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Document and Entity Information

v3.3.1.900
Document and Entity Information - shares
6 Months Ended
Nov. 30, 2015
Jan. 13, 2016
Document And Entity Information    
Entity Registrant Name GREYSTONE LOGISTICS, INC.  
Entity Central Index Key 0001088413  
Document Type 10-Q  
Document Period End Date Nov. 30, 2015  
Amendment Flag false  
Current Fiscal Year End Date --05-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   27,886,201
Trading Symbol GLGI  
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2016  

Consolidated Balance Sheets (Unaudited)

v3.3.1.900
Consolidated Balance Sheets (Unaudited) - USD ($)
Nov. 30, 2015
May. 31, 2015
Current Assets:    
Cash $ 818,385 $ 598,887
Accounts receivable - Trade, net of allowance for doubtful accounts of $13,260 1,028,252 1,453,416
Accounts receivable - Related party receivable 536,933 519,659
Inventory 2,309,429 1,429,344
Deferred tax asset - current 1,232,881 1,222,110
Prepaid expenses 114,892 20,249
Total Current Assets 6,040,772 5,243,665
Property and Equipment, net of accumulated depreciation 8,381,914 8,509,315
Deferred Tax Asset 517,706 557,127
Other Assets 122,666 129,634
Total Assets 15,063,058 14,439,741
Current Liabilities:    
Current portion of long-term debt 2,009,713 2,278,164
Accounts payable and accrued expenses 1,907,667 798,470
Accrued interest - related party 2,306,325 2,143,275
Preferred dividends payable 54,315 54,315
Total Current Liabilities 6,278,020 5,274,224
Long-Term Debt, net of current portion 9,936,054 10,300,847
Deficit:    
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, 27,886,201 and 27,411,201 shares issued and outstanding 2,789 2,741
Additional paid-in capital 53,587,099 53,503,435
Accumulated deficit (55,771,373) (55,657,638)
Total Greystone Stockholders' Deficit (2,181,480) (2,151,457)
Non-controlling interest 1,030,464 1,016,127
Total Deficit (1,151,016) (1,135,330)
Total Liabilities and Deficit $ 15,063,058 $ 14,439,741

Consolidated Balance Sheets (Unaudited) (Parenthetical)

v3.3.1.900
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
Nov. 30, 2015
May. 31, 2015
Statement of Financial Position [Abstract]    
Allowance for doubtful on accounts receivable $ 13,260 $ 13,260
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 27,886,201 27,411,201
Common stock, shares outstanding 27,886,201 27,411,201

Consolidated Statements of Operations (Unaudited)

v3.3.1.900
Consolidated Statements of Operations (Unaudited) - USD ($)
3 Months Ended 6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Income Statement [Abstract]        
Sales $ 4,420,210 $ 3,925,077 $ 9,990,191 $ 9,991,448
Cost of Sales 3,539,834 4,260,438 8,169,150 8,997,651
Gross Profit 880,376 (335,361) 1,821,041 993,797
General, Selling and Administrative Expenses 537,326 491,000 1,239,468 1,105,942
Operating Income (Loss) $ 343,050 (826,361) $ 581,573 (112,145)
Other Income (Expense):        
Other income 2,500 2,500
Interest expense $ (191,964) (202,574) $ (387,376) (411,417)
Total Other Expense, net (191,964) (200,074) (387,376) (408,917)
Income (Loss) before Income Taxes 151,086 (1,026,435) 194,197 (521,062)
Benefit from (Provision for) Income Taxes (33,935) 368,383 (28,650) 215,683
Net Income (Loss) 117,151 (658,052) 165,547 (305,379)
Income Attributable to Variable Interest Entities, net (58,544) (57,042) (116,337) (113,299)
Preferred Dividends (81,027) (81,027) (162,945) (162,945)
Net Loss Attributable to Common Stockholders $ (22,420) $ (796,121) $ (113,735) $ (581,623)
Loss Per Share of Common Stock -        
Basic and Diluted $ (0.00) $ (0.03) $ (0.00) $ (0.02)
Weighted Average Shares of Common Stock Outstanding -        
Basic and Diluted 27,630,432 26,723,564 27,520,217 26,591,666

