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Document and Entity Information

v2.4.0.8
Document and Entity Information
9 Months Ended
Feb. 28, 2015
Apr. 14, 2015
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, 2015  
Amendment Flag false  
Current Fiscal Year End Date --05-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   27,411,201
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2015  

Consolidated Balance Sheets (Unaudited)

v2.4.0.8
Consolidated Balance Sheets (Unaudited) (USD $)
Feb. 28, 2015
May 31, 2014
Current Assets:    
Cash $ 205,311 $ 661,263
Accounts receivable, Trade, net of allowance of $71,462 636,700 2,023,563
Accounts receivable, Related party receivable 400,930 219,505
Inventory 2,938,866 1,616,165
Deferred tax asset - current 1,330,000 1,077,000
Prepaid expenses 55,813 97,170
Total Current Assets 5,567,620 5,694,666
Property and Equipment, net of accumulated depreciation 8,673,841 8,776,137
Deferred Tax Asset 951,955 1,133,000
Other Assets 138,979 163,188
Total Assets 15,332,395 15,766,991
Current Liabilities:    
Current portion of long-term debt 2,550,923 3,979,376
Accounts payable and accrued expenses 1,484,391 782,591
Accrued interest - related party 2,063,618 1,835,999
Preferred dividends payable 52,534 27,603
Total Current Liabilities 6,151,466 6,625,569
Long-Term Debt, net of current portion 10,774,829 10,524,745
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, 27,411,201 and 26,461,201 shares issued and outstanding 2,741 2,646
Additional paid-in capital 53,490,079 53,336,106
Accumulated deficit (56,097,967) (55,715,203)
Total Greystone Stockholders' Deficit (2,605,142) (2,376,446)
Non-controlling interest 1,011,242 993,123
Total Deficit (1,593,900) (1,383,323)
Total Liabilities and Deficit $ 15,332,395 $ 15,766,991

Consolidated Balance Sheets (Parenthetical)

v2.4.0.8
Consolidated Balance Sheets (Parenthetical) (USD $)
Feb. 28, 2015
May 31, 2014
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 71,462 $ 71,462
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
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 27,411,201 26,461,201
Common stock shares outstanding 27,411,201 26,461,201

Consolidated Statements of Operations (Unaudited)

v2.4.0.8
Consolidated Statements of Operations (Unaudited) (USD $)
3 Months Ended 9 Months Ended
Feb. 28, 2015
Feb. 28, 2014
Feb. 28, 2015
Feb. 28, 2014
Income Statement [Abstract]        
Sales $ 3,685,044 $ 4,532,762 $ 13,676,492 $ 15,405,169
Cost of Sales 2,431,250 3,803,454 11,428,901 11,804,150
Gross Profit 1,253,794 729,308 2,247,591 3,601,019
General, Selling and Administrative Expenses 573,099 640,529 1,679,041 1,782,411
Operating Income 680,695 88,779 568,550 1,818,608
Other Income (Expense):        
Other income (expense)    (3,600) 2,500   
Interest expense (200,151) (236,255) (611,568) (634,530)
Total Other Expense, net (200,151) (239,855) (609,068) (634,530)
Income (Loss) before Income Taxes 480,544 (151,076) (40,518) 1,184,078
(Provision) Benefit from Income Taxes (143,728) 53,000 71,955 290,000
Net Income (Loss) 336,816 (98,076) 31,437 1,474,078
Income Attributable to Variable Interest Entities, net (57,820) (35,340) (171,119) (146,523)
Preferred Dividends (80,137) (80,137) (243,082) (243,082)
Net Income (Loss) Attributable to Common Stockholders $ 198,859 $ (213,553) $ (382,764) $ 1,084,473
Income (Loss) Per Share of Common Stock -        
Basic and Diluted $ 0.01 $ (0.01) $ (0.01) $ 0.04
Weighted Average Shares of Common Stock Outstanding -        
Basic 27,309,812 26,111,201 26,828,417 26,111,201
Diluted 28,014,651 26,111,201 26,828,417 27,552,209

