Note 4 - Property, Plant and Equipment

6 Months Ended

Nov. 30, 2024

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

Note 4. Property, Plant and Equipment

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

	November 30,			May 31,
	2024			2024
Production machinery and equipment	$	71,307,457		$	68,532,989
Plant buildings and land		3,930,207			2,289,233
Leasehold improvements		1,709,846			1,658,751
Furniture and fixtures		542,057			542,057
		77,489,567			73,023,030
Less: Accumulated depreciation and amortization		(45,800,130	)		(42,956,911	)
Net Property, Plant and Equipment	$	31,689,437		$	30,066,119

Property, plant and equipment includes production equipment with a carrying value of $1,124,400 as of November 30, 2024, which has not been placed into service.

Depreciation expense, including amortization expense related to financing leases, for the six months ended November 30, 2024 and 2023 was $2,843,219 and $2,828,552, 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. As of May 31, 2024, 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 for the fiscal year ended May 31, 2024. The insurer and the Company finalized the claim value for the inventory as well as a prior claim for equipment damage from an electrical storm occurring in December 2022, resulting in an additional gain from the involuntary conversion of $741,821 for the six months ended November 30, 2024. All amounts owed related to these claims, reflected in other receivables on the consolidated balance sheets, were fully funded during the second quarter by the insurer.