10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended JUNE 30, 2013

or

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from     to   .

Commission File Number: 000-54254

The Graystone Company, Inc.

(Exact name of registrant as specified in its charter)

DELAWARE (State of Incorporation)	27-3051592 (I.R.S. Employer Identification No.)
2620 Regatta Drive, Ste 102, Las Vegas, NV (Address of principal executive offices)	89128 (Zip Code)

(702) 438-4100

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Non-accelerated filer o
Accelerated filer o	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Title of Each Class	Outstanding as of August 9, 2013,
Class A Common stock, par value $0.0001 per share Class B Common stock, par value $0.001 per share	1,807,484,303 5,000,000

THE GRAYSTONE COMPANY, INC.

FORM 10-Q

June 30, 2013

TABLE OF CONTENTS

PART I -- FINANCIAL INFORMATION

Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4T.	Control and Procedures	12

PART II -- OTHER INFORMATION

Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	16
Item 4.	(Removed & Reserved)	16
Item 5.	Other Information	16
Item 6.	Exhibits	16

PART I -- FINANCIAL INFORMATION

ITEM 1 –FINANCIAL STATEMENTS

THE GRAYSTONE COMPANY, INC.

CONSOLIDATED BALANCE SHEET

	June 30,			December 31,
	2013			2012
	(unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	2,891		$	14,922
Prepaid expense		-			50,000
Loan to joint venture		89,624			-
Total current assets		92,515			64,922
Plant, property & equipment (net of depreciation)		55,218			70,841
Total assets	$	147,733		$	135,763
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
Current liabilities
Accounts payable	$	10,480		$	10,487
Accrued expenses		10,147			8,604
Accrued expenses - related party		120,899			78,399
Convertible notes payable (net of discount)		143,500			136,373
Notes payable		357,950			244,950
Notes payable (related party)		116,539			82,908
Derivative liability		-			19,807
Total liabilities		759,515			581,528
Stockholders' (deficit) equity
Class A Common stock, $.0001 par value; 5,000,000,000 shares authorized, 1,164,484,303 and 345,777,234 shares issued and outstanding as of June 30, 2013 and December 31, 2012, respectively.		116,448			34,578
Class B Common stock, $.001 par value; 5,000,000 shares authorized, 5,000,000 and 0 shares issued and outstanding as of June 30, 2013 and December 31, 2012, respectively.		5,000			5,000
Additional paid-in capital		6,579,009			5,471,670
Accumulated deficit		(7,312,239	)		(5,957,013	)
Total stockholders' (deficit) equity		(611,782	)		(445,765	)
Total liabilities and stockholders' (deficit) equity	$	147,733		$	135,763

See accompanying notes to unaudited consolidated financial statements

3

THE GRAYSTONE COMPANY, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

	Six Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
Sales, net	$	40,320			42,470			13,672			27,369
Cost of goods sold		196,911		$	14,279		$	67,449		$	8,938
Gross profit	$	(156,591	)	$	28,191		$	(53,777	)	$	18,431
Operating Expenses
General and administrative		569,052			302,434			160,545			270,487
Legal and professional		206,336			555,192			6,624			230,018
Depreciation and amortization		15,624			-			4,956			-
Research and development		-			45,035			-			10,996
Loss on settlement of AP-related party		210,000			-			210,000			-
Total operating expenses		1,001,012			902,661			382,125			511,501
Loss from operations		(1,157,603	)		(874,470	)		(435,902	)		(493,070	)
Other income (expense)
Interest expense		(120,156	)		(84,483	)		(50,200	)		(27,642	)
Loss on settlement of debt		(101,400	)		-			(101,400	)		-
Gain/loss on derivatives		23,933			-						-
Loss on sale of assets		-			(5,329	)		-			(5,329	)
Total other income (expense)		(197,623	)		(89,812	)		(151,600	)		(32,971	)
Loss before income taxes		(1,355,226	)		(964,282	)		(587,502	)		(526,041	)
Net loss	$	(1,355,226	)	$	(964,282	)	$	(587,502	)	$	(526,041	)
Net loss per share of common stock:
Basic	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.00	)
Weighted average number of shares outstanding		536,454,547			115,660,875			655,988,102			231,494,808

See accompanying notes to unaudited consolidated financial statements

4

THE GRAYSTONE COMPANY, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

	Six Months Ended June 30,
	2013			2012
Cash flows from operating activities
Net Income(loss)	$	(1,355,226	)	$	(964,282	)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciations on plant, property & equipment		15,623			1,258
Amortizations on intangible assets		-			500
Loss on settlement of debt		101,400			-
Loss on settlement of AP – related party		210,000			-
Gain on derivative liability		(88,933	)		-
Loss on sale of plant, property, & equipment		-			5,329
Issuance of common stock for services		402,950			623,585
Issuance of notes for services		-			31,250
Amortization of debt discount		177,113			81,089
Changes in operating assets and liabilities:
Accounts receivable		-			(4,810	)
Prepaid expenses		50,000			-
Accounts payable		(7	)		7,728
Accrued expenses		8,042			5,341
Net cash used by operating activities		(479,038	)		(213,012	)
Cash flows from investing activities
Sale of plant, property & equipment		-			9,613
Loan to joint venture		(89,624	)		-
Net cash provided (used) by investing activities		(89,624	)		9,613
Cash flows from financing activities
Proceeds from issuance of common stock, net of issuance costs		-			86,950
Proceeds from notes payable		390,500			189,064
Proceeds from notes payable - related party		300,699			-
Repayment from notes payable		-			(27,390	)
Repayment from notes payable - related party		(134,568	)		-
Net cash provided by financing activities		556,631			248,624
Net change in cash and cash equivalent		(12,031	)		45,225
Cash and cash equivalent at the beginning of period		14,922			793
Cash and cash equivalent at the end of period	$	2,891		$	46,018
Noncash investing and financing activities:
Stock issued for conversion of debt and accrued interest	$	153,999		$	13,400
Stock issued for settlement of debt	$	235,400		$	-
Stock issued to settle accrued liabilities- related party	$	300,000		$	-
Debt discount from derivatives	$	130,000		$	-
BCF	$	-		$	80,000
Common stock cancelled with subscription  receivable	$	-		$	(218,200	)
Subscription receivable compensated with professional services	$	-		$	131,800

See accompanying notes to unaudited consolidated financial statements

5

THE GRAYSTONE COMPANY, INC.

CONDENSED NOTES TO UNAUDITED FINANCIAL STATEMENTS

Note 1 – Basis of Presentation

The accompanying unaudited financial statements of The Graystone Company, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's registration statement filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year 2012 as reported in Form 10-K, have been omitted.

Note 2 – Going Concern

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has negative working capital, recurring losses, and does not have an established source of revenues sufficient to cover its operating costs.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.

In the coming year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with operations and business developments. The Company may experience a cash shortfall and be required to raise additional capital.

