Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Aug. 31, 2020 | Oct. 09, 2020 | |
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, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --05-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,361,201 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2021 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Current Assets: | ||
Cash | $ 821,078 | $ 1,131,850 |
Accounts receivable - Trade | 4,193,026 | 6,670,771 |
Accounts receivable - Related parties | 51,341 | 94,351 |
Inventory | 3,346,080 | 4,229,895 |
Prepaid expenses | 68,333 | 7,488 |
Total Current Assets | 8,479,858 | 12,134,355 |
Property, Plant and Equipment, net | 33,128,751 | 34,142,407 |
Right-of-Use Operating Lease Assets | 163,397 | 181,525 |
Total Assets | 41,772,006 | 46,458,287 |
Current Liabilities: | ||
Current portion of long-term debt | 4,971,516 | 4,416,377 |
Current portion of financing leases | 1,883,904 | 1,838,251 |
Current portion of operating leases | 74,106 | 74,024 |
Accounts payable and accrued liabilities | 3,996,009 | 4,929,234 |
Deferred revenue | 1,334,007 | 3,793,167 |
Preferred dividends payable | 81,918 | 84,110 |
Total Current Liabilities | 12,341,460 | 15,135,163 |
Long-Term Debt, net of current portion and debt issue costs | 15,639,847 | 18,329,633 |
Financing Leases, net of current portion | 3,103,783 | 3,617,405 |
Operating Leases, net of current portion | 89,291 | 107,501 |
Deferred Tax Liability | 1,563,052 | 1,109,052 |
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 | (45,946,891) | (46,807,092) |
Total Greystone Stockholders' Equity | 7,846,714 | 6,986,513 |
Non-controlling interest | 1,187,859 | 1,173,020 |
Total Equity | 9,034,573 | 8,159,533 |
Total Liabilities and Equity | $ 41,772,006 | $ 46,458,287 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
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 Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Income Statement [Abstract] | ||
Sales | $ 17,568,176 | $ 18,664,509 |
Cost of Sales | 14,609,617 | 16,303,734 |
Gross Profit | 2,958,559 | 2,360,775 |
General, Selling and Administrative Expenses | 1,140,238 | 1,077,598 |
Operating Income | 1,818,321 | 1,283,177 |
Other Income (Expense): | ||
Other income | 6,510 | 2,033 |
Interest expense | (361,673) | (480,911) |
Income before Income Taxes | 1,463,158 | 804,299 |
Provision for Income Taxes | 454,000 | 185,000 |
Net Income | 1,009,158 | 619,299 |
Income Attributable to Non-controlling Interest | (67,039) | (64,686) |
Preferred Dividends | (81,918) | (112,363) |
Net Income Attributable to Common Stockholders | $ 860,201 | $ 442,250 |
Income Per Share of Common Stock - Basic and Diluted | $ 0.03 | $ 0.02 |
Weighted Average Shares of Common Stock Outstanding - Basic | 28,361,201 | 28,361,201 |
Weighted Average Shares of Common Stock Outstanding - Diluted | 32,363,012 | 29,010,546 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity (Unaudited) - USD ($) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total Greystone Stockholders' Equity [Member] | Non-controlling Interest [Member] | Total |
Balance at May. 31, 2019 | $ 5 | $ 2,836 | $ 53,790,764 | $ (51,108,677) | $ 2,684,928 | $ 1,126,271 | $ 3,811,199 |
Balance, shares at May. 31, 2019 | 50,000 | 28,361,201 | |||||
Cash distributions | (52,200) | (52,200) | |||||
Preferred dividends | (112,363) | (112,363) | (112,363) | ||||
Net income | 554,613 | 554,613 | 64,686 | 619,299 | |||
Balance at Aug. 31, 2019 | $ 5 | $ 2,836 | 53,790,764 | (50,666,427) | 3,127,178 | 1,138,757 | 4,265,935 |
Balance, shares at Aug. 31, 2019 | 50,000 | 28,361,201 | |||||
Balance at May. 31, 2020 | $ 5 | $ 2,836 | 53,790,764 | (46,807,092) | 6,986,513 | 1,173,020 | 8,159,533 |
Balance, shares at May. 31, 2020 | 50,000 | 28,361,201 | |||||
Cash distributions | (52,200) | (52,200) | |||||
Preferred dividends | (81,918) | (81,918) | (81,918) | ||||
Net income | 942,119 | 942,119 | 67,039 | 1,009,158 | |||
Balance at Aug. 31, 2020 | $ 5 | $ 2,836 | $ 53,790,764 | $ (45,946,891) | $ 7,846,714 | $ 1,187,859 | $ 9,034,573 |
Balance, shares at Aug. 31, 2020 | 50,000 | 28,361,201 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Preferred dividends per share | $ 1.64 | $ 2.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,009,158 | $ 619,299 |
Adjustments to reconcile net income to net cash provided by operating activities - | ||
Depreciation and amortization | 1,491,244 | 1,305,258 |
Deferred tax expense | 454,000 | 185,000 |
Decrease in trade accounts receivable | 2,477,745 | 1,473,523 |
Decrease (increase) in related party receivables | 43,010 | (14,754) |
Decrease (increase) in inventory | 857,065 | (1,434,527) |
Decrease (increase) in prepaid expenses | (60,845) | 213,410 |
Decrease in accounts payable and accrued liabilities | (638,117) | (271,366) |
Decrease in deferred revenue | (2,459,160) | |
Net cash provided by operating activities | 3,174,100 | 2,075,843 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (744,656) | (1,172,574) |
Cash Flows from Financing Activities: | ||
Proceeds from long-term debt | 672,000 | |
Principal payments on long-term debt and financing leases | (1,193,676) | (1,161,478) |
Proceeds from revolving loan | 690,000 | |
Principal payments on revolving loan | (790,000) | (972,000) |
Principal payments on related party note payable and financing lease | (620,230) | (90,095) |
Payments for debt issuance costs | (3,360) | |
Dividends paid on preferred stock | (84,110) | (112,192) |
