Note 4 - Property, Plant and Equipment

12 Months Ended

May 31, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note 4.    PROPERTY, PLANT AND EQUIPMENT

A summary of the property, plant and equipment for Greystone is as follows, as of May 31:

	2024			2023
Production machinery and equipment	$	68,532,989		$	66,068,625
Plant buildings and land		2,289,233			2,364,089
Leasehold improvements		1,658,751			1,553,138
Furniture and fixtures		542,057			542,057
Total property, plant and equipment		73,023,032			70,527,909
Less: Accumulated depreciation		(42,956,911	)		(37,343,203	)
Property, Plant and Equipment, net	$	30,066,119		$	33,184,706

Property, plant and equipment includes production equipment with a carrying value of $812,532 which had not been placed into service as of May 31, 2024.

Depreciation expense for the fiscal years ended May 31, 2024 and 2023, was $5,730,731 and $5,195,994, respectively.

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 $2,058,602 as an estimate for damage to the inventory and building, which resulted in a gain from the involuntary conversion of $593,647. The insurer and Company are currently reviewing and finalizing the claim value for the inventory. The Company will record any additional consideration once a settlement has been reached, which may increase the gain recorded in future periods.