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Document and Entity Information

v2.4.0.8
Document and Entity Information
9 Months Ended
Feb. 28, 2014
Apr. 10, 2014
Document And Entity Information    
Entity Registrant Name GREYSTONE LOGISTICS, INC.  
Entity Central Index Key 0001088413  
Document Type 10-Q  
Document Period End Date Feb. 28, 2014  
Amendment Flag false  
Current Fiscal Year End Date --05-31  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   26,111,201
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2014  

Consolidated Balance Sheets (Unaudited)

v2.4.0.8
Consolidated Balance Sheets (Unaudited) (USD $)
Feb. 28, 2014
May 31, 2013
Current Assets:    
Cash $ 382,824 $ 366,896
Accounts receivable, Trade, net of allowance of $100,000 1,696,113 2,239,594
Accounts receivable, Related party 86,569   
Inventory 2,879,676 1,044,379
Prepaid expenses and other 210,492 119,198
Total Current Assets 5,255,674 3,770,067
Property, Plant and Equipment 17,959,797 15,754,959
Less: Accumulated Depreciation (8,855,444) (8,710,820)
Property, Plant and Equipment, net 9,104,353 7,044,139
Deferred Tax Asset 1,460,000 1,159,000
Other Assets 172,547 71,371
Total Assets 15,992,574 12,044,577
Current Liabilities:    
Current portion of long-term debt 3,956,067 1,344,160
Accounts payable and accrued expenses 1,932,301 1,643,339
Accounts payable and accrued expenses - related parties 1,762,156 1,551,154
Preferred dividends payable 24,932 1,883,959
Total Current Liabilities 7,675,456 6,422,612
Long-Term Debt, net of current portion 11,338,427 9,658,020
Deficit:    
Preferred stock, $0.0001 par value, $5,000,000 liquidation preference; Shares authorized: 20,750,000; Shares issued and outstanding: 50,000 5 5
Common stock, $0.0001 par value; Shares authorized: 5,000,000,000; Shares issued and outstanding: 26,111,201 2,611 2,611
Additional paid-in capital 53,182,785 53,142,717
Accumulated deficit (57,236,793) (58,321,266)
Total Greystone Stockholders' Deficit (4,051,392) (5,175,933)
Non-controlling interests 1,030,083 1,139,878
Total Deficit (3,021,309) (4,036,055)
Total Liabilities and Deficit $ 15,992,574 $ 12,044,577

Consolidated Balance Sheets (Parenthetical) (Unaudited)

v2.4.0.8
Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $)
Feb. 28, 2014
May 31, 2013
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 100,000 $ 100,000
Preferred stock par value $ 0.0001 $ 0.0001
Liquidation preference $ 5,000,000 $ 5,000,000
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
Common stock par value $ 0.0001 $ 0.0001
Common stock shares authorized 5,000,000,000 5,000,000,000
Common stock shares issued 26,111,201 26,111,201
Common stock shares outstanding 26,111,201 26,111,201

Consolidated Statements of Income (Unaudited)

v2.4.0.8
Consolidated Statements of Income (Unaudited) (USD $)
3 Months Ended 9 Months Ended
Feb. 28, 2014
Feb. 28, 2013
Feb. 28, 2014
Feb. 28, 2013
Income Statement [Abstract]        
Sales $ 4,532,762 $ 4,517,453 $ 15,405,169 $ 16,705,437
Cost of Sales 3,803,454 3,687,258 11,804,150 13,467,061
Gross Profit 729,308 830,195 3,601,019 3,238,376
General, Selling and Administrative Expenses 640,529 472,912 1,782,411 1,573,995
Operating Income 88,779 357,283 1,818,608 1,664,381
Other Income (Expense):        
Other income (expense) (3,600)       6,500
Interest expense (236,255) (200,668) (634,530) (620,022)
Total Other Expense, net (239,855) (200,668) (634,530) (613,522)
Income before Income Taxes (151,076) 156,615 1,184,078 1,050,859
Benefit from Income Taxes 53,000 17,600 290,000 226,900
Net Income (98,076) 174,215 1,474,078 1,277,759
Income Attributable to Variable Interest Entities, net (35,340) (45,688) (146,523) (149,898)
Preferred Dividends (80,137) (80,137) (243,082) (244,863)
Net Income Available to Common Stockholders $ (213,553) $ 48,390 $ 1,084,473 $ 882,998
Income Available to Common Stockholders:        
Per Share of Common Stock - Basic $ (0.01) $ 0 $ 0.04 $ 0.03
Per Share of Common Stock - Diluted $ (0.01) $ 0 $ 0.04 $ 0.03
Weighted Average Shares of Common Stock Outstanding -        
Basic 26,111,201 26,111,201 26,111,201 26,111,201
Diluted 26,111,201 27,554,523 27,552,209 27,366,000

