PROPERTY, PLANT AND EQUIPMENT

12 Months Ended

May 31, 2012

Note 3. PROPERTY, PLANT AND EQUIPMENT

A summary of the property, plant and equipment for Greystone is as follows, as of May 31:

	2012	2011
Production machinery and equipment	$ 10,121,006	$ 8,899,389
Building and land	4,663,339	4,663,339
Leasehold improvements	188,124	188,124
Furniture and fixtures	161,592	149,723
	15,134,061	13,900,575
Less: Accumulated depreciation	(7,335,883)	(6,186,967)

Net Property, Plant and Equipment	$ 7,798,178	$ 7,713,608

Production machinery and equipment includes equipment in the amount of $610,629 that had not been placed into service as of May 31, 2012. Building and land are owned by a variable interest entity for which the net book value is $3,707,653 at May 31, 2012.

Depreciation expense for the years ended May 31, 2012 and 2011 is $1,148,917 and $1,003,446, respectively.

See Note 6, Related Party Transactions, for a discussion of a sale and leaseback transaction of Greystone’s building to GRE.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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