Historically, it has mostly relied upon internally generated funds such as shareholder loans and advances to finance its operations and growth. Management may raise additional capital by retaining net earnings or through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse affect upon it and its shareholders.

Note 3 – Related Party Transaction

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Renard Properties for services rendered. The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals. Paul Howarth, our CEO, is the managing member of Renard Properties.

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Joseph Wade for services rendered.  The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Joseph Wade for services rendered.  The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Paul Howarth for services rendered.  The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On June 19, 2013, the Company issued 187,500,000of our Class A Common Stock to Paul Howarth for $45,000 in debt.  The price per share was $.0008.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

On June 19, 2013, the Company issued 187,500,000of our Class A Common Stock to Joseph Wade for $45,000 in debt.  The price per share was $.0008.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

6

During the Six Months ended June 30, 2013, $93,750 was recorded to related party payables from amounts paid on behalf of the Company by Renard Properties, for accrued salaries and consulting fees.  $79,568 was repaid against these payables resulting in an ending balance of $79,628.  Paul Howarth, our CEO, is the managing member of Renard Properties.

During the Six Months ended June 30, 2013, $93,750 was recorded to related party payables from amounts paid on behalf of the Company by JW Group, for accrued salaries and consulting fees.  $55,000 was repaid against these payables resulting in an ending balance of $41,271.  Joseph Wade, our CFO, is the President of JW Group

During the Six Months ended June 30, 2013, the Company borrowed $67,880 in cash from Renard Properties and repaid $31,606 in cash leaving a balance of $112,950 owed to Renard Properties. Paul Howarth, our CEO, is the managing member of Renard Properties. These loans bear no interest and are due in December 2013.  

During the Six Months ended June 30, 2013, the Company borrowed $45,319 in cash from JW Group and repaid $47,963 in cash leaving a balance of $3,589 owed to JW Group. Joseph Wade, our CFO, is the President of JW Group.  These loans bear no interest and are due in December 2013.  

Note 4 – Common Stock and Preferred Stock

During Six Months Ending June 30, 2013, the Company issued the following Class A shares:

· 316,707,073 shares for conversion of notes payable and accrued interest of $288,000

· 127,000,000 shares for services with a fair value of $402,950

· 375,000,000 shares for settlement of related party payables of $90,000

Note 5 – Notes Payable and Derivative Liabilities

Convertible Notes

Fiscal 2012 Asher Convertible Note.  Throughout fiscal 2012, the Company borrowed $275,000 from Asher Enterprises, Inc. in eight notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options are classified as liabilities under ASC 815 at their fair value.  During 2013, $130,000 of these notes became convertible.  The fair value of the conversion options exceeded the principal balance resulting in a full discount to the notes payable of $130,000.  The entire amount was amortized the interest expense during the six months ended June 30, 2013.    

Fiscal 2013 Asher Convertible Note.  In the Six Months ended June 30, 2013, the Company borrowed $143,500 from Asher Enterprises, Inc. in three notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options will be classified as liabilities under ASC 815.  

During the Six Months ended June 30, 2013, the Company issued 137,207,073 Class A Common Shares to Asher in satisfaction of $147,500 loaned to the Company and $6,499of accrued interest.  As a result of the conversion of the related notes, the Company re-valued its derivative liabilities on the settlement dates and reclassified these amounts to additional paid-in capital.  As of June 30, 2013, the Company owes Asher a remaining total of $143,500

The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2012:

Ending balance as of December 31, 2012	$	19,807
Additions due to new convertible debt issued		183,181
Reclassification of derivative liabilities to additional paid-in capital due to conversion of debt		(96,860	)
Change in fair value		(86,321	)
Ending balance as of June 30, 2013	$	-

7

During the period ended June 30, 2013, the gain on derivatives of $23,933 in the statement of operations consisted of a gain on the change in fair value of $86,321 noted above and a loss of $62,388, which was the amount by which the derivative liabilities exceeded the principal of the related notes payable on the date the notes were issued.

Notes Payable 

During the Six Months ended June 30, 2013, the Company borrowed $247,000 from a third party in sixteen notes.  The notes are all due December 31, 2013, bear interest at 0%, and are unsecured.

Ending balance as of December 31, 2012	$	244,950
Additions due to new debt issued		247,000
Amount of debt converted into shares		(134,000	)
Ending balance as of June 30, 2013	$	357,950

During the six months ended June 30, 2013, the Company converted $134,000 in promissory notes into 179,500,000 common shares. The Company recorded a loss of $101,400 on the conversion.

On June 28, 2013, the Company entered into a line of credit agreement for $500,000 with a maturity date of December 31, 2015 and an effective interest rate of 9%. All previous amounts due to SC Capital of $362,450 are transferred to this line of credit. All accrued interest on the previous notes is waived through June 3, 2013.

Note 6 – Loan to Joint Venture

In December 2012, the Company entered into a joint venture regarding a mining project in Suriname.  The Company agreed to invest $75,000 into the joint venture and any additional investments made above this initial $75,000 would be considered a loan to the joint venture by the Company.  As of June 30, 2013, the Company lent an additional $89,624.  This amount shall be repaid to the Company prior to any disbursements made to the partners in the joint venture.  The terms of the joint venture provide that the Company has a 50% undivided interest in the profits of the joint venture and Aurora Mining owns the other 50%.

Note 7 – Subsequent Events

On July 11, 2013, the Company issued 50,000,000 shares of its Class A Common stock at an applicable conversion price of $0.00025.  SC Capital converted $12,500 of its note convertible in the amount of $25,000 from its note dated November 7, 2012.  There is $12,500 remaining on the note.

On July 22, 2013, the Company issued 60,000,000 shares of its Class A Common stock at an applicable conversion price of $0.00021.  SC Capital converted $12,500 of its note convertible in the amount of $25,000 from its note dated November 7, 2012.  There is $0 remaining on the note.

On August 2, 2013, the Company issued 63,000,000 shares of its Class A Common stock at an applicable conversion price of $0.00016.  SC Capital converted $10,000 of its note convertible in the amount of $50,800 from its note dated November 20, 2012.  There is $40,800 remaining on the note.

On August 7, 2013, the Company issued 150,000,000 shares of its Class A Common stock at an applicable conversion price of $0.0001 to Renard Properties, LLC in exchange for the extinguishment of $15,000 in debt owed.

On August 7, 2013, the Company issued 150,000,000 shares of its Class A Common stock at an applicable conversion price of $0.0001 to JW Group, Inc. in exchange for the extinguishment of $15,000 in debt owed.

On August 9, 2013, the Company issued 170,000,000 shares of its Class A Common stock at an applicable conversion price of $0.0001.  SC Capital converted $17,000 of its note convertible in the amount of $50,800 from its note dated November 20, 2012.  There is $23,800 remaining on the note.

