Greystone Logistics Reports 50% Sales Decline and Increased Net Loss for Quarter Ended August 31, 2026

Greystone Logistics, Inc. reported a significant decline in financial performance for the three months ended August 31, 2026, with total sales of $5.32 million, a decrease of 50% from $10.73 million in the same period last year. The company attributed this drop primarily to the loss of a major customer, which historically accounted for approximately 55% of its annual sales. The cost of sales also increased to $6.10 million, resulting in a gross loss of $778,804, compared to a gross profit of $503,555 in the prior year. Consequently, Greystone recorded a net loss of $2.56 million, or $(0.09) per share, compared to a net loss of $1.10 million, or $(0.04) per share, in the previous year.

In terms of operational changes, Greystone's total current assets decreased to $6.55 million from $6.76 million, while total liabilities rose to $26.85 million from $25.84 million. The company’s equity also saw a decline, dropping to $8.96 million from $11.52 million. The increase in liabilities was driven by a rise in accounts payable and accrued expenses, which reached $2.96 million, up from $2.27 million. The company’s accumulated deficit increased to $38.43 million, reflecting ongoing financial challenges.

Greystone has been actively working to mitigate the impact of its lost customer by expanding its customer base and increasing sales to existing clients. The company has also introduced bin processing services, which generated approximately $940,000 in revenue during the quarter, although this is not expected to be a significant revenue source moving forward. The company’s workforce has been reduced to approximately 95 full-time equivalents, down from 143 a year earlier, reflecting the decreased production needs following the loss of its major customer.

Looking ahead, Greystone faces substantial doubt regarding its ability to continue as a going concern, primarily due to its accumulated deficit and liquidity challenges. The company has entered into amendments with its lenders to manage its debt obligations, including interest-only payments on certain loans through the end of 2026. Management is focused on improving liquidity and operational performance through various strategies, including tighter control of expenses and potential adjustments to product pricing. However, the success of these plans remains uncertain, and the company may need to secure additional financing to meet its obligations in the coming months.