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Document and Entity Information

v2.4.0.8
Document and Entity Information
3 Months Ended
Aug. 31, 2015
Oct. 13, 2015
Document And Entity Information    
Entity Registrant Name GREYSTONE LOGISTICS, INC.  
Entity Central Index Key 0001088413  
Document Type 10-Q  
Document Period End Date Aug. 31, 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
Trading Symbol GLGI  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2016  

Consolidated Balance Sheet (Unaudited)

v2.4.0.8
Consolidated Balance Sheet (Unaudited) (USD $)
Aug. 31, 2015
May 31, 2015
Current Assets:    
Cash $ 718,193 $ 598,887
Accounts receivable - Trade, net of allowance of $13,260 1,802,986 1,453,416
Accounts receivable - Related party receivables 486,583 519,659
Inventory 2,054,267 1,429,344
Deferred tax asset - current 1,232,881 1,222,110
Prepaid expenses and other 10,000 20,249
Total Current Assets 6,304,910 5,243,665
Property, Plant and Equipment 18,355,006 18,072,472
Less: Accumulated Depreciation (9,942,123) (9,563,157)
Property, Plant and Equipment, net 8,412,883 8,509,315
Deferred Tax Asset 551,641 557,127
Other Assets 121,578 129,634
Total Assets 15,391,012 14,439,741
Current Liabilities:    
Current portion of long-term debt 1,987,039 2,278,164
Accounts payable and accrued expenses 2,534,677 798,470
Accounts payable and accrued expenses - related parties 2,224,470 2,143,275
Preferred dividends payable 55,206 54,315
Total Current Liabilities 6,801,392 5,274,224
Long-Term Debt, net of current portion 9,796,116 10,300,847
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: 27,411,201 2,741 2,741
Additional paid-in capital 53,516,791 53,503,435
Accumulated deficit (55,748,953) (55,657,638)
Total Greystone Stockholders' Deficit (2,229,416) (2,151,457)
Non-controlling interests 1,022,920 1,016,127
Total Deficit (1,206,496) (1,135,330)
Total Liabilities and Deficit $ 15,391,012 $ 14,439,741

Consolidated Balance Sheet (Unaudited) (Parenthetical)

v2.4.0.8
Consolidated Balance Sheet (Unaudited) (Parenthetical) (USD $)
Aug. 31, 2015
May 31, 2015
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 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
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 27,411,201
Common stock, shares outstanding 27,411,201 27,411,201

Consolidated Statements of Operations (Unaudited)

v2.4.0.8
Consolidated Statements of Operations (Unaudited) (USD $)
3 Months Ended
Aug. 31, 2015
Aug. 31, 2014
Income Statement [Abstract]    
Sales $ 5,569,981 $ 6,066,371
Cost of Sales 4,629,316 4,737,213
Gross Profit 940,665 1,329,158
General, Selling and Administrative Expenses 702,142 614,942
Operating Income 238,523 714,216
Other Income (Expense):    
Interest expense (195,412) (208,843)
Income before Income Taxes 43,111 505,373
Benefit from (Provision for) Income Taxes 5,285 (152,700)
Net Income 48,396 352,673
Income Attributable to Variable Interest Entity (57,793) (56,257)
Preferred Dividends (81,918) (81,918)
Net Income (Loss) Attributable to Common Stockholders $ (91,315) $ 214,498
Income (Loss) Attributable to Common Stockholders:    
Per Share of Common Stock - Basic and Diluted $ 0.00 $ 0.01
Weighted Average Shares of Common Stock Outstanding -    
Basic 27,411,201 26,461,201
Diluted 27,411,201 28,085,729