On August 9, 2013, the Company’s board of directors and a majority of its shareholders approved a1000-1 reverse split.  The record date shall be set by the Board of Directors but shall not be later than January 31, 2014.

8

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain matters discussed herein are forward-looking statements. Such forward-looking statements contained herein involve risks and uncertainties, including statements as to:

· our future operating results;

· our business prospects;

· our contractual arrangements and relationships with third parties;

· the dependence of our future success on the general economy;

· our possible financings; and

· the adequacy of our cash resources and working capital.

These forward-looking statements can generally be identified as such because the context of the statement will include words such as we “believe,” “anticipate,” “expect,” “estimate” or words of similar meaning. Similarly, statements that describe our future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties which are described in close proximity to such statements and which could cause actual results to differ materially from those anticipated as of the date of this report. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included herein are only made as of the date of this report, and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and results of operations in conjunction with the financial statements and the notes thereto, included elsewhere in this report.  The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.  Our actual results could differ materially from those discussed in the forward-looking statements.  Factors that could cause or contribute to those differences include those discussed below and elsewhere in this report, particularly in the “Risk Factors” section.

Going Concern

Our financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of business. The Company has generated modest revenues since inception and has never paid any dividends and is unlikely to pay dividends. The continuation of the Company as a going concern is dependent upon the continued financial support from its shareholders, the ability of the Company to obtain necessary equity financing to continue operations and to determine the existence, discovery and successful exploration of economically recoverable reserves in its resource properties, confirmation of the Company’s interests in the underlying properties, and the attainment of profitable operations. The Company has had very little operating history to date. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Overview

During the Three Months Ending June 30, 2013, we generated sales of $40,320 and incurred a net loss of $1,355,226.  We have received no substantial revenue ($26,649 from the production of gold or other metals, and historically relied on our other divisions and equity and debt financings to finance our ongoing operations. Our operations generated a net loss of $7,312,239 from inception (March 27, 2010) through the Six Months Ending June 30, 2013. In order to fund operations, we relied on proceeds received under the private placement sale in secured convertible debentures from Asher Enterprises, loans payable from SC Capital and proceeds received from notes payable from our shareholders.

9

Results of Operations

For the six month and three months ending June 31, 2013 and 2012 respectively, the Company generated the following revenue:

	Six Months Ended June 30,					Three Months Ended June 30,
	2013			2012		2013			2012
Sales, net	$	40,320			42,470		13,672			27,369
Cost of goods sold		196,911		$	14,279	$	67,449		$	8,938
Gross profit	$	(156,591	)	$	28,191	$	(53,777	)	$	18,431

The increase in the Company’s Cost of Goods sold includes an increase in mining expenses that the Company incurred since the fiscal year ended December 31, 2012.  The Company previously classified these expenses as general expenses.

For the six month and three months ending June 31, 2013 and 2012 respectively, the Company generated the following expenses:

	Six Months Ended June 30,				Three Months Ended June 30,
	2013		2012		2013		2012
Operating Expenses
General and administrative		569,052		302,434		160,545		270,487
Legal and professional		206,336		555,192		6,624		230,018
Depreciation and amortization		15,624		-		4,956		-
Research and development		-		45,035		-		10,996
Total operating expenses		791,012		902,661		172,125		511,501

The Company's research and development expenses are related to the Company's mining activities in Peru and include exploration on the Company's mining properties but do not include the actual mining expenses. The Company’s Research and Development expense decreased as the Company’s focused more assets to mining production and less on general exploration and development of its mining claims.    

Liquidity and Capital Resources

The following is a summary of our balance sheet as of June 30, 2013 and December 31, 2012 respectively:

	June 30,		December 31,
	2013		2012
Current assets
Cash and cash equivalents		2,891		14,922
Prepaid expense		-		50,000
Loan to joint venture		89,624		-
Total current assets		92,515		64,922

10

In the opinion of management, available funds will not satisfy our growth requirements for the next twelve months. The Company expects that its current revenue will allow us to satisfy our current operations and our reporting requirement for the next twelve months.   However, if our revenue decreases we may not able to support our current operations and reporting obligations without obtaining additional funds.  We believe our currently available capital resources will allows us to begin operations within our natural resource division and maintain its operation over the course of the next 12 months; however, our other expansion plans would be put on hold until we could raise sufficient capital.  The Company expects that it needs to raise an additional $500,000 to expand its mining operations in Peru whereby the operations in Peru will be operating at a breakeven point or a profit.  Currently, the Company loses approximately $5,000 - $10,000 per month related to its mining operations in Peru.  We cannot guaranty that we will be able to raise additional funds. Moreover, in the event that we can raise additional funds, we cannot guaranty that additional funding will be available on favorable terms.  The Company’s Board of Directors is currently discussing the possibility of offering $2,000,000 in a new Preferred Stock series at an interest rate of 7.5%.

Loans

The Company has received the following loans from 3rd parties:

Asher:

The Company borrowed $143,500 during the six months ending June 30, 2013 from Asher.  The amount owed at June 30, 2013 was $143,500 as Asher converted $147,500 in exchange for approximately 137,207,073 shares of our Class A Common Stock.

Date of Note	Funding Date	Amount of Loan		Funding Date	Remaining Balance
1/10/2012	1/18/2012	$	32,500	7/16/2012	$	0
2/28/2012	3/7/2012	$	32,500	9/3/2012	$	0
4/26/2012	5/2/2012	$	47,500	10/29/2012	$	0
6/21/2012	6/27/2012	$	32,500	12/24/2012	$	0
8/7/2012	8/27/2012	$	32,500	2/23/2013	$	0
8/27/2012	9/14/2012	$	32,500	3/13/2013	$	0
10/5/2012	10/23/2012	$	32,500	4/21/2013	$	0
12/4/2012	12/13/2012	$	32,500	6/11/2013	$	0
2/11/2013	2/20/2013	$	78,500	8/19/2013	$	78,500
4/5/2013	4/19/2013	$	32,500	10/20/2013	$	32,500
5/13/2013	5/17/2013	$	32,500	11/17/2013	$	32,500

SC Capital Group:

The Company borrowed $247,000 during the three months ending June 30, 2013 from SC Capital as part of the Investment Agreement executed with SC Capital.  The amount owed at June 30, 2013 was $362,450.

Date of Note	Funding Date	Amount of Loan		Remaining Balance
10/10/2012	10/10/2012	$	21,000	$	21,000
10/22/2012	10/22/2012	$	64,500	$	64,500
10/26/2012	10/26/2012	$	26,000	$	26,000
11/1/2012	11/1/2012	$	18,000	$	18,000
11/7/2012	11/7/2012	$	25,000	$	25,000
11/20/2012	11/20/2012	$	50,800	$	50,800
12/5/2012	12/5/2012	$	3,650	$	3,650
12/27/2012	12/27/2012	$	36,000	$	36,000
1/11/2013	1/11/2013	$	20,500	$	20,500
1/25/2013	1/25/2013	$	20,000	$	20,000
2/1/2013	2/1/2013	$	17,500	$	17,500
2/12/2013	2/12/2013	$	18,500	$	18,500
2/19/2013	2/19/2013	$	8,000	$	8,000
3/4/2013	3/4/2013	$	23,000	$	23,000
3/7/2013	3/7/2013	$	15,000	$	15,000
3/13/2013	3/13/2013	$	9,500	$	9,500

11

The Company converted $129,500 in principal plus $4,500 in costs associated with the conversion in exchange for approximately 179,500,000 shares of our Class A Common Stock.

