Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Feb. 28, 2019 | Apr. 10, 2019 | |
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, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 28,361,201 | |
Trading Symbol | GLGI | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Current Assets: | ||
Cash | $ 1,094,895 | $ 379,632 |
Accounts receivable - Trade | 4,242,272 | 4,951,148 |
Related party | 26,698 | 60,045 |
Inventory | 5,151,417 | 3,089,267 |
Prepaid expenses | 239,548 | 215,617 |
Total Current Assets | 10,754,830 | 8,695,709 |
Property, Plant and Equipment, net | 32,811,038 | 25,353,876 |
Total Assets | 43,565,868 | 34,049,585 |
Current Liabilities: | ||
Current portion of long-term debt | 2,961,095 | 2,324,046 |
Current portion of capital leases | 1,948,191 | 2,160,807 |
Accounts payable and accrued liabilities | 6,315,163 | 4,651,695 |
Deferred revenue | 2,652,507 | 3,404,334 |
Accrued liabilities - related party | 55,104 | |
Preferred dividends payable | 108,219 | |
Total Current Liabilities | 13,985,175 | 12,595,986 |
Long-Term Debt, net of current portion | 19,854,056 | 16,836,180 |
Capital Leases, net of current portion | 5,531,906 | 1,733,007 |
Deferred Tax Liability | 977,265 | 490,965 |
Equity: | ||
Preferred stock, $0.0001 par value, cumulative, 20,750,000 shares authorized, 50,000 shares issued and outstanding, liquidation preference of $5,000,000 | 5 | 5 |
Common stock, $0.0001 par value, 5,000,000,000 shares authorized, 28,361,201 shares issued and outstanding | 2,836 | 2,836 |
Additional paid-in capital | 53,790,764 | 53,790,764 |
Accumulated deficit | (51,695,914) | (52,485,313) |
Total Greystone Stockholders' Equity | 2,097,691 | 1,308,292 |
Non-controlling interest | 1,119,775 | 1,085,155 |
Total Equity | 3,217,466 | 2,393,447 |
Total Liabilities and Equity | $ 43,565,868 | $ 34,049,585 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 20,750,000 | 20,750,000 |
Preferred stock, shares issued | 50,000 | 50,000 |
Preferred stock, shares outstanding | 50,000 | 50,000 |
Preferred stock, liquidation preference | $ 5,000,000 | $ 5,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 28,361,201 | 28,361,201 |
Common stock, shares outstanding | 28,361,201 | 28,361,201 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Income) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Income Statement [Abstract] | ||||
Sales | $ 17,224,467 | $ 12,064,651 | $ 50,163,707 | $ 32,073,828 |
Cost of Sales | 15,455,920 | 10,349,347 | 44,257,438 | 27,325,588 |
Gross Profit | 1,768,547 | 1,715,304 | 5,906,269 | 4,748,240 |
General, Selling and Administrative Expenses | 959,288 | 724,748 | 2,752,029 | 2,177,164 |
Operating Income | 809,259 | 990,556 | 3,154,240 | 2,571,076 |
Other Income (Expense): | ||||
Other income | 2,438 | (6,202) | 7,728 | 5,867 |
Interest expense | (499,967) | (339,208) | (1,348,285) | (997,944) |
Income before Income Taxes | 311,730 | 645,146 | 1,813,683 | 1,578,999 |
Provision for Income Taxes | 80,300 | 639,600 | 520,400 | 899,100 |
Net Income | 231,430 | 5,546 | 1,293,283 | 679,899 |
Income Attributable to Non-controlling Interest | (64,093) | (62,552) | (187,620) | (185,520) |
Preferred Dividends | (108,219) | (95,548) | (316,264) | (283,562) |
Net Income (Loss) Attributable to Common Stockholders | $ 59,118 | $ (152,554) | $ 789,399 | $ 210,817 |
Income (Loss) Per Share of Common Stock - Basic and Diluted | $ 0 | $ (0.01) | $ 0.03 | $ 0.01 |
Weighted Average Shares of Common Stock Outstanding - Basic | 28,361,201 | 28,361,201 | 28,361,201 | 28,361,201 |
Weighted Average Shares of Common Stock Outstanding - Diluted | 29,012,048 | 28,361,201 | 29,009,415 | 28,992,153 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,293,283 | $ 679,899 |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation and amortization | 3,334,730 | 2,578,842 |
Deferred tax expense | 486,300 | 882,100 |
Loss on sale of asset | 7,932 | |
Decrease in trade accounts receivable | 708,876 | 2,486,180 |
Decrease in related party receivables | 33,347 | 18,498 |
Increase in inventory | (2,062,150) | (2,501,222) |
Decrease (increase) in prepaid expenses | (23,931) | 30,470 |
Increase (decrease) in accounts payable and accrued liabilities | 1,943,133 | (2,778,406) |
Increase (decrease) in deferred revenue | (751,827) | 4,595,034 |
Net cash provided by operating activities | 4,961,761 | 5,999,327 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (6,380,490) | (3,768,337) |
Proceeds from sale of equipment | 968,168 | 3,000 |
Net cash used in investing activities | (5,412,322) | (3,765,337) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt | 3,756,800 | 2,320,200 |
Principal payments on long-term debt and capitalized leases | (3,567,629) | (4,371,488) |
Proceeds from revolving loan | 4,321,000 | 240,000 |
Principal payments on revolving loan | (2,750,000) | |
Principal payments on related party note payable and capital lease | (233,302) | (172,999) |
Dividends paid on preferred stock | (208,045) | (313,288) |
Distributions paid by non-controlling interest | (153,000) | (181,400) |
Net cash provided by (used in) financing activities | 1,165,824 | (2,478,975) |
Net Increase (Decrease) in Cash | 715,263 | (244,985) |
Cash, beginning of period | 379,632 | 579,021 |
Cash, end of period | 1,094,895 | 334,036 |
Non-cash Activities: | ||
Acquisition of equipment by capital lease | 4,667,380 | 1,998,500 |
Capital expenditures in accounts payable | 38,445 | |
Revolver loan converted to term loan | 2,500,000 | |
Preferred dividend accrual | 108,219 | |
Supplemental information: | ||
Interest paid | 1,394,789 | 993,994 |
Taxes paid | $ 10,000 |
Basis of Financial Statements
Basis of Financial Statements | 9 Months Ended |
Feb. 28, 2019 | |