Consolidated Statements of Cash Flows (Unaudited)

v2.4.0.8
Consolidated Statements of Cash Flows (Unaudited) (USD $)
3 Months Ended
Aug. 31, 2015
Aug. 31, 2014
Cash Flows from Operating Activities:    
Net income $ 48,396 $ 352,673
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 388,324 343,333
Deferred income taxes (5,285) 152,700
Stock-based compensation 13,356 13,356
Changes in trade receivables (349,570) 966,704
Changes in related party receivable 33,076 (115,604)
Changes in inventory (624,923) (405,953)
Changes in prepaid expenses and other 10,249 67,530
Change in other assets (1,303)   
Changes in accounts payable and accrued expenses 1,817,402 69,109
Net cash provided by operating activities 1,329,722 1,443,848
Cash Flows from Investing Activities:    
Purchase of property and equipment (282,534) (443,000)
Cash Flows from Financing Activities:    
Payments on long-term debt and capitalized leases (495,855) (318,163)
Payments on revolving loan (300,000) (385,000)
Payments on preferred dividends (81,027) (54,315)
Distributions by variable interest entity (51,000) (51,000)
Net cash used in financing activities (927,882) (808,478)
Net Increase in Cash 119,306 192,370
Cash, beginning of period 598,887 661,263
Cash, end of period 718,193 853,633
Non-Cash Activities:    
Acquisition of equipment from related party    75,000
Preferred dividend accrual 55,206 55,206
Supplemental Information:    
Interest paid $ 126,646 $ 101,299

Basis of Financial Statements

v2.4.0.8
Basis of Financial Statements
3 Months Ended
Aug. 31, 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 August 31, 2015, and the results of its operations and its cash flows for the three-month periods ended August 31, 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 three-month periods ended August 31, 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 its 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
3 Months Ended
Aug. 31, 2015
Income (Loss) Attributable to Common Stockholders:  
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) attributable to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income (loss) attributable 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. For the three months ended August 31, 2015, equity instruments which have been excluded are Greystone’s convertible preferred stock which is convertible into 3,333,334 shares of common stock and common stock options to purchase 1,150,000 of common stock. For the three months ended August 31, 2014, equity instruments which have been excluded are Greystone’s 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 earnings per share for the three months ended August 31, 2015 and 2014:

 

    2015     2014  
Numerator:                
Net income (loss) attributable to common shareholders   $ (91,315 )   $ 214,498  
                 
Denominator:                
Weighted-average shares outstanding:                
Basic     27,411,201       26,461,201  
Incremental shares from assumed conversion of options     -       1,624,528  
Diluted shares     27,411,201       28,085,729  
Earnings per share:                
Basic   $ 0.00     $ 0.01  
Diluted   $ 0.00     $ 0.01  

Inventory

v2.4.0.8
Inventory
3 Months Ended
Aug. 31, 2015
Inventory Disclosure [Abstract]  
Inventory

Note 3. Inventory

Inventory consists of the following:

    August 31, 2015     May 31, 2015  
Raw materials   $ 710,764     $ 665,702  
Finished goods     1,343,503       763,642  
Total inventory   $ 2,054,267     $ 1,429,344  

Related Party Receivable

v2.4.0.8
Related Party Receivable
3 Months Ended
Aug. 31, 2015
Related Party Transactions [Abstract]  
Related Party Receivable

Note 4. Related Party Receivable

 

Yorktown Management & Financial Services, LLC

 

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 $2,200.

 

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 $357,500 and $385,260 for the three months ended August 31, 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 August 31, 2015, Yorktown owes Greystone $438,273 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 blends and pelletizes plastic resin using TriEnda’s equipment and raw materials. As of August 31, 2015, the account receivable from TriEnda was $3,113. In addition, Greystone owed TriEnda $49,413 for recycled plastic acquired from TriEnda.

 

Green Plastic Pallets

 

Greystone sells plastics pallets to Green Plastic Pallets (“Green”), an entity that is owned by James Kruger, brother to Warren Kruger, Greystone’s president and CEO. As of August 31, 2015, Greystone had sales of $55,080 and an account receivable from Green in the amount of $45,197.

Debt

v2.4.0.8
Debt
3 Months Ended
Aug. 31, 2015
Debt Disclosure [Abstract]  
Debt

Note 5. Debt

 

Debt as of August 31, 2015 and May 31, 2015 is as follows:

 

    August 31, 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   $ 6,506,944     $ 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, 2016     -       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     3,151,685       3,207,553  
                 
Note payable to Robert Rosene, 7.5% interest, due January 15, 2017     2,066,000       2,066,000  
                 
Other     58,526       59,574  
      11,783,155       12,579,011  
Less: Current portion     (1,987,039 )     (2,278,164 )
Long-term debt   $ 9,796,116     $ 10,300,847  

 

 The prime rate of interest as of August 31, 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 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.

