62,747 Less: Imputed interest (2,632,214 ) (2,262 ) Present value of minimum lease payments $ 5,360,034 $ 60,485 |
REVENUE
REVENUE | 12 Months Ended |
May 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | Note 7. 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 0.84 1.45 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 2023 and 2022, respectively, were as follows: SCHEDULE OF SALE OF REVENUES FOR CUSTOMER CATEGORIES Category 2023 2022 End user customers 73 % 76 % Distributors 27 % 24 % 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 $ 536,000 13,560,500 23,007 5,329,047 5,842,040 14,662,060 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
May 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Note 8. 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 62,400 54,000 Transactions with Greystone Real Estate, L.L.C. GRE owns two primary manufacturing facilities occupied by Greystone and is wholly owned by a member of Greystone’s Board of Directors. During fiscal year 2023, Greystone made total rental payments of $ 529,761 Effective August 1, 2022, Greystone and GRE entered into a non-cancellable ten-year five-year 44,500 5.00 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 2023 and 2022, Greystone purchases from TriEnda totaled $ 431 4,222 50,611 126,037 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 $ 657,706 617,100 56,550 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Note 9. INCOME TAXES Deferred taxes as of May 31, 2023 and 2022 are as follows: SUMMARY OF DEFERRED TAXES 2023 2022 Deferred tax asset: Net operating loss carryforward $ 2,084,595 $ 1,876,710 Interest expense carryforward 172,126 - Income recognized for tax in excess of financial - 1,497,136 Other 31,797 30,480 Total deferred tax asset 2,288,518 3,404,326 Deferred tax liability: Depreciation and amortization recognized for tax (5,149,436 ) (3,546,886 ) Valuation allowance (1,044,361 ) (1,601,134 ) Net deferred tax liability $ (3,905,279 ) $ (1,743,694 ) 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 $ 1,044,361 1,601,134 4,953,494 The net change in deferred taxes for the year ended May 31, 2023 and 2022, is as follows: SUMMARY OF NET CHANGE IN DEFERRED TAXES 2023 2022 Income recognized for tax in excess of financial $ (1,497,136 ) $ 1,497,136 Net operating loss carryforward 207,885 (610,940 ) Depreciation and amortization, tax reporting in excess of financial (1,602,550 ) (272,108 ) Interest expense carryforward 172,126 - Valuation allowance 556,773 - Other 1,317 22,860 Net change $ (2,161,585 ) $ 636,948 The provision for income taxes as of May 31, 2023 and 2022 consists of the following: SUMMARY OF PROVISION FOR INCOME TAXES 2023 2022 Current income tax - Federal $ - $ 503,612 State 300,115 668,753 Deferred income tax 2,161,585 (636,948 ) Provision for income taxes $ 2,461,700 $ 535,417 Greystone’s provision for income taxes for the years ended May 31, 2023 and 2022 differs from the federal statutory rate as follows: SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE 2023 2022 Tax provision using statutory rates 21 % 21 % State income taxes 8 9 Permanent differences (1 ) (17 ) VIE income passed to members - (2 ) Tax provision per consolidated financial statements 28 % 11 % As of May 31, 2023, Greystone had net operating losses (NOLs) for Federal income tax purposes totaling $ 9,926,641 SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX NOL Carryforward Year Expiring Year ended May 31, 2004 1,632,774 2024 Year ended May 31, 2005 4,215,217 2025 Year ended May 31, 2023 4,078,650 No |
CORONAVIRUS AID, RELIEF, AND EC
CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (“CARES Act”) | 12 Months Ended |
May 31, 2023 | |
Coronavirus Aid Relief And Economic Security Act | |
CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (“CARES Act”) | Note 10. CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (“CARES Act”) As a response to the COVID-19 outbreak, the U.S. government enacted the CARES Act which authorized emergency loans to businesses (i) by establishing and funding forgivable loans under the Paycheck Protection Program (PPP Loan) and (ii) by providing an Employee Retention Credit (“ERC”) which is a refundable tax credit against certain employment taxes equal to 50% of qualified wages paid, up to $10,000 per employee annually for wages paid. Additional relief provisions were passed by the United States government, which extended and expanded the qualified wage caps on the ERC to 70% of qualified wages paid, up to $10,000 per employee per quarter, through September 30, 2021 ERC During the years ended May 31, 2023 and 2022, the Department of Treasury notified Greystone of ERC credits awarded under the CARES Act to Greystone and GSM for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021. Due to the subjectivity of the credit, the Company elected to account for the ERC as a gain analogizing to ASC 450-30, Gain Contingencies. The Company recognized credits of $ 4,911,863 241,814 PPP Loan In June 2021, the Company received forgiveness of its $ 3,034,000 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