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, 2019, the results of its operations for the nine months and three months ended February 28, 2019 and 2018, and its cash flows for the nine months ended February 28, 2019 and 2018. 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, 2018 and the notes thereto included in Greystone’s Form 10-K for such period. The results of operations for the nine months and three months ended February 28, 2019 and 2018 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. All material intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
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 attributable to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income 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. Instruments which have an anti-dilutive effect are as follows: 2019 2018 Nine months ended February 28: Preferred stock convertible into common stock 3,333,333 3,333,333 Total 3,333,333 3,333,333 Three months ended February 28: Options to purchase common stock - 200,000 Warrants to purchase common stock - 500,000 Preferred stock convertible into common stock 3,333,333 3,333,333 Total 3,333,333 4,033,333 The following tables set forth the computation of basic and diluted earnings per share for the nine months and three months ended February 28, 2019 and 2018: 2019 2018 Nine months ended February 28: Numerator - Net income attributable to common stockholders $ 789,399 $ 210,817 Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Incremental shares from assumed conversion of options and warrants 648,214 630,952 Diluted shares 29,009,415 28,992,153 Income per share - Basic and Diluted $ 0.03 $ 0.01 Three months ended February 28: Numerator - Net income (loss) attributable to common stockholders $ 59,118 $ (152,554 ) Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Incremental shares from assumed conversion of options and warrants 650,847 - Diluted shares 29,012,048 28,361,201 Income (Loss) per share - Basic and Diluted $ 0.00 $ (0.01 ) |
Inventory
Inventory | 9 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3. Inventory Inventory consists of the following: February 28, 2019 May 31, 2018 Raw materials $ 2,006,573 $ 864,339 Finished goods 3,144,844 2,224,928 Total inventory $ 5,151,417 $ 3,089,267 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Feb. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4. Property, Plant and Equipment A summary of property, plant and equipment for Greystone is as follows: February 28, 2019 May 31, 2018 Production machinery and equipment $ 44,895,520 $ 35,270,326 Plant buildings and land 6,271,202 5,739,491 Leasehold improvements 924,641 534,637 Furniture and fixtures 563,074 396,882 52,654,437 41,941,336 Less: Accumulated depreciation and amortization (19,843,399 ) (16,587,460 ) Net Property, Plant and Equipment $ 32,811,038 $ 25,353,876 Production machinery and equipment includes equipment capitalized pursuant to capital leases in the amount of $13,227,122. The equipment is being amortized using the straight-line method over 3.5 years for pallet molds and 12 years for injection molding machines. Production machinery includes deposits on equipment in the amount of $1,390,839 that had not been placed into service as of February 28, 2019. Two plant buildings and land are owned by GRE, a variable interest entity (“VIE”), having a net book value of $2,925,517 at February 28, 2019. Depreciation expense, including amortization expense related to assets under capital leases, for the nine months ended February 28, 2019 and 2018 was $3,255,939 and $2,476,050, respectively. |
Related Party Transactions_Acti
Related Party Transactions/Activity | 9 Months Ended |
Feb. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions/Activity | Note 5. Related Party Transactions/Activity 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. 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 for which GSM paid Yorktown rental fees of $1,10,000 and $1,072,500 for each of the nine months ended February 28, 2019 and 2018 respectively. Effective January 1, 2017, Greystone and Yorktown entered into a five-year lease for office space at a monthly rental of $4,000 per month. Total rent expense was $36,000 for each of fiscal year 2019 and 2018. At February 28, 2019, future minimum payments under the non-cancelable operating lease for the remaining three years are $48,000, $48,000 and $44,000. Effective December 28, 2018, Yorktown purchased certain production equipment from Greystone at net book value of $968,168 and entered into a four-year lease agreement with Greystone at a monthly rent of $27,915 for the initial thirty-six months and $7,695 for the following twelve months. The lease agreement provides for a bargain purchase option of $10,000 at the end of the lease. TriEnda Holdings, L.L.C. TriEnda Holdings, L.L.C. (“TriEnda”) is a manufacturer of plastic pallets, protective packing and dunnage utilizing thermoform processing for which Warren F. Kruger, Greystone’s President and CEO, serves TriEnda as the non-executive Chairman of the Board and is a partner in a partnership which has a majority ownership interest in TriEnda. Greystone periodically purchases material and pallets from TriEnda. Purchases for the nine months ended February 28, 2019 and 2018 totaled $42,349 and $123,072, respectively. Green Plastic Pallets Greystone sells plastic pallets to Green Plastic Pallets (“Green”), an entity that is owned by James Kruger, brother to Warren Kruger, Greystone’s President and CEO. Greystone had sales to Green of $167,400 and $330,144 for the nine months ended February 28, 2019 and 2018, respectively. The account receivable due from Green at February 28, 2019 was $19,440. |
Debt