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
9 Months Ended
Feb. 28, 2014
Feb. 28, 2013
Cash Flows from Operating Activities:    
Net income $ 1,474,078 $ 1,277,759
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,008,959 995,749
Deferred income taxes (301,000) (237,400)
Stock-based compensation 40,068 40,068
Changes in receivables 543,481 629,751
Changes in related party receivables (358,746) (949,320)
Changes in inventory (1,835,297) (152,669)
Changes in prepaid expenses and other (91,294) (109,302)
Change in other assets 2,785 2,484
Changes in accounts payable and accrued expenses 616,053 15,273
Net cash provided by operating activities 1,099,087 1,512,393
Cash Flows from Investing Activities:    
Purchase of property and equipment (2,301,788) (320,651)
Cash Flows from Financing Activities:    
Proceeds from long-term debt 13,337,500   
Payments on long-term debt and capitalized leases (8,190,518) (939,014)
Issuance cost of long-term debt (110,996)   
Payments on advances from related party (92,000)   
Preferred dividends paid (3,469,039)   
Distributions by variable interest entity (256,318) (65,306)
Net cash provided by (used in) financing activities 1,218,629 (1,004,320)
Net Increase in Cash 15,928 187,422
Cash, beginning of period 366,896 194,400
Cash, end of period 382,824 381,822
Non-Cash Activities:    
Acquisition of equipment in exchange for net related party receivable 1,087,302   
Reduction in carrying value of equipment resulting from capital lease termination 212,312  
Preferred dividend accrual 24,932 244,863
Supplemental Information:    
Interest paid $ 322,631 $ 329,737

1. Basis of Financial Statements

v2.4.0.8
1. Basis of Financial Statements
9 Months Ended
Feb. 28, 2014
Basis of Financial Statements

In the opinion of Greystone Logistics, Inc. (“Greystone”), the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications, which are of a normal recurring nature, necessary to present fairly its financial position as of February 28, 2014, and the results of its operations for the nine-month and three-month periods ended February 28, 2014 and 2013, and its cash flows for the nine-month periods ended February 28, 2014 and 2013.  These consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the fiscal year ended May 31, 2013 and the notes thereto included in Greystone's Form 10-K for such period. The results of operations for the nine-month and three-month periods ended February 28, 2014 and 2013 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., and its variable interest entity, Greystone Real Estate, L.L.C. (“GRE”).  GRE owns two buildings located in Bettendorf, Iowa which are leased to GSM.

2. Earnings Per Share

v2.4.0.8
2. Earnings Per Share
9 Months Ended
Feb. 28, 2014
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 available to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income 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.  Equity instruments which have been excluded for the nine-month periods ended February 28, 2014 and 2013 and the three-month period ended February 28, 2013, respectively, are (1) certain options to purchase common stock totaling 350,000 shares and (2) convertible preferred stock which is convertible into 3,333,334 shares of common stock. Equity instruments which have been excluded for the three-month period ended February 28, 2014 due to the loss available to common stockholders are (1) certain options to purchase common stock totaling 2,450,000 shares and (2) convertible preferred stock which is convertible into 3,333,334 shares of common stock.

 

The following table sets forth the computation of basic and diluted common stock to calculate earnings per share for the nine-month and three-month periods ended February 28, 2014 and 2013:

 

    2014     2013  
Nine-Month Periods ended February 28, 2014 and 2013:            
Numerator -            
Net income available to common stockholders   $ 1,084,473     $ 882,998  
                 
Denominator -                
Weighted-average shares outstanding                
Basic     26,111,201       26,111,201  
Incremental shares from assumed conversion of options     1,441,008       1,254,799  
Diluted Shares     27,552,209       27,366,000  
                 
Three-Month Periods ended February 28, 2014 and 2013:                
Numerator -                
Net income (loss) available to common stockholders   $ (213,553 )   $ 48,390  
                 
