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Related Party Receivable
6 Months Ended
Nov. 30, 2016
Related Party Transactions [Abstract]  
Related Party Receivable

Note 4. Related Party Receivable

 

Yorktown Management & Financial Services, LLC

 

Yorktown Management & Financial Services, LLC (“Yorktown”), an entity wholly owned by Greystone’s CEO and President, owns and rents to Greystone (1) grinding equipment used to grind raw materials for Greystone’s pallet production and (2) extruders for pelletizing recycled plastic into pellets for resale and for use as raw material in the manufacture of pallets. GSM pays weekly rental fees to Yorktown of $22,500 for use of Yorktown’s grinding equipment and $5,000 for the use of Yorktown’s pelletizing equipment for which GSM paid Yorktown rental fees of $715,000 for the six months ended November 30, 2016 and 2015, respectively.

 

In addition, Yorktown provides office space for Greystone in Tulsa, Oklahoma at a monthly rental of $2,200.

 

TriEnda Holdings, L.L.C.

 

TriEnda Holdings, L.L.C. (“TriEnda”) is a manufacturer of plastic pallets, protective packing and dunnage utilizing thermoform processing for which Warren F. Kruger, Greystone’s president and CEO, serves TriEnda as the non-executive Chairman of the Board and is a partner in a partnership which has a majority ownership interest. Greystone charges a tolling fee for blending and pelletizing plastic resin using TriEnda’s equipment and raw materials. Revenue from TriEnda totaled $368,690 and $111,986 for the six months ended November 30, 2016 and 2015, respectively. The account receivable from TriEnda at November 30, 2016 was $62,694.

 

The tolling service provided by Greystone generates a certain amount of scrap material which is purchased by Greystone. Purchases for the six months ended November 30, 2016 and 2015 totaled $24,265 and $60,584, respectively. Greystone had accounts payable to TriEnda of $2,299 at November 30, 2016.

 

Green Plastic Pallets

 

Greystone sells plastic pallets to Green Plastic Pallets (“Green”), an entity that is owned by James Kruger, brother to Warren Kruger, Greystone’s president and CEO. Greystone had sales to Green of $146,885 and $146,880 for the six months ended November 30, 2016 and 2015, respectively. The account receivable due from Green at November 30, 2016 was $111,860.