Consolidated Statements of Cash Flows (Unaudited)

v3.3.1.900
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Cash Flows from Operating Activities:    
Net income (loss) $ 165,547 $ (305,379)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 674,993 686,666
Decrease (Increase) in deferred tax asset 28,650 (215,683)
Stock based compensation 26,712 26,712
Changes in trade accounts receivable 425,164 1,306,873
Changes in related party receivable (17,274) (134,027)
Changes in inventory (880,085) 132,862
Changes in prepaid expenses (94,643) 3,174
Changes in accounts payable and accrued expenses 1,272,247 $ 305,236
Other (250)
Net cash provided by operating activities 1,601,061 $ 1,806,434
Cash Flows from Investing Activities:    
Purchase of property and equipment (540,374) (510,310)
Cash Flows from Financing Activities:    
Proceeds from revolving loan 650,000 100,000
Payments on long-term debt and capitalized lease (983,244) (955,535)
Payments on revolving loan (300,000) (385,000)
Proceeds from exercised stock options 57,000 84,000
Dividends paid on preferred stock (162,945) (136,233)
Dividends paid by variable interest entity (102,000) (102,000)
Net cash used in financing activities (841,189) (1,394,768)
Net Increase (Decrease) in Cash 219,498 (98,644)
Cash, beginning of period 598,887 661,263
Cash, end of period $ 818,385 562,619
Non-Cash Activities:    
Acquisition of equipment from related party 75,000
Preferred dividend accrual 26,712
Supplemental Information:    
Interest paid $ 236,755 $ 260,993

Basis of Financial Statements

v3.3.1.900
Basis of Financial Statements
6 Months Ended
Nov. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Financial Statements

Note 1. Basis of Financial Statements

 

In the opinion of Greystone Logistics, Inc. (“Greystone”), the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications, which are of a normal recurring nature, necessary to present fairly its financial position as of November 30, 2015, the results of its operations for the six-month and three-month periods ended November 30, 2015 and 2014, and its cash flows for the six-month periods ended November 30, 2015 and 2014. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended May 31, 2015 and the notes thereto included in Greystone’s Form 10-K for such period. The results of operations for the six-months and three-month periods ended November 30, 2015 and 2014 are not necessarily indicative of the results to be expected for the full fiscal year.

 

The consolidated financial statements of Greystone include its wholly-owned subsidiaries, Greystone Manufacturing, L.L.C. (“GSM”) and Plastic Pallet Production, Inc. (“PPP”), and the variable interest entity, Greystone Real Estate, L.L.C. (“GRE”). GRE owns two buildings located in Bettendorf, Iowa which are leased to GSM.

Earnings Per Share

v3.3.1.900
Earnings Per Share
6 Months Ended
Nov. 30, 2015
Loss Per Share of Common Stock -  
Earnings Per Share

Note 2. Earnings Per Share

 

Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income (loss) available to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding.

 

Greystone excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive, as follows:

 

    2015     2014  
Six-month periods ended November 30:                
Options to purchase common stock     675,000       1,400,000  
Preferred stock convertible into common stock     3,333,333       3,333,333  
                 
 Total     4,008,333       4,733,333  
                 
Three-month periods ended November 30:                
Options to purchase common stock     675,000       1,400,000  
Preferred stock convertible into common stock     3,333,333       3,333,333  
                 
 Total     4,008,333       4,733,333  

 

The following tables set forth the computation of basic and diluted earnings per share for the six-month and three-month periods ended November 30, 2015 and 2014:

 

