Concentrations, Risks and Uncertainties

3 Months Ended

Aug. 31, 2016

Risks and Uncertainties [Abstract]

Concentrations, Risks and Uncertainties

Note 10. Concentrations, Risks and Uncertainties

In fiscal year 2017, Greystone derived 66% of its total sales from two customers (36% and 30% respectively). In fiscal year 2016, there was one significant customer which accounted for approximately 31% of Greystone’s total sales. The loss of a material amount of business from these customers could have a material adverse effect on Greystone.

Greystone purchases damaged pallets from its customer at a price based on the value of the raw material content in the pallet. A majority of these purchases, totaling $478,752 and $490,092 in fiscal years 2017 and 2016, respectively, is from one of its major customers.

Robert B. Rosene, Jr., a Greystone director, has provided financing and guarantees on Greystone’s bank debt. As of August 31, 2016, Greystone is indebted to Mr. Rosene in the amount of $4,541,690 pursuant to a note payable due January 15, 2018. There is no assurance that Mr. Rosene will continue to provide extensions in the future.