Date of Conversion	Shares Issued		Price per Share		Converted Amount
4/11/2013		15,000,000	$	0.0015	$	21,500
5/1/20013		15,000,000	$	0.0010	$	15,000
5/16/2013		15,000,000	$	0.0010	$	15,000
5/23/2013		15,000,000	$	0.0010	$	15,000
5/31/2013		25,000,000	$	0.0009	$	19,500
6/7/2013		15,000,000	$	0.0008	$	11,250
6/17/2013		29,500,000	$	0.0005	$	14,750
6/25/2013		50,000,000	$	0.0004	$	18,000

Going Concern

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive exploration activities. For these reasons our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.

Accounting and Audit Plan

In the next twelve months, we anticipate spending approximately $20,000 - $30,000 to pay for our accounting and audit requirements.

Off-balance sheet arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Critical Accounting Policies

Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete summary of these policies is included in Note 2 of the notes to our historical financial statements. We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows and which require the application of significant judgment by management.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the market risks discussed in Item 7A of The Graystone Company's Form 10-K for the fiscal year ended December 31, 2011.

ITEM 4 – CONTROLS AND PROCEDURES

 (a) Evaluation of Disclosure Controls and Procedures

Our principal executive and principal financial officers have evaluated the effectiveness of our disclosure controls and procedures, as defined in Rules 13a – 15(e) and 15d – 15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods required under the SEC’s rules and forms and that the information is gathered and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow for timely decisions regarding required disclosure.

Our principal executive officer and principal financial officer evaluated the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e)) as of the end of the period covered by this report. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report.

12

The reason we believe our disclosure controls and procedures are not effective is because:

1.	No independent directors;
2.	No segregation of duties;

3.	No audit committee; and
4.	Ineffective controls over financial reporting.

As of June 30, 2013, the Company has not taken any remediation actions to address these weaknesses in our controls even though they were identified in 2011.  The Company’s management expects, once it is in the financial position to do so, to hire additional staff in its accounting department to be able to segregate the duties.  The Company expects that the expense will be approximately $60,000 per year which would allow the Company to hire 2 new staff members.

This 10-Q does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to Rule 308(b) of Regulation S-K.

Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Our internal control over financial reporting includes those policies and procedures that:

1. Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

2. Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance  with U.S. GAAP, and that our receipts and expenditures are being made only in accordance with the authorization of our management and directors; and

3. Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2012. Based on this assessment, management concluded that the Company did not maintain effective internal controls over financial reporting as a result of the identified material weakness in our internal control over financial reporting described below. In making this assessment, management used the framework set forth in the report entitled Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO. The COSO framework summarizes each of the components of a company's internal control system, including (i) the control environment, (ii) risk assessment, (iii) control activities, (iv) information and communication, and (v) monitoring.

Identified Material Weakness

A material weakness in our internal control over financial reporting is a control deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected.

Management identified the following material weakness during its assessment of internal controls over financial reporting as of March 31, 2012:

Resources: As of June 30, 2013, we have no full-time employees with the requisite expertise in the key functional areas of finance and accounting.  As a result, there is a lack of proper segregation of duties necessary to insure that all transactions are accounted for accurately and in a timely manner.

Written Policies & Procedures: We need to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity transactions, and prepare, review and submit SEC filings in a timely manner.

13

Management’s Remediation Initiatives

As our resources allow, we will add financial personnel to our management team.  We plan to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity transactions.  We will also create an audit committee made up of our independent directors.

As of June 30, 2013, the Company has not taken any remediation actions to address these weaknesses in our controls even though they were identified in 2011.  The Company’s management expects, once it is in the financial position to do so, to hire additional staff in its accounting department to be able to segregate the duties.  The Company expects that the expense will be approximately $60,000 per year which would allow the Company to hire 2 new staff members.

(b)           Changes In Internal Control Over Financial Reporting

We need to prepare written policies and procedures for accounting and financial reporting to establish a formal process to close our books monthly on an accrual basis and account for all transactions, including equity transactions, and prepare, review and submit SEC filings in a timely manner

14

PART II --  OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

The above statement notwithstanding, shareholders and prospective investors should be aware that certain risks exist with respect to the Company and its business, including those risk factors contained in our most recent Registration Statements on Form S-1 and Form 10, as amended. These risks include, among others: limited assets, lack of significant revenues and only losses since inception, industry risks, dependence on third party manufacturers/suppliers and the need for additional capital. The Company’s management is aware of these risks and has established the minimum controls and procedures to insure adequate risk assessment and execution to reduce loss exposure.

ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS

On January 7, 2013, the Company issued 10,444,444 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $.0018.

On February 28, 2013, the Company issued 7,142,857 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $.0021.

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Renard Properties for services rendered.  . The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals. Paul Howarth, our CEO, is the managing member of Renard Properties.

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Joseph Wade for services rendered.  The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals.

On March 11, 2013, the Company issued 10,444,414 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $.0019.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Joseph Wade for services rendered.  The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Paul Howarth for services rendered.  The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 20, 2013, the Company issued 9,375,000 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $.0015.

On March 27, 2013, the Company issued 12,533,333 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $.0016.

On April 11, 2013, the Company issued 15,000,000 shares to SC Capital in exchange for $22,500 in debt at a price per shares of $.0015.

On April 24, 2013, the Company issued 11,538,462 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $.0013.

On April 29, 2013, the Company issued 15,666,667 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $.0012.

On May 1, 2013, the Company issued 15,000,000 shares to SC Capital in exchange for $15,000 in debt at a price per shares of $.001.

On May 16, 2013, the Company issued 15,000,000 shares to SC Capital in exchange for $15,000 in debt at a price per shares of $.001.

15

On May 23, 2013, the Company issued 15,000,000 shares to SC Capital in exchange for $15,000 in debt at a price per shares of $.001.

On May 31, 2013, the Company issued 25,000,000 shares to SC Capital in exchange for $22,500 in debt at a price per shares of $.0009.

On June 7, 2013, the Company issued 15,000,000 shares to SC Capital in exchange for $11,250 in debt at a price per shares of $.0008.

On June 14, 2013, the Company issued 24,590,164 shares to Asher Enterprises in exchange for $15,000 in debt at a price per shares of $.0013.

On June 17, 2013, the Company issued 29,500,000 shares to SC Capital in exchange for $14,750 in debt at a price per shares of $.0005.