Denominator -                
Weighted-average shares outstanding                
Basic     26,111,201       26,111,201  
Incremental shares from assumed conversion of options     -       1,443,322  
Diluted Shares     26,111,201       27,554,523  

 

3. Inventory

v2.4.0.8
3. Inventory
9 Months Ended
Feb. 28, 2014
Inventory

Inventory consists of the following:

 

    February 28,     May 31,  
    2014     2013  
Raw materials   $ 988,416     $ 750,819  
Finished goods     1,891,260       293,560  
Total inventory   $ 2,879,676     $ 1,044,379  

4. Related Party Receivable

v2.4.0.8
4. Related Party Receivable
9 Months Ended
Feb. 28, 2014
Related Party Receivable

Acquisition of Equipment

On and effective January 31, 2014, Greystone, GSM, Warren Kruger, Greystone’s President and CEO, and Yorktown Management & Financial Services, LLC (“Yorktown”), entered into a Bill of Sale and Assignment (the “Bill of Sale”) providing for the acquisition of an injection molding machine, a lift crane and several injection molds by GSM from Yorktown for $2,400,000.  Immediately prior to the acquisition, Yorktown owed GSM $3,750,085 and Greystone owed Mr. Kruger $2,662,782. The Bill of Sale provided for the offset of GSM’s receivable and Greystone’s payable, on a dollar-for-dollar basis, leaving a balance of $1,087,302 owed by Yorktown.  The purchase price of $2,400,000 was offset by the balance of $1,087,303 owed by Yorktown resulting in a cash payment to Yorktown of $1,312,697. 

 

Greystone made payments to Yorktown for use of this equipment through the date of acquisition. During the nine-month period ended February 28, 2014, such fees totaled $84,983.

 

Continuing Transactions with Yorktown

Yorktown owns certain equipment for grinding and pelletizing raw material that Greystone uses for its pallet and resin production. Rental payments for this equipment totaled $1,072,500 for the nine-month period ended February 28, 2014. In addition, Greystone continues to pay the labor and certain other costs on behalf of Yorktown’s Tulsa, Oklahoma grinding operation and invoice Yorktown for the costs on a monthly basis.

 

Other Related Party Transactions

Greystone paid a fee of $65,000 to Robert B. Rosene, Jr., a member of Greystone’s board of directors, for his services in connection with assisting Greystone in procuring its loan with International Bank of Commerce, including providing a corresponding personal guarantee.

 

5. Notes Payable

v2.4.0.8
5. Notes Payable
9 Months Ended
Feb. 28, 2014
Notes Payable

Notes payable as of February 28, 2014 and May 31, 2013 are as follows:

 

    February 28,     May 31,  
    2014     2013  
Term note payable to International Bank of Commerce, interest rate of 4.5%, monthly principal and interest payments of $171,760, maturing January 31, 2019   $ 9,060,440     $ -  
                 
Revolving note payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4%, due January 31, 2016     725,000       -  
                 
Mortgage note payable by GRE to International Bank of Commerce, interest rate of 4.5%, monthly principal and interest payments of $26,115, due January 31, 2019     3,398,228       -  
                 
Note payable to The F&M Bank & Trust Company, prime rate of interest but not less than 4.5%, paid February 3, 2014       -         4,593,650  
                 
Note payable by GRE to The F&M Bank & Trust Company, prime rate of interest but not less than 4.75%, paid February 3, 2014     -       3,366,108  
                 
Capitalized lease payable, 5% interest     -       381,727  
                 
Note payable to Robert Rosene, 7.5% interest, due January 15, 2015     2,066,000       2,066,000  
                 
Note payable to Warren Kruger, 7.5% interest     -       527,716  
                 
Other note payable     44,826       66,979  
      15,294,494       11,002,180  
Less: Current portion     (3,956,067 )     (1,344,160 )
Long-term debt   $ 11,338,427     $ 9,658,020  

 

The prime rate of interest as of February 28, 2014 was 3.25%.

 

Loan Agreement between Greystone and International Bank of Commerce (“IBC”)

 

On January 31, 2014, Greystone and GSM (the “Borrowers”) and 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.

 

The Revolving Loan bears interest at the New York Prime Rate plus 0.5% but not less than 4.0% and matures January 31, 2016.  The Borrowers are required to pay all interest accrued on the outstanding principal balance of the Revolving Loan on a monthly basis.   Any principal on the Revolving Loan that is prepaid by the Borrowers may be reborrowed by the Borrowers. The proceeds from the Revolving Loan will be used for general working capital purposes.