May 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | Note 11. STOCKHOLDERS’ EQUITY Convertible Preferred Stock In September 2003, Greystone issued 50,000 0.0001 5,000,000 100 3.25 11.50 1.50 3,333,333 Warrants to Purchase Common Stock On September 1, 2016, the Company issued a warrant to purchase 250,000 0.01 January 10, 2027 |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
May 31, 2023 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | Note 12. RETIREMENT PLAN Greystone implemented a defined contribution and profit-sharing plan effective January 1, 2019. The defined contribution plan is an Internal Revenue Code of 1986, as amended, Section 401(k) plan. Greystone matches employee contributions up to 6 297,159 322,983 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, 2023 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS | Note 13. 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 consolidated balance sheets 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, 2023 and 2022, the carrying amounts reported in the consolidated balance sheets approximate fair value for the variable and fixed rate loans. |
SUPPLEMENTAL INFORMATION OF CAS
SUPPLEMENTAL INFORMATION OF CASH FLOWS | 12 Months Ended |
May 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL INFORMATION OF CASH FLOWS | Note 14. SUPPLEMENTAL INFORMATION OF CASH FLOWS Supplemental information of cash flows for the years ended May 31, 2023 and 2022: SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS 2023 2022 Non-cash investing and financing activities: Deconsolidation of variable interest entity $ 3,102,424 $ - Right of use assets under operating lease $ 5,516,006 $ - Refinancing of certain term loans $ 2,669,892 $ - Acquisition of equipment through financing leases $ - $ 24,441 Capital expenditures in accounts payable $ 145,062 $ 126,128 Preferred dividend accrual $ 134,414 $ 85,377 Supplemental information: Interest paid $ 1,163,650 $ 836,683 Income taxes paid $ 525,000 $ 1,427,354 |
CONCENTRATIONS, RISKS AND UNCER
CONCENTRATIONS, RISKS AND UNCERTAINTIES | 12 Months Ended |
May 31, 2023 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS, RISKS AND UNCERTAINTIES | Note 15. CONCENTRATIONS, RISKS AND UNCERTAINTIES For the fiscal years 2023 and 2022, Greystone had three customers that accounted for approximately 73 76 Greystone purchases damaged pallets from its customers at a price based on the value of the raw material content of the pallet. Most of these purchases are from one of Greystone’s major customers which totaled approximately $ 787,000 603,000 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. |
COMMITMENTS
COMMITMENTS | 12 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | Note 16. COMMITMENTS As of May 31, 2023, Greystone had outstanding commitments totaling $ 405,562 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
May 31, 2023 | |
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. Prior to July 29, 2022, Greystone was required to consolidate its VIE, Greystone Real Estate, L.L.C. (“GRE”) which owns two primary manufacturing facilities occupied by Greystone and is wholly owned by a member of Greystone’s board of directors. Effective July 29, 2022 GRE paid off its mortgage payable and, in conjunction with Greystone’s refinancing described in Note 5, GRE was removed from cross collateralization in the loan agreement between Greystone and International Bank of Commerce (“IBC”). Following these transactions, Greystone was no longer determined to be the primary beneficiary of GRE. Accordingly, GRE was deconsolidated from Greystone’s consolidated financial statements as of July 29, 2022, resulting in the recognition of a gain in the amount of $ 569,997 |
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 Leasehold improvements are amortized over the shorter of the useful lives or the term of the lease agreement. 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 consolidated balance sheets 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 sheets. The lease liabilities are included in operating leases and financing leases (current and non-current) in the consolidated balance sheets. 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, lease expense is generally recognized on a straight-line basis over the lease term and recorded to cost of sales in the consolidated statements of income. In accordance with Accounting Standards Codification (ASC) 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 equipment, 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. |
