Greystone Logistics, Inc.

GLGI: 10-Q · periodic report

Greystone Logistics reported Q1 FY2027 sales of $5.3 million, down 50% year-over-year, with a net loss of $2.56 million ($-0.09/share) versus a $1.10 million loss a year ago, after losing a major customer that represented roughly $30 million, or 55%, of annual sales. The company disclosed substantial doubt about its ability to continue as a going concern: cash fell to $360,533, working capital deficit reached $8.8 million, and all $12.0 million of debt was reclassified as current due to covenant violations and expected noncompliance when IBC covenant testing resumes after November 30, 2026. Management also concluded disclosure controls were not effective, citing material weaknesses including improperly accounted equity transactions, and recorded a $2.45 million tax valuation allowance. Survival now depends on replacing lost revenue and continued lender accommodations, with no assurance of either.

SEC 10-Q•11d ago

GLGI: 10-K · periodic report

Greystone Logistics filed its FY2026 10-K with substantial doubt about its ability to continue as a going concern. Sales collapsed 52% to $27.5 million from $57.9 million after losing a major customer worth roughly $30 million in annual sales, swinging the company from $2.4 million in net income to an $8.2 million net loss with cost of sales reaching 106% of revenue. The company is in default under certain IBC financial covenants and cross-default provisions and is also in default on First Interstate Bank term loans with no waiver obtained, so all long-term debt has been classified as current. IBC waived existing defaults and suspended covenant testing through November 30, 2026 under a July 5, 2026 Fifth Amendment, which extended the revolver to February 5, 2027 and replaced CEO Warren Kruger's limited guaranty with an unlimited personal guaranty. Management concluded that internal control over financial reporting and disclosure controls were not effective, citing a material weakness that includes improperly accounted-for equity transactions requiring significant reclassifications. Liquidity is thin with $512,000 in cash, a $7.9 million working capital deficit, heavy reliance on related-party financing, and the stock now trading at $0.14-$0.36 on OTCQB under GLGI.

SEC 10-K•1mo ago