Greystone Logistics, Inc. Files 10-Q for Q3 2024

TL;DR

<b>Greystone Logistics, Inc. filed its Q3 2024 10-Q, detailing revenue segments, customer concentration, and debt obligations.</b>

AI Summary

GREYSTONE LOGISTICS, INC. (GLGI) filed a Quarterly Report (10-Q) with the SEC on April 15, 2024. The company filed a 10-Q for the period ending February 29, 2024. Revenue from contract with customer was reported for End User Customers, Distributors, and One Customer segments. Geographic concentration risk was noted for Canada and Mexico. The company has a revolving credit facility and an IBC Loan Agreement. Key debt instruments include a Term Loan Payable Due August 10, 2028 and a Term Loan Payable Due March 19, 2025.

Why It Matters

For investors and stakeholders tracking GREYSTONE LOGISTICS, INC., this filing contains several important signals. The filing provides a detailed look at the company's financial performance and risk factors for the third quarter of fiscal year 2024. Understanding the customer and geographic concentration risks is crucial for assessing potential revenue volatility.

Risk Assessment

Risk Level: medium — GREYSTONE LOGISTICS, INC. shows moderate risk based on this filing. The company faces customer concentration risk, with revenue from a single customer representing a significant portion, and geographic concentration risk in Canada and Mexico, making it vulnerable to specific market downturns.

Analyst Insight

Investors should monitor revenue from key customers and the performance of the Canadian and Mexican markets to assess future growth and risk.

Revenue Breakdown

Key Numbers

• 2024-02-29 — Period End Date (Conformed period of report)
• 2024-04-15 — Filing Date (Filed as of date)
• 0531 — Fiscal Year End (Fiscal year end)
• 3.00 — Value (Related to PalletsMember)
• 4.00 — Value (Related to PalletsMember)
• 1.25 — Value (Related to PalletsMember)

Key Players & Entities

• GREYSTONE LOGISTICS, INC. (company) — Filer name
• GLGI (company) — Ticker symbol
• 2024-02-29 (date) — Period of report
• 2024-04-15 (date) — Filing date
• TULSA (location) — Business address city
• OK (location) — Business address state
• PALWEB CORP (company) — Former company name
• 1999-06-10 (date) — Date of name change

FAQ

Risk Factors

• Customer Concentration Risk [high — financial]: Revenue is derived from a limited number of customers, and the loss of any significant customer could adversely affect financial results.
• Geographic Concentration Risk [medium — financial]: A significant portion of revenue is derived from sales in Canada and Mexico, making the company susceptible to economic and political conditions in those regions.
• Storage Warehouse Fire Damage [low — operational]: Damage to storage warehouses due to fire could disrupt operations and impact inventory.

Key Financial Figures

• $3,500,000 — s limited guaranty is the lesser of (i) $3,500,000 less all amounts paid on the principal

Filing Documents

• glgi20240229_10q.htm (10-Q) — 897KB
• ex_653159.htm (EX-31.1) — 13KB
• ex_653160.htm (EX-31.2) — 13KB
• ex_653161.htm (EX-32.1) — 6KB
• ex_653162.htm (EX-32.2) — 6KB
• 0001437749-24-012069.txt (&nbsp;) — 4506KB
• glgi-20240229.xsd (EX-101.SCH) — 42KB
• glgi-20240229_def.xml (EX-101.DEF) — 295KB
• glgi-20240229_lab.xml (EX-101.LAB) — 254KB
• glgi-20240229_pre.xml (EX-101.PRE) — 323KB
• glgi-20240229_cal.xml (EX-101.CAL) — 46KB
• glgi20240229_10q_htm.xml (XML) — 635KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Page

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets (Unaudited) As of February 29, 2024 and May 31, 2023 1 Consolidated Statements of Income (Unaudited) For the Nine Months Ended February 29(28), 2024 and 2023 2 Consolidated Statements of Income (Unaudited) For the Three Months Ended February 29(28), 2024 and 2023 3 Consolidated Statements of Changes in Equity (Unaudited) For the Nine Months Ended February 29(28), 2024 and 2023 4 Consolidated Statements of Cash Flows (Unaudited) For the Nine Months Ended February 29(28), 2024 and 2023 5

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 6 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 14 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20

OTHER INFORMATION

PART II. OTHER INFORMATION 20 Item 1.