Distributions paid by non-controlling interest | (52,200) | (52,200) |
Net cash used in financing activities | (2,740,216) | (1,029,325) |
Net Decrease in Cash | (310,772) | (126,056) |
Cash, beginning of period | 1,131,850 | 1,255,408 |
Cash, end of period | 821,078 | 1,129,352 |
Non-cash Activities: | ||
Capital expenditures in accounts payable | 271,670 | |
Preferred dividend accrual | 81,918 | 112,363 |
Supplemental information: | ||
Interest paid | $ 350,497 | $ 480,802 |
Basis of Financial Statements
Basis of Financial Statements | 3 Months Ended |
Aug. 31, 2020 | |
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, 2020 and the results of its operations and cash flows for the three months ended August 31, 2020 and 2019. 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, 2020 and the notes thereto included in the Form 10-K for such period. The results of operations for the three months ended August 31, 2020 and 2019 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 | 3 Months Ended |
Aug. 31, 2020 | |
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 at August 31 are as follows: 2020 2019 Preferred stock convertible into common stock - 3,333,333 The following tables set forth the computation of basic and diluted earnings per share for the three months ended August 31, 2020 and 2019: 2020 2019 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 860,201 $ 442,250 Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Income per share of common stock - basic $ 0.03 $ 0.02 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 860,201 $ 442,250 Add: Preferred stock dividends for assumed conversion 81,918 - Net income allocated to common stockholders $ 942,119 $ 442,250 Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Incremental shares from assumed conversion of options, warrants and preferred stock, as appropriate 4,001,811 649,345 Weighted average common stock outstanding - diluted 32,363,012 29,010,546 Income per share of common stock - diluted $ 0.03 $ 0.02 |
Inventory
Inventory | 3 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3. Inventory Inventory consists of the following: August 31, May 31, 2020 2020 Raw materials $ 1,772,380 $ 1,953,957 Finished goods 1,573,700 2,275,938 Total inventory $ 3,346,080 $ 4,229,895 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Aug. 31, 2020 | |
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: August 31, 2020 May 31, 2020 Production machinery and equipment $ 50,799,509 $ 51,637,883 Plant buildings and land 6,884,866 6,881,326 Leasehold improvements 1,374,643 1,323,535 Furniture and fixtures 601,586 601,586 59,660,604 60,444,330 Less: Accumulated depreciation and amortization (26,531,853 ) (26,301,923 ) Net Property, Plant and Equipment $ 33,128,751 $ 34,142,407 Production machinery includes deposits on equipment in the amount of $299,629 at August 31, 2020, which has not been placed into service. Plant buildings and land include two properties which are owned by GRE, a variable interest entity (“VIE”) and have an aggregate net book value of $2,751,709 at August 31, 2020. Depreciation expense, including amortization expense related to financing leases, for the three months ended August 31, 2020 and 2019 was $1,489,953 and $1,303,968, respectively. |
Related Party Transactions_Acti
Related Party Transactions/Activity | 3 Months Ended |
Aug. 31, 2020 | |
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 $27,500 for use of Yorktown’s grinding equipment and pelletizing equipment. Rental fees were $330,000 and $357,500 for the three months ended August 31, 2020 and 2019, 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 $12,000 for each of the three months ended August 31, 2020 and 2019. As of August 31, 2020, future minimum payments under the non-cancelable operating lease for the remaining two years are $48,000 and $16,000. 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 three months ended August 31, 2020 and 2019 totaled $11,385 and $-0-, respectively. As of August 31, 2020, Greystone owed $5,175 to TriEnda for such purchases. 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 $64,260 and $77,520 for the three months ended August 31, 2020 and 2019, respectively. The account receivable due from Green at August 31, 2020 was $42,840. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6. Long-term Debt Debt as of August 31, 2020 and May 31, 2020 is as follows: August 31, May 31, 2020 2020 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 $ 2,254,132 $ 2,459,854 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, 2024 1,101,859 1,165,774 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 977,187 1,136,455 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 635,192 696,174 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing February 29, 2024 2,583,361 2,752,293 Term loan G payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing April 30, 2024 826,130 837,811 Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.5%, due January 31, 2022 1,750,000 2,540,000 Paycheck Protection Program note, interest rate of 1.0%, maturing April 13, 2022 3,034,000 3,034,000 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5%, monthly principal and interest payment of $27,688, due April 30, 2023 2,209,901 2,261,425 Term note payable to Great Western Bank, interest rate of 3.7%, monthly principal and interest payments of $27,593, due March 19, 2025, secured by certain equipment 1,392,988 1,461,726 Note payable to Robert Rosene, 7.5% interest, due January 15, 2022 3,706,666 4,253,228 Other 174,543 183,156 Total long-term debt 20,645,959 22,781,896 Debt issuance costs, net of amortization (34,596 ) (35,886 ) Total debt, net of debt issuance costs 20,611,363 22,746,010 Less: Current portion of long-term debt (4,971,516 ) (4,416,377 ) Long-term debt, net of current portion $ 15,639,847 $ 18,329,633 The prime rate of interest as of August 31, 2020 was 3.25%. 