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
9 Months Ended
Feb. 28, 2015
Feb. 28, 2014
Cash Flows from Operating Activities:    
Net income $ 31,437 $ 1,474,078
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 1,054,118 1,008,959
Increase in deferred tax asset (71,955) (301,000)
Stock-based compensation 40,068 40,068
Changes in trade accounts receivable 1,386,863 543,481
Changes in related party receivable (256,425) (358,746)
Changes in inventory (1,322,701) (1,835,297)
Changes in prepaid expenses 41,357 (91,294)
Changes in accounts payable and accrued expenses 929,419 616,053
Other    2,785
Net cash provided by operating activities 1,832,181 1,099,087
Cash Flows from Investing Activities:    
Purchase of property and equipment (820,364) (2,301,788)
Cash Flows from Financing Activities:    
Proceeds from long-term debt    13,337,500
Proceeds from revolving loan 600,000   
Payments on long-term debt and capitalized leases (1,425,618) (8,190,518)
Payments on revolving loan (385,000)   
Payments on notes and advances payable to related party    (92,000)
Issuance cost of long-term debt    (110,996)
Proceeds from exercised stock options 114,000   
Dividends paid on preferred stock (218,151) (3,469,039)
Dividends paid by variable interest entity (153,000) (256,318)
Net cash provided by (used in) financing activities (1,467,769) 1,218,629
Net Increase (Decrease) in Cash (455,952) 15,928
Cash, beginning of period 661,263 366,896
Cash, end of period 205,311 382,824
Non-Cash Activities:    
Acquisition of equipment from related party 75,000 1,087,302
Capitalized equipment lease 32,249   
Reduction in carrying value of equipment resulting from capital lease termination    212,312
Preferred dividend accrual 24,931 24,932
Supplemental Information:    
Interest paid $ 385,638 $ 322,631

Basis of Financial Statements

v2.4.0.8
Basis of Financial Statements
9 Months Ended
Feb. 28, 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 February 28, 2015 and May 31, 2014, the results of its operations for the nine-month and three-month periods ended February 28, 2015 and 2014, and its cash flows for the nine-month periods ended February 28, 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, 2014 and the notes thereto included in Greystone’s Form 10-K for such period. The results of operations for the nine-months and three-month periods ended February 28, 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

v2.4.0.8
Earnings Per Share
9 Months Ended
Feb. 28, 2015
Income (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  
Nine-month periods ended February 28:                
Options to purchase common stock     1,150,000       350,000  
Preferred stock convertible into common stock     3,333,334       3,333,334  
Total     4,483,334       3,683,334  
                 
Three-month periods ended February 28:                
Options to purchase common stock     -       2,450,000  
Preferred stock convertible into common stock     3,333,334       3,333,334  
Total     3,333,334       5,783,334  

 

The following tables set forth the computation of basic and diluted earnings per share for the nine-month and three-month periods ended February 28, 2015 and 2014:

 

    2015     2014  
Nine-month periods ended February 28:                
Numerator -                
Net income (loss) available to common stockholders   $ (382,764 )   $ 1,084,473  
Denominator -                
Weighted-average shares outstanding - basic     26,828,417       26,111,201  
Incremental shares from assumed conversion of options     -       1,441,008  
Diluted shares     26,828,417       27,552,209  
Earnings (Loss) per share -                
Basic   $ (0.01 )   $ 0.04  
Diluted   $ (0.01 )   $ 0.04  
Three-month periods ended February 28:                
Numerator -                
Net income (loss) available to common stockholders   $ 198,859     $ (213,553 )
Denominator -                
Weighted-average shares outstanding - basic     27,309,812       26,111,201  
Incremental shares from assumed conversion of options     704,839       -  
Diluted shares     28,014,651       26,111,201  
Earnings (Loss) per share -                
Basic   $ (0.01 )   $ (0.01 )
Diluted   $ (0.01 )   $ (0.01 )

Inventory

v2.4.0.8
Inventory
9 Months Ended
Feb. 28, 2015
Inventory Disclosure [Abstract]  
Inventory

Note 3. Inventory

 

Inventory consists of the following:

 

    February 28, 2015     May 31, 2014  
Raw materials   $ 804,122     $ 1,043,411  
Finished goods     2,134,744       572,754  
Total inventory   $ 2,938,866     $ 1,616,165  

Related Party Transactions

v2.4.0.8
Related Party Transactions
9 Months Ended
Feb. 28, 2015
Related Party Transactions [Abstract]  
Related Party Transactions

Note 4. Related Party Transactions

 

Yorktown Management & Financial Services, L.L.C.

 

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. Yorktown also owns a plastic grinding and wash line facility used to recycle plastic into usable raw material which Greystone may purchase at market prices. 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 $2,000.

 

GSM pays 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. GSM paid Yorktown total equipment rental fees of $1,072,650 and $1,072,500 for the nine months ended February 28, 2015 and 2014, respectively.

 

Greystone pays the labor on behalf of Yorktown’s Tulsa, Oklahoma grinding operation. These costs are invoiced to Yorktown on a monthly basis. As of February 28, 2015, Yorktown owes Greystone $327,486 primarily from the aforementioned labor costs incurred by Greystone on behalf of Yorktown.