Equity Based Compensation | Equity Based Compensation The grant-date fair value of warrants, 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. Diluted earnings per share is calculated by dividing net income attributable to common stockholders plus preferred dividends, unless the assumed conversion of the preferred stock is anti-dilutive, 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. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform with the current year’s presentation. These reclassifications had no effect on previously reported net income or accumulated deficit. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
May 31, 2023 | |
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 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
May 31, 2023 | |
Income Per Share of Common Stock - | |
SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE | Basic and diluted earnings per share of common stock for the years ended May 31, are as follows: SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE 2023 2022 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 5,842,828 $ 3,938,478 Denominator - Weighted-average common shares outstanding 28,279,701 28,423,721 Income per share of common stock - Basic $ 0.21 $ 0.14 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 5,842,828 $ 3,938,478 Add: Preferred stock dividends due to assumed conversion 495,681 328,459 Net income allocated to common stockholders $ 6,338,509 $ 4,266,937 Denominator - Weighted-average common shares outstanding-basic 28,279,701 28,423,721 Incremental common shares from assumed conversion of warrants and preferred stock, as appropriate 3,825,814 3,828,711 Diluted weighted average common stock outstanding 32,105,515 32,252,432 Income per share of common stock - Diluted $ 0.20 $ 0.13 |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
May 31, 2023 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventory consists of the following as of May 31: SCHEDULE OF INVENTORY 2023 2022 Raw materials $ 2,299,911 $ 2,091,550 Finished pallets 2,184,195 2,020,946 Total Inventory $ 4,484,106 $ 4,112,496 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
May 31, 2023 | |
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 2023 2022 Production machinery and equipment $ 66,068,625 $ 57,341,906 Plant buildings and land 2,364,089 7,020,543 Leasehold improvements 1,553,138 1,487,398 Furniture and fixtures 542,057 542,057 Total property, plant and equipment 70,527,909 66,391,904 Less: Accumulated depreciation (37,343,203 ) (34,515,139 ) Property, Plant and Equipment, net $ 33,184,706 $ 31,876,765 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
SCHEDULE OF LONG TERM DEBT | Long-term debt consists of the following as of May 31, 2023 and 2022: SCHEDULE OF LONG TERM DEBT 2023 2022 Term loan A dated July 29, 2022, payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.50%, maturing July 29, 2027 $ 7,065,283 $ - Term loan A dated July 29, 2022, payable to International Bank of Commerce, prime rate of interest plus 0.5 4.50 July 29, 2027 $ 7,065,283 $ - Term loan B dated July 29, 2022, payable to International Bank of Commerce, prime rate of interest plus 0.5 4.50 July 29, 2027 7,269,453 - Term loans payable to International Bank of Commerce, prime rate of interest plus 0.5 4.0 5.25 - 2,870,169 Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5 4.50 July 29, 2024 1,500,000 3,700,000 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5 July 27, 2022 - 1,826,361 Term loan payable to First Interstate Bank, interest rate of 3.7 27,593 March 19, 2025 585,536 888,642 Term loan payable to First Interstate Bank, interest rate of 3.5 5,997 August 10, 2028 759,639 803,941 Note payable to Robert Rosene, 7.5 August 3, 2022 - 3,295,704 Other 73,368 111,374 Face value of long-term debt 17,253,279 13,496,191 Less: Debt issuance costs, net of amortization (84,022 ) (29,751 ) 17,169,257 13,466,440 Less: Current portion of long-term debt (2,249,570 ) (4,160,403 ) Long-term debt $ 14,919,687 $ 9,306,037 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
May 31, 2023 | |
Leases | |
SCHEDULE OF FINANCING LEASE | Financing leases consist of the following as of May 31: SCHEDULE OF FINANCING LEASE 2023 2022 Non-cancelable financing leases $ 60,485 $ 2,163,043 Less: Current portion of financing leases (31,981 ) (1,630,895 ) Non-cancelable financing leases, net of current portion $ 28,504 $ 532,148 |