Debt | 9 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Note 6. Debt Debt as of February 28, 2019 and May 31, 2018 is as follows: February 28, 2019 May 31, 2018 Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing April 30, 2023 $ 3,417,791 $ 3,945,443 Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing August 4, 2020 1,453,103 1,613,445 Term loan D payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing January 10, 2022 1,889,391 2,314,935 Term loan E payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing January 10, 2022 982,106 843,200 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing February 8, 2021 3,545,514 - Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, due January 31, 2021 3,450,000 1,879,000 Note payable to First Bank, prime rate of interest plus 1.45% but not less than 4.95%, monthly principal and interest payment of $30,628, due August 21, 2021, secured by production equipment 878,088 1,099,447 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5%, monthly principal and interest payment of $26,215, due April 30, 2023 2,510,295 2,652,428 Note payable to Robert Rosene, 7.5% interest, due January 15, 2021 4,467,330 4,469,355 Note payable to Yorktown Management & Financial Services, LLC, paid in full in February 2019 - 181,850 Other 234,112 252,493 Total debt 22,827,730 19,251,596 Debt issue costs, net of amortization (12,579 ) (91,370 ) Total debt, net of debt issue costs 22,815,151 19,160,226 Less: Current portion (2,961,095 ) (2,324,046 ) Long-term debt $ 19,854,056 $ 16,836,180 The prime rate of interest as of February 28, 2019 was 5.5%. Loan Agreement between Greystone and IBC The Loan Agreement (“IBC Loan Agreement”), dated January 31, 2014 and as amended from time to time, among Greystone and GSM (the “Borrowers”) and International Bank of Commerce (“IBC”), provides for certain term loans and a revolver loan. Effective August 10, 2018, the Borrowers and IBC entered into the seventh Amendment to the IBC Loan Agreement providing (i) an advancing Term Loan F of $3,600,000 with a maturity date of February 8, 2021 for the procurement of production equipment and (ii) an extension of the maturity date of Term Loan A to April 30, 2023. The IBC term loans make equal monthly payments of principal and interest in such amounts sufficient to amortize the principal balance as follows: (i) Term Loan A over a seven-year period beginning January 31, 2016 (currently $77,548 per month), (ii) Term Loan C over a seven-year period beginning February 28, 2018 (currently $25,205 per month) and (iii) Term Loan D over a four-year period beginning August 4, 2020 (currently $57,469 per month), (iv) Term Loan E over a four-year period beginning February 10, 2019 (currently $23,060) and (v) Term Loan F over a five-year period beginning February 28, 2019 (currently $68,849). The monthly payments of principal and interest on the IBC term loans may vary as a result of changes in the prime rate of interest. The IBC Loan Agreement provides a revolving loan in an aggregate principal amount of up to $4,000,000 (the “Revolving Loan”). The Loan Agreement was amended December 28, 2018 increasing the principal amount under the Revolving Loan to $4,000,000 of which the amount which can be borrowed from time to time is dependent upon the amount of the borrowing base, but can in no event exceed $4,000,000. The Revolving Loan bears interest at the greater of the prime rate of interest plus 0.5%, or 4.75% and matures January 31, 2021. 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 does not reduce the original amount available to the Borrowers. The IBC Loan Agreement, among other things, requires a quarterly affirmation that the Borrowers have maintained a debt service coverage ratio of 1:25 to 1:00. As of February 28, 2019, Greystone was not in compliance with this debt service coverage ratio. IBC has issued a waiver with respect to this event 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 notes 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 August 10, 2018, GRE and IBC entered into an amended agreement to extend the maturity of the note to April 30, 2023 and increase the interest rate to 5.5%. The note 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 an unsecured note payable at 7.5% interest. Effective June 1, 2016, the note was restated (the “Restated Note”) to combine the outstanding principal, $2,066,000, and accrued interest, $2,475,690, into an unsecured note payable of $4,541,690 with an extended maturity date of January 15, 2021. The Restated Note provides that accrued interest is payable monthly and allows Greystone to use commercially reasonable efforts to pay such amounts as allowed by the IBC Loan Agreement against the interest accrued prior to the restatement. The balance of the note at February 28, 2019 was $4,467,330. Maturities Maturities of Greystone’s long-term debt for the five years subsequent to February 28, 2019 are $2,961,095, $12,049,591, $3,070,785, $2,157,675 and $2,588,584. |
Capital Leases
Capital Leases | 9 Months Ended |
Feb. 28, 2019 | |
Leases [Abstract] | |
