Greystone Logistics, Inc. (OTC: GLGI)

Greystone Logistics, Inc. is engaged in the manufacturing and sale of plastic pallets made from recycled plastic. The company operates through its wholly owned subsidiary Greystone Manufacturing L L C which runs injection molding machines and an extrusion facility to produce a wide range of pallet sizes and designs. As of May 31 2025 the company had an in house production capacity of approximately 225000 pallets per month from fourteen injection molding machines located in Bettendorf Iowa and Palmyra Missouri. Greystone also outsources production to third party molders when demand exceeds internal capacity. The extrusion facility opened in April 2023 in Jasper Indiana uses robotics to weld pallets produced from recycled plastic. This process enables the manufacture of unconventional sizes such as thirty inch by thirty inch sixty inch by sixty inch and ninety six inch by forty eight inch pallets. Greystone sources post consumer plastic from local national and international suppliers to maintain its green manufacturing standards.

Greystone Logistics, Inc. generates revenue primarily from the sale of its plastic pallets to customers. The company distributes its products through a network of independent contractor distributors who resell the pallets to end users. In addition Greystone conducts direct sales through its President and a dedicated sales department that works with large accounts. This mixed distribution model allows the company to capture both high volume repeat orders and spot purchase opportunities. Greystone offers a variety of pallet configurations including rackable nestable monoblock drum and specialty designs tailored to specific industry needs. Revenue is recognized when the pallets are delivered to the customer and all contractual obligations have been satisfied. The company also earns occasional income from scrap plastic sales and recycling services but this represents a minor portion of total revenue.

The pallet industry is dominated by wood pallets which account for the majority of units in circulation worldwide. Plastic pallets represent a smaller but growing share driven by their durability sanitation benefits and ability to be made from recycled materials. Greystone Logistics, Inc. competes with numerous small privately held wood pallet manufacturers that operate in limited geographic areas and also with several large and many small producers of plastic pallets. The company believes its proprietary pallet designs combined with competitive pricing give it an advantage over rivals. Greystone emphasizes the longer life cycle of its plastic pallets which reduces the cost per trip compared with wood alternatives and highlights the environmental benefit of diverting post consumer plastic from landfills. These factors help Greystone maintain a competitive position in a market that is shifting toward reusable and sustainable packaging solutions. Additionally the company invests in research to improve pallet strength coefficient of friction and material performance to meet evolving customer demands. Greystone's management anticipates that continued demand for hygienic and eco friendly pallets will support long term growth opportunities.

The company serves customers primarily located in the United States who operate in the beverage pharmaceutical and other industrial sectors. Greystone Logistics, Inc. reports that a small number of customers account for a large portion of its sales with three customers representing approximately seventy six percent of revenue in fiscal year 2025 and eighty one percent in fiscal year 2024. These customers have recurring needs for pallets either as part of a closed loop distribution system or for internal warehouse use. The pallets supplied to these clients are designed to meet specific performance requirements such as load capacity rackability and compatibility with automated handling equipment. Greystone works closely with its major customers to develop custom pallet solutions that improve supply chain efficiency and reduce product damage during transit. The company does not disclose the specific names of its major customers in the filing. In addition to its core industrial clients Greystone also sells pallets to smaller businesses and distributors that purchase pallets for general warehousing and logistics purposes. This diverse customer base helps mitigate reliance on any single buyer although the concentration of sales among the top three customers remains a notable risk factor.