 

Trienda Holdings, L.L.C.

 

Trienda Holdings, L.L.C. (“Trienda”) is a manufacturer of plastic pallets of which Warren F. Kruger, Greystone’s President and CEO, has a major ownership interest and serves Trienda as the non-executive Chairman of the Board. Greystone blends and pelletizes plastic resin for Trienda using equipment and raw materials owned by Trienda. Greystone services for Trienda for the nine-month period ended Febuary 28, 2015 total $177,241. The account receivable from Trienda at February 28, 2015 was $73,444.

Debt

v2.4.0.8
Debt
9 Months Ended
Feb. 28, 2015
Debt Disclosure [Abstract]  
Debt

Note 5. Debt

 

Debt as of February 28, 2015 and May 31, 2014 is as follows:

 

    February 28, 2015     May 31, 2014  
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   $ 7,378,162     $ 8,647,777  
                 
Revolving note payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, due January 31, 2016     600,000       385,000  
                 
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     3,250,190       3,371,660  
                 
Note payable to Robert Rosene, 7.5% interest, due January 15, 2015     2,066,000       2,066,000  
                 
Other notes payable     31,400       33,684  
      13,325,752       14,504,121  
Less: Current portion     (2,550,923 )     (3,979,376 )
Long-term debt   $ 10,774,829     $ 10,524,745  

 

The prime rate of interest as of February 28, 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.

 

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 monthly payments $171,760 towards principal and interest to amortize the principal balance over the term of the loan.

 

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 February 28, 2015 was 0.89 to 1:00 which was less than the required minimum as discussed above. Greystone has requested a waiver from IBC with respect to this occurrence of noncompliance.

 

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 has accrued interest on the note and unpaid interest in the amounts of $227,619 and $211,002 for the nine-month periods ended February 28, 2015 and 2014, respectively. Accrued interest due to Mr. Rosene at February 28, 2015 is $2,063,618.

Stock Compensation Costs

v2.4.0.8
Stock Compensation Costs
9 Months Ended
Feb. 28, 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 $40,068 for the nine-month periods ended February 28, 2015 and 2014, respectively. The unexpensed cost at February 28, 2015 totaled $66,780.

Fair Value of Financial Instruments

v2.4.0.8
Fair Value of Financial Instruments
9 Months Ended
Feb. 28, 2015
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 consolidated balance sheet approximate fair value.

Risks and Uncertainties

v2.4.0.8
Risks and Uncertainties
9 Months Ended
Feb. 28, 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 44% and 50% of Greystone’s pallet sales and 40% and 47% of Greystone’s total sales for the nine months ended February 28, 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 February 28, 2015, Greystone is indebted to Mr. Rosene in the amount of $4,053,146 for a note payable and related accrued interest due January 15, 2017. There is no assurance that Mr. Rosene will continue to provide extensions or guarantees in the future.

Recent Accounting Pronouncements

v2.4.0.8
Recent Accounting Pronouncements
9 Months Ended
Feb. 28, 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.

Earnings Per Share (Tables)

v2.4.0.8
Earnings Per Share (Tables)
9 Months Ended
Feb. 28, 2015
Income (Loss) Per Share of Common Stock -  
Schedule of Antidilutive Securities

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  
Nine-month periods ended February 28:                
Options to purchase common stock     1,150,000       350,000  
Preferred stock convertible into common stock     3,333,334       3,333,334  
Total     4,483,334       3,683,334  
                 
Three-month periods ended February 28:                
Options to purchase common stock     -       2,450,000  
Preferred stock convertible into common stock     3,333,334       3,333,334  
Total     3,333,334       5,783,334  

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 nine-month and three-month periods ended February 28, 2015 and 2014:

 

    2015     2014  
Nine-month periods ended February 28:                
Numerator -                
Net income (loss) available to common stockholders   $ (382,764 )   $ 1,084,473  
Denominator -                
Weighted-average shares outstanding - basic     26,828,417       26,111,201  
Incremental shares from assumed conversion of options     -       1,441,008  
Diluted shares     26,828,417       27,552,209  
Earnings (Loss) per share -                
Basic   $ (0.01 )   $ 0.04  
Diluted   $ (0.01 )   $ 0.04  
Three-month periods ended February 28:                
Numerator -                
Net income (loss) available to common stockholders   $ 198,859     $ (213,553 )
Denominator -                
Weighted-average shares outstanding - basic     27,309,812       26,111,201  
Incremental shares from assumed conversion of options     704,839       -  
Diluted shares     28,014,651       26,111,201  
Earnings (Loss) per share -                
Basic   $ (0.01 )   $ (0.01 )
Diluted   $ (0.01 )   $ (0.01 )