Capital Leases | Note 7. Capital Leases Capital leases as of February 28, 2019 and May 31, 2018: February 28, 2019 May 31, 2018 Non-cancellable capital leases $ 7,480,097 $ 3,893,814 Less: Current portion (1,948,191 ) (2,160,807 ) Non-cancellable capital leases, net of current portion $ 5,531,906 $ 1,733,007 Greystone and an unrelated private company entered into four lease agreements for certain production equipment with a total cost of approximately $12.2 million. The first agreement, dated August 7, 2016, was a three-year lease agreement for two injection molding machines and pallet molds, capitalized interest rate of 5.0% and maturity date of August 7, 2019 (“Agreement A”). The remaining three agreements, effective February 24, 2018, August 2, 2018 and December 21, 2018, were five-year lease agreements for three additional injection molding machines and one pallet mold, capitalized interest rate of 7.4% and maturity dates of February 23, 2023, August 1, 2023 and December 20, 2023, respectively, (“Agreement B”). The lease agreements include a bargain purchase option to acquire the production equipment at the end of the lease terms. Lease payments are made on a per invoice basis at rates of (i) $6.25 per pallet produced on the equipment leased pursuant to Agreement A and sold to the private company estimated at $180,000 per month and (ii) $3.32 per pallet produced on the equipment leased pursuant to Agreement B and sold to the private company estimated at an aggregate rent of $144,000 per month. Both Agreements A & B provide for minimum monthly lease rental payments based upon the total pallets sold in excess of a specified amount not to exceed the monthly productive capacity of the leased machines. Effective December 31, 2018, Yorktown purchased certain production equipment from Greystone at net book value of $968,168 and entered into a lease agreement with Greystone for the equipment with a monthly rent of $27,915 for the initial thirty-six months and $7,695 for the following twelve months and maturing December 27, 2023. The lease agreement has a $10,000 bargain purchase option at the end of the lease. The production equipment under the non-cancelable capital leases has a gross carrying amount of $13,227,122 at February 28, 2019. Amortization of the carrying amount of approximately $776,000 and $402,000 was included in depreciation expense for the nine months ended February 28, 2019 and 2018, respectively. Future minimum lease payments under non-cancelable capital leases as of February 28, 2019, are approximately: Twelve months ended February 29, 2020 $ 2,435,000 Twelve months ended February 28, 2021 2,063,000 Twelve months ended February 28, 2022 2,023,000 Twelve months ended February 28, 2023 2,165,000 Total lease payments 8,686,000 Imputed interest 1,205,903 Present value of minimum lease payments $ 7,480,097 |
Deferred Revenue
Deferred Revenue | 9 Months Ended |
Feb. 28, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Deferred Revenue | Note 8. Deferred Revenue Deferred revenue as of February 28, 2019 and May 31, 2018 represents advance payments from a customer to purchase plastic pallets with shipments expected to be complete by January 3, 2020. Greystone recognizes revenue as plastic pallets are shipped to the customer. Recognized revenue totaled $4,252,500 during the nine months ended February 28, 2019. |
Revenue and Revenue Recognition
Revenue and Revenue Recognition | 9 Months Ended |
Feb. 28, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue and Revenue Recognition | Note 9. Revenue and Revenue Recognition On June 1, 2018, Greystone adopted Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) any adjustments to Greystone’s consolidated financial statements for prior periods The amount of revenue recognized reflects the consideration to which Greystone expects to be entitled to receive in exchange for its products. The following steps are applied in determining the amount and timing of revenue recognition: 1. Identification of a contract with a customer is a sales arrangement involving a purchase order issued by the customer stating each party’s rights regarding the plastic pallets to be transferred. Payment terms vary by customer from net 30 days to 90 days. Discounts on sales arrangements are generally not provided. Credit worthiness is determined by Greystone based on payment experience and financial information available on the customer. 2. Identification of performance obligations in the sales arrangement which is predominantly the promise to transfer plastic pallets to Greystone’s customer. 3. Determination of the transaction price which is specified in the purchase order based on product pricing negotiated between Greystone and the customer. 4. Allocation of the transaction price to performance obligations. 5. Recognition of revenue which predominantly occurs upon completion of the performance obligation and transfer of control. Transfer of control generally occurs at the point of shipment which is Greystone’s manufacturing and warehouse locations. Greystone’s principal product is plastic pallets produced from recycled plastic resin. Sales are primarily to customers in the continental United States of America. International sales are made to customers in Canada and Mexico which totaled approximately $408,499 and $527,750 in fiscal years 2019 and 2018, respectively. Greystone’s customers include stocking and non-stocking distributors and direct sales to end-user customers. Sales to the following categories of customers for the nine months ended February 28, 2019 and 2018, respectively, were as follows: Category 2019 2018 Major customers (end users) 85 % 76 % Distributors 14 % 22 % Total 99 % 98 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Feb. 28, 2019 | |
Investments, All Other Investments [Abstract] | |
Fair Value of Financial Instruments | Note 10. 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 notes with floating rates of interest approximate fair value. Fixed rate notes are valued based on cash flows using estimated rates of comparable notes. The carrying amounts reported on the balance sheets approximate fair value. |
Concentrations, Risks and Uncer
Concentrations, Risks and Uncertainties | 9 Months Ended |
