Note 5 - Property, Plant and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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May 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Property, Plant, and Equipment [Text Block] |
Note 5. PROPERTY, PLANT AND EQUIPMENT
A summary of the property, plant and equipment for Greystone is as follows, as of May 31:
Property, plant and equipment includes production equipment with a carrying value of $268,914 which had not been placed into service as of May 31, 2026. Construction in progress relates to a warehouse project that began in July 2025. The Company paused construction activities in October 2025 due to liquidity constraints and is evaluating the timing and scope of any potential resumption of construction. Based on current estimates, approximately $500,000 of additional costs would be required to complete the project. The timing of any resumption and completion of the project is uncertain and will depend, in part, on the Company's ability to obtain sufficient liquidity. These estimates are subject to change based primarily on financing availability, changes in project scope, and the timing of the resumption of construction.
Depreciation expense for the fiscal years ended May 31, 2026 and 2025, was $6,020,895 and $5,767,694, respectively.
In February 2024, one of the Company’s storage warehouses caught fire with damage to finished goods inventory valued at $1,326,752 and the building with a net book value of $161,850. As of May 31, 2024, the Company recorded an insurance receivable of $2,058,602 as an estimate for damage to the inventory and building, which resulted in a gain from the involuntary conversion of $593,647 for the fiscal year ended May 31, 2024. The insurer and the Company finalized the claim value for the inventory as well as a prior claim for equipment damage from an electrical storm occurring in December 2022, resulting in an additional gain from the involuntary conversion of $741,821 for the year ended May 31, 2025. All amounts owed related to these claims were fully funded during the second quarter of fiscal 2025 by the insurer.
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