 

The Term Loan bears interest at 4.5% per annum and matures January 31, 2019.  The Borrowers are required to make equal payments of principal and interest in an amount sufficient to amortize the principal balance of the Term Loan over five years. The proceeds from the Term Loan were primarily used to repay the Borrowers’ obligations to The F&M Bank & Trust Company in the amount of $3,992,093, to pay accrued preferred dividends of $3,469,039 and to pay $1,312,697 to Yorktown for the acquisition of equipment.

 

The IBC Loan Agreement required the Borrowers to pay a fee in the amount of $100,000 to IBC on January 31, 2014.

 

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 (A) a one-time payment of accrued preferred dividends to holders of its preferred stock in an amount not to exceed $3,470,000 within 10 days of the date of the IBC Loan Agreement, and (B) 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.

 

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.  The proceeds of the loan were used to pay $3,197,682 to pay the outstanding obligation with The F&M Bank & Trust Company.

 

Capitalized Lease Payable

 

Effective January 2, 2014, Greystone paid $114,641 to terminate its capitalized lease and purchase the underlying equipment.  There was a difference of $212,312 between the outstanding balance of the capital lease obligation and the buyout payment which was recorded as a reduction in the asset’s carrying value.

6. Fair Value of Financial Instruments

v2.4.0.8
6. Fair Value of Financial Instruments
9 Months Ended
Feb. 28, 2014
Fair Value of Financial Instruments

The following methods and assumptions are used in estimating the fair-value disclosures for financial 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 of comparable loans.  The carrying amounts reported in the balance sheet approximate fair value.

7. Risks and Uncertainties

v2.4.0.8
7. Risks and Uncertainties
9 Months Ended
Feb. 28, 2014
Risks and Uncertainties

Greystone derives a substantial portion of its revenue from a national brewer.  This customer accounted for approximately 50% and 67% of Greystone’s pallet sales and 47% and 59% of Greystone’s total sales for the nine-month periods ended February 28, 2014 and 2013, 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.

 
 

Warren F. Kruger, Greystone’s President and CEO, and Robert B. Rosene, Jr., a Greystone director, have provided financing to Greystone and guarantees on Greystone’s bank debt.  As of February 28, 2014, Greystone was indebted to Mr. Rosene in the amount of $3,828,156 for a note payable and related accrued interest.   There is no assurance that Mr. Rosene will continue to provide extensions in the future.

8. Commitments

v2.4.0.8
8. Commitments
9 Months Ended
Feb. 28, 2014
Commitments and Contingencies Disclosure [Abstract]  
8. Commitments

As of February 28, 2014, Greystone has outstanding commitments of $252,000 for the purchase of production equipment.

2. Earnings Per Share (Tables)

v2.4.0.8
2. Earnings Per Share (Tables)
9 Months Ended
Feb. 28, 2014
Computation of Basic and Diluted Shares

 

 

    2014     2013  
Nine-Month Periods ended February 28, 2014 and 2013:            
Numerator -            
Net income available to common stockholders   $ 1,084,473     $ 882,998  
                 
Denominator -                
Weighted-average shares outstanding                
Basic     26,111,201       26,111,201  
Incremental shares from assumed conversion of options     1,441,008       1,254,799  
Diluted Shares     27,552,209       27,366,000  
                 
Three-Month Periods ended February 28, 2014 and 2013:                
Numerator -                
Net income (loss) available to common stockholders   $ (213,553 )   $ 48,390  
                 
Denominator -                
Weighted-average shares outstanding                
Basic     26,111,201       26,111,201  
Incremental shares from assumed conversion of options     -       1,443,322  
Diluted Shares     26,111,201       27,554,523  

 

3. Inventory (Tables)

v2.4.0.8
3. Inventory (Tables)
9 Months Ended
Feb. 28, 2014
Inventory

Inventory consists of the following:

 

    February 28,     May 31,  
    2014     2013  
Raw materials   $ 988,416     $ 750,819  
Finished goods     1,891,260       293,560  
Total inventory   $ 2,879,676     $ 1,044,379  