SCHEDULE OF NON-CANCELABLE FINANCING LEASES | The production equipment under the non-cancelable financing leases as of May 31, 2023 and 2022 was as follows: SCHEDULE OF NON-CANCELABLE FINANCING LEASES 2023 2022 Production equipment under financing leases $ 176,565 $ 8,497,798 Less: Accumulated amortization (95,447 ) (3,481,223 ) Production equipment under financing leases, net $ 81,118 $ 5,016,575 |
SCHEDULE OF OPERATING LEASES | The outstanding liability for right to use assets under operating leases as of May 31, 2023 and 2022 is as follows: SCHEDULE OF OPERATING LEASES 2023 2022 Liability under operating leases $ 5,360,034 $ 55,535 Less: Current portion (240,346 ) (33,881 ) Long-term portion of liability under operating leases $ 5,119,688 $ 21,654 |
SUMMARY OF LEASE ACTIVITY | For the years ended May 31, 2023 and 2022, a summary of lease activity follows: SUMMARY OF LEASE ACTIVITY 2023 2022 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 197,626 $ 946,535 Interest on lease liabilities 24,927 127,898 Operating lease expense 501,712 61,881 Short-term lease expense 1,532,005 1,493,169 Total $ 2,256,270 $ 2,629,483 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 24,927 $ 127,898 Financing cash flows $ 578,151 $ 1,455,404 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 478,881 $ 61,881 Right-of-use assets obtained in exchange for lease liabilities – financing lease - $ 24,441 Weighted-average remaining lease term (in years) - Financing leases 1.7 1.3 Operating leases 14.1 1.6 Weighted-average discount rate - Financing leases 4.4 % 7.3 % Operating leases 6.0 % 5.4 % |
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS | Future minimum lease payments under non-cancelable operating and financing leases as of May 31, 2023, are approximately: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Operating Leases Financing Leases Year ending May 31, 2024 $ 552,557 $ 39,062 Year ending May 31, 2025 535,291 19,173 Year ending May 31, 2026 534,000 4,512 Year ending May 31, 2027 534,000 - Year ending May 31, 2028 556,300 - Thereafter 5,280,100 - Total lease payments 7,992,248 62,747 Less: Imputed interest (2,632,214 ) (2,262 ) Present value of minimum lease payments $ 5,360,034 $ 60,485 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
May 31, 2023 | |
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 2023 and 2022, respectively, were as follows: SCHEDULE OF SALE OF REVENUES FOR CUSTOMER CATEGORIES Category 2023 2022 End user customers 73 % 76 % Distributors 27 % 24 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
SUMMARY OF DEFERRED TAXES | Deferred taxes as of May 31, 2023 and 2022 are as follows: SUMMARY OF DEFERRED TAXES 2023 2022 Deferred tax asset: Net operating loss carryforward $ 2,084,595 $ 1,876,710 Interest expense carryforward 172,126 - Income recognized for tax in excess of financial - 1,497,136 Other 31,797 30,480 Total deferred tax asset 2,288,518 3,404,326 Deferred tax liability: Depreciation and amortization recognized for tax (5,149,436 ) (3,546,886 ) Valuation allowance (1,044,361 ) (1,601,134 ) Net deferred tax liability $ (3,905,279 ) $ (1,743,694 ) |
SUMMARY OF NET CHANGE IN DEFERRED TAXES | The net change in deferred taxes for the year ended May 31, 2023 and 2022, is as follows: SUMMARY OF NET CHANGE IN DEFERRED TAXES 2023 2022 Income recognized for tax in excess of financial $ (1,497,136 ) $ 1,497,136 Net operating loss carryforward 207,885 (610,940 ) Depreciation and amortization, tax reporting in excess of financial (1,602,550 ) (272,108 ) Interest expense carryforward 172,126 - Valuation allowance 556,773 - Other 1,317 22,860 Net change $ (2,161,585 ) $ 636,948 |
SUMMARY OF PROVISION FOR INCOME TAXES | The provision for income taxes as of May 31, 2023 and 2022 consists of the following: SUMMARY OF PROVISION FOR INCOME TAXES 2023 2022 Current income tax - Federal $ - $ 503,612 State 300,115 668,753 Deferred income tax 2,161,585 (636,948 ) Provision for income taxes $ 2,461,700 $ 535,417 |
SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE | Greystone’s provision for income taxes for the years ended May 31, 2023 and 2022 differs from the federal statutory rate as follows: SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE 2023 2022 Tax provision using statutory rates 21 % 21 % State income taxes 8 9 Permanent differences (1 ) (17 ) VIE income passed to members - (2 ) Tax provision per consolidated financial statements 28 % 11 % |
SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX | As of May 31, 2023, Greystone had net operating losses (NOLs) for Federal income tax purposes totaling $ 9,926,641 SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX NOL Carryforward Year Expiring Year ended May 31, 2004 1,632,774 2024 Year ended May 31, 2005 4,215,217 2025 Year ended May 31, 2023 4,078,650 No |
SUPPLEMENTAL INFORMATION OF C_2
SUPPLEMENTAL INFORMATION OF CASH FLOWS (Tables) | 12 Months Ended |
May 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS | Supplemental information of cash flows for the years ended May 31, 2023 and 2022: SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS 2023 2022 Non-cash investing and financing activities: Deconsolidation of variable interest entity $ 3,102,424 $ - Right of use assets under operating lease $ 5,516,006 $ - Refinancing of certain term loans $ 2,669,892 $ - Acquisition of equipment through financing leases $ - $ 24,441 Capital expenditures in accounts payable $ 145,062 $ 126,128 Preferred dividend accrual $ 134,414 $ 85,377 Supplemental information: Interest paid $ 1,163,650 $ 836,683 Income taxes paid $ 525,000 $ 1,427,354 |
SCHEDULE OF USEFUL LIFE OF PROP
SCHEDULE OF USEFUL LIFE OF PROPERTY, PLANT AND EQUIPMENT (Details) | May 31, 2023 |
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 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Accounting Policies [Abstract] | ||
Gain on deconsolidation | $ 569,997 |
SCHEDULE OF BASIC AND DILUTED E
SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Income Per Share of Common Stock - | ||
Net income attributable to common stockholders | $ 5,842,828 | $ 3,938,478 |
Weighted-average common shares outstanding-basic | 28,279,701 | 28,423,721 |
Income per share of common stock - Basic | $ 0.21 | $ 0.14 |
Net income attributable to common stockholders | $ 5,842,828 | $ 3,938,478 |
Add: Preferred stock dividends due to assumed conversion | 495,681 | 328,459 |
Net income allocated to common stockholders | $ 6,338,509 | $ 4,266,937 |
Incremental common shares from assumed conversion of warrants and preferred stock, as appropriate | 3,825,814 | 3,828,711 |
Diluted weighted average common stock outstanding | 32,105,515 | 32,252,432 |
Income per share of common stock - Diluted | $ 0.20 | $ 0.13 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,299,911 | $ 2,091,550 |
Finished pallets | 2,184,195 | 2,020,946 |
Total Inventory | $ 4,484,106 | $ 4,112,496 |
SCHEDULE OF PROPERTY, PLANT AND
SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 70,527,909 | $ 66,391,904 |
Less: Accumulated depreciation | (37,343,203) | (34,515,139) |
Property, Plant and Equipment, net | 33,184,706 | 31,876,765 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 66,068,625 | 57,341,906 |
Plant Buildings And Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 2,364,089 | 7,020,543 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 1,553,138 | 1,487,398 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 542,057 | $ 542,057 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 33,184,706 | $ 31,876,765 |
Depreciation expense | 5,195,994 | $ 5,359,993 |
Service [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 503,721 |
SCHEDULE OF LONG TERM DEBT (Det
SCHEDULE OF LONG TERM DEBT (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Short-Term Debt [Line Items] | ||
Total long-term debt | $ 17,253,279 | $ 13,496,191 |
Debt issuance costs, net of amortization | (84,022) | (29,751) |
Total debt, net of debt issuance costs | 17,169,257 | 13,466,440 |
Less: Current portion of long-term debt | (2,249,570) | (4,160,403) |
Long-term debt, net of current portion | 14,919,687 | 9,306,037 |
Notes Payable One [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 7,065,283 | |
Notes Payable Two [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 7,269,453 | |
Notes Payable Three [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 2,870,169 | |
Notes Payable Four [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 1,500,000 | 3,700,000 |
Notes Payable Five [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 1,826,361 | |
Note Payable Six [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 585,536 | 888,642 |
Notes Payable Seven [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 759,639 | 803,941 |
Notes Payable Eight [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | 3,295,704 | |
Other Note Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Total long-term debt | $ 73,368 | $ 111,374 |
SCHEDULE OF LONG TERM DEBT (D_2
SCHEDULE OF LONG TERM DEBT (Details) (Parenthetical) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Notes Payable One [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jul. 29, 2027 | Jul. 29, 2027 |
Notes Payable One [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 4.50% | 4.50% |