 

Greystone’s debt service coverage ratio as of August 31, 2015 was 0:53 to 1:00 which was less than the required minimum as discussed above. IBC has granted Greystone a waiver with respect to this occurrence of noncompliance.

 

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 is secured by a mortgage on the two buildings in Bettendorf, Iowa which are leased to Greystone.

Stock Compensation Costs

v2.4.0.8
Stock Compensation Costs
3 Months Ended
Aug. 31, 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 $13,356 for the three months ended August 31, 2015 and 2014, respectively. The unexpensed cost at August 31, 2015 totaled $40,068.

Fair Value of Financial Instruments

v2.4.0.8
Fair Value of Financial Instruments
3 Months Ended
Aug. 31, 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 balance sheet approximate fair value.

Recent Accounting Pronouncements

v2.4.0.8
Recent Accounting Pronouncements
3 Months Ended
Aug. 31, 2015
Accounting Changes and Error Corrections [Abstract]  
Recent Accounting Pronouncements

Note 8. 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 2014-09”) 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 2014-09 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 July 9, 2015, FASB voted to approve a one-year deferral of the effective date such that the effective date for Greystone’s interim and annual periods begins June 1, 2018.

 

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.

Risks and Uncertainties

v2.4.0.8
Risks and Uncertainties
3 Months Ended
Aug. 31, 2015
Risks and Uncertainties [Abstract]  
Risks and Uncertainties

Note 9. Risks and Uncertainties

 

Greystone derives a substantial portion of its revenue from a national brewer. This customer accounted for approximately 31% and 51% of Greystone’s total sales for the three months ended August 31, 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 August 31, 2015, Greystone is indebted to Mr. Rosene in the amount of $4,290,470 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.

Earnings Per Share (Tables)

v2.4.0.8
Earnings Per Share (Tables)
3 Months Ended
Aug. 31, 2015
Income (Loss) Attributable to Common Stockholders:  
Schedule of Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the three months ended August 31, 2015 and 2014:

 

    2015     2014  
Numerator:                
Net income (loss) attributable to common shareholders   $ (91,315 )   $ 214,498  
                 
Denominator:                
Weighted-average shares outstanding:                
Basic     27,411,201       26,461,201  
Incremental shares from assumed conversion of options     -       1,624,528  
Diluted shares     27,411,201       28,085,729  
Earnings per share:                
Basic   $ 0.00     $ 0.01  
Diluted   $ 0.00     $ 0.01  

Inventory (Tables)

v2.4.0.8
Inventory (Tables)
3 Months Ended
Aug. 31, 2015
Inventory Disclosure [Abstract]  
Schedule of Inventory

Inventory consists of the following:

    August 31, 2015     May 31, 2015  
Raw materials   $ 710,764     $ 665,702  
Finished goods     1,343,503       763,642  
Total inventory   $ 2,054,267     $ 1,429,344  

Debt (Tables)

v2.4.0.8
Debt (Tables)
3 Months Ended
Aug. 31, 2015
Debt Disclosure [Abstract]  
Schedule of Debt

Debt as of August 31, 2015 and May 31, 2015 is as follows:

 

    August 31, 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   $ 6,506,944     $ 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, 2016     -       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     3,151,685       3,207,553  
                 
Note payable to Robert Rosene, 7.5% interest, due January 15, 2017     2,066,000       2,066,000  
                 
Other     58,526       59,574  
      11,783,155       12,579,011  
Less: Current portion     (1,987,039 )     (2,278,164 )
Long-term debt   $ 9,796,116     $ 10,300,847  

Earnings Per Share (Details Narrative)

v2.4.0.8
Earnings Per Share (Details Narrative)
3 Months Ended
Aug. 31, 2015
Aug. 31, 2014
Preferred Stock Convertible Into Common Stock [Member]
   
Antidilutive Securities Excluded from Computation of Earnings Per Share 3,333,334 3,333,334
Options To Purchase Common Stock [Member]
   
Antidilutive Securities Excluded from Computation of Earnings Per Share 1,150,000  

