7. FEDERAL INCOME TAXES (Tables)

12 Months Ended

May 31, 2014

Federal Income Taxes Tables

Deferred taxes

	2014		2013
Net operating loss carryforward	$	1,936,834	$	1,965,370
Depreciation and amortization, financial
reporting in excess of tax		219,838		443,177
Deferred compensation accrual		-		244,800
Stock compensation costs		36,328		18,164
Allowance for doubtful accounts		17,000		34,000
		2,210,000		2,705,511
Valuation allowance		-		(1,546,511	)
Net deferred tax asset	$	2,210,000	$	1,159,000

Net changes in deferred taxes

	2014		2013
Deferred tax assets - current	$	1,077,000	$	-
Deferred tax assets - non-current		1,133,000		1,159,000
Deferred tax assets - total	$	2,210,000	$	1,159,000

Provision for income taxes

		2014			2013
Net operating loss carryforward	$	(28,536	)	$	(583,561	)
Depreciation and amortization, financial
reporting in excess of tax		(223,339	)		(174,289	)
Stock compensation costs		18,164			18,164
Deferred compensation accrual		(244,800	)		-
Allowance for doubtful accounts		(17,000	)		17,000
Valuation allowance		1,546,511			1,296,686
Total	$	1,051,000		$	574,000

Difference between provision and federal statutory rate

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

	2014			2013
Federal	$	11,000		$	26,000
Deferred income tax benefit		(1,051,000	)		(574,000	)
Total	$	(1,040,000	)	$	(548,000	)

Greystone's provision (benefit) for income taxes for the years ended May 31, 2014 and 2013 differs from the federal statutory rate as follows:

	2014			2013
Tax provision (benefit) using statutory rates		34	%	34	%
Net change in valuation allowance		(75	)	(54	)
Other		(9	)	(11	)
Tax benefit per financial statements		(50	)%	(31	)%

Net operating loss carryforward

	NOL Carryforward		Year Expiring
Cumulative as of May 31, 2005	$	2,475,000		2015 - 2025
Year ended May 31, 2006		323,133		2026
Year ended May 31, 2007		2,151,837		2027
Year ended May 31, 2011		746,484		2031