Feb. 28, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations, Risks and Uncertainties | Note 11. Concentrations, Risks and Uncertainties Greystone derived approximately 85% and 76% of its total sales from three customers in fiscal years 2019 and 2018, respectively. The loss of a material amount of business from one or more of these customers could have a material adverse effect on Greystone. Greystone purchases damaged pallets from its customers at a price based on the value of the raw material content in the pallet. A majority of these purchases, totaling $1,249,653 and $1,200,335 in fiscal years 2019 and 2018, respectively, is from one of its major customers. Robert B. Rosene, Jr., a Greystone director, has provided financing and guarantees on Greystone’s bank debt. As of February 28, 2019, Greystone is indebted to Mr. Rosene in the amount of $4,467,330 for a note payable due January 15, 2021. There is no assurance that Mr. Rosene will renew the note as of the maturity date. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Feb. 28, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 12. Recent Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Commitments
Commitments | 9 Months Ended |
Feb. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 13. Commitments At February 28, 2019, Greystone had commitments totaling $945,000 toward the purchase of production equipment. |
Reclassifications
Reclassifications | 9 Months Ended |
Feb. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | Note 14. Reclassifications Certain amounts in the Consolidated Statement of Cash Flows for the nine months ended February 28, 2018 have been reclassified to conform to classifications utilized in the nine months ended February 28, 2019. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share | Instruments which have an anti-dilutive effect are as follows: 2019 2018 Nine months ended February 28: Preferred stock convertible into common stock 3,333,333 3,333,333 Total 3,333,333 3,333,333 Three months ended February 28: Options to purchase common stock - 200,000 Warrants to purchase common stock - 500,000 Preferred stock convertible into common stock 3,333,333 3,333,333 Total 3,333,333 4,033,333 |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following tables set forth the computation of basic and diluted earnings per share for the nine months and three months ended February 28, 2019 and 2018: 2019 2018 Nine months ended February 28: Numerator - Net income attributable to common stockholders $ 789,399 $ 210,817 Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Incremental shares from assumed conversion of options and warrants 648,214 630,952 Diluted shares 29,009,415 28,992,153 Income per share - Basic and Diluted $ 0.03 $ 0.01 Three months ended February 28: Numerator - Net income (loss) attributable to common stockholders $ 59,118 $ (152,554 ) Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Incremental shares from assumed conversion of options and warrants 650,847 - Diluted shares 29,012,048 28,361,201 Income (Loss) per share - Basic and Diluted $ 0.00 $ (0.01 ) |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: February 28, 2019 May 31, 2018 Raw materials $ 2,006,573 $ 864,339 Finished goods 3,144,844 2,224,928 Total inventory $ 5,151,417 $ 3,089,267 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | A summary of property, plant and equipment for Greystone is as follows: February 28, 2019 May 31, 2018 Production machinery and equipment $ 44,895,520 $ 35,270,326 Plant buildings and land 6,271,202 5,739,491 Leasehold improvements 924,641 534,637 Furniture and fixtures 563,074 396,882 52,654,437 41,941,336 Less: Accumulated depreciation and amortization (19,843,399 ) (16,587,460 ) Net Property, Plant and Equipment $ 32,811,038 $ 25,353,876 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt as of February 28, 2019 and May 31, 2018 is as follows: February 28, 2019 May 31, 2018 Term loan A payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing April 30, 2023 $ 3,417,791 $ 3,945,443 Term loan C payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.0%, maturing August 4, 2020 1,453,103 1,613,445 Term loan D payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing January 10, 2022 1,889,391 2,314,935 Term loan E payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, maturing January 10, 2022 982,106 843,200 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing February 8, 2021 3,545,514 - Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 4.75%, due January 31, 2021 3,450,000 1,879,000 Note payable to First Bank, prime rate of interest plus 1.45% but not less than 4.95%, monthly principal and interest payment of $30,628, due August 21, 2021, secured by production equipment 878,088 1,099,447 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5%, monthly principal and interest payment of $26,215, due April 30, 2023 2,510,295 2,652,428 Note payable to Robert Rosene, 7.5% interest, due January 15, 2021 4,467,330 4,469,355 Note payable to Yorktown Management & Financial Services, LLC, paid in full in February 2019 - 181,850 Other 234,112 252,493 Total debt 22,827,730 19,251,596 Debt issue costs, net of amortization (12,579 ) (91,370 ) Total debt, net of debt issue costs 22,815,151 19,160,226 Less: Current portion (2,961,095 ) (2,324,046 ) Long-term debt $ 19,854,056 $ 16,836,180 |
Capital Leases (Tables)
Capital Leases (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Leases [Abstract] | |
Schedule of Non-cancellable Capital Leases | Capital leases as of February 28, 2019 and May 31, 2018: February 28, 2019 May 31, 2018 Non-cancellable capital leases $ 7,480,097 $ 3,893,814 Less: Current portion (1,948,191 ) (2,160,807 ) Non-cancellable capital leases, net of current portion $ 5,531,906 $ 1,733,007 |