    2015     2014  
Six-month periods ended November 30:                
Numerator -                
Net loss available to common stockholders   $ (113,735 )   $ (581,623 )
Denominator -                
Weighted-average shares outstanding - basic     27,520,217       26,591,666  
Incremental shares from assumed conversion of options     -       -  
Diluted shares     27,520,217       26,591,666  
Loss per share -                
Basic and Diluted   $ (0.00 )   $ (0.02 )
Three-month periods ended November 30:                
Numerator -                
Net loss available to common stockholders   $ (22,420 )   $ (796,121 )
Denominator -                
Weighted-average shares outstanding - basic     27,630,432       26,723,564  
Incremental shares from assumed conversion of options     -       -  
 Diluted shares     27,630,432       26,723,564  
Loss per share -                
Basic and Diluted   $ (0.00 )   $ (0.03 )

Inventory

v3.3.1.900
Inventory
6 Months Ended
Nov. 30, 2015
Inventory Disclosure [Abstract]  
Inventory

Note 3. Inventory

 

Inventory consists of the following:

 

    November 30, 2015     May 31, 2015  
             
Raw materials   $ 603,963     $ 665,702  
Finished goods     1,705,466       763,642  
Total inventory   $ 2,309,429     $ 1,429,344  

Related Party Receivable

v3.3.1.900
Related Party Receivable
6 Months Ended
Nov. 30, 2015
Related Party Transactions [Abstract]  
Related Party Receivable

Note 4. Related Party Receivable

 

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 in the manufacture of pallets. Beginning September 2015, GSM rents from Yorktown a plastic grinding and wash line facility located in Tulsa, OK on a month-to-month basis. Greystone compensates Yorktown for the use of this equipment as discussed below. In addition, Yorktown provides office space for Greystone in Tulsa, Oklahoma at a monthly rental of $2,200.

 

GSM pays a weekly rental fees to Yorktown of $22,500 for use of Yorktown’s grinding equipment and $5,000 for the use of Yorktown’s pelletizing equipment for which GSM paid Yorktown rental fees of $715,000 for the six months ended November 30, 2015 and 2014, respectively. In fiscal year 2016, GSM paid rents of $52,500 to Yorktown for the grinding and wash line facility.

 

During fiscal year 2015, Greystone paid the labor on behalf of Yorktown’s Tulsa, Oklahoma grinding operation. These costs were invoiced to Yorktown on a monthly basis. As of November 30, 2015, Yorktown owes Greystone $448,209 primarily from the aforementioned labor costs incurred by Greystone on behalf of Yorktown.

 

TriEnda Holdings, L.L.C.

 

Warren F. Kruger, Greystone’s President and CEO, has a majority ownership interest in and serves as the non-executive Chairman of the Board of TriEnda Holdings, L.L.C. (“TriEnda”). TriEnda uses a thermoform process to manufacturer plastic pallets, protective packaging and returnable dunnage. Beginning in fiscal year 2015, Greystone provides tolling services to TriEnda by blending and pelletizing plastic resin using TriEnda’s equipment and raw materials. Tolling service sales to TriEnda totaled $111,986 and $56,026 during the six months ended November 30, 2015 and 2014, respectively. As of November 30, 2015, the account receivable from TriEnda was $56,588. Greystone purchases the waste material from the pelletizing process for which Greystone owed TriEnda $5,943 at November 30, 2015.

 

Green Plastic Pallets

 

Greystone sells plastic pallets to Green Plastic Pallets (“Green”), an entity that is owned by James Kruger, brother to Warren Kruger, Greystone’s president and CEO. Greystone had sales to Green of $146,880 in fiscal year 2016 and an account receivable at November 30, 2015 in the amount of $36,720. There were no sales in fiscal year 2015.

