| Lessee, Leases [Text Block] |
Note 8. Leases
Financing Leases
The outstanding liability for financing leases is as follows:
| |
|
November 30,
|
|
|
May 31,
|
|
| |
|
2025
|
|
|
2025
|
|
|
Non-cancelable financing leases
|
|
$ |
1,485 |
|
|
$ |
4,457 |
|
|
Less: Current portion
|
|
|
(1,485 |
)
|
|
|
(4,457 |
)
|
|
Non-cancelable financing leases, net of current portion
|
|
$ |
- |
|
|
$ |
- |
|
The production equipment under the non-cancelable financing leases is as follows:
| |
|
November 30,
|
|
|
May 31,
|
|
| |
|
2025
|
|
|
2025
|
|
|
Production equipment under financing leases
|
|
$ |
24,431 |
|
|
$ |
24,431 |
|
|
Less: Accumulated amortization
|
|
|
(19,952 |
) |
|
|
(17,509 |
) |
|
Production equipment under financing leases, net
|
|
$ |
4,479 |
|
|
$ |
6,922 |
|
Amortization of the carrying amount of $2,443 and $8,090 was included in depreciation and amortization expense for the six months ended November 30, 2025 and 2024, respectively.
Operating Leases
Greystone recognized a lease liability for each lease based on the present value of remaining minimum fixed rental payments, using a discount rate that approximates the rate of interest for a collateralized loan over a similar term. A right-of-use asset is recognized for each lease, valued at the lease liability. Minimum fixed rental payments are recognized on a straight-line basis over the life of the lease as costs and expenses on the unaudited consolidated statements of income. Variable and short-term rental payments are recognized as costs and expenses as they are incurred.
Greystone has two non-cancellable operating leases for (i) two buildings owned by GRE with a 120-month term, a 60-month renewal option and a discount rate of 6.0%, escalating rent payments at 5% every 5 years and (ii) the corporate offices located in Tulsa, OK with a 72-month lease and a discount rate of 8.5%, and lease is with a related party.
The outstanding liability for right to use assets under operating leases is as follows:
| |
|
November 30,
|
|
|
May 31,
|
|
| |
|
2025
|
|
|
2025
|
|
|
Liability under operating leases
|
|
$ |
5,018,831 |
|
|
$ |
5,168,301 |
|
|
Less: Current portion
|
|
|
(313,730 |
) |
|
|
(303,815 |
) |
|
Long-term portion of liability under operating leases
|
|
$ |
4,705,101 |
|
|
$ |
4,864,486 |
|
Lease Summary Information
Lease summary information as of and for the six month periods ending is as follows:
| |
|
November 30,
|
|
|
November 30,
|
|
| |
|
2025
|
|
|
2024
|
|
|
Lease Expense
|
|
|
|
|
|
|
|
|
|
Financing lease expense -
|
|
|
|
|
|
|
|
|
|
Amortization of right-of-use assets
|
|
$ |
2,443 |
|
|
$ |
8,090 |
|
|
Interest on lease liabilities
|
|
|
48 |
|
|
|
344 |
|
|
Operating lease expense
|
|
|
318,080 |
|
|
|
318,675 |
|
|
Short-term lease expense
|
|
|
784,631 |
|
|
|
726,078 |
|
|
Total
|
|
$ |
1,105,202 |
|
|
$ |
1,053,187 |
|
| |
|
|
|
|
|
|
|
|
|
Other Information
|
|
|
|
|
|
|
|
|
|
Cash paid for amounts included in the measurement of lease liabilities for finance leases -
|
|
|
|
|
|
|
|
|
|
Operating cash flows
|
|
$ |
48 |
|
|
$ |
344 |
|
|
Financing cash flows
|
|
$ |
2,972 |
|
|
$ |
11,667 |
|
|
Cash paid for amounts included in the measurement of lease liabilities for operating leases -
|
|
|
|
|
|
|
|
|
|
Operating cash flows
|
|
$ |
304,500 |
|
|
$ |
305,791 |
|
|
Weighted-average remaining lease term (in years) -
|
|
|
|
|
|
|
|
|
|
Financing leases
|
|
|
0.2 |
|
|
|
0.9 |
|
|
Operating leases
|
|
|
11.3 |
|
|
|
12.2 |
|
|
Weighted-average discount rate -
|
|
|
|
|
|
|
|
|
|
Financing leases
|
|
|
3.0 |
% |
|
|
3.6 |
% |
|
Operating leases
|
|
|
6.1 |
% |
|
|
6.1 |
% |
Future minimum lease payments under non-cancelable leases as of November 30, 2025, are approximately:
| |
|
Financing
|
|
|
Operating
|
|
| |
|
Leases
|
|
|
Leases
|
|
|
Twelve months ending November 30, 2026
|
|
$ |
1,505 |
|
|
$ |
609,000 |
|
|
Twelve months ending November 30, 2027
|
|
|
- |
|
|
|
617,920 |
|
|
Twelve months ending November 30, 2028
|
|
|
- |
|
|
|
635,760 |
|
|
Twelve months ending November 30, 2029
|
|
|
- |
|
|
|
635,760 |
|
|
Twelve months ending November 30, 2030
|
|
|
- |
|
|
|
567,010 |
|
|
Thereafter
|
|
|
- |
|
|
|
3,878,200 |
|
|
Total future minimum lease payments
|
|
|
1,505 |
|
|
|
6,943,650 |
|
|
Less: Imputed interest
|
|
|
20 |
|
|
|
1,924,819 |
|
|
Present value of minimum lease payments
|
|
$ |
1,485 |
|
|
$ |
5,018,831 |
|
|