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Concentrations, Risks and Uncertainties
9 Months Ended
Feb. 28, 2019
Risks and Uncertainties [Abstract]  
Concentrations, Risks and Uncertainties

Note 11. Concentrations, Risks and Uncertainties

 

Greystone derived approximately 85% and 76% of its total sales from three customers in fiscal years 2019 and 2018, respectively. The loss of a material amount of business from one or more of 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 $1,249,653 and $1,200,335 in fiscal years 2019 and 2018, 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 February 28, 2019, Greystone is indebted to Mr. Rosene in the amount of $4,467,330 for a note payable due January 15, 2021. There is no assurance that Mr. Rosene will renew the note as of the maturity date.