Note 11 - Stockholders' Equity |
12 Months Ended |
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May 31, 2026 | |
| Notes to Financial Statements | |
| Equity [Text Block] |
Convertible Preferred Stock In September 2003, Greystone issued 50,000 shares of Series 2003, cumulative, convertible preferred stock, par value $0.0001, for a total purchase price of $5,000,000. Each share of the preferred stock has a stated value of $100 and a dividend rate equal to the prime rate of interest plus 3.25% and may be converted into common stock at the conversion rate of $1.50 per share or an aggregate of 3,333,333 shares of common stock. The holders of the preferred stock have been granted certain voting rights so that such holders have the right to elect a majority of the Board of Directors of Greystone. Preferred stock dividends are limited under the IBC Restated Loan Agreement, see Note 5, and must be fully paid before a dividend on the common stock may be paid. As of May 31, 2025, the Company has paid $5,000,000 to retire all outstanding preferred shares.
Warrants to Purchase Common Stock On September 1, 2016, the Company issued a warrant to purchase 250,000 shares of Greystone’s common stock for $0.01 per share to each of Warren F. Kruger, President, Chief Executive Officer, Chief Financial Officer, and Chairman of the Board, and Robert B. Rosene, Jr., a member of Greystone’s Board of Directors, as compensation for providing guarantees on Greystone’s debt with IBC. The warrants are vested and expire January 10, 2027.
Retirement of Treasury Stock On September 8, 2026, the Company retired 609,000 shares previously held as treasury stock. Upon retirement, the shares were returned to the status of authorized but unissued shares. The retirement resulted in a reduction of treasury stock and corresponding adjustments to common stock and additional paid-in capital in accordance with ASC 505, Treasury Stock. The transaction had no impact on total stockholders’ equity, net income (loss), cash flows, or earnings (loss) per share.
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