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. 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 February 29, 2016 (currently $76,705 per month), (ii) Term Loan C over a seven-year period beginning August 31, 2017 (currently $25,205 per month), (iii) Term Loan D over a four-year period beginning February 10, 2019 (currently $57,469 per month), (iv) Term Loan E over a four-year period beginning February 10, 2019 (currently $23,060 per month), (v) Term Loan F over a five-year period beginning February 28, 2019 (currently $68,402 per month) and (vi) Term Loan G over a fifteen-year period beginning April 30, 2019 (currently $7,466 per month). 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, as amended, provides a revolving loan in an aggregate principal amount of up to $4,000,000 (the “Revolving Loan”). The amount which can be borrowed from time to time is dependent upon the amount of the borrowing base not to exceed $4,000,000. The Revolving Loan bears interest at the greater of the prime rate of interest plus 0.5%, or 5.50% and matures January 31, 2022. 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. Greystone’s available revolving loan borrowing capacity was $2,250,000 at August 31, 2020. 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 herein. Paycheck Protection Program (“PPP”) Loan On April 10, 2020, the Company received a SBA Payroll Protection Program (“PPP”) loan pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), with IBC for $3,034,000. The PPP loan bears interest at 1.0% per annum, with monthly payments of principal and interest in the amount of $177,803 commencing on November 10, 2020 and matures on April 10, 2022. The Paycheck Protection Program provides that the PPP loan may be partially or fully forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. The Company believes that the proceeds from the PPP loan were used for qualifying expenses in accordance with the terms in the CARES Act and plans to apply for forgiveness of the PPP loan in accordance with the requirements and limitations under the CARES Act, the PPP Flexibility Act and SBA regulations and requirements. However, there is no assurance that all or any portion of the PPP loan will be forgiven. 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, 2022. 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 August 31, 2020 was $3,706,666. Maturities Maturities of Greystone’s long-term debt for the five years subsequent to August 31, 2020 are $4,971,516, $10,021,054, $3,768,376, $1,669,485 and $215,528. |
Leases
Leases | 3 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Leases | Note 7. Leases Financing Leases Financing leases as of August 31, 2020 and May 31, 2020: August 31, 2020 May 31, 2020 Non-cancellable financing leases $ 4,987,687 $ 5,455,656 Less: Current portion (1,883,904 ) (1,838,251 ) Non-cancellable financing leases, net of current portion $ 3,103,783 $ 3,617,405 Greystone and an unrelated private company entered into three lease agreements for certain production equipment with a total cost of approximately $6.9 million which were effective February 24, 2018, August 2, 2018 and December 21, 2018, respectively, with five-year terms and a capitalized interest rate of 7.4%. Each of the lease agreements include a bargain purchase option to acquire the production equipment at the end of the lease term. The leased equipment is principally used to produce pallets for the private company. Lease payments are made as a credit on the sales invoice at the rate of $3.32 for each pallet produced and shipped from the respective leased equipment. The estimated aggregate monthly rental payments are approximately $153,000. The rent payments can vary each month depending on the quantity of pallets produced from each machine. The lease agreements 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 28, 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, 2022. The lease agreement has a $10,000 purchase option at the end of the lease. The production equipment under the non-cancelable financing leases has a gross carrying amount of $8,473,357 at August 31, 2020. Amortization of the carrying amount of $288,414 and $208,157 was included in depreciation expense for the three months ended August 31, 2020 and 2019, respectively. Operating Leases Greystone recognized a lease liability for each lease based on the present value of remaining minimum fixed rental payments, using a discount rate that approximates the rate of interest for a collateralized loan over a similar term. A right-of-use asset is recognized for each lease, valued at the lease liability. Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses on the consolidated statements of income. Variable and short-term rental payments are recognized as costs and expenses as they are incurred. Greystone has three non-cancellable operating leases for (i) equipment with a fifty-two month term and a forty-eight month term and a discount rate of 5.40% and (ii) office space on a sixty month term and a discount rate of 5.0%. The leases are single-term with constant monthly rental rates. Lease Summary Information For the periods ending August 31, 2020 and 2019: 2020 2019 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 288,414 $ 208,157 Interest on lease liabilities 86,558 121,151 Operating lease expense 20,470 19,179 Short-term lease expense 346,566 368,611 Total $ 742,008 $ 717,098 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 86,558 $ 121,151 Financing cash flows $ 467,970 $ 419,177 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 20,470 $ 19,179 Right-of-use assets obtained in exchange for lease liabilities - Operating leases $ - $ 67,750 Weighted-average remaining lease term (in years) - Financing leases 3.2 3.2 Operating leases 2.9 3.4 Weighted-average discount rate - Financing leases 7.4 % 7.5 % Operating leases 5.2 % 5.2 % Future minimum lease payments under non-cancelable leases as of August 31, 2020, are approximately: Financing Leases Operating Leases Twelve months ended August 31, 2021 $ 2,186,434 $ 81,881 Twelve months ended August 31, 2022 2,052,590 49,881 Twelve months ended August 31, 2023 1,211,671 32,348 Twelve months ended August 31, 2024 28,359 12,910 Twelve months ended August 31, 2025 7,349 - Total future minimum lease payments 5,486,403 177,020 Present value discount 498,716 13,623 Present value of minimum lease payments $ 4,987,687 $ 163,397 |
Deferred Revenue
Deferred Revenue | 3 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue | Note 8. Deferred Revenue Advances from a customer pursuant to a contract for the sale of plastic pallets is recognized as deferred revenue. Revenue is recognized by Greystone as pallets are shipped to the customer which totaled $2,459,160 and $-0- during the three months ended August 31, 2020 and 2019, respectively. There were no customer advances received during the three months ended August 31, 2020 and 2019. The unrecognized balance of deferred revenue as of August 31, 2020 and May 31, 2020, was $1,334,007 and $3,793,167, respectively. |
Revenue and Revenue Recognition
Revenue and Revenue Recognition | 3 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Revenue Recognition | Note 9. Revenue and Revenue Recognition Revenue is recognized at the time a good or service is transferred to a customer and the customer obtains control of that good or receives the service performed. Sales arrangements with customers are short-term in nature involving single performance obligations related to the delivery of goods and generally provide for transfer of control at the time of shipment. In limited circumstances, where acceptance of the goods is subject to approval by the customer, revenue is recognized upon approval by the customer unless, historically, there have been insignificant rejections of goods by the customer. Contract liabilities associated with sales arrangements primarily relate to deferred revenue on prepaid sales of goods. Greystone generally permits returns of product due to defects; however, product returns are historically insignificant. The amount of revenue recognized reflects the consideration to which Greystone expects to be entitled to receive in exchange for its products. 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 $131,000 and $105,000 during the three months ended August 31, 2020 and 2019, 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 three months ended August 31, 2020 and 2019, respectively, were as follows: Category 2020 2019 Major customers (end users) 87 % 87 % Distributors 13 % 13 % |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Aug. 31, 2020 | |
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 | 3 Months Ended |
Aug. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations, Risks and Uncertainties | Note 11. Concentrations, Risks and Uncertainties Greystone derived approximately 87% of its total sales from four customers and three customers during the three months ended August 31, 2020 and 2019, 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 $301,421 and $561,657 in fiscal years 2021 and 2020, 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 August 31, 2020, Greystone is indebted to Mr. Rosene in the amount of $3,706,666 for a note payable due January 15, 2022. There is no assurance that Mr. Rosene will renew the note as of the maturity date. COVID-19 Risks Greystone is subject to litigation, claims and other commitments and contingencies arising in the ordinary course of business. Although the asserted value of these matters may be significant, the company currently does not expect that the ultimate resolution of any open matters will have a material adverse effect on its consolidated financial position or results of operations. |
Commitments
Commitments | 3 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 12. Commitments As of August 31, 2020, Greystone had commitments totaling $467,230 toward the purchase of production equipment. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Anti-Dilutive Instruments of Earnings Per Share | Greystone excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive. Instruments which have an anti-dilutive effect at August 31 are as follows: 2020 2019 Preferred stock convertible into common stock - 3,333,333 |
