Note 6 - Related Party Transactions |
3 Months Ended |
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Aug. 31, 2026 | |
| Notes to Financial Statements | |
| Related Party Transactions Disclosure [Text Block] |
Note 6. 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 use of grinding equipment and pelletizing equipment. Total rental fees were $357,500 for each of the three months ended August 31, 2026 and 2025.
Yorktown provides administrative office space for Greystone in Tulsa, Oklahoma under a -year lease at a rental rate of $6,250 plus additional maintenance charges per month. Total rent expense was $22,467 and $21,788 for the three months ended August 31, 2026 and 2025, respectively.
Note 6. RELATED PARTY TRANSACTIONS (cont.)
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 the three months ended August 31, 2026 and 2025, Greystone purchases from TriEnda totaled $0 and $259, respectively, and sales to TriEnda totaled $964,019 and $14,414, respectively. As of August 31, 2026 and May 31, 2026, TriEnda owed $1,189,731 and $928,482, 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 $70,848 and $62,640 for the three months ended August 31, 2026 and 2025, respectively. As of August 31, 2026 and May 31, 2026, Durakon owed $70,848 and $0, 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 $83,922 and $103,275 during the three months ended August 31, 2026 and 2025, respectively. As of August 31, 2026 and May 31, 2026, Green owed $114,354 and $100,980, 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. Greystone made total rental payments of $133,500 for each of the three months ended August 31, 2026 and 2025.
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 8. The non-cancellable year lease agreement contains no extensions and requires initial monthly payments of $16,750, escalating annually by 2%. During the three months ended August 31, 2026, Greystone made total payments of $50,250 to GRE.
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