Debt

v3.3.1.900
Debt
6 Months Ended
Nov. 30, 2015
Debt Disclosure [Abstract]  
Debt

Note 5. Debt

 

Debt as of November 30, 2015 and May 31, 2015 is as follows:

 

    November 30, 2015     May 31, 2015  
             
Term note payable to International Bank of Commerce,                
interest rate of 4.5%, due January 31, 2019, monthly                
principal and interest payments of $171,760   $ 6,063,942     $ 6,945,884  
                 
Revolving note payable to International Bank of Commerce,                
prime rate of interest plus 0.5% but not less than 4.0%, due                
January 31, 2018     650,000       300,000  
                 
Term note payable by GRE to International Bank of                
Commerce, interest rate of 4.5%, due January 31, 2019,     3,108,727       3,207,553  
monthly principal and interest payments of $26,215                
                 
Note payable to Robert Rosene, 7.5% interest,                
due January 15, 2017     2,066,000       2,066,000  
                 
Other note payable     57,098       59,574  
      11,945,767       12,579,011  
Less: Current portion     (2,009,713 )     (2,278,164 )
Long-term debt   $ 9,936,054     $ 10,300,847  


 

The prime rate of interest as of November 30, 2015 was 3.25%.

 

Loan Agreement between Greystone and 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 provides for a revolving loan in an aggregate principal amount of up to $2,500,000 (the “Revolving Loan”) and a term loan in the aggregate principal amount of $9,200,000 (the “Term Loan”). The exact amount which can be borrowed under the Revolving Loan from time to time is dependent upon the amount of the borrowing base, but can in no event exceed $2,500,000. On January 7, 2016, IBC extended the Revolving Loan to January 31, 2018 as discussed further in Note 10, “Subsequent Event.”

 

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 $1,000,000 per year, (iii) prohibiting Greystone, without IBC’s prior written consent, from declaring or paying any dividends, redemptions of stock or membership interests, distributions and withdrawals (as applicable) in respect of its capital stock or any other equity interest, other than additional payments to holders of its preferred stock in an amount not to exceed $500,000 in any fiscal year, (iv) subject to certain exceptions, prohibiting the incurrence of additional indebtedness by the Borrowers, and (v) requiring the Borrowers to prevent (A) any change in capital ownership such that there is a material change in the direct or indirect ownership of (1) Greystone’s outstanding preferred stock, and (2) any equity interest in GSM, or (B) Warren Kruger from ceasing to be actively involved in the management of Greystone as President and/or Chief Executive Officer. The foregoing list of covenants is not exhaustive and there are several other covenants contained in the IBC Loan Agreement.

 

Greystone’s debt service coverage ratio as of November 30, 2015 was 0.73 to 1:00 which was less than the required minimum as discussed above. IBC has issued a waiver with respect to this occurrence of noncompliance and, as discussed further in Note 10, “Subsequent Event,” deferred the compliance requirement until May 31, 2016.

 

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 Warren F. Kruger, Greystone’s President and CEO, and Robert B. Rosene, Jr., a director of Greystone. Messrs. Kruger and Rosene have provided a combined limited guaranty of the Borrowers’ obligations under the IBC Loan Agreement, with such guaranty being limited to a combined amount of $6,500,000 (the “Guaranty”). The Mortgage and the Guaranty also secure or guaranty, as applicable, the obligations of GRE under the Loan Agreement between GRE and IBC dated January 31, 2014 as discussed in the following paragraph.

 

Loan Agreement between GRE and IBC

 

On January 31, 2014, GRE and IBC entered into a Loan Agreement which provided for a mortgage loan to GRE of $3,412,500. The loan provides for a 4.5% interest rate and a maturity of January 31, 2019 and is secured by a mortgage on the two buildings in Bettendorf, Iowa which are leased to Greystone.

 

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 of advances into a note payable at 7.5% interest. Mr. Rosene has waived payment of principal until January 15, 2017. Greystone accrued interest on the note and unpaid interest in the amounts of $163,050 and $151,147 for the six-month periods ended November 30, 2015 and 2014, respectively. Accrued interest due to Mr. Rosene at May 31, 2015 is $2,306,325.

Stock Compensation Costs

v3.3.1.900
Stock Compensation Costs
6 Months Ended
Nov. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Compensation Costs

Note 6. Stock Compensation Costs

 

Stock compensation costs, resulting from stock options issued June 1, 2012, were $26,712 for the six-month periods ended November 30, 2015 and 2014, respectively. The unexpensed cost at November 30, 2015 totaled $26,712.