Schedule of Future Minimum Lease Payments Under Non-cancellable Capital Leases | Future minimum lease payments under non-cancelable capital leases as of February 28, 2019, are approximately: Twelve months ended February 29, 2020 $ 2,435,000 Twelve months ended February 28, 2021 2,063,000 Twelve months ended February 28, 2022 2,023,000 Twelve months ended February 28, 2023 2,165,000 Total lease payments 8,686,000 Imputed interest 1,205,903 Present value of minimum lease payments $ 7,480,097 |
Revenue and Revenue Recogniti_2
Revenue and Revenue Recognition (Tables) | 9 Months Ended |
Feb. 28, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Sale of Revenues for Customer Categories | Sales to the following categories of customers for the nine months ended February 28, 2019 and 2018, respectively, were as follows: Category 2019 2018 Major customers (end users) 85 % 76 % Distributors 14 % 22 % Total 99 % 98 % |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Anti-Dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Antidilutive securities excluded from computation of earnings per share | 3,333,333 | 4,033,333 | 3,333,333 | 3,333,333 |
Convertible Preferred Stock [Member] | ||||
Antidilutive securities excluded from computation of earnings per share | 3,333,333 | 3,333,333 | 3,333,333 | 3,333,333 |
Stock Options [Member] | ||||
Antidilutive securities excluded from computation of earnings per share | 200,000 | |||
Warrants [Member] | ||||
Antidilutive securities excluded from computation of earnings per share | 500,000 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2019 | Feb. 28, 2018 | |
Earnings Per Share [Abstract] | ||||
Numerator - Net income (loss) attributable to common stockholders | $ 59,118 | $ (152,554) | $ 789,399 | $ 210,817 |
Denominator - Weighted-average shares outstanding - basic | 28,361,201 | 28,361,201 | 28,361,201 | 28,361,201 |
Denominator - Incremental shares from assumed conversion of options and warrants | 650,847 | 648,214 | 630,952 | |
Denominator - Diluted shares | 29,012,048 | 28,361,201 | 29,009,415 | 28,992,153 |
Income (Loss) per share - Basic and Diluted | $ 0 | $ (0.01) | $ 0.03 | $ 0.01 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,006,573 | $ 864,339 |
Finished goods | 3,144,844 | 2,224,928 |
Total inventory | $ 5,151,417 | $ 3,089,267 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Production machinery and equipment, gross | $ 13,227,122 | |
Production machinery includes deposits on equipment | 1,390,839 | |
Plant buildings and land net book value | 2,925,517 | |
Depreciation expense | $ 3,255,939 | $ 2,476,050 |
Pallet Molds [Member] | ||
Property plant and equipment useful life | 3 years 6 months | |
Injection Molding Machines [Member] | ||
Property plant and equipment useful life | 12 years |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Property plant and equipment, gross | $ 52,654,437 | $ 41,941,336 |
Less: Accumulated depreciation and amortization | (19,843,399) | (16,587,460) |
Net Property, Plant and Equipment | 32,811,038 | 25,353,876 |
Production Machinery and Equipment [Member] | ||
Property plant and equipment, gross | 44,895,520 | 35,270,326 |
Plant Buildings and Land [Member] | ||
Property plant and equipment, gross | 6,271,202 | 5,739,491 |
Leasehold Improvements [Member] | ||
Property plant and equipment, gross | 924,641 | 534,637 |
Furniture and Fixtures [Member] | ||
Property plant and equipment, gross | $ 563,074 | $ 396,882 |
Related Party Transactions_Ac_2
Related Party Transactions/Activity (Details Narrative) - USD ($) | 9 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Future minimum payments under operating lease 2020 | $ 2,435,000 | |
Future minimum payments under operating lease 2021 | 2,063,000 | |
Net book value of production equipment | 968,168 | $ 3,000 |
Green Plastic Pallets [Member] | ||
Pallet sales | 167,400 | 330,144 |
Account receivable | 19,440 | |
Fiscal Year 2019 [Member] | ||
Rent expense | 36,000 | |
Fiscal Year 2018 [Member] | ||
Rent expense | 36,000 | |
Yorktown Management & Financial Services, LLC [Member] | ||
Payments of rental fees | 1,100,000 | 1,072,500 |
Rent expense | 4,000 | |
Future minimum payments under operating lease 2019 | 48,000 | |
Future minimum payments under operating lease 2020 | 48,000 | |
Future minimum payments under operating lease 2021 | 44,000 | |
TriEnda Holdings, L.L.C [Member] | ||
Material purchase amount | 42,349 | $ 123,072 |
Yorktown Grinding Equipment [Member] | ||
Payments of rental fees | 22,500 | |
Yorktown's Pelletizing Equipment [Member] | ||
Payments of rental fees | 5,000 | |
Yorktown Production Equipment [Member] | ||
Payments of rental fees | 7,695 | |
Net book value of production equipment | $ 968,168 | |
Lease term | 4 years | |
Bargain purchase option amount | $ 10,000 | |
Yorktown Production Equipment [Member] | Initial Thirty Six Months [Member] | ||
Payments of rental fees | $ 27,915 |
Debt (Details Narrative)
Debt (Details Narrative) - USD ($) | Aug. 10, 2018 | Jun. 02, 2016 | Feb. 28, 2019 | Dec. 15, 2005 |
Debt instrument maturity date | Jan. 15, 2021 | |||
Maturities of long term debt current | $ 2,961,095 | |||
Maturities of long term debt year two | 12,049,591 | |||
Maturities of long term debt year three | 3,070,785 | |||
Maturities of long term debt year four | 2,157,675 | |||
Maturities of long term debt year five | $ 2,588,584 | |||
Term Loan A [Member] | ||||
Note term | 7 years | |||
Debt monthly payment | $ 77,548 | |||
Term Loan C [Member] | ||||
Note term | 7 years | |||
Debt monthly payment | $ 25,205 | |||
Term Loan D [Member] | ||||
Note term | 4 years | |||
Debt monthly payment | $ 57,469 | |||
Term Loan E [Member] | ||||
Note term | 4 years | |||
Debt monthly payment | $ 23,060 | |||
Term Loan F [Member] | ||||
Note term | 5 years | |||
Debt monthly payment | $ 68,849 | |||
Revolving Loan [Member] | ||||
Debt instrument interest rate | 4.75% | |||
Robert B. Rosene, Jr. [Member] | ||||
Debt instrument interest rate | 7.50% | |||
