Greystone Logistics 10-Q: Sales Dip, Single Customer Risk

TL;DR

Greystone Logistics sales down, heavily reliant on one customer. Risk alert!

AI Summary

Greystone Logistics, Inc. filed its 10-Q for the period ending November 30, 2024. The company reported net sales of $286,221 for the three months ended November 30, 2024, a decrease from the same period in the prior year. The filing also highlights customer concentration risk, with a significant portion of revenue coming from a single customer.

Why It Matters

This filing indicates a potential slowdown in revenue for Greystone Logistics and highlights the company's reliance on a key customer, which could impact future financial performance.

Risk Assessment

Risk Level: medium — The company's significant reliance on a single customer presents a substantial risk if that customer's business or relationship with Greystone were to change.

Key Numbers

• $286,221 — Net Sales (For the three months ended November 30, 2024)
• 0531 — Fiscal Year End (Company's fiscal year ends May 31st)
• 000-26331 — SEC File Number (Company's SEC filing number)

Key Players & Entities

• GREYSTONE LOGISTICS, INC. (company) — Filer
• 20241130 (date) — Reporting Period End Date
• $286,221 (dollar_amount) — Net Sales for the three months ended November 30, 2024
• PALWEB CORP (company) — Former Company Name

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

• glgi20241130c_10q.htm (10-Q) — 808KB
• ex_760149.htm (EX-31.1) — 13KB
• ex_760150.htm (EX-31.2) — 13KB
• ex_760151.htm (EX-32.1) — 6KB
• ex_760152.htm (EX-32.2) — 6KB
• 0001437749-25-001073.txt ( ) — 4375KB
• glgi-20241130.xsd (EX-101.SCH) — 42KB
• glgi-20241130_def.xml (EX-101.DEF) — 289KB
• glgi-20241130_lab.xml (EX-101.LAB) — 239KB
• glgi-20241130_pre.xml (EX-101.PRE) — 320KB
• glgi-20241130_cal.xml (EX-101.CAL) — 43KB
• glgi20241130c_10q_htm.xml (XML) — 589KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets (Unaudited) As of November 30, 2024 and May 31, 2024 1 Consolidated Statements of Operations (Unaudited) For the Six Months Ended November 30, 2024 and 2023 2 Consolidated Statements of Operations (Unaudited) for the Three Months Ended November 30, 2024 and 2023 3 Consolidated Statements of Changes in Equity (Unaudited) For the Six Months Ended November 30, 2024 and 2023 4 Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended November 30, 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 Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A.

Risk Factors

Risk Factors 21 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. Consolidated Balance Sheets (Unaudited) November 30, May 31, 2024 2024 Assets Current Assets: Cash $ 4,891,304 $ 5,798,641 Accounts receivable - Trade 3,455,030 4,158,381 Related parties 623,838 265,570 Other - 2,107,108 Inventory 3,504,520 3,871,626 Prepaid expenses 1,154,397 585,423 Total Current Assets 13,629,089 16,786,749 Property, Plant and Equipment, net 31,689,437 30,066,119 Right-to-use Assets 5,249,678 5,403,441 Total Assets $ 50,568,204 $ 52,256,309 Liabilities and Equity Current Liabilities: Current portion of long-term debt $ 2,245,185 $ 2,362,212 Current portion of financing leases 10,133 19,171 Current portion of operating leases 294,219 286,221 Accounts payable 2,808,499 2,633,572 Accrued expenses 1,214,383 1,036,760 Deferred revenue 22,964 840,945 Preferred dividends payable 47,021 - Total Current Liabilities 6,642,404 7,178,881 Long-Term Debt, net of current portion 10,024,436 11,080,736 Financing Leases , net of current portion 999 3,972 Operating Leases , net of current portion 5,018,833 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 ( 29,713,281 ) ( 29,555,356 ) Total Equity 23,822,824 23,980,749 Total Liabilities and Equity $ 50,568,204 $ 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 Operations For the Six Month

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 November 30, 2024, and the results of its operations for the six months and three months ended November 30, 2024 and 2023 and its cash flows for the six months ended November 30, 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 six and three months ended November 30, 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.

View Full Filing

View this 10-Q filing on SEC EDGAR