Legal Proceedings

Legal Proceedings 20 Item 1A.

Risk Factors

Risk Factors 20 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 21

SIGNATURES

SIGNATURES 22 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Greystone Logistics, Inc. and Subsidiaries Consolidated Balance Sheets (Unaudited) February 29, 2024 May 31, 2023 Assets Current Assets: Cash $ 4,319,849 $ 695,951 Accounts receivable - Trade 5,976,046 4,857,504 Related parties 125,202 56,550 Other 1,488,602 386,877 Inventory 3,002,754 4,484,106 Prepaid expenses 879,956 528,962 Total Current Assets 15,792,409 11,009,950 Property, Plant and Equipment, net 30,594,286 33,184,706 Right-of-Use Operating Lease Assets 5,132,215 5,335,714 Total Assets $ 51,518,910 $ 49,530,370 Liabilities and Equity Current Liabilities: Current portion of long-term debt $ 2,384,993 $ 2,249,570 Current portion of financing leases 15,288 31,981 Current portion of operating leases 232,481 240,346 Accounts payable and accrued liabilities 3,954,002 3,337,410 Deferred revenue 568,299 23,007 Preferred dividends payable 146,473 134,414 Total Current Liabilities 7,301,536 6,016,728 Long-Term Debt, net of current portion and debt issuance costs 11,635,540 14,919,687 Financing Leases , net of current portion 1,782 28,504 Operating Leases , net of current portion 4,942,738 5,119,688 Deferred Tax Liability 5,529,000 3,905,279 Equity: Preferred stock, $ 0.0001 par value, cumulative, 20,750,000 shares authorized, 50,000 shares issued and outstanding, liquidation preference of $ 5,000,000 5 5 Common stock, $ 0.0001 par value, 5,000,000,000 shares authorized, 28,279,701 shares issued and outstanding 2,828 2,828 Additional paid-in capital 53,533,272 53,533,272 Accumulated deficit ( 31,427,791 ) ( 33,995,621 ) Total Equity 22,108,314 19,540,484 Total Liabilities and Equity $ 51,518,910 $ 49,530,370 The accompanying notes are an integral part of these unaudited consolidated financial statements. 1 Table of Contents Greystone Logistics, Inc. and Subsidiar

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) Note 1. Basis of Financial Statements In the opinion of Greystone Logistics, Inc. ("Greystone"), the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications, which are of a normal recurring nature, necessary to present fairly its financial position as of February 29, 2024, the results of its operations for the nine months and three months ended February 29(28), 2024 and 2023 and its cash flows for the nine months ended February 29(28), 2024 and 2023. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the fiscal year ended May 31, 2023 and the notes thereto included in the Form 10-K for such period. The results of operations for the nine months and three months ended February 29(28), 2024 and 2023 are not necessarily indicative of the results to be expected for the full fiscal year. The unaudited consolidated financial statements of Greystone include its wholly-owned subsidiaries, Greystone Manufacturing, L.L.C. ("GSM") and Plastic Pallet Production, Inc. ("PPP"), and the variable interest entity, Greystone Real Estate, L.L.C. ("GRE") for the period from June 1, 2022 through July 29, 2022. All material intercompany accounts and transactions have been eliminated in the consolidated financial statements. GRE owns two buildings located in Bettendorf, IA, which are occupied by Greystone. GRE is wholly owned by Robert B. Rosene, Jr., a member of Greystone's Board of Directors. Effective July 29, 2022, GRE paid off its mortgage payable and, in conjunction with Greystone's refinancing described in Note 6, GRE was removed from the cross-collateralization agreement. Following these transactions, Greystone was no longer determined to be the primary beneficiary of GRE. Accordingly, GRE was deconsolidated from Greystone's consolidated financial statements as of July 29, 2022,

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View this 10-Q filing on SEC EDGAR