Inventory (Tables)

v2.4.0.8
Inventory (Tables)
9 Months Ended
Feb. 28, 2015
Inventory Disclosure [Abstract]  
Schedule of Inventory

Inventory consists of the following:

 

    February 28, 2015     May 31, 2014  
Raw materials   $ 804,122     $ 1,043,411  
Finished goods     2,134,744       572,754  
Total inventory   $ 2,938,866     $ 1,616,165  

Debt (Tables)

v2.4.0.8
Debt (Tables)
9 Months Ended
Feb. 28, 2015
Debt Disclosure [Abstract]  
Schedule of Debt

Debt as of February 28, 2015 and May 31, 2014 is as follows:

 

    February 28, 2015     May 31, 2014  
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   $ 7,378,162     $ 8,647,777  
                 
Revolving note payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, due January 31, 2016     600,000       385,000  
                 
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     3,250,190       3,371,660  
                 
Note payable to Robert Rosene, 7.5% interest, due January 15, 2015     2,066,000       2,066,000  
                 
Other notes payable     31,400       33,684  
      13,325,752       14,504,121  
Less: Current portion     (2,550,923 )     (3,979,376 )
Long-term debt   $ 10,774,829     $ 10,524,745  

Earnings Per Share - Schedule of Antidilutive Securities (Details)

v2.4.0.8
Earnings Per Share - Schedule of Antidilutive Securities (Details)
3 Months Ended 9 Months Ended
Feb. 28, 2015
Feb. 28, 2014
Feb. 28, 2015
Feb. 28, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share 3,333,334 5,783,334 4,483,334 3,683,334
Options To Purchase Common Stock
       
Antidilutive Securities Excluded from Computation of Earnings Per Share    2,450,000 1,150,000 350,000
Preferred Stock Convertible Into Common Stock
       
Antidilutive Securities Excluded from Computation of Earnings Per Share 3,333,334 3,333,334 3,333,334 3,333,334

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

v2.4.0.8
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) (USD $)
3 Months Ended 9 Months Ended
Feb. 28, 2015
Feb. 28, 2014
Feb. 28, 2015
Feb. 28, 2014
Income (Loss) Per Share of Common Stock -        
Numerator - Net income (loss) available to common shareholders $ 198,859 $ (213,553) $ (382,764) $ 1,084,473
Denominator - Weighted-average shares outstanding - Basic 27,309,812 26,111,201 26,828,417 26,111,201
Denominator - Incremental shares from assumed conversion of options 704,839 0 0 1,441,008
Denominator - Diluted shares 28,014,651 26,111,201 26,828,417 27,552,209
Earnings (Loss) per share - Basic $ (0.01) $ (0.01) $ (0.01) $ 0.04
Earnings (Loss) per share - Diluted $ (0.01) $ (0.01) $ (0.01) $ 0.04

Inventory - Schedule of Inventory (Details)

v2.4.0.8
Inventory - Schedule of Inventory (Details) (USD $)
Feb. 28, 2015
May 31, 2014
Inventory Disclosure [Abstract]    
Raw materials $ 804,122 $ 1,043,411
Finished goods 2,134,744 572,754
Total inventory $ 2,938,866 $ 1,616,165

Related Party Transactions (Details Narrative)

v2.4.0.8
Related Party Transactions (Details Narrative) (USD $)
9 Months Ended
Feb. 28, 2015
Feb. 28, 2014
Oklahoma [Member]
   
Operating Lease rental fees $ 2,000  
Yorktown's Grinding Equipment [Member]
   
Operating Lease rental fees 22,500  
Yorktown's Pelletizing Equipment [Member]
   
Operating Lease rental fees 5,000  
Yorktown [Member]
   
Operating Lease rental fees 1,072,650 1,072,500
Labor costs 327,486  
Trienda Holdings, LLC [Member]
   
