Concentrations, Risks and Uncertainties

6 Months Ended

Nov. 30, 2016

Risks and Uncertainties [Abstract]

Concentrations, Risks and Uncertainties

Note 8. Concentrations, Risks and Uncertainties

Greystone derived approximately 67% of its total sales from two customers (25% and 42% respectively) in fiscal year 2017 and approximately 40% (36% and 4%, respectively) in fiscal year 2016. The loss of a material amount of business from these customers could have a material adverse effect on Greystone.

Greystone purchases damaged pallets from its customers at a price based on the value of the raw material content in the pallet. A majority of these purchases, totaling $864,874 and $478,752 in fiscal years 2017 and 2016, respectively, is from one of its major customers.

Robert B. Rosene, Jr., a Greystone director, has provided financing and guarantees on Greystone’s bank debt. As of November 30, 2016, Greystone is indebted to Mr. Rosene in the amount of $4,534,331 for a note payable and related accrued interest due January 15, 2018. There is no assurance that Mr. Rosene will renew the note as of the maturity date.