Notes Payable Two [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jul. 29, 2027 | Jul. 29, 2027 |
Notes Payable Two [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 4.50% | 4.50% |
Notes Payable Three [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Notes Payable Three [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 4% | 4% |
Notes Payable Three [Member] | Maximum [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 5.25% | 5.25% |
Notes Payable Four [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jul. 29, 2024 | Jul. 29, 2024 |
Notes Payable Four [Member] | Minimum [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 4.50% | 4.50% |
Notes Payable Five [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 5.50% | 5.50% |
Debt instrument maturity date | Jul. 27, 2022 | Jul. 27, 2022 |
Note Payable Six [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 3.70% | 3.70% |
Debt instrument maturity date | Mar. 19, 2025 | Mar. 19, 2025 |
Debt instrument principal and interest amount | $ 27,593 | $ 27,593 |
Notes Payable Seven [Member] | ||
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 |
Notes Payable Eight [Member] | ||
Short-Term Debt [Line Items] | ||
Debt instrument interest rate | 7.50% | 7.50% |
Debt instrument maturity date | Aug. 03, 2022 | Aug. 03, 2022 |
LONG-TERM DEBT (Details Narrati
LONG-TERM DEBT (Details Narrative) - USD ($) | 12 Months Ended | ||
Jul. 29, 2022 | May 31, 2023 | May 31, 2022 | |
Debt Instrument [Line Items] | |||
Amortization of financing costs | $ 17,723 | $ 5,727 | |
Existing term loan amount | 17,169,257 | $ 13,466,440 | |
Maturities long term debt year one | 2,249,570 | ||
Maturities long term debt year two | 3,901,140 | ||
Maturities long term debt year three | 2,275,921 | ||
Maturities long term debt year four | 2,471,322 | ||
Maturities long term debt year five | 5,841,391 | ||
Maturities long term debt after year five | $ 513,935 | ||
IBC Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Payments of monthly principal and interest | $ 251,000 | ||
IBC Loan Agreement [Member] | Guaranty [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 32.40% | ||
Guarantees combined amount | $ 3,500,000 | ||
IBC Loan Agreement [Member] | Restated Loan Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Term loan amount | 7,854,708 | ||
Existing term loan amount | 2,669,892 | ||
Notes payable | 3,271,987 | ||
Purchase of asset | 1,912,829 | ||
Aggregate amount | 7,000,000 | ||
Revolving loan | 2,000,000 | ||
Revolving loan borrowed | 6,000,000 | ||
Line of credit facility, maximum borrowing capacity | 3,500,000 | ||
IBC Loan Agreement [Member] | Restated Loan Agreement [Member] | Preferred Stock [Member] | |||
Debt Instrument [Line Items] | |||
Revolving loan borrowed | $ 500,000 | ||
IBC Loan Agreement [Member] | Restated Loan Agreement [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate amount | $ 1,000,000 | ||
Prime Rate [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 8.25% |
SCHEDULE OF FINANCING LEASE (De
SCHEDULE OF FINANCING LEASE (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Leases | ||
Non-cancelable financing leases | $ 60,485 | $ 2,163,043 |
Less: Current portion of financing leases | (31,981) | (1,630,895) |
Non-cancelable financing leases, net of current portion | $ 28,504 | $ 532,148 |
SCHEDULE OF NON-CANCELABLE FINA
SCHEDULE OF NON-CANCELABLE FINANCING LEASES (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Leases | ||
Production equipment under financing leases | $ 176,565 | $ 8,497,798 |
Less: Accumulated amortization | (95,447) | (3,481,223) |
Production equipment under financing leases, net | $ 81,118 | $ 5,016,575 |
SCHEDULE OF OPERATING LEASES (D
SCHEDULE OF OPERATING LEASES (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Leases | ||
Liability under operating leases | $ 5,360,034 | $ 55,535 |
Less: Current portion | (240,346) | (33,881) |
Long-term portion of liability under operating leases | $ 5,119,688 | $ 21,654 |
SUMMARY OF LEASE ACTIVITY (Deta
SUMMARY OF LEASE ACTIVITY (Details) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Leases | ||
Amortization of right-of-use assets | $ 197,626 | $ 946,535 |
Interest on lease liabilities | 24,927 | 127,898 |
Operating lease expense | 501,712 | 61,881 |
Short-term lease expense | 1,532,005 | 1,493,169 |
Total | 2,256,270 | 2,629,483 |
Operating cash flows | 24,927 | 127,898 |
Financing cash flows | 578,151 | 1,455,404 |
Operating cash flows | 478,881 | 61,881 |
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 8 months 12 days | 1 year 3 months 18 days |
Weighted-average remaining lease term (in years) - Operating leases | 14 years 1 month 6 days | 1 year 7 months 6 days |