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
Aug. 31, 2015
Aug. 31, 2014
Income (Loss) Attributable to Common Stockholders:    
Numerator - Net income (loss) available to common shareholders $ (91,315) $ 214,498
Denominator - Weighted-average shares outstanding - Basic 27,411,201 26,461,201
Denominator - Incremental shares from assumed conversion of options    1,624,528
Denominator - Diluted shares 27,411,201 28,085,729
Earnings per share: Basic $ 0.00 $ 0.01
Earnings per share: Diluted $ 0.00 $ 0.01

Inventory - Schedule of Inventory (Details)

v2.4.0.8
Inventory - Schedule of Inventory (Details) (USD $)
Aug. 31, 2015
May 31, 2015
Inventory Disclosure [Abstract]    
Raw materials $ 710,764 $ 665,702
Finished goods 1,343,503 763,642
Total Inventory $ 2,054,267 $ 1,429,344

Related Party Receivable (Details Narrative)

v2.4.0.8
Related Party Receivable (Details Narrative) (USD $)
3 Months Ended
Aug. 31, 2015
Aug. 31, 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 357,500 385,260
Labor costs 438,273  
Trienda Holdings, LLC [Member]
   
Due to related parties amount 49,413  
Account receivable 3,113  
Green Plastic Pallets [Member]
   
Account receivable 45,197  
Sales $ 55,080  

Debt (Details Narrative)

v2.4.0.8
Debt (Details Narrative) (USD $)
3 Months Ended 0 Months Ended
Aug. 31, 2015
May 31, 2015
Jan. 31, 2014
Greystone and GSM [Member]
Jan. 31, 2014
Greystone and GSM [Member]
Revolving Loan [Member]
Jan. 31, 2014
Greystone and GSM [Member]
Term Loan [Member]
Jan. 31, 2014
IBC Loan Agreement [Member]
Jan. 31, 2014
IBC Loan Agreement [Member]
Guaranty [Member]
Jan. 31, 2014
GRE And IBC [Member]
Mortgage Loan [Member]
Aug. 31, 2015
Prime Rate [Member]
Debt instrument interest rate                 3.25%
Debt instrument principal amount       $ 2,500,000 $ 9,200,000     $ 3,412,500  
Borrowed loans     2,500,000            
Borrowers' combined capital expenditures on fixed assets, per year           1,000,000      
Borrowers maintain coverage ratio description 0.53 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.      
Preferred stock amount 5 5       3,470,000      
Additional preferred stock amount           500,000      
Borrowings combined amount             $ 6,500,000    

Debt - Schedule of Debt (Details)

v2.4.0.8
Debt - Schedule of Debt (Details) (USD $)
Aug. 31, 2015
May 31, 2015
Total Notes Payable $ 11,783,155 $ 12,579,011
Less: Current portion (1,987,039) (2,278,164)
Long-term Debt 9,796,116 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 6,506,944 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, 2016 [Member]
   
Total Notes Payable    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 3,151,685 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
Other Notes Payable [Member]
   
Total Notes Payable $ 58,526 $ 59,574

Debt - Schedule of Debt (Details) (Parenthetical)

v2.4.0.8
Debt - Schedule of Debt (Details) (Parenthetical) (USD $)
3 Months Ended 12 Months Ended
Aug. 31, 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, 2016 [Member]
   
Debt instrument maturity date Jan. 31, 2016 Jan. 31, 2016
Debt instrument principal 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 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
Debt instrument principal amount     

Stock Compensation Costs (Details Narrative)

v2.4.0.8
Stock Compensation Costs (Details Narrative) (USD $)
3 Months Ended
Aug. 31, 2015
Aug. 30, 2014
Unexpensed cost $ 40,068  
Stock Option Issued June 1, 2012 [Member]
   
Stock compensation costs $ 13,356 $ 13,356

Risks and Uncertainties (Details Narrative)

v2.4.0.8
Risks and Uncertainties (Details Narrative) (USD $)
3 Months Ended
Aug. 31, 2015
May 31, 2015
Aug. 31, 2015
Robert B Rosene [Member]
Aug. 31, 2015
Greystone Total Sales [Member]
Aug. 31, 2014
Greystone Total Sales [Member]
Percentage of sales       31.00% 51.00%
Note payable $ 11,783,155 $ 12,579,011 $ 4,290,470    
Debt instrument maturity date     Jan. 15, 2017