Fair Value of Financial Instruments

v3.3.1.900
Fair Value of Financial Instruments
6 Months Ended
Nov. 30, 2015
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments

Note 7. Fair Value of Financial Instruments

 

The following methods and assumptions are used in estimating the fair-value disclosures for financial instruments:

 

Debt: The carrying amount of loans with floating rates of interest approximate fair value. Fixed rate loans are valued based on cash flows using estimated rates of comparable loans. The carrying amounts reported in the balance sheet approximate fair value.

Risks and Uncertainties

v3.3.1.900
Risks and Uncertainties
6 Months Ended
Nov. 30, 2015
Risks and Uncertainties [Abstract]  
Risks and Uncertainties

Note 8. Risks and Uncertainties

 

Greystone derives a substantial portion of its revenue from a national brewer. This customer accounted for approximately 32% and 48% of Greystone’s pallet sales and 31% and 43% of Greystone’s total sales for the six months ended November 30, 2015 and 2014, respectively. Greystone’s recycled plastic pallets are approved for use by the customer and, at the current time, are the only plastic pallets used by the customer for shipping products. There is no assurance that Greystone will retain this customer’s business at the same level, or at all. The loss of a material amount of business from this customer could have a material adverse effect on Greystone.

 

Robert B. Rosene, Jr., a Greystone director, has provided financing and guarantees on Greystone’s bank debt. As of November 30, 2015, Greystone is indebted to Mr. Rosene in the amount of $4,372,325 for a note payable and related accrued interest due January 15, 2017. There is no assurance that Mr. Rosene will continue to provide extensions in the future.

Recent Accounting Pronouncements

v3.3.1.900
Recent Accounting Pronouncements
6 Months Ended
Nov. 30, 2015
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements

Note 9. Recent Accounting Pronouncements

 

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers ” (“ASU 14-09”) which creates a comprehensive set of guidelines for the recognition of revenue under the principle: “Recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The requirements of ASU 14-09 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2016 and will require either retrospective application to each prior period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. Greystone is currently evaluating the impact this ASU will have on our financial position and results of operations.

 

On April 7, 2015, the FASB issued Accounting Standard Update 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”) which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. The requirement of ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. Greystone does not believe that the impact of this ASU will have a material impact on our financial position and results of operations.

 

On August 18, 2015, the FASB issued Accounting Standards Update 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements – Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, which adds to the FASB Accounting Standards Codification® SEC paragraphs pursuant to the SEC staff announcement at the June 18, 2015 Emerging Issues Task Force (EITF) meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit (LOC) arrangements. Specifically, the ASU states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over the term of the LOC arrangement, regardless of whether there are outstanding borrowings under that LOC arrangement.

 

In November 2015, FASB issued Accounting Standards Update 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which is intended to improve how deferred taxes are classified on organizations’ balance sheets by eliminating the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet.  Instead, organizations will now be required to classify all deferred tax assets and liabilities as noncurrent.  The changes are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, which means the first quarter of Greystone’s fiscal year 2018.  Greystone is currently reviewing the ASU and assessing the potential impact on the consolidated financial statements.

Subsequent Event

v3.3.1.900
Subsequent Event
6 Months Ended
Nov. 30, 2015
Subsequent Events [Abstract]  
Subsequent Event

Note 10. Subsequent Event

 

On January 7, 2016, Greystone and IBC entered into a First Amendment to the IBC Loan Agreement that, among other things, provided for additional financing of $2,530,072 principally to finance Greystone’s acquisition of equipment that was ordered in June 2015 and delivered at the end of December 2015. The First Amendment provides for two term loans – one for $3,000,000 with monthly payments of principal and interest of $88,805 and a second for $5,447,504 with monthly payments of principal and interest of $74,657. Both notes have interest rates of the greater of prime plus 0.5% or 4% and maturity dates of January 7, 2019. In addition, the First Amendment extended the maturity of the Revolver Loan from January 31, 2016 to January 31, 2018 and deferred the requirement of the Debt Service Coverage Ratio until May 31, 2016.

