Note 6 - Leases

12 Months Ended

May 31, 2025

Notes to Financial Statements

Lessee, Leases [Text Block]

Note 6. LEASES

Financing Leases

Financing leases consist of the following as of May 31:

	May 31,			May 31,
	2025			2024
Non-cancellable financing leases	$	4,457		$	23,143
Less: Current portion		(4,457	)		(19,171	)
Non-cancellable financing leases, net of current portion	$	-		$	3,972

The production equipment under the non-cancelable financing leases as of May 31, 2025 and 2024 was as follows:

	May 31,			May 31,
	2025			2024
Production equipment under financing leases	$	24,431		$	176,565
Less: Accumulated amortization		(17,509	)		(119,759	)
Production equipment under financing leases, net	$	6,922		$	56,806

Amortization of the carrying amount of the assets was $4,887 and $24,312 for the years ended May 31, 2025 and 2024, respectively. The amortization was included in depreciation and amortization expense.

Operating Leases

Greystone has four 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%, (ii) two buildings on a ten year lease with a five year renewal option and a discount rate of 6.00%, and (iii) office space on a six year lease and a discount rate of 8.50%. The leases are single-term with defined constant monthly rental rates.

Effective January 1, 2024, Greystone and a related party entered into a non-cancellable six-year lease agreement with one five-year extension for which Greystone recorded a right-of-use asset and liability based on the present value of the lease payments in the amount of $354,041, using a term of seventy two (72) months and a discount rate of 8.50%.

The outstanding liability for right to use assets under operating leases as of May 31, 2025 and 2024 is as follows:

	May 31,			May 31,
	2025			2024
Liability under operating leases	$	5,168,301		$	5,453,234
Less: Current portion		(303,815	)		(286,221	)
Long-term portion of liability under operating leases	$	4,864,486		$	5,167,013

Lease Summary Information

For the years ended May 31, 2025 and 2024, a summary of lease activity follows:

	May 31,			May 31,
	2025			2024
Lease Expense
Financing lease expense -
Amortization of right-of-use assets	$	4,887		$	24,312
Interest on lease liabilities		487			1,719
Operating lease expense		636,755			609,976
Short-term lease expense		1,506,817			1,512,438
Total	$	2,148,946		$	2,148,445
Other Information
Cash paid for amounts included in the measurement of lease liabilities for finance leases -
Operating cash flows	$	487		$	26,031
Financing cash flows	$	18,686		$	37,342
Cash paid for amounts included in the measurement of lease liabilities for operating leases -
Operating cash flows	$	610,291		$	583,807
Right-of-use assets obtained in exchange for lease liability -
Operating leases	$	-		$	354,041
Weighted-average remaining lease term (in years) -
Financing leases		0.7			1.2
Operating leases		11.7			12.7
Weighted-average discount rate -
Financing leases		3.0	%		4.0	%
Operating leases		6.1	%		6.1	%

Future minimum lease payments under non-cancelable operating and financing leases as of May 31, 2025, are approximately:

	Financing		Operating
	Leases		Leases
Twelve months ending May 31, 2026	$	4,513	$	609,000
Twelve months ending May 31, 2027		-		609,000
Twelve months ending May 31, 2028		-		631,300
Twelve months ending May 31, 2029		-		635,760
Twelve months ending May 31, 2030		-		604,510
Thereafter		-		4,158,580
Total future minimum lease payments		4,513		7,248,150
Less: Imputed interest		55		2,079,849
Present value of minimum lease payments	$	4,457	$	5,168,301