On June 19, 2013, the Company issued 35,471,698 shares to Asher Enterprises in exchange for $17,500 in debt at a price per shares of $.0012.

On June 19, 2013, the Company issued 187,500,000,000 of our Class A Common Stock to Paul Howarth for $45,000 in debt.  The price per share was $.00024.  The shares are restricted for 24 months from the issuance.

On June 19, 2013, the Company issued 187,500,000,000 of our Class A Common Stock to Joseph Wade for $45,000 in debt.  The price per share was $.00024.  The shares are restricted for 24 months from the issuance.

On June 25, 2013, the Company issued 50,000,000 shares to SC Capital in exchange for $18,000 in debt at a price per shares of $.0004.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The shareholder voted on March 27, 2012 to approve a reverse split of 400:1 for all shares outstanding and issued as of March 27, 2012. The Company’s Board of Directors has been currently discussing the possibility of the Company performing another reverse but has not made a decision as of June 30, 2013.

ITEM 5. OTHER INFORMATION

There was no other information during the quarter ended June 30, 2013 that was not previously disclosed in our filings during that period.

ITEM 6. EXHIBITS

31.1	Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002
31.2	Certifications pursuant to Section 302 of Sarbanes Oxley Act of 2002
32.1	Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002
32.2	Certifications pursuant to Section 906 of Sarbanes Oxley Act of 2002
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

16

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, there unto duly authorized.

	THE GRAYSTONE COMPANY, INC.
Date:  August 14, 2013	By: /s/ Paul Howarth
	Paul Howarth
	Chief Executive Officer

Date:  August 14, 2013	By: /s/ Joseph Wade
	Joseph Wade Chief Financial and Accounting Officer

17

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Paul Howarth, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The Graystone Company, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or person performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

/s/ Paul Howarth

Paul Howarth

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Joseph Wade, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of The Graystone Company, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the period presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or person performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 14, 2013

/s/ Joseph Wade

Joseph Wade 

Chief Financial Officer 

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO RULE 13b — 14(b) OF THE SECURITIES EXCHANGE ACT AND 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of The Graystone Company, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I Paul Howarth, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Paul Howarth  

Paul Howarth 

Chief Executive Officer 

August 14, 2013

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO RULE 13b — 14(b) OF THE SECURITIES EXCHANGE ACT AND 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of The Graystone Company, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joseph Wade, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. 1350, as adopted pursuant to 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Joseph Wade  

Joseph Wade 

Chief Financial Officer 

August 14, 2013
 

XML

Note 5 - Notes Payable and Derivative Liabilities (Details) - Schedule of Changes in Derivative Liabilities (USD $)	6 Months Ended
	Jun. 30, 2013
Schedule of Changes in Derivative Liabilities [Abstract]
Ending balance as of December 31, 2012	$ 19,807
Additions due to new convertible debt issued	183,181
Reclassification of derivative liabilities to additional paid-in capital due to conversion of debt	(96,860)
Change in fair value	(86,321)
Ending balance as of June 30, 2013	$ 0

XML

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Sales, net	$ 13,672	$ 27,369	$ 40,320	$ 42,470
Cost of goods sold	67,449	8,938	196,911	14,279
Gross profit	(53,777)	18,431	(156,591)	28,191
Operating Expenses
General and administrative	160,545	270,487	569,052	302,434
Legal and professional	6,624	230,018	206,336	555,192
Depreciation and amortization	4,956	0	15,624	0
Research and development	0	10,996	0	45,035
Loss on settlement of AP-related party	210,000	0	210,000	0
Total operating expenses	382,125	511,501	1,001,012	902,661
Loss from operations	(435,902)	(493,070)	(1,157,603)	(874,470)
Other income (expense)
Interest expense	(50,200)	(27,642)	(120,156)	(84,483)
Loss on settlement of debt	(101,400)	0	(101,400)	0
Gain/loss on derivatives	0	0	23,933	0
Loss on sale of assets	0	(5,329)	0	(5,329)
Total other income (expense)	(151,600)	(32,971)	(197,623)	(89,812)
Loss before income taxes	(587,502)	(526,041)	(1,355,226)	(964,282)
Net loss	$ (587,502)	$ (526,041)	$ (1,355,226)	$ (964,282)
Net loss per share of common stock:
Basic (in Dollars per share)	$ 0.00	$ 0.00	$ 0.00	$ (0.01)
Weighted average number of shares outstanding (in Shares)	655,988,102	231,494,808	536,454,547	115,660,875

XML

Note 5 - Notes Payable and Derivative Liabilities

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 5 – Notes Payable and Derivative Liabilities

Convertible Notes

Fiscal 2012 Asher Convertible Note.  Throughout fiscal 2012, the Company borrowed $275,000 from Asher Enterprises, Inc. in eight notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options are classified as liabilities under ASC 815 at their fair value.  During 2013, $130,000 of these notes became convertible.  The fair value of the conversion options exceeded the principal balance resulting in a full discount to the notes payable of $130,000.  The entire amount was amortized the interest expense during the six months ended June 30, 2013.    

Fiscal 2013 Asher Convertible Note.  In the Six Months ended June 30, 2013, the Company borrowed $143,500 from Asher Enterprises, Inc. in three notes.  The notes bear simple interest of 8% per annum from the issuance date.  The notes become convertible into Class A common stock at 57% of market price 180 days after issuance and mature 270 days after issuance.  On the date the notes become convertible, the embedded conversion options will be classified as liabilities under ASC 815.  

During the Six Months ended June 30, 2013, the Company issued 137,207,073 Class A Common Shares to Asher in satisfaction of $147,500 loaned to the Company and $6,499of accrued interest.  As a result of the conversion of the related notes, the Company re-valued its derivative liabilities on the settlement dates and reclassified these amounts to additional paid-in capital.  As of June 30, 2013, the Company owes Asher a remaining total of $143,500

The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2012:

Ending balance as of December 31, 2012	$	19,807
Additions due to new convertible debt issued		183,181
Reclassification of derivative liabilities to additional paid-in capital due to conversion of debt		(96,860	)
Change in fair value		(86,321	)
Ending balance as of June 30, 2013	$	-

During the period ended June 30, 2013, the gain on derivatives of $23,933 in the statement of operations consisted of a gain on the change in fair value of $86,321 noted above and a loss of $62,388, which was the amount by which the derivative liabilities exceeded the principal of the related notes payable on the date the notes were issued.

Notes Payable 

During the Six Months ended June 30, 2013, the Company borrowed $247,000 from a third party in sixteen notes.  The notes are all due December 31, 2013, bear interest at 0%, and are unsecured.

Ending balance as of December 31, 2012	$	244,950
Additions due to new debt issued		247,000
Amount of debt converted into shares		(134,000	)
Ending balance as of June 30, 2013	$	357,950

During the six months ended June 30, 2013, the Company converted $134,000 in promissory notes into 179,500,000 common shares. The Company recorded a loss of $101,400 on the conversion.

