Property, Plant and Equipment

9 Months Ended

Feb. 28, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 4. Property, Plant and Equipment

A summary of property, plant and equipment for Greystone is as follows:

	February 28, 2019			May 31, 2018
Production machinery and equipment	$	44,895,520		$	35,270,326
Plant buildings and land		6,271,202			5,739,491
Leasehold improvements		924,641			534,637
Furniture and fixtures		563,074			396,882
		52,654,437			41,941,336
Less: Accumulated depreciation and amortization		(19,843,399	)		(16,587,460	)
Net Property, Plant and Equipment	$	32,811,038		$	25,353,876

Production machinery and equipment includes equipment capitalized pursuant to capital leases in the amount of $13,227,122. The equipment is being amortized using the straight-line method over 3.5 years for pallet molds and 12 years for injection molding machines.

Production machinery includes deposits on equipment in the amount of $1,390,839 that had not been placed into service as of February 28, 2019. Two plant buildings and land are owned by GRE, a variable interest entity (“VIE”), having a net book value of $2,925,517 at February 28, 2019.

Depreciation expense, including amortization expense related to assets under capital leases, for the nine months ended February 28, 2019 and 2018 was $3,255,939 and $2,476,050, respectively.