Property, Plant and Equipment

6 Months Ended

Nov. 30, 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:

	November 30, 2019			May 31, 2019
Production machinery and equipment	$	47,323,256		$	45,645,910
Plant buildings and land		6,724,513			6,336,855
Leasehold improvements		1,129,474			979,890
Furniture and fixtures		601,586			563,074
Right-to-use assets under operating leases		218,634			180,794
		55,997,463			53,706,523
Less: Accumulated depreciation and amortization		(23,583,987	)		(21,026,051	)
Net Property, Plant and Equipment	$	32,413,476		$	32,680,472

Production machinery and equipment includes right-to-use equipment capitalized pursuant to financing leases in the amount of $7,861,233 at November 30, 2019 and May 31, 2019. The financing leases all include an option to purchase which management anticipates exercising and, accordingly, the related equipment is being amortized over the estimated useful life 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 $923,063 at November 30, 2019 which have not been placed into service. Two plant buildings and land are owned by GRE, a variable interest entity (“VIE”), having a net book value of $2,838,613 at November 30, 2019.

Depreciation expense, including amortization expense related to right-to-use assets under financing leases, for the six months ended November 30, 2019 and 2018 was $2,557,936 and $2,131,971, respectively.