Schedule of Basic and Diluted Earnings Per Share | The following tables set forth the computation of basic and diluted earnings per share for the three months ended August 31, 2020 and 2019: 2020 2019 Basic earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 860,201 $ 442,250 Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Income per share of common stock - basic $ 0.03 $ 0.02 Diluted earnings per share of common stock: Numerator - Net income attributable to common stockholders $ 860,201 $ 442,250 Add: Preferred stock dividends for assumed conversion 81,918 - Net income allocated to common stockholders $ 942,119 $ 442,250 Denominator - Weighted-average shares outstanding - basic 28,361,201 28,361,201 Incremental shares from assumed conversion of options, warrants and preferred stock, as appropriate 4,001,811 649,345 Weighted average common stock outstanding - diluted 32,363,012 29,010,546 Income per share of common stock - diluted $ 0.03 $ 0.02 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consists of the following: August 31, May 31, 2020 2020 Raw materials $ 1,772,380 $ 1,953,957 Finished goods 1,573,700 2,275,938 Total inventory $ 3,346,080 $ 4,229,895 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | A summary of property, plant and equipment for Greystone is as follows: August 31, 2020 May 31, 2020 Production machinery and equipment $ 50,799,509 $ 51,637,883 Plant buildings and land 6,884,866 6,881,326 Leasehold improvements 1,374,643 1,323,535 Furniture and fixtures 601,586 601,586 59,660,604 60,444,330 Less: Accumulated depreciation and amortization (26,531,853 ) (26,301,923 ) Net Property, Plant and Equipment $ 33,128,751 $ 34,142,407 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Debt as of August 31, 2020 and May 31, 2020 is as follows: August 31, May 31, 2020 2020 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 $ 2,254,132 $ 2,459,854 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, 2024 1,101,859 1,165,774 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 977,187 1,136,455 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 635,192 696,174 Term loan F payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing February 29, 2024 2,583,361 2,752,293 Term loan G payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.25%, maturing April 30, 2024 826,130 837,811 Revolving loan payable to International Bank of Commerce, prime rate of interest plus 0.5% but not less than 5.5%, due January 31, 2022 1,750,000 2,540,000 Paycheck Protection Program note, interest rate of 1.0%, maturing April 13, 2022 3,034,000 3,034,000 Term loan payable by GRE to International Bank of Commerce, interest rate of 5.5%, monthly principal and interest payment of $27,688, due April 30, 2023 2,209,901 2,261,425 Term note payable to Great Western Bank, interest rate of 3.7%, monthly principal and interest payments of $27,593, due March 19, 2025, secured by certain equipment 1,392,988 1,461,726 Note payable to Robert Rosene, 7.5% interest, due January 15, 2022 3,706,666 4,253,228 Other 174,543 183,156 Total long-term debt 20,645,959 22,781,896 Debt issuance costs, net of amortization (34,596 ) (35,886 ) Total debt, net of debt issuance costs 20,611,363 22,746,010 Less: Current portion of long-term debt (4,971,516 ) (4,416,377 ) Long-term debt, net of current portion $ 15,639,847 $ 18,329,633 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Schedule of Financing Lease | Financing leases as of August 31, 2020 and May 31, 2020: August 31, 2020 May 31, 2020 Non-cancellable financing leases $ 4,987,687 $ 5,455,656 Less: Current portion (1,883,904 ) (1,838,251 ) Non-cancellable financing leases, net of current portion $ 3,103,783 $ 3,617,405 |
Summary of Lease Activity | For the periods ending August 31, 2020 and 2019: 2020 2019 Lease Expense Financing lease expense - Amortization of right-of-use assets $ 288,414 $ 208,157 Interest on lease liabilities 86,558 121,151 Operating lease expense 20,470 19,179 Short-term lease expense 346,566 368,611 Total $ 742,008 $ 717,098 Other Information Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows $ 86,558 $ 121,151 Financing cash flows $ 467,970 $ 419,177 Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows $ 20,470 $ 19,179 Right-of-use assets obtained in exchange for lease liabilities - Operating leases $ - $ 67,750 Weighted-average remaining lease term (in years) - Financing leases 3.2 3.2 Operating leases 2.9 3.4 Weighted-average discount rate - Financing leases 7.4 % 7.5 % Operating leases 5.2 % 5.2 % |
Schedule of Future Minimum Lease Payments | Future minimum lease payments under non-cancelable leases as of August 31, 2020, are approximately: Financing Leases Operating Leases Twelve months ended August 31, 2021 $ 2,186,434 $ 81,881 Twelve months ended August 31, 2022 2,052,590 49,881 Twelve months ended August 31, 2023 1,211,671 32,348 Twelve months ended August 31, 2024 28,359 12,910 Twelve months ended August 31, 2025 7,349 - Total future minimum lease payments 5,486,403 177,020 Present value discount 498,716 13,623 Present value of minimum lease payments $ 4,987,687 $ 163,397 |
Revenue and Revenue Recogniti_2
Revenue and Revenue Recognition (Tables) | 3 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Sale of Revenues for Customer Categories | Sales to the following categories of customers for the three months ended August 31, 2020 and 2019, respectively, were as follows: Category 2020 2019 Major customers (end users) 87 % 87 % Distributors 13 % 13 % |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Anti-Dilutive Instruments of Earnings Per Share (Details) - shares | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Convertible Preferred Stock [Member] | ||
Anti-Dilutive Instruments of Earnings per Share | 3,333,333 |
Earnings Per Share - Schedule_2
Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to common stockholders | $ 860,201 | $ 442,250 |
Weighted-average common shares outstanding | 28,361,201 | 28,361,201 |
Income per share of common stock - Basic | $ 0.03 | $ 0.02 |
Net income attributable to common stockholders | $ 860,201 | $ 442,250 |
Add: Preferred stock dividends due to assumed conversion | 81,918 | |
Net Income allocated to common stockholders | $ 942,119 | $ 442,250 |
Weighted-average shares outstanding - basic | 28,361,201 | 28,361,201 |
Incremental common shares from assumed conversion of warrants, options and preferred stock, as appropriate | 4,001,811 | 649,345 |
Weighted average common stock outstanding - diluted | 32,363,012 | 29,010,546 |
Income per share of common stock - diluted | $ 0.03 | $ 0.02 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,772,380 | $ 1,953,957 |
Finished goods | 1,573,700 | 2,275,938 |
Total inventory | $ 3,346,080 | $ 4,229,895 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Carrying value of property, plant and equipment | $ 59,660,604 | $ 60,444,330 | |
Depreciation expense | 1,489,953 | $ 1,303,968 | |
Two Plant Buildings and Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Carrying value of property, plant and equipment | 2,751,709 | ||
Service [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Machinery and equipment | $ 299,629 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 59,660,604 | $ 60,444,330 |
Less: Accumulated depreciation and amortization | (26,531,853) | (26,301,923) |
Net Property, Plant and Equipment | 33,128,751 | 34,142,407 |
Production Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 50,799,509 | 51,637,883 |
Plant Buildings and Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 6,884,866 | 6,881,326 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | 1,374,643 | 1,323,535 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment, gross | $ 601,586 | $ 601,586 |
Related Party Transactions_Ac_2
Related Party Transactions/Activity (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Future minimum payments under operating lease 2021 | $ 81,881 | |
Future minimum payments under operating lease 2022 | 49,881 | |
Non-Cancelable Operating Lease [Member] | ||
Related Party Transaction [Line Items] | ||
Future minimum payments under operating lease 2021 | 48,000 | |
Future minimum payments under operating lease 2022 | 16,000 | |
Office Space [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | $ 12,000 | $ 12,000 |
Lease term | 60 months | |
Monthly [Member] | Office Space [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | $ 4,000 | |
Lease term | 5 years | |
Yorktown's Grinding and Pelletizing Equipment [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | $ 330,000 | 357,500 |
Yorktown's Grinding and Pelletizing Equipment [Member] | Weekly [Member] | ||
Related Party Transaction [Line Items] | ||
Payments of rental fees | 27,500 | |
TriEnda Holdings, L.L.C [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction purchases | 11,385 | 0 |
Accounts payable | 5,175 | |
Green Plastic Pallets [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from goods | 64,260 | $ 77,520 |
Account receivable | $ 42,840 |
Long-Term Debt (Details Narrati
Long-Term Debt (Details Narrative) - USD ($) | Apr. 10, 2020 | Aug. 10, 2018 | Jun. 02, 2018 | Aug. 31, 2020 | Dec. 15, 2005 |
Maturities long term debt current | $ 4,971,516 | ||||
Maturities long term debt year two | 10,021,054 | ||||
Maturities long term debt year three | 3,768,376 | ||||
Maturities long term debt year four | 1,669,485 | ||||
Maturities long term debt year five | $ 215,528 | ||||
Robert B. Rosene, Jr. [Member] | |||||
Debt instrument interest rate | 7.50% | ||||
Debt instrument maturity date | Jan. 15, 2022 | ||||
Note payable | $ 3,706,666 | $ 2,066,000 | |||
Debt accrued interest | $ 2,475,690 | ||||
Robert B. Rosene, Jr. [Member] | Restated Note [Member] | |||||
Extended maturity date | Jan. 15, 2022 | ||||
Unsecured note payable | $ 4,541,690 | ||||
Paycheck Protection Program [Member] | |||||
Debt monthly payment | $ 177,803 | ||||
Debt instrument principal amount | $ 3,034,000 | ||||
Debt instrument maturity date | Apr. 10, 2022 | ||||
Debt interest rate | 1.00% | ||||
Revolving Loan [Member] | |||||
Debt instrument maturity date | Jan. 31, 2022 | ||||
Term Loan A [Member] | |||||
Note term | 7 years | ||||
Debt monthly payment | $ 76,705 | ||||
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 | $ 68,402 | ||||
Term Loan G [Member] | |||||
Note term | 15 years | ||||
Debt monthly payment | $ 7,466 | ||||
Revolving Loan [Member] | |||||
Debt instrument interest rate | 5.50% | ||||
Line of credit maximum borrowing capacity | $ 2,250,000 | ||||
Revolving Loan [Member] | IBC Loan Agreement [Member] | |||||
Debt instrument principal amount | 4,000,000 | ||||
Line of credit maximum borrowing capacity | 4,000,000 | ||||
Guaranty [Member] | IBC Loan Agreement [Member] | |||||
Guarantees combined amount | $ 6,500,000 | ||||
Mortgage Loan [Member] | GRE and IBC [Member] | |||||
Debt instrument interest rate | 5.50% | ||||
Extended maturity date | Apr. 30, 2023 | ||||
Prime Rate [Member] | |||||
Debt instrument interest rate | 3.25% | ||||
Prime Rate [Member] | Revolving Loan [Member] | |||||
Debt instrument interest rate | 0.50% |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 20,645,959 | $ 22,781,896 |
Debt issuance costs, net of amortization | (34,596) | (35,886) |
Total debt, net of debt issuance costs | 20,611,363 | 22,746,010 |
