Note 11 - Concentrations, Risks and Uncertainties

9 Months Ended

Feb. 29, 2024

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note 11. Concentrations, Risks and Uncertainties

Greystone derived approximately 83% and 71% of its total sales from its major customers (which generally ranges from two to four customers) during the nine months ended February 29(28), 2024 and 2023, 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 $637,906 and $599,700 during the nine months ended February 29(28), 2024 and 2023, respectively, were from one of its major customers.

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.

In February 2024, one of the Company’s storage warehouses caught fire with damage to finished goods inventory valued at $1,326,752 and the building with a net book value of $161,850. The Company recorded an insurance receivable of $1,488,602 as an estimate primarily for damage to the inventory. The insurer is currently reviewing the claim which may result in a change to the recovery. The Company anticipates that the final settlement will result in a gain primarily due to the damage to the building; however, there is insufficient information currently available to determine a reasonable estimate.