Earnings Per Share (Tables)

v3.3.1.900
Earnings Per Share (Tables)
6 Months Ended
Nov. 30, 2015
Loss Per Share of Common Stock -  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Greystone excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive, as follows:

 

    2015     2014  
Six-month periods ended November 30:                
Options to purchase common stock     675,000       1,400,000  
Preferred stock convertible into common stock     3,333,333       3,333,333  
                 
 Total     4,008,333       4,733,333  
                 
Three-month periods ended November 30:                
Options to purchase common stock     675,000       1,400,000  
Preferred stock convertible into common stock     3,333,333       3,333,333  
                 
 Total     4,008,333       4,733,333  

Schedule of Computation of Basic and Diluted Earnings Per Share

The following tables set forth the computation of basic and diluted earnings per share for the six-month and three-month periods ended November 30, 2015 and 2014:

 

    2015     2014  
Six-month periods ended November 30:                
Numerator -                
Net loss available to common stockholders   $ (113,735 )   $ (581,623 )
Denominator -                
Weighted-average shares outstanding - basic     27,520,217       26,591,666  
Incremental shares from assumed conversion of options     -       -  
Diluted shares     27,520,217       26,591,666  
Loss per share -                
Basic and Diluted   $ (0.00 )   $ (0.02 )
Three-month periods ended November 30:                
Numerator -                
Net loss available to common stockholders   $ (22,420 )   $ (796,121 )
Denominator -                
Weighted-average shares outstanding - basic     27,630,432       26,723,564  
Incremental shares from assumed conversion of options     -       -  
 Diluted shares     27,630,432       26,723,564  
Loss per share -                
Basic and Diluted   $ (0.00 )   $ (0.03 )

Inventory (Tables)

v3.3.1.900
Inventory (Tables)
6 Months Ended
Nov. 30, 2015
Inventory Disclosure [Abstract]  
Schedule of Inventory

Inventory consists of the following:

 

    November 30, 2015     May 31, 2015  
             
Raw materials   $ 603,963     $ 665,702  
Finished goods     1,705,466       763,642  
Total inventory   $ 2,309,429     $ 1,429,344  

Debt (Tables)

v3.3.1.900
Debt (Tables)
6 Months Ended
Nov. 30, 2015
Debt Disclosure [Abstract]  
Schedule of Debt

Debt as of November 30, 2015 and May 31, 2015 is as follows:

 

    November 30, 2015     May 31, 2015  
             
Term note payable to International Bank of Commerce,                
interest rate of 4.5%, due January 31, 2019, monthly                
principal and interest payments of $171,760   $ 6,063,942     $ 6,945,884  
                 
Revolving note payable to International Bank of Commerce,                
prime rate of interest plus 0.5% but not less than 4.0%, due                
January 31, 2018     650,000       300,000  
                 
Term note payable by GRE to International Bank of                
Commerce, interest rate of 4.5%, due January 31, 2019,     3,108,727       3,207,553  
monthly principal and interest payments of $26,215                
                 
Note payable to Robert Rosene, 7.5% interest,                
due January 15, 2017     2,066,000       2,066,000  
                 
Other note payable     57,098       59,574  
      11,945,767       12,579,011  
Less: Current portion     (2,009,713 )     (2,278,164 )
Long-term debt   $ 9,936,054     $ 10,300,847  

Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)

v3.3.1.900
Earnings Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares
3 Months Ended 6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share 4,008,333 4,733,333 4,008,333 4,733,333
Options To Purchase Common Stock [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share 675,000 1,400,000 675,000 1,400,000
Preferred Stock Convertible Into Common Stock [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share 3,333,333 3,333,333 3,333,333 3,333,333

Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details)

v3.3.1.900
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($)
3 Months Ended 6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Nov. 30, 2015
Nov. 30, 2014
Loss Per Share of Common Stock -        
Numerator - Net income (loss) available to common shareholders $ (22,420) $ (796,121) $ (113,735) $ (581,623)
Denominator - Weighted-average shares outstanding - Basic 27,630,432 26,723,564 27,520,217 26,591,666
Denominator - Incremental shares from assumed conversion of options
Denominator - Diluted shares 27,630,432 26,723,564 27,520,217 26,591,666
Loss per share - Basic and Diluted $ (0.00) $ (0.03) $ (0.00) $ (0.02)