Unsecured note payable | $ 2,066,000 | |||
Robert B. Rosene, Jr. [Member] | Restated Note [Member] | ||||
Debt instrument principal amount | $ 2,066,000 | |||
Debt instrument maturity date | Jan. 15, 2021 | |||
Unsecured note payable | $ 4,541,690 | $ 4,467,330 | ||
Debt accrued interest | $ 2,475,690 | |||
Term Loan F [Member] | IBC Loan Agreement [Member] | ||||
Debt instrument principal amount | $ 3,600,000 | |||
Debt instrument maturity date | Feb. 8, 2021 | |||
Term Loan A [Member] | IBC Loan Agreement [Member] | ||||
Debt instrument maturity date | Apr. 30, 2023 | |||
IBC Loan Agreement [Member] | ||||
Debt service coverage ratio description | Debt service coverage ratio of 1:25 to 1:00. | |||
IBC Loan Agreement [Member] | Revolving Loan [Member] | ||||
Revolving loan aggregate principal amount | $ 4,000,000 | |||
Line of credit maximum borrowing capacity | 4,000,000 | |||
IBC Loan Agreement [Member] | Guaranty [Member] | ||||
Guaranty combined amount | $ 6,500,000 | |||
Revolving Loan [Member] | ||||
Debt instrument maturity date | Jan. 31, 2021 | |||
GRE and IBC [Member] | Loan Agreement [Member] | ||||
Debt instrument interest rate | 5.50% | |||
Debt instrument maturity date | Apr. 30, 2023 | |||
Prime Rate [Member] | ||||
Debt instrument interest rate | 5.50% | |||
Prime Rate [Member] | Revolving Loan [Member] | ||||
Debt instrument interest rate | 0.50% |
Debt - Schedule of Long-Term De
Debt - Schedule of Long-Term Debt (Details) - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Face value of long-term debt | $ 22,827,730 | $ 19,251,596 |
Debt issue costs, net of amortization | (12,579) | (91,370) |
Total debt, net of debt issue costs | 22,815,151 | 19,160,226 |
Less: Current Portion | (2,961,095) | (2,324,046) |
Long-term debt | 19,854,056 | 16,836,180 |
Term Loan A Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 4.0%, Maturing April 30, 2023 [Member] | ||
Face value of long-term debt | 3,417,791 | 3,945,443 |
Term Loan C Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.0%, Maturing August 4, 2020 [Member] | ||
Face value of long-term debt | 1,453,103 | 1,613,445 |
Term Loan D Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.75%, Maturing January 10, 2022 [Member] | ||
Face value of long-term debt | 1,889,391 | 2,314,935 |
Term Loan E Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.75%, Maturing January 10, 2022 [Member] | ||
Face value of long-term debt | 982,106 | 843,200 |
Term Loan F Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 5.25%, Maturing February 8, 2021 [Member] | ||
Face value of long-term debt | 3,545,514 | |
Revolving Loan Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 4.75%, Due January 31, 2021 [Member] | ||
Face value of long-term debt | 3,450,000 | 1,879,000 |
Note Payable to First Bank, Prime Rate of Interest Plus 1.45% but Not Less Than 4.95%, Monthly Principal and Interest Payment of $30,628, Due August 21, 2021, Secured by Production Equipment [Member] | ||
Face value of long-term debt | 878,088 | 1,099,447 |
Term Loan Payable by Gre to International Bank of Commerce, Interest Rate of 5.5%, Monthly Principal and Interest Payment of $26,215, Due April 30, 2023 [Member] | ||
Face value of long-term debt | 2,510,295 | 2,652,428 |
Note Payable to Robert Rosene, 7.5% Interest, Due January 15, 2021 [Member] | ||
Face value of long-term debt | 4,467,330 | 4,469,355 |
Note Payable to Yorktown Management & Financial Services, LLC, Paid in Full in February 2019 [Member] | ||
Face value of long-term debt | 181,850 | |
Other Note Payable [Member] | ||
Face value of long-term debt | $ 234,112 | $ 252,493 |
Debt - Schedule of Long-Term _2
Debt - Schedule of Long-Term Debt (Details) (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended |
Feb. 28, 2019 | May 31, 2018 | |
Debt instrument maturity date | Jan. 15, 2021 | |
Term Loan A Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 4.0%, Maturing April 30, 2023 [Member] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Apr. 30, 2023 | Apr. 30, 2023 |
Term Loan A Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 4.0%, Maturing April 30, 2023 [Member] | Maximum [Member] | ||
Debt instrument interest rate | 4.00% | 4.00% |
Term Loan C Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.0%, Maturing August 4, 2020 [Member] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Aug. 4, 2020 | Aug. 4, 2020 |
Term Loan C Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.0%, Maturing August 4, 2020 [Member] | Maximum [Member] | ||
Debt instrument interest rate | 4.00% | 4.00% |
Term Loan D Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.75%, Maturing January 10, 2022 [Member] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jan. 10, 2022 | Jan. 10, 2022 |
Term Loan D Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.75%, Maturing January 10, 2022 [Member] | Maximum [Member] | ||
Debt instrument interest rate | 4.75% | 4.75% |
Term Loan E Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.75%, Maturing January 10, 2022 [Member] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jan. 10, 2022 | Jan. 10, 2022 |
Term Loan E Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 4.75%, Maturing January 10, 2022 [Member] | Maximum [Member] | ||
Debt instrument interest rate | 4.75% | 4.75% |
Term Loan F Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 5.25%, Maturing February 8, 2021 [Member] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Feb. 8, 2021 | Feb. 8, 2021 |
Term Loan F Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% but Not Less Than 5.25%, Maturing February 8, 2021 [Member] | Maximum [Member] | ||
Debt instrument interest rate | 5.25% | 5.25% |
Revolving Loan Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 4.75%, Due January 31, 2021 [Member] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jan. 31, 2020 | Jan. 31, 2020 |