Weighted-average discount rate - Financing leases | 4.40% | 7.30% |
Weighted-average discount rate - Operating leases | 6% | 5.40% |
SCHEDULE OF FUTURE MINIMUM LEAS
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||
Operating Leases Year ended May 31, 2024 | $ 552,557 | |
Operating Leases Year ended May 31, 2025 | 535,291 | |
Operating Leases Year ended May 31, 2026 | 534,000 | |
Operating Leases Year ended May 31, 2027 | 534,000 | |
Operating Leases Year ended May 31, 2028 | 556,300 | |
Operating Leases Year ended May 31, 2029 | 5,280,100 | |
Operating lease total lease payments | 7,992,248 | |
Operating lease imputed interest | (2,632,214) | |
Operating Leases Present value of minimum lease payments | 5,360,034 | $ 55,535 |
Finance Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||
Financing Leases Year ended May 31, 2024 | 39,062 | |
Financing Leases Year ended May 31, 2025 | 19,173 | |
Financing Leases Year ended May 31, 2026 | 4,512 | |
Financing Leases Year ended May 31, 2027 | ||
Financing Leases Year ended May 31, 2028 | ||
Financing Leases Year ended May 31, 2029 | ||
Financing lease total lease payments | 62,747 | |
Financing lease Imputed interest | (2,262) | |
FinancingLeases Present value of minimum lease payments | $ 60,485 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 29, 2022 | May 31, 2023 | May 31, 2022 | |
Lessee, Lease, Description [Line Items] | |||
Finance lease cost | $ 2,256,270 | $ 2,629,483 | |
Finance lease cost | 197,626 | 946,535 | |
Present value of properties, amount | $ 33,184,706 | $ 31,876,765 | |
Equipment One [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating lease term of contract | 52 months | ||
Lessee operating lease discount rate | 5.40% | ||
Equipment Two [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating lease term of contract | 48 months | ||
Lessee operating lease discount rate | 5.40% | ||
Two Buildings [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating lease discount rate | 6% | ||
Equipment Four [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating lease discount rate | 6% | ||
Present value of properties, amount | $ 5,516,006 | ||
Lessor operating lease term of contract | 180 months | ||
Sale and Leaseback Agreement [Member] | Yorktown Production Equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Value of production equipment purchased | $ 10,000 | ||
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% | ||
Payments to acquire equipment | $ 1,527,293 |
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, 2023 | May 31, 2022 | |
End User Customers [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 73% | 76% |
Distributors [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk percentage | 27% | 24% |
REVENUE (Details Narrative)
REVENUE (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Unrecognized deferred revenue | $ 23,007 | $ 5,329,047 |
Recognized revenue | 5,842,040 | 14,662,060 |
Pallets [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Customer advances | $ 536,000 | $ 13,560,500 |
Canada and Mexico [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales revenue percent | 0.84% | 1.45% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 12 Months Ended | ||
Aug. 01, 2022 | May 31, 2023 | May 31, 2022 | |
Related Party Transaction [Line Items] | |||
Rental rate | $ 5,200 | ||
Rent expenses | 62,400 | $ 54,000 | |
Trienda Holdings LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Due from related parties | 56,550 | ||
Lease Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Lease agreement term | 10 years | ||
Lease agreement extension term | 5 years | ||
Initial rate per month | $ 44,500 | ||
Percentage of increase in initial rate per month | 5% | ||
Yorktown's Grinding and Pelletizing Equipment [Member] | |||
Related Party Transaction [Line Items] | |||
Total rental payments | 1,430,000 | 1,430,000 | |
Yorktown's Grinding and Pelletizing Equipment [Member] | Weekly [Member] | |||
Related Party Transaction [Line Items] | |||
Total rental payments | 27,500 | ||
Greystone Real Estate, L.L.C. [Member] | |||
Related Party Transaction [Line Items] | |||
Total rental payments | 529,761 | ||
Trienda Holdings LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction purchases | 431 | 4,222 | |
Revenue from goods | 50,611 | 126,037 | |
Green Plastic Pallets [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from goods | $ 657,706 | $ 617,100 |
SUMMARY OF DEFERRED TAXES (Deta
SUMMARY OF DEFERRED TAXES (Details) - USD ($) | May 31, 2023 | May 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforward | $ 2,084,595 | $ 1,876,710 |
Interest expense carryforward | 172,126 | |
