GREYSTONE LOGISTICS INC

Note 7.** REVENUE

Greystone’s principal product is plastic pallets produced from recycled plastic resin. Sales are primarily to customers in the continental United States of America. International sales are made to customers in Canada, Mexico and other Central America countries which totaled 1.6% and 0.84% of total sales in fiscal years 2024 and 2023, respectively.

Greystone’s customers include stocking and non-stocking distributors and direct sales to end-user customers. Sales to the following categories of customers for the fiscal years 2024 and 2023, respectively, were as follows:

Advances from a customer pursuant to a contract for the sale of plastics pallets is recognized as deferred revenue. Revenue related to these advances is recognized by Greystone as pallets are shipped to customers. Customer advances received totaled approximately $818,000 and $536,000 in fiscal years 2024 and 2023, respectively. The unrecognized balance of deferred revenue as of May 31, 2024 and 2023, was $840,945 and $23,007, respectively. The Company recognized $0 and $5,842,040 as revenue related to advances during the years ended May 31, 2024 and 2023, respectively. At June 1, 2022, accounts receivable and deferred revenue was $6,001,049 and $5,329,047, respectively.