Note 5. Property, Plant and Equipment

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

Property, plant and equipment includes production equipment with a carrying value of $280,000 as of November 30, 2025, which has not been placed into service.

Depreciation expense, including amortization expense related to financing leases, for the six months ended November 30, 2025 and 2024 was $2,916,451 and $2,843,219, respectively.

In February 2024, one of the Company’s storage warehouses caught fire with damage to finished goods inventory valued at $1,326,752 and the building with a net book value of $161,850. As of May 31, 2024, the Company recorded an insurance receivable of $2,058,602 as an estimate for damage to the inventory and building, which resulted in a gain from the involuntary conversion of $593,647 for the fiscal year ended May 31, 2024. The insurer and the Company finalized the claim value for the inventory as well as a prior claim for equipment damage from an electrical storm occurring in December 2022, resulting in an additional gain from the involuntary conversion of $741,821 for the year ended May 31, 2025. All amounts owed related to these claims were fully funded during the second quarter of fiscal 2025 by the insurer.