Less: Current portion of long-term debt | (4,971,516) | (4,416,377) |
Long-term debt, net of current portion and debt issue costs | 15,639,847 | 18,329,633 |
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 [Line Items] | ||
Total long-term debt | 2,254,132 | 2,459,854 |
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, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,101,859 | 1,165,774 |
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 [Line Items] | ||
Total long-term debt | 977,187 | 1,136,455 |
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 [Line Items] | ||
Total long-term debt | 635,192 | 696,174 |
Term Loan F Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 5.25%, Maturing February 29, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 2,583,361 | 2,752,293 |
Term Loan G Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 5.25%, Maturing April 30, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 826,130 | 837,811 |
Revolving Loan Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 5.5%, Due January 31, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,750,000 | 2,540,000 |
Paycheck Protection Program Note, Interest Rate of 1.0%, Maturing April 13, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 3,034,000 | 3,034,000 |
Term Loan Payable by GRE to International Bank of Commerce, Interest Rate of 5.5%, Monthly Principal and Interest Payment of $27,688, Due April 30, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 2,209,901 | 2,261,425 |
Term Note Payable to Great Western Bank, Interest Rate of 3.7%, Monthly Principal and Interest Payments of $27,593, due March 19, 2025, Secured by Certain Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,392,988 | 1,461,726 |
Note Payable to Robert Rosene, 7.5% Interest, Due January 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 3,706,666 | 4,253,228 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 174,543 | $ 183,156 |
Long-Term Debt - Schedule of _2
Long-Term Debt - Schedule of Long-Term Debt (Details) (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Aug. 31, 2020 | May 31, 2020 | |
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 [Line Items] | ||
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 [Line Items] | ||
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, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Aug. 4, 2024 | Aug. 4, 2024 |
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, 2024 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
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 [Line Items] | ||
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 [Line Items] | ||
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 [Line Items] | ||
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 [Line Items] | ||
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 29, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Feb. 29, 2024 | Feb. 29, 2024 |
Term Loan F Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 5.25%, Maturing February 29, 2024 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.25% | 5.25% |
Term Loan G Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 5.25%, Maturing April 30, 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Apr. 30, 2024 | Apr. 30, 2024 |
Term Loan G Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 5.25%, Maturing April 30, 2024 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
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 5.5%, Due January 31, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 0.50% | 0.50% |
Debt instrument maturity date | Jan. 31, 2022 | Jan. 31, 2022 |
Revolving Loan Payable to International Bank of Commerce, Prime Rate of Interest Plus 0.5% But Not Less Than 5.5%, Due January 31, 2022 [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.50% | 5.50% |
Paycheck Protection Program Note, Interest Rate of 1.0%, Maturing April 13, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 1.00% | 1.00% |
Debt instrument maturity date | Apr. 13, 2022 | Apr. 13, 2022 |
Term Loan Payable by GRE to International Bank of Commerce, Interest Rate of 5.5%, Monthly Principal and Interest Payment of $27,688, Due April 30, 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 5.50% | 5.50% |
Debt instrument maturity date | Apr. 30, 2023 | Apr. 30, 2023 |
Debt instrument principal and interest amount | $ 27,688 | $ 27,688 |
Term Note Payable to Great Western Bank, Interest Rate of 3.7%, Monthly Principal and Interest Payments of $27,593, due March 19, 2025, Secured by Certain Equipment [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.70% | 3.70% |
Debt instrument maturity date | Mar. 19, 2025 | Mar. 19, 2025 |
Debt instrument principal and interest amount | $ 27,593 | $ 27,593 |
Note Payable to Robert Rosene, 7.5% Interest, Due January 15, 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 7.50% | 7.50% |
Debt instrument maturity date | Jan. 15, 2022 | Jan. 15, 2022 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Finance lease cost | $ 742,008 | $ 717,098 |
Amortization of assets | $ 288,414 | 208,157 |
Equipment One [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 52 months | |
Operating lease discount rate | 5.40% | |
Equipment Two [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease term | 48 months | |
Operating lease discount rate | 5.40% | |
Office Space [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Payments of monthly rental amount | $ 12,000 | $ 12,000 |
Operating lease term | 60 months | |
