Note 9 - Related Party Transactions |
12 Months Ended |
|---|---|
May 31, 2026 | |
| Notes to Financial Statements | |
| Related Party Transactions Disclosure [Text Block] |
Note 9. RELATED PARTY TRANSACTIONS
Transactions with Warren F. Kruger, President, Chief Executive Officer, Chief Financial Officer and Chairman of the Board Yorktown Management & Financial Services, LLC (“Yorktown”), an entity wholly owned by Warren F. Kruger, owns and rents to Greystone (1) grinding equipment used to grind raw materials for Greystone’s pallet production and (2) extruders for pelletizing recycled plastic into pellets for resale and for use as raw material for manufacturing pallets. Greystone compensates Yorktown for the use of equipment as discussed below.
Rental fees. GSM pays weekly rental fees of $27,500 to Yorktown for grinding equipment and pelletizing equipment. Total rental fees of $1,430,000 and $1,457,200 for fiscal years 2026 and 2025, respectively.
Yorktown provides administrative office space for Greystone in Tulsa, Oklahoma under a -year lease at a rental rate of $6,250 per month. Total rent expense was $75,000 for fiscal years 2026 and 2025, respectively.
Transactions with TriEnda Holdings, L.L.C. TriEnda Holdings, L.L.C. (“TriEnda”) is a manufacturer of plastic pallets, protective packaging and dunnage utilizing thermoform processing of which Warren F. Kruger, is the non-executive chairman of the board of directors of Kruger Family Holdings, LLC (“KFH”), which owns a majority interest in TriEnda. Greystone may purchase pallets from TriEnda for resale or sell Greystone pallets to TriEnda. During fiscal year 2026, Greystone began a service of disassembling and grinding of certain items for TriEnda. During fiscal year 2026 and 2025, Greystone purchases from TriEnda totaled $43,135 and $81,970, respectively, and sales to TriEnda totaled $1,374,096 and $517,194, respectively. As of May 31, 2026 and 2025, TriEnda owed $928,482 and $617,538, respectively, to Greystone.
Durakon Industries, Inc. is a Mexican subsidiary of Trienda Holdings, LLC with which the Company also does business. Sales to Durakon totaled $62,640 and $37,320 for the years ended May 31, 2026 and 2025, respectively. As of May 31, 2026 and 2025, Durakon owed $0 and $37,320, respectively to Greystone.
Transactions with Green Plastic Pallets Green Plastic Pallets (“Green”) is an entity owned by James Kruger, a brother to Warren F. Kruger. Green purchased pallets from Greystone totaling $319,005 and $367,965 in fiscal years 2026 and 2025, respectively. As of May 31, 2026 and 2025, Green owed $100,980 and $273,345, respectively, to Greystone.
Transactions with Robert B Rosene, Jr., Director Greystone Real Estate, L.L.C. (GRE) is an entity wholly owned by Mr. Rosene. Prior to April 2026, GRE owned two primary manufacturing facilities occupied by Greystone. Effective August 1, 2022, Greystone and GRE entered into a non-cancellable -year lease agreement with a -year extension for the use of these manufacturing facilities at the initial rate of $44,500 per month, increasing 5.00% per month every fifth year. During fiscal year 2026 and 2025, Greystone made total rental payments of $534,000 per year to GRE.
Effective April 23, 2026, the Company sold certain real property to Mr. Rosene, a member of the Company’s Board of Directors and the sole member of GRE, for $1.675 million and simultaneously entered into a failed sale-leaseback agreement for the property with GRE, as described in Note 7. During fiscal year 2026, Greystone made total payments of $33,500 to GRE.
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