Inventory - Schedule of Inventory (Details)

v3.3.1.900
Inventory - Schedule of Inventory (Details) - USD ($)
Nov. 30, 2015
May. 31, 2015
Inventory Disclosure [Abstract]    
Raw materials $ 603,963 $ 665,702
Finished goods 1,705,466 763,642
Total Inventory $ 2,309,429 $ 1,429,344

Related Party Receivable (Details Narrative)

v3.3.1.900
Related Party Receivable (Details Narrative) - USD ($)
6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Oklahoma [Member]    
Operating Lease rental fees $ 2,200  
Yorktown's Grinding Equipment [Member]    
Payments of rental fees 22,500  
Yorktown's Pelletizing Equipment [Member]    
Payments of rental fees 5,000  
Yorktown [Member]    
Operating Lease rental fees 715,000 $ 715,000
Payments of rental fees 52,500  
Account receivable 448,209  
Trienda Holdings, LLC [Member]    
Tolling service sales 111,986 $ 56,026
Account receivable 56,588  
Purchases waste material from pelletizing process 5,943  
Green Plastic Pallets [Member]    
Account receivable 36,720  
Green Plastic Pallets [Member] | Fiscal Year 2016 [Member]    
Tolling service sales $ 146,880  
Green Plastic Pallets [Member] | Fiscal Year 2015 [Member]    
Tolling service sales  

Debt (Details Narrative)

v3.3.1.900
Debt (Details Narrative) - USD ($)
6 Months Ended
Jan. 31, 2014
Dec. 15, 2005
Nov. 30, 2015
Nov. 30, 2014
May. 31, 2015
Borrowers maintain coverage ratio description     0.73 to 1:00 which was less than the required minimum    
Note payable     $ 11,945,767   $ 12,579,011
Robert B. Rosene, Jr. [Member]          
Debt instrument interest rate   7.50%      
Loan maturity date   Jan. 15, 2017      
Note payable   $ 2,066,000      
Accrued interest on the note and unpaid interest     $ 163,050 $ 151,147  
Accrued interest         $ 2,306,325
Greystone and GSM [Member]          
Borrowed loans $ 2,500,000        
Greystone and GSM [Member] | Revolving Loan [Member]          
Debt instrument principal amount 2,500,000        
Greystone and GSM [Member] | Term Loan [Member]          
Debt instrument principal amount $ 9,200,000        
IBC Loan Agreement [Member]          
Borrowers maintain coverage ratio description 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.        
Borrowers' combined capital expenditures on fixed assets, per year $ 1,000,000        
Additional preferred stock amount 500,000        
IBC Loan Agreement [Member] | Guaranty [Member]          
Borrowings combined amount $ 6,500,000        
GRE And IBC [Member] | Mortgage Loan [Member]          
Debt instrument interest rate 4.50%        
Debt instrument principal amount $ 3,412,500        
Loan maturity date Jan. 31, 2019        
Prime Rate [Member]          
Debt instrument interest rate     3.25%    

Debt - Schedule of Debt (Details)

v3.3.1.900
Debt - Schedule of Debt (Details) - USD ($)
Nov. 30, 2015
May. 31, 2015
Total Notes Payable $ 11,945,767 $ 12,579,011
Other note payable 57,098 59,574
Less: Current portion (2,009,713) (2,278,164)
Long-term Debt 9,936,054 10,300,847
Term Note Payable To International Bank Of Commerce, Interest Rate Of 4.5%, Due January 31, 2019, Monthly Principal And Interest Payments Of $171,760 [Member]    
Total Notes Payable 6,063,942 6,945,884
Revolving Note Payable To International Bank Of Commerce, Prime Rate Of Interest Plus 0.5% But Not Less Than 4.0%, Due January 31, 2018 [Member]    
Total Notes Payable 650,000 300,000
Term Note Payable By GRE to International Bank Of Commerce, Interest Rate Of 4.5%, Due January 31, 2019, Monthly Principal And Interest Payments Of $26,215 [Member]    
Total Notes Payable 3,108,727 3,207,553
Note Payable To Robert Rosene, 7.5% Interest, Due January 15, 2017 [Member]    
Total Notes Payable $ 2,066,000 $ 2,066,000

