Greystone Logistics Sales Dip, Customer Risk Remains

TL;DR

Greystone Logistics sales down to $2.86M, still heavily reliant on one customer.

AI Summary

Greystone Logistics, Inc. filed its 10-Q for the period ending August 31, 2024. The company reported net sales of $2.86 million for the three months ended August 31, 2024, a decrease from $3.00 million in the same period of the prior year. The filing also highlights customer concentration risk, with a significant portion of revenue coming from a single customer.

Why It Matters

The decline in sales and continued reliance on a single customer could impact future revenue and profitability for Greystone Logistics.

Risk Assessment

Risk Level: medium — The company faces significant customer concentration risk, with a substantial portion of its revenue dependent on a single customer.

Key Numbers

• $2.86M — Net Sales (Q1 2025) (Represents sales for the three months ended August 31, 2024.)
• $3.00M — Net Sales (Q1 2024) (Represents sales for the three months ended August 31, 2023.)

Key Players & Entities

• GREYSTONE LOGISTICS, INC. (company) — Filer
• 20240831 (date) — Reporting Period End Date
• $2.86 million (dollar_amount) — Net Sales for the three months ended August 31, 2024
• $3.00 million (dollar_amount) — Net Sales for the three months ended August 31, 2023

FAQ

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

• glgi20240831_10q.htm (10-Q) — 656KB
• ex_733093.htm (EX-31.1) — 13KB
• ex_733094.htm (EX-31.2) — 13KB
• ex_733095.htm (EX-32.1) — 5KB
• ex_733096.htm (EX-32.2) — 5KB
• 0001437749-24-031556.txt ( ) — 4051KB
• glgi-20240831.xsd (EX-101.SCH) — 41KB
• glgi-20240831_def.xml (EX-101.DEF) — 292KB
• glgi-20240831_lab.xml (EX-101.LAB) — 242KB
• glgi-20240831_pre.xml (EX-101.PRE) — 316KB
• glgi-20240831_cal.xml (EX-101.CAL) — 44KB
• glgi20240831_10q_htm.xml (XML) — 508KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets (Unaudited) As of August 31, 2024 and May 31, 2024 1 Consolidated Statements of Income (Unaudited) For the Three Months Ended August 31, 2024 and 2023 2 Consolidated Statements of Changes in Equity (Unaudited) For the Three Months Ended August 31, 2024 and 2023 3 Consolidated Statements of Cash Flows (Unaudited) For the Three Months Ended August 31, 2024 and 2023 4

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 5 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 19 Item 4.

Controls and Procedures

Controls and Procedures 20

OTHER INFORMATION

PART II. OTHER INFORMATION 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 20 Item 3. Defaults Upon Senior Securities 20 Item 4. Mine Safety Disclosures 20 Item 5. Other Information 20 Item 6. Exhibits 20

SIGNATURES

SIGNATURES 21 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Greystone Logistics, Inc. Consolidated Balance Sheets (Unaudited) August 31, 2024 May 31, 2024 Assets Current Assets: Cash $ 3,884,673 $ 5,798,641 Accounts receivable - Trade 3,458,712 4,158,381 Related parties 487,148 265,570 Other 1,781,836 2,107,108 Inventory 3,722,429 3,871,626 Prepaid expenses 590,590 585,423 Total Current Assets 13,925,388 16,786,749 Property, Plant and Equipment, net 32,256,659 30,066,119 Right-of-Use Operating Lease Assets 5,327,121 5,403,441 Total Assets $ 51,509,168 $ 52,256,309 Liabilities and Equity Current Liabilities: Current portion of long-term debt $ 2,336,625 $ 2,362,212 Current portion of financing leases 14,505 19,171 Current portion of operating leases 239,543 286,221 Accounts payable and accrued expenses 3,938,560 3,670,332 Deferred revenue 22,964 840,945 Preferred dividends payable 51,507 - Total Current Liabilities 6,603,704 7,178,881 Long-Term Debt, net of current portion and debt issuance costs 10,531,524 11,080,736 Financing Leases , net of current portion 2,950 3,972 Operating Leases , net of current portion 5,144,161 5,167,013 Deferred Tax Liability 5,058,708 4,844,958 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 ( 29,367,984 ) ( 29,555,356 ) Total Equity 24,168,121 23,980,749 Total Liabilities and Equity $ 51,509,168 $ 52,256,309 The accompanying notes are an integral part of these unaudited consolidated financial statements. 1 Table of Contents Greystone Logistics, Inc. Consolidated Statements of Income

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" or the "Company"), 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 August 31, 2024, and the results of its operations and cash flows for the three months ended August 31, 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, 2024, and the notes thereto included in Greystone's Annual Report on Form 10-K for such period, as filed with the Securities and Exchange Commission. The results of operations for the three months ended August 31, 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"). All material intercompany accounts and transactions have been eliminated in the unaudited consolidated financial statements. Note 2. Earnings Per Share Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income attributable to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income attributable to common stockholders by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding. Greystone excludes equity instruments from the calculation of diluted earnings per

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View this 10-Q filing on SEC EDGAR