Risks and Uncertainties	9 Months Ended
Feb. 29, 2012
Risks and Uncertainties	Note 7. Risks and Uncertainties Greystone derives a substantial portion of its revenue from a national brewer. This customer accounted for approximately 65% and 74% of Greystone’s pallet sales and 54% and 56% of Greystone’s total sales for the nine-month periods ended February 29, 2012 and February 28, 2011, respectively. The design of Greystone’s recycled plastic pallets is approved for use by the customer and is the only plastic pallets in use for case goods at the current time by the customer. There is no assurance that Greystone will retain this customer’s business at the same level, or at all. The loss of a material amount of business from this customer could have a material adverse effect on Greystone. Used and damaged pallets are a desirable source of raw material. Greystone purchases essentially all pallets from its customers at a price competitive with other sources of the same grade of raw material. These pallets are recycled and used in the manufacture of pallets. Greystone’s major customer discontinued its use of a particular size of pallet which was replaced by the design discussed in the previous paragraph. Greystone repurchases these discontinued pallets for a contractual price. Greystone’s willingness to accept the returned pallets has resulted in a surplus of pallets with respect to Greystone’s current production needs. As of February 29, 2012, Greystone has an account payable to the major customer resulting from this transaction in the amount of approximately $1,376,000. The customer understands that the discontinued pallets are being returned at a much faster pace than needed by Greystone and, as a result, has been willing to work with Greystone to remit payment as it is capable. Warren Kruger, Greystone’s President and CEO, and Robert Rosene, a member of Greystone’s board, have provided financing and guarantees on Greystone’s bank debt. As of February 29, 2012, Greystone is indebted to Messrs. Kruger and Rosene in the amount of $4,480,284 for notes payable and related accrued interest. Messrs. Kruger and Rosene have agreed to a two year extension on the debt. There is no assurance that these individuals will continue to provide extensions in the future. Greystone, GSM, GRE and Messrs. Kruger and Rosene are parties to a loan agreement dated as of March 4, 2005, as amended, with F&M Bank & Trust Company (“F&M”). The loan agreement contains cross-collateralization and cross-default provisions among property and debts of GSM, GRE and Messrs. Kruger and Rosene. The debt of Messrs. Kruger and Rosene was incurred to acquire the outstanding preferred stock of Greystone and has a balance outstanding at February29, 2012 of approximately $3,600,000.

Risks and Uncertainties

9 Months Ended

Feb. 29, 2012

Note 7. Risks and Uncertainties

Greystone derives a substantial portion of its revenue from a national brewer. This customer accounted for approximately 65% and 74% of Greystone’s pallet sales and 54% and 56% of Greystone’s total sales for the nine-month periods ended February 29, 2012 and February 28, 2011, respectively. The design of Greystone’s recycled plastic pallets is approved for use by the customer and is the only plastic pallets in use for case goods at the current time by the customer. There is no assurance that Greystone will retain this customer’s business at the same level, or at all. The loss of a material amount of business from this customer could have a material adverse effect on Greystone.

Used and damaged pallets are a desirable source of raw material. Greystone purchases essentially all pallets from its customers at a price competitive with other sources of the same grade of raw material. These pallets are recycled and used in the manufacture of pallets. Greystone’s major customer discontinued its use of a particular size of pallet which was replaced by the design discussed in the previous paragraph. Greystone repurchases these discontinued pallets for a contractual price. Greystone’s willingness to accept the returned pallets has resulted in a surplus of pallets with respect to Greystone’s current production needs. As of February 29, 2012, Greystone has an account payable to the major customer resulting from this transaction in the amount of approximately $1,376,000. The customer understands that the discontinued pallets are being returned at a much faster pace than needed by Greystone and, as a result, has been willing to work with Greystone to remit payment as it is capable.

Warren Kruger, Greystone’s President and CEO, and Robert Rosene, a member of Greystone’s board, have provided financing and guarantees on Greystone’s bank debt. As of February 29, 2012, Greystone is indebted to Messrs. Kruger and Rosene in the amount of $4,480,284 for notes payable and related accrued interest. Messrs. Kruger and Rosene have agreed to a two year extension on the debt. There is no assurance that these individuals will continue to provide extensions in the future.

Greystone, GSM, GRE and Messrs. Kruger and Rosene are parties to a loan agreement dated as of March 4, 2005, as amended, with F&M Bank & Trust Company (“F&M”). The loan agreement contains cross-collateralization and cross-default provisions among property and debts of GSM, GRE and Messrs. Kruger and Rosene. The debt of Messrs. Kruger and Rosene was incurred to acquire the outstanding preferred stock of Greystone and has a balance outstanding at February29, 2012 of approximately $3,600,000.