During period services for trienda   177,241
Account receivable $ 73,444  

Debt (Details Narrative)

v2.4.0.8
Debt (Details Narrative) (USD $)
9 Months Ended 9 Months Ended 0 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 0 Months Ended
Feb. 28, 2015
Feb. 28, 2014
May 31, 2014
Feb. 28, 2015
Robert B Rosene [Member]
May 31, 2014
Robert B Rosene [Member]
Dec. 15, 2005
Robert B Rosene [Member]
Dec. 15, 2015
Greystone And Rober B Rosene [Member]
Jan. 31, 2014
Greystone and GSM [Member]
Jan. 31, 2014
Greystone and GSM [Member]
Minimum [Member]
Jan. 31, 2014
Greystone and GSM [Member]
Maximum [Member]
Jan. 31, 2014
Greystone and GSM [Member]
Revolving Loan [Member]
Jan. 31, 2015
Greystone and GSM [Member]
Term Loan [Member]
Jan. 31, 2014
Greystone and GSM [Member]
Term Loan [Member]
Jan. 31, 2014
IBC Loan Agreement [Member]
Jan. 31, 2015
IBC Loan Agreement [Member]
Guaranty [Member]
Jan. 31, 2014
GRE And IBC [Member]
Mortgage Loan [Member]
Feb. 28, 2015
Prime Rate [Member]
Debt instrument interest rate           7.50%     0.50% 4.00%     4.50%     4.50% 3.25%
Debt instrument principle amount                     $ 2,500,000   $ 9,200,000     $ 3,412,500  
Borrowed loans               2,500,000                  
Debt instrument maturity date       Jan. 15, 2017     Jan. 15, 2017 Jan. 31, 2016       Jan. 31, 2019       Jan. 31, 2019  
Debt instrument periodic payment                       171,760          
Borrowers maintain coverage ratio description

0.89 to 1:00 which was less than the required minimum

                       

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

     
Capital expenditure on fixed assets                           1,000,000      
Preferred stock amount 5   5                     500,000      
Borrowings combined amount                             6,500,000    
Convertible notes payable           2,066,000                      
Debt instruments accrued interest 227,619 211,002                              
Accrued interest         $ 2,063,618                        

Debt - Schedule of Debt (Details)

v2.4.0.8
Debt - Schedule of Debt (Details) (USD $)
Feb. 28, 2015
May 31, 2014
Total Notes Payable $ 13,325,752 $ 14,504,121
Less: Current portion (2,550,923) (3,979,376)
Long-term Debt 10,774,829 10,524,745
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 7,378,162 8,647,777
Revolving Note Payable To International Bank Of Commerce,Prime Rate Of Interest Plus 0.5% But Not Less Than 4.0%, Due January 31, 2016 [Member]
   
Total Notes Payable 600,000 385,000
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 3,250,190 3,371,660
Note Payable To Robert Rosene, 7.5% Interest, Due January 15, 2015 [Member]
   
Total Notes Payable 2,066,000 2,066,000
Other Notes Payable [Member]
   
Total Notes Payable $ 31,400 $ 33,684

Debt - Schedule of Debt (Details) (Parenthetical)

v2.4.0.8
Debt - Schedule of Debt (Details) (Parenthetical) (USD $)
9 Months Ended 12 Months Ended
Feb. 28, 2015
May 31, 2014
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 principle 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, 2016 [Member]
   
Debt instrument maturity date Jan. 31, 2016 Jan. 31, 2016
Debt instrument principle amount     
Revolving Note Payable To International Bank Of Commerce,Prime Rate Of Interest Plus 0.5% But Not Less Than 4.0%, Due January 31, 2016 [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, 2016 [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 principle amount 26,215 26,215
Note Payable To Robert Rosene, 7.5% Interest, Due January 15, 2015 [Member]
   
Debt instrument interest rate 7.50% 7.50%
Debt instrument maturity date Jan. 15, 2017 Jan. 15, 2017
Debt instrument principle amount     

Stock Compensation Costs (Details Narrative)

v2.4.0.8
Stock Compensation Costs (Details Narrative) (USD $)
9 Months Ended
Feb. 28, 2015
Feb. 28, 2014
Unexpensed cost $ 66,780  
Stock Option Issued June 1, 2012 [Member]
   
Stock compensation costs $ 40,068 $ 40,068

Risks and Uncertainties (Details Narrative)

v2.4.0.8
Risks and Uncertainties (Details Narrative) (USD $)
9 Months Ended
Feb. 28, 2015
May 31, 2014
Feb. 28, 2015
Robert B Rosene [Member]
Feb. 28, 2015
Greystone Pallet Sales [Member]
Feb. 28, 2014
Greystone Pallet Sales [Member]
Feb. 28, 2015
Greystone Total Sales [Member]
Feb. 28, 2014
Greystone Total Sales [Member]
Percentage of sales       44.00% 50.00% 40.00% 47.00%
Note payable $ 13,325,752 $ 14,504,121 $ 4,053,146        
Debt instrument maturity date     Jan. 15, 2017