Note 6 - Related Party Transactions

9 Months Ended

Feb. 28, 2026

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note 6. Related Party Transactions

Transactions with Warren F. Kruger, Chairman

Yorktown Management & Financial Services, LLC (“Yorktown”), an entity wholly owned by Greystone’s CEO and President, owns and rents to Greystone (1) grinding equipment used to grind raw materials for Greystone’s pallet production and (2) extruders for pelletizing recycled plastic into pellets for resale and for use as raw material in the manufacture of pallets. Greystone compensates Yorktown for the use of equipment as discussed below.

Rental fees. GSM pays weekly rental fees of $27,500 to Yorktown for use of grinding equipment and pelletizing equipment. Total rent expense was $1,072,500 for each of the nine months ended February 28, 2026 and 2025.

Yorktown provides administrative office space for Greystone in Tulsa, Oklahoma under a six-year lease at a rental rate of $6,250 per month. Total rent payments were $56,250 and $62,500 for the nine months ended February 28, 2026 and 2025, respectively.

Transactions with Greystone Real Estate, L.L.C.

Greystone Real Estate, L.L.C. (“GRE”) owns two primary manufacturing facilities occupied by Greystone and is wholly owned by Robert B. Rosene, Jr., a member of Greystone’s Board of Directors.

Effective August 1, 2022, Greystone and GRE entered into a non-cancellable ten-year lease agreement with a five-year extension for the use of these manufacturing facilities at the initial rate of $44,500 per month, increasing 5.00% per month every fifth year. Rental payments to GRE totaled $400,500 for each of the nine months ended February 28, 2026 and 2025.

Transactions with TriEnda Holdings, L.L.C.

TriEnda Holdings, L.L.C. (“TriEnda”) is a manufacturer of plastic pallets, protective packaging and dunnage utilizing thermoform processing of which Warren F. Kruger, Greystone’s President and CEO, is the non-executive chairman of the board of directors of Kruger Family Holdings, LLC (“KFH”), which owns a majority interest in TriEnda. Greystone may purchase pallets from TriEnda for resale or sell Greystone pallets to TriEnda. During the nine months ended February 28, 2026 and 2025, Greystone purchases from TriEnda totaled $3,008 and $87,634, respectively, and sales to TriEnda totaled $376,392 and $446,814, respectively. As of February 28, 2026 and May 31, 2025, TriEnda owed $573,442 and $617,538, respectively, to Greystone. Beginning in the third quarter, certain sales transactions with TriEnda required the use of KFI Staffing, LLC, an affiliate of KFH. Expenses of $74,710 were incurred during the three months ended February 28, 2026 and were recorded in accounts payable at February 28, 2026.

Durakon Industries, Inc. is a Mexican subsidiary of Trienda Holdings, LLC with which the Company also does business.  Sales to Durakon totaled $62,640 and $23,220 for the nine months ended February 28, 2026 and 2025, respectively.  As of February 28, 2026 and May 31, 2025, Durakon owed $99,960 and $37,320, respectively to Greystone.

Transactions with Green Plastic Pallets

Green Plastic Pallets (“Green”) is an entity that is owned by James Kruger, a brother to Warren Kruger, Greystone’s President and CEO. Green purchased pallets from Greystone totaling $376,392 and $265,455 during the nine months ended February 28, 2026 and 2025, respectively. As of February 28, 2026 and May 31, 2025, Green owed $89,895 and $273,345, respectively, to Greystone.