Note 7 - Leases

3 Months Ended

Aug. 31, 2025

Notes to Financial Statements

Lessee, Leases [Text Block]

Note 7. Leases

Financing Leases

The outstanding liability for financing leases is as follows:

	August 31,			May 31,
	2025			2025
Non-cancelable financing leases	$	2,982		$	4,457
Less: Current portion		(2,982	)		(4,457	)
Non-cancelable financing leases, net of current portion	$	-		$	-

The production equipment under the non-cancelable financing leases is as follows:

	August 31,			May 31,
	2025			2025
Production equipment under financing leases	$	24,431		$	24,431
Less: Accumulated amortization		(18,730	)		(17,509	)
Production equipment under financing leases, net	$	5,701		$	6,922

Amortization of the carrying amount of $1,222 and $4,045 was included in depreciation and amortization expense for the three months ended August 31, 2025 and 2024, 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 two non-cancellable operating leases for (i) two buildings owned by GRE with a 120-month term, a 60-month renewal option and a discount rate of 6.0%, escalating rent payments at 5% every 5 years and (ii) the corporate offices located in Tulsa, OK with a 72-month lease and a discount rate of 8.5%, and lease is with a related party.

The outstanding liability for right to use assets under operating leases is as follows:

	August 31,			May 31,
	2025			2025
Liability under operating leases	$	5,094,165		$	5,168,301
Less: Current portion		(308,732	)		(303,815	)
Long-term portion of liability under operating leases	$	4,785,433		$	4,864,486

Lease Summary Information

Lease summary information as of and for the three-month periods ending is as follows:

	August 31,			August 31,
	2025			2024
Lease Expense
Financing lease expense -
Amortization of right-of-use assets	$	1,222		$	4,045
Interest on lease liabilities		29			203
Operating lease expense		159,040			159,635
Short-term lease expense		387,873			385,095
Total	$	548,164		$	548,978
Other Information
Cash paid for amounts included in the measurement of lease liabilities for finance leases -
Operating cash flows	$	29		$	203
Financing cash flows	$	1,474		$	5,656
Cash paid for amounts included in the measurement of lease liabilities for operating leases -
Operating cash flows	$	152,250		$	153,541
Weighted-average remaining lease term (in years) -
Financing leases		0.4			1.0
Operating leases		11.5			12.5
Weighted-average discount rate -
Financing leases		3.0	%		3.9	%
Operating leases		6.1	%		6.1	%

Future minimum lease payments under non-cancelable leases as of August 31, 2025, are approximately:   

	Financing		Operating
	Leases		Leases
Twelve months ending August 31, 2026	$	3,009	$	609,000
Twelve months ending August 31, 2027		-		611,230
Twelve months ending August 31, 2028		-		635,760
Twelve months ending August 31, 2029		-		635,760
Twelve months ending August 31, 2030		-		585,760
Thereafter		-		4,018,390
Total future minimum lease payments		3,009		7,095,900
Less: Imputed interest		27		2,001,735
Present value of minimum lease payments	$	2,982	$	5,094,165