Operating lease discount rate | 5.00% | |
Sale and Leaseback Agreement [Member] | Yorktown Production Equipment [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Value of production equipment purchased | $ 968,168 | |
Lease maturity date | Dec. 27, 2022 | |
Bargain purchase option amount | $ 10,000 | |
Sale and Leaseback Agreement [Member] | Yorktown Production Equipment [Member] | Initial Thirty Six Months [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Payments of monthly rental amount | 27,915 | |
Sale and Leaseback Agreement [Member] | Yorktown Production Equipment [Member] | Following Twelve Months [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Payments of monthly rental amount | 7,695 | |
Non- Cancelable Financing Leases [Member] | Production Equipment [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Production equipment gross carrying amount | 8,473,357 | |
Three Lease Agreements with Five Year Terms [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease cost | $ 6,900,000 | |
Finance lease term | 5 years | |
Lease interest rate | 7.40% | |
Lease payment per invoice rate | $ 3.32 | |
Payments of monthly rental amount | $ 153,000 |
Leases - Schedule of Financing
Leases - Schedule of Financing Lease (Details) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Leases [Abstract] | ||
Non-cancelable financing leases | $ 4,987,687 | $ 5,455,656 |
Less: Current portion of financing leases | (1,883,904) | (1,838,251) |
Non-cancelable financing leases, net of current portion | $ 3,103,783 | $ 3,617,405 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Leases [Abstract] | ||
Financing lease expense - Amortization of right-of-use assets | $ 288,414 | $ 208,157 |
Financing lease expense - Interest on lease liabilities | 86,558 | 121,151 |
Operating lease expense | 20,470 | 19,179 |
Short-term lease expense | 346,566 | 368,611 |
Total | 742,008 | 717,098 |
Cash paid for amounts included in the measurement of lease liabilities for finance leases - Operating cash flows | 86,558 | 121,151 |
Cash paid for amounts included in the measurement of lease liabilities for finance leases - Financing cash flows | 467,970 | 419,177 |
Cash paid for amounts included in the measurement of lease liabilities for operating leases - Operating cash flows | 20,470 | 19,179 |
Right-of-use assets obtained in exchange for lease liabilities - Operating leases | $ 67,750 | |
Weighted-average remaining lease term (in years) - Financing leases | 3 years 2 months 12 days | 3 years 2 months 12 days |
Weighted-average remaining lease term (in years) - Operating leases | 2 years 10 months 25 days | 3 years 4 months 24 days |
Weighted-average discount rate - Financing leases | 7.40% | 7.50% |
Weighted-average discount rate - Operating leases | 5.20% | 5.20% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) | Aug. 31, 2020 | May 31, 2020 |
Leases [Abstract] | ||
Twelve months ended August 31, 2021 | $ 2,186,434 | |
Twelve months ended August 31, 2022 | 2,052,590 | |
Twelve months ended August 31, 2023 | 1,211,671 | |
Twelve months ended August 31, 2024 | 28,359 | |
Twelve months ended August 31, 2025 | 7,349 | |
Total future minimum lease payments | 5,486,403 | |
Present value discount | 498,716 | |
Present value of minimum lease payments | 4,987,687 | $ 5,455,656 |
Twelve months ended August 31, 2021 | 81,881 | |
Twelve months ended August 31, 2022 | 49,881 | |
Twelve months ended August 31, 2023 | 32,348 | |
Twelve months ended August 31, 2024 | 12,910 | |
Twelve months ended August 31, 2025 | ||
Total future minimum lease payments | 177,020 | |
Present value discount | 13,623 | |
Present value of minimum lease payments | $ 163,397 |
Deferred Revenue (Details Narra
Deferred Revenue (Details Narrative) - USD ($) | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | May 31, 2020 | |
Deferred revenue | $ 1,334,007 | $ 3,793,167 | |
Pallets [Member] | |||
Customer advances | $ 2,459,160 | $ 0 |
Revenue and Revenue Recogniti_3
Revenue and Revenue Recognition (Details Narrative) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Canada and Mexico [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Sales revenue | $ 131,000 | $ 105,000 |
Revenue and Revenue Recogniti_4
Revenue and Revenue Recognition - Schedule of Sale of Revenues for Customer Categories (Details) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Major Customers (End Users) [Member] | ||
Concentration Risk [Line Items] | ||
Total | 87.00% | 87.00% |
Distributors [Member] | ||
Concentration Risk [Line Items] | ||
Total | 13.00% | 13.00% |
Concentrations, Risks and Unc_2
Concentrations, Risks and Uncertainties (Details Narrative) - USD ($) | 3 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Dec. 15, 2005 | |
Robert B. Rosene, Jr. [Member] | |||
Concentration Risk [Line Items] | |||
Note payable | $ 3,706,666 | $ 2,066,000 | |
Debt instrument, maturity date | Jan. 15, 2022 | ||
Fiscal Year 2021 [Member] | |||
Concentration Risk [Line Items] | |||
Customer purchases amount | $ 301,421 | ||
Fiscal Year 2020 [Member] | |||
Concentration Risk [Line Items] | |||
Customer purchases amount | $ 561,657 | ||
Sales Revenue, Net [Member] | Four Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 87.00% | ||
Sales Revenue, Net [Member] | Three Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 87.00% |
Commitments (Details Narrative)
Commitments (Details Narrative) | Aug. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase of production equipment | $ 467,230 |