5. Notes Payable (Tables)

v2.4.0.8
5. Notes Payable (Tables)
9 Months Ended
Feb. 28, 2014
Notes Payable
    February 28,     May 31,  
    2014     2013  
Term note payable to International Bank of Commerce, interest rate of 4.5%, monthly principal and interest payments of $171,760, maturing January 31, 2019   $ 9,060,440     $ -  
                 
Revolving note payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4%, due January 31, 2016     725,000       -  
                 
Mortgage note payable by GRE to International Bank of Commerce, interest rate of 4.5%, monthly principal and interest payments of $26,115, due January 31, 2019     3,398,228       -  
                 
Note payable to The F&M Bank & Trust Company, prime rate of interest but not less than 4.5%, paid February 3, 2014       -         4,593,650  
                 
Note payable by GRE to The F&M Bank & Trust Company, prime rate of interest but not less than 4.75%, paid February 3, 2014     -       3,366,108  
                 
Capitalized lease payable, 5% interest     -       381,727  
                 
Note payable to Robert Rosene, 7.5% interest, due January 15, 2015     2,066,000       2,066,000  
                 
Note payable to Warren Kruger, 7.5% interest     -       527,716  
                 
Other note payable     44,826       66,979  
      15,294,494       11,002,180  
Less: Current portion     (3,956,067 )     (1,344,160 )
Long-term debt   $ 11,338,427     $ 9,658,020  

2. Earnings Per Share (Details)

v2.4.0.8
2. Earnings Per Share (Details) (USD $)
3 Months Ended 9 Months Ended
Feb. 28, 2014
Feb. 28, 2013
Feb. 28, 2014
Feb. 28, 2013
Numerator:        
Net income available to common shareholders $ (213,553) $ 48,390 $ 1,084,473 $ 882,998
Denominator:        
Weighted-average shares outstanding: Basic 26,111,201 26,111,201 26,111,201 26,111,201
Incremental shares from assumed conversion of options    1,443,322 1,441,008 1,254,799
Diluted shares 26,111,201 27,554,523 27,552,209 27,366,000

2. Earnings Per Share (Details Narrative)

v2.4.0.8
2. Earnings Per Share (Details Narrative)
3 Months Ended 9 Months Ended
Feb. 28, 2014
Feb. 28, 2013
Feb. 28, 2014
Feb. 28, 2013
Convertible Preferred Stock [Member]
       
Antidilutive Securities     3,333,334 3,333,334
Call Option [Member]
       
Antidilutive Securities 2,450,000 350,000 350,000 350,000
Convertible Preferred Stock [Member]
       
Antidilutive Securities 3,333,334 3,333,334    

3. Inventory (Details)

v2.4.0.8
3. Inventory (Details) (USD $)
Feb. 28, 2014
May 31, 2013
Inventory Details    
Raw materials $ 988,416 $ 750,819
Finished goods 1,891,260 293,560
Total inventory $ 2,879,676 $ 1,044,379

5. Notes Payable (Details)

v2.4.0.8
5. Notes Payable (Details) (USD $)
Feb. 28, 2014
May 31, 2013
Notes Payable Details    
Term note payable to International Bank of Commerce, interest rate of 4.5%, monthly principal and interest payments of $171,760, maturing January 31, 2019 $ 9,060,440  
Revolving note payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4%, due January 31, 2016 725,000  
Mortgage note payable by GRE to International Bank of Commerce, interest rate of 4.5%, monthly principal and interest payments of $26,115, due January 31, 2019 3,398,228  
Note payable to F&M Bank & Trust Company, prime rate of interest but not less than 4.5%, paid February 3, 2014   4,593,650
Note payable by GRE to F&M Bank & Trust Company, prime rate of interest but not less than 4.75%, paid February 3, 2014   3,366,108
Capitalized lease payable, 5% interest   381,727
Note payable to Robert Rosene, 7.5% interest, due January 15, 2015 2,066,000 2,066,000
Note payable to Warren Kruger, 7.5% interest, due January 15, 2015   527,716
Other notes payable 44,826 66,979
Total Notes Payable 15,294,494 11,002,180
Less: Current portion (3,956,067) (1,344,160)
Long-term Debt $ 11,338,427 $ 9,658,020

8. Commitments (Details Narrative)

v2.4.0.8
8. Commitments (Details Narrative) (USD $)
Feb. 28, 2014
Commitments Details Narrative  
Commitments $ 252,000