On June 28, 2013, the Company entered into a line of credit agreement for $500,000 with a maturity date of December 31, 2015 and an effective interest rate of 9%. All previous amounts due to SC Capital of $362,450 are transferred to this line of credit. All accrued interest on the previous notes is waived through June 3, 2013.

XML

Note 5 - Notes Payable and Derivative Liabilities (Details) - Schedule of Debt (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Note 5 - Notes Payable and Derivative Liabilities (Details) - Schedule of Debt [Line Items]
Ending balance as of December 31, 2012	$ 244,950
Amount of debt converted into shares	(153,999)	(13,400)
Ending balance as of June 30, 2013	357,950
Third Party Notes [Member]
Note 5 - Notes Payable and Derivative Liabilities (Details) - Schedule of Debt [Line Items]
Ending balance as of December 31, 2012	244,950
Additions due to new debt issued	247,000
Amount of debt converted into shares	(134,000)
Ending balance as of June 30, 2013	$ 357,950

XML

Note 1 - Basis of Presentation

6 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Business Description and Basis of Presentation [Text Block]

Note 1 – Basis of Presentation

The accompanying unaudited financial statements of The Graystone Company, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's registration statement filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year 2012 as reported in Form 10-K, have been omitted.

XML

Note 3 - Related Party Transaction

6 Months Ended

Jun. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 3 – Related Party Transaction

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Renard Properties for services rendered. The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals. Paul Howarth, our CEO, is the managing member of Renard Properties.

On March 8, 2013, the Company issued 31,500,000 of our Class A Common Stock to Joseph Wade for services rendered.  The price per shares $.003 for $94,500 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Joseph Wade for services rendered.  The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On March 18, 2013, the Company issued 5,000,000 of our Class A Common Stock to Paul Howarth for services rendered.  The price per shares $.0028 for $14,000 in bonus payment for achieving pre-determined mining goals.

On June 19, 2013, the Company issued 187,500,000of our Class A Common Stock to Paul Howarth for $45,000 in debt.  The price per share was $.0008.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

On June 19, 2013, the Company issued 187,500,000of our Class A Common Stock to Joseph Wade for $45,000 in debt.  The price per share was $.0008.  The shares are restricted for 24 months from the issuance. A loss of $105,000 was recorded on the issuance.

During the Six Months ended June 30, 2013, $93,750 was recorded to related party payables from amounts paid on behalf of the Company by Renard Properties, for accrued salaries and consulting fees.  $79,568 was repaid against these payables resulting in an ending balance of $79,628.  Paul Howarth, our CEO, is the managing member of Renard Properties.

During the Six Months ended June 30, 2013, $93,750 was recorded to related party payables from amounts paid on behalf of the Company by JW Group, for accrued salaries and consulting fees.  $55,000 was repaid against these payables resulting in an ending balance of $41,271.  Joseph Wade, our CFO, is the President of JW Group

During the Six Months ended June 30, 2013, the Company borrowed $67,880 in cash from Renard Properties and repaid $31,606 in cash leaving a balance of $112,950 owed to Renard Properties. Paul Howarth, our CEO, is the managing member of Renard Properties. These loans bear no interest and are due in December 2013.  

During the Six Months ended June 30, 2013, the Company borrowed $45,319 in cash from JW Group and repaid $47,963 in cash leaving a balance of $3,589 owed to JW Group. Joseph Wade, our CFO, is the President of JW Group.  These loans bear no interest and are due in December 2013.  

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Note 6 - Loan to Joint Venture

6 Months Ended

Jun. 30, 2013

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

Note 6 – Loan to Joint Venture

In December 2012, the Company entered into a joint venture regarding a mining project in Suriname.  The Company agreed to invest $75,000 into the joint venture and any additional investments made above this initial $75,000 would be considered a loan to the joint venture by the Company.  As of June 30, 2013, the Company lent an additional $89,624.  This amount shall be repaid to the Company prior to any disbursements made to the partners in the joint venture.  The terms of the joint venture provide that the Company has a 50% undivided interest in the profits of the joint venture and Aurora Mining owns the other 50%.

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Note 4 - Common Stock and Preferred Stock

6 Months Ended

Jun. 30, 2013

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 4 – Common Stock and Preferred Stock

During Six Months Ending June 30, 2013, the Company issued the following Class A shares:

· 316,707,073 shares for conversion of notes payable and accrued interest of $288,000

· 127,000,000 shares for services with a fair value of $402,950

· 375,000,000 shares for settlement of related party payables of $90,000

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CONSOLIDATED BALANCE SHEET (Unaudited) (Parentheticals) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Common Class A [Member]
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common Stock, shares issued (in Shares)	1,164,484,303	345,777,234
Common Stock, shares outstanding (in Shares)	1,164,484,303	345,777,234
Common stock, shares authorized (in Shares)	5,000,000,000	5,000,000,000
Common Class B [Member]
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common Stock, shares issued (in Shares)	5,000,000	0
Common Stock, shares outstanding (in Shares)	5,000,000	0
Common stock, shares authorized (in Shares)	5,000,000	5,000,000

