FEDERAL INCOME TAXES (Tables)

12 Months Ended

May 31, 2013

FEDERAL INCOME TAXES [Abstract]

Deferred taxes

Deferred taxes as of May 31, 2013 and 2012 are as follows:

	2013			2012
Net operating loss carryforward	$	1,965,370		$	2,548,931
Depreciation and amortization, financial reporting in excess of tax		443,177			617,466
Deferred compensation accrual		244,800			244,800
Stock compensation costs		18,164			-
Allowance for doubtful accounts		34,000			17,000
		2,705,511			3,428,197
Valuation allowance		(1,546,511	)		(2,843,197	)
Net Deferred Tax Asset	$	1,159,000		$	585,000

Net change in deferred taxes

The net change in deferred taxes for the year ended May 31, 2013 and 2012 is as follows:

	2013			2012
Net operating loss carryforward	$	(583,561	)	$	(112,055	)
Depreciation and amortization, financial reporting in excess of tax		(174,289	)		(357,342	)
Stock compensation costs		18,164
Deferred compensation accrual		-			34,000
Allowance for doubtful accounts		17,000			(8,500	)
Valuation allowance		1,296,686			1,028,897
Total	$	574,000		$	585,000

Provision for income taxes

The provision (benefit) for income taxes at May 31 consists of the following:

	2013		2012
Federal	$	26,000	$	-
Deferred income tax benefit		(574,000)		(585,000)
Total	$	(548,000)	$	(585,000)

Difference between provision and federal statutory rate

Greystone's provision (benefit) for income taxes for the years ended May 31, 2013 and 2012 differs from the federal statutory rate as follows:

	2013		2012
Tax provision (benefit) using statutory rates	34	%	34	%
Net change in valuation allowance	(57)		(54)
Other	(1)		(11)
Tax benefit per financial statements	(24)	%	(31)	%

Net operating loss carryforward

At May 31, 2013, Greystone had a net operating loss (NOL) for Federal income tax purposes from inception through May 31, 2005 of $17,468,000 expiring in fiscal year 2013 through fiscal year 2025 of which $2,700,000 is management's estimate of the usable amount pursuant to Internal Revenue Code Section 382. The limitation is due to a change in control of Greystone during the fiscal year ended May 31, 2005. The utilization of NOL's accumulated through fiscal year 2005 is limited to approximately $225,000 per year.

	NOL Carryforward		Year Expiring
Cumulative as of May 31, 2005	$	2,700,000		2013 - 2025
Year ended May 31, 2006		182,179		2026
Year ended May 31, 2007		2,151,837		2027
Year ended May 31, 2011		746,484		2031