Property, Plant and Equipment

3 Months Ended

Aug. 31, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 4. Property, Plant and Equipment

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

	August 31, 2018			May 31, 2018
Production machinery and equipment	$	38,462,159		$	35,270,326
Plant buildings and land		5,855,140			5,739,491
Leasehold improvements		735,601			534,637
Furniture and fixtures		436,186			396,882
		45,489,086			41,941,336
Less: Accumulated depreciation and amortization		(17,640,463	)		(16,587,460	)
Net Property, Plant and Equipment	$	27,848,623		$	25,353,876

Production machinery and equipment includes equipment capitalized pursuant to a capital lease in the gross amount of $9,924,907. The equipment is being amortized using the straight-line method over 3.5 years for pallet molds and 12 years for injection molding machines.

Production machinery includes deposits on equipment in the amount of $116,779 that had not been placed into service as of August 31, 2018. Two plant buildings and land are owned by GRE, a variable interest entity (“VIE”), having a net book value of $2,983,453 at August 31, 2018.

Depreciation expense, including amortization expense related to assets under capital leases, for the three months ended August 31, 2018 and 2017 was $1,053,003 and $748,968, respectively.