Revolving Loan Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 4.75%, Due January 31, 2021 [Member] | Maximum [Member] | ||
Debt instrument interest rate | 4.75% | 4.75% |
Note Payable to First Bank, Prime Rate of Interest Plus 1.45% but Not Less Than 4.95%, Monthly Principal and Interest Payment of $30,628, Due August 21, 2021, Secured by Production Equipment [Member] | ||
Debt instrument interest rate | 1.45% | 1.45% |
Debt instrument maturity date | Aug. 21, 2021 | Aug. 21, 2021 |
Debt instrument principal and interest amount | $ 30,628 | $ 30,628 |
Note Payable to First Bank, Prime Rate of Interest Plus 1.45% but Not Less Than 4.95%, Monthly Principal and Interest Payment of $30,628, Due August 21, 2021, Secured by Production Equipment [Member] | Maximum [Member] | ||
Debt instrument interest rate | 4.95% | 4.95% |
Term Loan Payable by Gre to International Bank of Commerce, Interest Rate of 5.5%, Monthly Principal and Interest Payment of $26,215, Due April 30, 2023 [Member] | ||
Debt instrument interest rate | 5.50% | 5.50% |
Debt instrument maturity date | Apr. 30, 2023 | Apr. 30, 2023 |
Debt instrument principal and interest amount | $ 26,215 | $ 26,215 |
Note Payable to Robert Rosene, 7.5% Interest, Due January 15, 2021 [Member] | ||
Debt instrument interest rate | 7.50% | 7.50% |
Debt instrument maturity date | Jan. 15, 2021 | Jan. 15, 2020 |
Note Payable to Yorktown Management & Financial Services, LLC, Paid in Full in February 2019 [Member] | ||
Debt instrument maturity date | Feb. 28, 2019 | Feb. 28, 2019 |
Capital Leases (Details Narrati
Capital Leases (Details Narrative) - USD ($) | Dec. 21, 2018 | Aug. 02, 2018 | Feb. 24, 2018 | Aug. 07, 2016 | Feb. 28, 2019 | Feb. 28, 2018 | May 31, 2018 |
Capital expenditure on fixed assets | $ 13,227,122 | ||||||
Monthly lease payment | 8,686,000 | ||||||
Net book value of production equipment | 968,168 | $ 3,000 | |||||
Capital leases carrying amount | 7,480,097 | $ 3,893,814 | |||||
Amortization | $ 776,000 | $ 402,000 | |||||
Yorktown Production Equipment [Member] | |||||||
Lease maturity date | Dec. 27, 2023 | ||||||
Net book value of production equipment | $ 968,168 | ||||||
Payments of monthly rental fees | 7,695 | ||||||
Bargain purchase option amount | 10,000 | ||||||
Yorktown Production Equipment [Member] | Initial Thirty Six Months [Member] | |||||||
Payments of monthly rental fees | 27,915 | ||||||
Five and Three-Year Lease Agreements [Member] | |||||||
Capital expenditure on fixed assets | 12,200,000 | ||||||
Capital leases carrying amount | $ 13,227,122 | ||||||
Three-Year Lease Agreement [Member] | Agreement A [Member] | |||||||
Lease bears interest rate | 5.00% | ||||||
Lease maturity date | Aug. 7, 2019 | ||||||
Lease payment per invoice rate | $ 6.25 | ||||||
Monthly lease payment | $ 180,000 | ||||||
Five-Year Lease Agreement [Member] | Agreement B [Member] | |||||||
Lease bears interest rate | 7.40% | 7.40% | 7.40% | ||||
Lease maturity date | Dec. 20, 2023 | Aug. 1, 2023 | Feb. 23, 2023 | ||||
Lease payment per invoice rate | $ 3.32 | ||||||
Monthly lease payment | $ 144,000 |
Capital Leases - Schedule of No
Capital Leases - Schedule of Non-cancellable Capital Leases (Details) - USD ($) | Feb. 28, 2019 | May 31, 2018 |
Leases [Abstract] | ||
Non-cancellable capital leases | $ 7,480,097 | $ 3,893,814 |
Less: Current portion | (1,948,191) | (2,160,807) |
Non-cancelable capital leases, net of current portion | $ 5,531,906 | $ 1,733,007 |
Capital Leases - Schedule of Fu
Capital Leases - Schedule of Future Minimum Lease Payments Under Non-cancellable Capital Leases (Details) | Feb. 28, 2019USD ($) |
Leases [Abstract] | |
Twelve months ended February 29, 2020 | $ 2,435,000 |
Twelve months ended February 28, 2021 | 2,063,000 |
Twelve months ended February 28, 2022 | 2,023,000 |
Twelve months ended February 28, 2023 | 2,165,000 |
Total lease payments | 8,686,000 |
Imputed interest | 1,205,903 |
Present value of minimum lease payments | $ 7,480,097 |
Deferred Revenue (Details Narra
Deferred Revenue (Details Narrative) | 9 Months Ended |
Feb. 28, 2019USD ($) | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Recognized revenue | $ 4,252,500 |
Revenue and Revenue Recogniti_3
Revenue and Revenue Recognition (Details Narrative) - Canada and Mexico [Member] - USD ($) | 9 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Fiscal Year 2019 [Member] | ||
International sales | $ 408,499 | |
Fiscal Year 2018 [Member] | ||
International sales | $ 527,750 |
Revenue and Revenue Recogniti_4
Revenue and Revenue Recognition - Schedule of Sale of Revenues for Customer Categories (Details) | 9 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Total | 99.00% | 98.00% |
Major Customers (End Users) [Member] | ||
Total | 85.00% | 76.00% |
Distributors [Member] | ||
Total | 14.00% | 22.00% |
Concentrations, Risks and Unc_2
Concentrations, Risks and Uncertainties (Details Narrative) - USD ($) | 9 Months Ended | |
Feb. 28, 2019 | Feb. 28, 2018 | |
Concentration risk percentage | 99.00% | 98.00% |
Indebted amount | $ 4,467,330 | |
Maturity date | Jan. 15, 2021 | |
Fiscal Year 2019 [Member] | ||
Repurchase of damages from customers | $ 1,249,653 | |
Fiscal Year 2018 [Member] | ||
Repurchase of damages from customers | $ 1,200,335 | |
Sales Revenue, Net [Member] | Three Customers [Member] | Fiscal Year 2019 [Member] | ||
Concentration risk percentage | 85.00% | |
Sales Revenue, Net [Member] | Three Customers [Member] | Fiscal Year 2018 [Member] | ||
Concentration risk percentage | 76.00% |
Commitments (Details Narrative)
Commitments (Details Narrative) | 9 Months Ended |
Feb. 28, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments for acquisition of equipment | $ 945,000 |