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Note 3 - Related Party Transaction (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Note 3 - Related Party Transaction (Details) [Line Items]
Debt Conversion, Original Debt, Amount (in Dollars)			$ 153,999	$ 13,400
Gains (Losses) on Extinguishment of Debt	(210,000)	0	(210,000)	0
Repayments of Related Party Debt			134,568	0
Other Accrued Liabilities, Current	120,899		120,899		78,399
Proceeds from Related Party Debt			300,699	0
Due to Related Parties, Current	116,539		116,539		82,908
Common Class A [Member] | Renard Properties [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services (in Shares)			31,500,000
Shares Issued, Price Per Share (in Dollars per share)	$ 0.003		$ 0.003
Stock Issued During Period, Value, Issued for Services (in Dollars)			94,500
Common Class A [Member] | Chief Financial Officer [Member] | Stock Issued March 8, 2013 [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services (in Shares)			31,500,000
Shares Issued, Price Per Share (in Dollars per share)	$ 0.003		$ 0.003
Stock Issued During Period, Value, Issued for Services (in Dollars)			94,500
Common Class A [Member] | Chief Financial Officer [Member] | Stock Issued March 18, 2013 [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services (in Shares)			5,000,000
Stock Issued During Period, Value, Issued for Services (in Dollars)			14,000
Common Class A [Member] | Chief Financial Officer [Member] | Stock Issued June 19, 2013 [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Shares Issued, Price Per Share (in Dollars per share)	$ 0.0008		$ 0.0008
Stock Issued During Period, Shares, Other (in Shares)			187,500,000
Debt Conversion, Original Debt, Amount (in Dollars)			45,000
Shares Issued, Restricted Period			24 months
Gains (Losses) on Extinguishment of Debt			(105,000)
Common Class A [Member] | Chief Executive Officer [Member] | Stock Issued March 18, 2013 [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Shares Issued, Price Per Share (in Dollars per share)	$ 0.0028		$ 0.0028
Common Class A [Member] | Chief Executive Officer [Member] | Stock Issued June 19, 2013 [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Shares Issued, Price Per Share (in Dollars per share)	$ 0.0008		$ 0.0008
Stock Issued During Period, Shares, Other (in Shares)			187,500,000
Debt Conversion, Original Debt, Amount (in Dollars)			45,000
Shares Issued, Restricted Period			24 months
Gains (Losses) on Extinguishment of Debt			(105,000)
Common Class A [Member] | Chief Executive Officer [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services (in Shares)			5,000,000
Shares Issued, Price Per Share (in Dollars per share)	$ 0.0028		$ 0.0028
Stock Issued During Period, Value, Issued for Services (in Dollars)			14,000
Common Class A [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services (in Shares)			127,000,000
Stock Issued During Period, Value, Issued for Services (in Dollars)			402,950
Renard Properties [Member] | Expenses Paid by Related Party [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Related Party Transaction, Amounts of Transaction			93,750
Repayments of Related Party Debt			79,568
Other Accrued Liabilities, Current	79,628		79,628
Renard Properties [Member] | Related Party Notes [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Repayments of Related Party Debt			31,606
Proceeds from Related Party Debt			67,880
Due to Related Parties, Current	112,950		112,950
JW Group [Member] | Expenses Paid by Related Party [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Related Party Transaction, Amounts of Transaction			93,750
Repayments of Related Party Debt			55,000
Other Accrued Liabilities, Current	41,271		41,271
JW Group [Member] | Related Party Notes [Member]
Note 3 - Related Party Transaction (Details) [Line Items]
Repayments of Related Party Debt			47,963
Proceeds from Related Party Debt			45,319
Due to Related Parties, Current	$ 3,589		$ 3,589

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Cash flows from operating activities
Net Income(loss)	$ (1,355,226)	$ (964,282)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciations on plant, property & equipment	15,623	1,258
Amortizations on intangible assets	0	500
Loss on settlement of debt	101,400	0
Loss on settlement of AP – related party	210,000	0
Gain on derivative liability	(88,933)	0
Loss on sale of plant, property, & equipment	0	5,329
Issuance of common stock for services	402,950	623,585
Issuance of notes for services	0	31,250
Amortization of debt discount	177,113	81,089
Changes in operating assets and liabilities:
Accounts receivable	0	(4,810)
Prepaid expenses	50,000	0
Accounts payable	(7)	7,728
Accrued expenses	8,042	5,341
Net cash used by operating activities	(479,038)	(213,012)
Cash flows from investing activities
Sale of plant, property & equipment	0	9,613
Loan to joint venture	(89,624)	0
Net cash provided (used) by investing activities	(89,624)	9,613
Cash flows from financing activities
Proceeds from issuance of common stock, net of issuance costs	0	86,950
Proceeds from notes payable	390,500	189,064
Proceeds from notes payable - related party	300,699	0
Repayment from notes payable	0	(27,390)
Repayment from notes payable - related party	(134,568)	0
Net cash provided by financing activities	556,631	248,624
Net change in cash and cash equivalent	(12,031)	45,225
Cash and cash equivalent at the beginning of period	14,922	793
Cash and cash equivalent at the end of period	2,891	46,018
Noncash investing and financing activities:
Stock issued for conversion of debt and accrued interest	153,999	13,400
Stock issued for settlement of debt	235,400	0
Stock issued to settle accrued liabilities- related party	300,000	0
Debt discount from derivatives	130,000	0
BCF	0	80,000
Common stock cancelled with subscription receivable	0	(218,200)
Subscription receivable compensated with professional services	$ 0	$ 131,800

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CONSOLIDATED BALANCE SHEET (Unaudited) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Current assets
Cash and cash equivalents	$ 2,891	$ 14,922
Prepaid expense	0	50,000
Loan to joint venture	89,624	0
Total current assets	92,515	64,922
Plant, property & equipment (net of depreciation)	55,218	70,841
Total assets	147,733	135,763
Current liabilities
Accounts payable	10,480	10,487
Accrued expenses	10,147	8,604
Accrued expenses - related party	120,899	78,399
Convertible notes payable (net of discount)	143,500	136,373
Notes payable	357,950	244,950
Notes payable (related party)	116,539	82,908
Derivative liability	0	19,807
Total liabilities	759,515	581,528
Stockholders' (deficit) equity
Additional paid-in capital	6,579,009	5,471,670
Accumulated deficit	(7,312,239)	(5,957,013)
Total stockholders' (deficit) equity	(611,782)	(445,765)
Total liabilities and stockholders' (deficit) equity	147,733	135,763
Common Class A [Member]
Stockholders' (deficit) equity
Common stock, value issued	116,448	34,578
Common Class B [Member]
Stockholders' (deficit) equity
Common stock, value issued	$ 5,000	$ 5,000

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Note 5 - Notes Payable and Derivative Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The following table summarizes the changes in the derivative liabilities during the year ended December 31, 2012:

Ending balance as of December 31, 2012	$	19,807
Additions due to new convertible debt issued		183,181
Reclassification of derivative liabilities to additional paid-in capital due to conversion of debt		(96,860	)
Change in fair value		(86,321	)
Ending balance as of June 30, 2013	$	-

Schedule of Debt [Table Text Block]

During the Six Months ended June 30, 2013, the Company borrowed $247,000 from a third party in sixteen notes. The notes are all due December 31, 2013, bear interest at 0%, and are unsecured.

Ending balance as of December 31, 2012	$	244,950
Additions due to new debt issued		247,000
Amount of debt converted into shares		(134,000	)
Ending balance as of June 30, 2013	$	357,950