Debt - Schedule of Debt (Details) (Parenthetical)

v3.3.1.900
Debt - Schedule of Debt (Details) (Parenthetical) - USD ($)
6 Months Ended 12 Months Ended
Nov. 30, 2015
May. 31, 2015
Term Note Payable To International Bank Of Commerce, Interest Rate Of 4.5%, Due January 31, 2019, Monthly Principal And Interest Payments Of $171,760 [Member]    
Debt instrument interest rate 4.50% 4.50%
Debt instrument maturity date Jan. 31, 2019 Jan. 31, 2019
Debt instrument principal amount $ 171,760 $ 171,760
Revolving Note Payable To International Bank Of Commerce, Prime Rate Of Interest Plus 0.5% But Not Less Than 4.0%, Due January 31, 2018 [Member]    
Debt instrument maturity date Jan. 31, 2018 Jan. 31, 2018
Revolving Note Payable To International Bank Of Commerce, Prime Rate Of Interest Plus 0.5% But Not Less Than 4.0%, Due January 31, 2018 [Member] | Minimum [Member]    
Debt instrument interest rate 0.50% 0.50%
Revolving Note Payable To International Bank Of Commerce, Prime Rate Of Interest Plus 0.5% But Not Less Than 4.0%, Due January 31, 2018 [Member] | Maximum [Member]    
Debt instrument interest rate 4.00% 4.00%
Term Note Payable By GRE to International Bank Of Commerce, Interest Rate Of 4.5%, Due January 31, 2019, Monthly Principal And Interest Payments Of $26,215 [Member]    
Debt instrument interest rate 4.50% 4.50%
Debt instrument maturity date Jan. 31, 2019 Jan. 31, 2019
Debt instrument principal amount $ 26,215 $ 26,215
Note Payable To Robert Rosene, 7.5% Interest, Due January 15, 2017 [Member]    
Debt instrument interest rate 7.50% 7.50%
Debt instrument maturity date Jan. 15, 2017 Jan. 15, 2017

Stock Compensation Costs (Details Narrative)

v3.3.1.900
Stock Compensation Costs (Details Narrative) - USD ($)
6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]    
Stock compensation costs $ 26,712 $ 26,712
Unexpensed cost $ 26,712  

Risks and Uncertainties (Details Narrative)

v3.3.1.900
Risks and Uncertainties (Details Narrative) - USD ($)
6 Months Ended
Nov. 30, 2015
Nov. 30, 2014
May. 31, 2015
Note payable $ 11,945,767   $ 12,579,011
Robert B Rosene [Member]      
Note payable $ 4,372,325    
Debt instrument maturity date Jan. 15, 2017    
Greystone's Pallet Sales [Member]      
Percentage of sales 32.00% 48.00%  
Greystone Sales [Member]      
Percentage of sales 31.00% 43.00%  

Subsequent Event (Details Narrative)

v3.3.1.900
Subsequent Event (Details Narrative) - Subsequent Event [Member] - Loan Agreement [Member]
Jan. 07, 2016
USD ($)
Loan additional financing prinicpally finance amount $ 2,530,072
Interest rate interest rates of the greater of prime plus 0.5% or 4%
Loan maturity date Jan. 07, 2019
Loan maturity start date Jan. 31, 2016
Loan maturity end date Jan. 31, 2018
Loan Term One [Member]  
Loan montly payments of principal $ 3,000,000
Loan interest payment 88,805
Loan Term Two [Member]  
Loan montly payments of principal 5,447,504
Loan interest payment $ 74,657