Income recognized for tax in excess of financial | 1,497,136 | |
Other | 31,797 | 30,480 |
Total deferred tax asset | 2,288,518 | 3,404,326 |
Depreciation and amortization recognized for tax in excess of financial | 5,149,436 | 3,546,886 |
Valuation allowance | (1,044,361) | (1,601,134) |
Net deferred tax liability | $ (3,905,279) | $ (1,743,694) |
SUMMARY OF NET CHANGE IN DEFERR
SUMMARY OF NET CHANGE IN DEFERRED TAXES (Details) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income recognized for tax in excess of financial | $ (1,497,136) | $ 1,497,136 |
Net operating loss carryforward | 207,885 | (610,940) |
Depreciation and amortization, tax reporting in excess of financial | (1,602,550) | (272,108) |
Interest expense carryforward | 172,126 | |
Valuation allowance | 556,773 | |
Other | 1,317 | 22,860 |
Net change | $ (2,161,585) | $ 636,948 |
SUMMARY OF PROVISION FOR INCOME
SUMMARY OF PROVISION FOR INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal | $ 503,612 | |
State | 300,115 | 668,753 |
Deferred income tax | 2,161,585 | (636,948) |
Provision for income taxes | $ 2,461,700 | $ 535,417 |
SUMMARY OF PROVISION FOR INCO_2
SUMMARY OF PROVISION FOR INCOME TAXES FOR FEDERAL STATUTORY RATE (Details) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Tax provision using statutory rates | 21% | 21% |
State income taxes | 8% | 9% |
Permanent differences | (1.00%) | (17.00%) |
VIE income passed to members | (2.00%) | |
Tax provision per consolidated financial statements | 28% | 11% |
SUMMARY OF NET OPERATING LOSS F
SUMMARY OF NET OPERATING LOSS FOR FEDERAL INCOME TAX (Details) | 12 Months Ended |
May 31, 2023 USD ($) | |
Operating Loss Carryforwards [Line Items] | |
NOL Carryforward | $ 9,926,641 |
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 |
Tax Year 2023 [Member] | |
Operating Loss Carryforwards [Line Items] | |
NOL Carryforward | $ 4,078,650 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | May 31, 2023 | May 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $ 1,044,361 | $ 1,601,134 |
Utilization of NOL's accumulated | $ 4,953,494 |
CORONAVIRUS AID, RELIEF, AND _2
CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (“CARES Act”) (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | May 31, 2023 | May 31, 2022 | |
Coronavirus Aid Relief And Economic Security Act | |||
Tax credit description | (i) by establishing and funding forgivable loans under the Paycheck Protection Program (PPP Loan) and (ii) by providing an Employee Retention Credit (“ERC”) which is a refundable tax credit against certain employment taxes equal to 50% of qualified wages paid, up to $10,000 per employee annually for wages paid. Additional relief provisions were passed by the United States government, which extended and expanded the qualified wage caps on the ERC to 70% of qualified wages paid, up to $10,000 per employee per quarter, through September 30, 2021 | ||
Other income | $ 4,911,863 | $ 241,814 | |
Gains losses on extinguishment of debt | $ 3,034,000 | $ 3,068,497 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2003 | May 31, 2023 | May 31, 2022 | 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% | 11.50% | ||
Conversion rate | $ 1.50 | |||
Number of common stock issued upon conversion | 3,333,333 |
RETIREMENT PLAN (Details Narrat
RETIREMENT PLAN (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Retirement Benefits [Abstract] | ||
Employers contribution percentage, description | The defined contribution plan is an Internal Revenue Code of 1986, as amended, 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 | $ 297,159 | $ 322,983 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION OF CASH FLOWS (Details) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Deconsolidation of variable interest entity | $ 3,102,424 | |
Right of use assets under operating lease | 5,516,006 | |
Refinancing of certain term loans | 2,669,892 | |
Acquisition of equipment through financing leases | 24,441 | |
Capital expenditures in accounts payable | 145,062 | 126,128 |
Preferred dividend accrual | 134,414 | 85,377 |
Interest paid | 1,163,650 | 836,683 |
Income taxes paid | $ 525,000 | $ 1,427,354 |
CONCENTRATIONS, RISKS AND UNC_2
CONCENTRATIONS, RISKS AND UNCERTAINTIES (Details Narrative) - USD ($) | 12 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Concentration Risk [Line Items] | ||
Customer purchases amount | $ 787,000 | $ 603,000 |
Three Customer [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk percentage | 73% | 76% |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | May 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase of production equipment | $ 405,562 |