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Note 5 - Notes Payable and Derivative Liabilities (Details) (USD $)	3 Months Ended		6 Months Ended			6 Months Ended				12 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2013 Principal Amount [Member] Conversion of Convertible Debt [Member]	Jun. 30, 2013 Interest [Member] Conversion of Convertible Debt [Member]	Jun. 30, 2013 Common Class A [Member] Conversion of Convertible Debt [Member]	Jun. 30, 2013 2012 Asher Convertible Notes [Member]	Dec. 31, 2012 2012 Asher Convertible Notes [Member]	Jun. 30, 2013 2013 Asher Convertible Notes [Member]	Jun. 30, 2013 Third Party Notes [Member]	Jun. 30, 2013 Line of Credit [Member]
Note 5 - Notes Payable and Derivative Liabilities (Details) [Line Items]
Proceeds from Convertible Debt										$ 275,000	$ 143,500
Number of Notes										8	3	16
Debt Instrument, Interest Rate, Stated Percentage										8.00%	8.00%	0.00%	9.00%
Debt Instrument, Convertible, Terms of Conversion Feature										convertible into Class A common stock at 57% of market price 180 days after issuance	convertible into Class A common stock at 57% of market price 180 days after issuance
Debt Instrument, Maturity Date, Description										mature 270 days after issuance	mature 270 days after issuance
Debt Instrument, Description									$130,000 of these notes became convertible
Debt Instrument, Unamortized Discount	62,388		62,388							130,000
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)								137,207,073				179,500,000
Debt Conversion, Original Debt, Amount			153,999	13,400		147,500	6,499					134,000
Convertible Notes Payable, Current	143,500		143,500		136,373
Derivative, Gain (Loss) on Derivative, Net	0	0	23,933	0
Debt Instrument, Maturity Date												Dec. 31, 2013	Dec. 31, 2015
Other Nonoperating Gains (Losses)	(101,400)	0	(101,400)	0								(101,400)
Line of Credit Facility, Maximum Borrowing Capacity													$ 500,000
Line of Credit Facility, Description													All previous amounts due to SC Capital of $362,450 are transferred to this line of credit

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Note 7 - Subsequent Events

6 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Note 7 – Subsequent Events

On July 11, 2013, the Company issued 50,000,000 shares of its Class A Common stock at an applicable conversion price of $0.00025.  SC Capital converted $12,500 of its note convertible in the amount of $25,000 from its note dated November 7, 2012.  There is $12,500 remaining on the note.

On July 22, 2013, the Company issued 60,000,000 shares of its Class A Common stock at an applicable conversion price of $0.00021.  SC Capital converted $12,500 of its note convertible in the amount of $25,000 from its note dated November 7, 2012.  There is $0 remaining on the note.

On August 2, 2013, the Company issued 63,000,000 shares of its Class A Common stock at an applicable conversion price of $0.00016.  SC Capital converted $10,000 of its note convertible in the amount of $50,800 from its note dated November 20, 2012.  There is $40,800 remaining on the note.

On August 7, 2013, the Company issued 150,000,000 shares of its Class A Common stock at an applicable conversion price of $0.0001 to Renard Properties, LLC in exchange for the extinguishment of $15,000 in debt owed.

On August 7, 2013, the Company issued 150,000,000 shares of its Class A Common stock at an applicable conversion price of $0.0001 to JW Group, Inc. in exchange for the extinguishment of $15,000 in debt owed.

On August 9, 2013, the Company issued 170,000,000 shares of its Class A Common stock at an applicable conversion price of $0.0001.  SC Capital converted $17,000 of its note convertible in the amount of $50,800 from its note dated November 20, 2012.  There is $23,800 remaining on the note.

On August 9, 2013, the Company’s board of directors and a majority of its shareholders approved a1000-1 reverse split.  The record date shall be set by the Board of Directors but shall not be later than January 31, 2014.

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Note 2 - Going Concern

6 Months Ended

Jun. 30, 2013

Going Concern [Abstract]

Going Concern [Text Block]

Note 2 – Going Concern

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company has negative working capital, recurring losses, and does not have an established source of revenues sufficient to cover its operating costs.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Under the going concern assumption, an entity is ordinarily viewed as continuing in business for the foreseeable future with neither the intention nor the necessity of liquidation, ceasing trading, or seeking protection from creditors pursuant to laws or regulations. Accordingly, assets and liabilities are recorded on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.

In the coming year, the Company’s foreseeable cash requirements will relate to continual development of the operations of its business, maintaining its good standing and making the requisite filings with the Securities and Exchange Commission, and the payment of expenses associated with operations and business developments. The Company may experience a cash shortfall and be required to raise additional capital.

Historically, it has mostly relied upon internally generated funds such as shareholder loans and advances to finance its operations and growth. Management may raise additional capital by retaining net earnings or through future public or private offerings of the Company’s stock or through loans from private investors, although there can be no assurance that it will be able to obtain such financing. The Company’s failure to do so could have a material and adverse affect upon it and its shareholders.

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Note 6 - Loan to Joint Venture (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Equity Method Investments and Joint Ventures [Abstract]
Payments to Acquire Interest in Joint Venture			$ 75,000
Loans To Joint Venture	$ 89,624	$ 0
Joint Venture, Terms	The terms of the joint venture provide that the Company has a 50% undivided interest in the profits of the joint venture

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Note 4 - Common Stock and Preferred Stock (Details) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]
Debt Conversion, Original Debt, Amount (in Dollars)	$ 153,999	$ 13,400
Common Class A [Member] | Shares Issued for Conversion of Notes Payable and Accrued Interest [Member]
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)	316,707,073
Debt Conversion, Original Debt, Amount (in Dollars)	288,000
Common Class A [Member] | Shares Issued for Settlement of Related Party Payables [Member]
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]
Debt Conversion, Original Debt, Amount (in Dollars)	90,000
Stock Issued During Period, Shares, Other	375,000,000
Common Class A [Member]
Note 4 - Common Stock and Preferred Stock (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services	127,000,000
Stock Issued During Period, Value, Issued for Services (in Dollars)	$ 402,950

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Note 7 - Subsequent Events (Details) (USD $)	6 Months Ended			0 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012	Aug. 07, 2013 Subsequent Event [Member] Renard Properties [Member]	Aug. 07, 2013 Subsequent Event [Member] JW Group [Member]	Aug. 09, 2013 Subsequent Event [Member] SC Capital Note [Member]	Aug. 02, 2013 Subsequent Event [Member] SC Capital Note [Member]	Jul. 22, 2013 Subsequent Event [Member] SC Capital Note [Member]	Jul. 11, 2013 Subsequent Event [Member] SC Capital Note [Member]	Aug. 09, 2013 Subsequent Event [Member]
Note 7 - Subsequent Events (Details) [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities (in Shares)				150,000,000	150,000,000	170,000,000	63,000,000	60,000,000	50,000,000
Debt Instrument, Convertible, Conversion Price (in Dollars per share)				$ 0.0001	$ 0.0001	$ 0.0001	$ 0.00016	$ 0.00021	$ 0.00025
Debt Conversion, Original Debt, Amount	$ 153,999	$ 13,400		$ 15,000	$ 15,000	$ 17,000	$ 10,000	$ 12,500	$ 12,500
Debt Instrument, Face Amount						50,800	50,800	25,000	25,000
Notes Payable, Current	$ 357,950		$ 244,950			$ 23,800	$ 40,800	$ 0	$ 12,500
Stockholders' Equity, Reverse Stock Split										1000-1 reverse

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Document And Entity Information	6 Months Ended
	Jun. 30, 2013	Aug. 09, 2013 Common Class A [Member]	Aug. 09, 2013 Common Class B [Member]
Document Information [Line Items]
Entity Registrant Name	Graystone Co
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		1,807,484,303	5,000,000
Amendment Flag	false
Entity Central Index Key	0001510524
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2