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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED August 31, 2010 |
|---|----------------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________ |
|---|-------------------------------------------------------------------------------------------------------------------------------|

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| Oklahoma                                                       | 75-2954680                                |
|----------------------------------------------------------------|-------------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

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| Large accelerated filer  o | Accelerated filer  o | Non-accelerated filer  o(Do not check if a smaller reporting company)  | Smaller reporting company  x |
|---------------------------------|---------------------------|----------------------------------------------------------------------------------|-----------------------------------|

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| Item 1.    Financial Statements                                                                        | Page                                                                                                         |
|-----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |                                                                                                         |   |
|                                                                                                                  | Consolidated Balance Sheets as of August 31, 2010 (Unaudited) and May 31, 2010                               | 1 |
|                                                                                                                  |                                                                                                         |   |
|                                                                                                                  | Consolidated Statements of Operations (Unaudited) For the Three Month Periods Ended August 31, 2010 and 2009 | 2 |
|                                                                                                                  |                                                                                                         |   |
|                                                                                                                  | Consolidated Statements of Cash Flows (Unaudited) For the Three Month Periods Ended August 31, 2010 and 2009 | 3 |
|                                                                                                                  |                                                                                                         |   |
|                                                                                                                  | Notes to Consolidated Financial Statements (Unaudited)                                                       | 4 |
|                                                                                                                  |                                                                                                         |   |
| Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations | 6                                                                                                            |
|                                                                                                                  |                                                                                                         |   |
| Item 4.    Controls and Procedures                                                                     | 10                                                                                                           |
|                                                                                                                  |                                                                                                         |   |
|                                                                                                                  |                                                                                                         |
|                                                                                                                  |                                                                                                         |
| PART II.  OTHER INFORMATION                                                                                 |                                                                                                         |
|                                                                                                                  |                                                                                                         |   |
| Item 6.    Exhibits                                                                                    | 10                                                                                                           |
|                                                                                                                  |                                                                                                         |   |
| SIGNATURES                                                                                                            | 11                                                                                                           |

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|                                                                                                                                                                |   | August 31,  |        |   | May 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|---------|--------|
|                                                                                                                                                                |   | 2010        |        |   | 2010    |   |
| Assets                                                                                                                                                              |   | (Unaudited) |        |   |    |   |
| Current Assets:                                                                                                                                                     |   |        |        |   |    |   |
| Cash                                                                                                                                                                |   | $           | 234,646     |   |    | $      | 163,749 |   |
| Accounts receivable                                                                                                                                                 |   |        | 1,213,142   |   |    |   | 1,605,160 |   |
| Inventory                                                                                                                                                           |   |        | 914,132     |   |    |   | 649,943 |   |
| Prepaid expenses and other                                                                                                                                          |   |        | 51,812      |   |    |   | 68,673 |   |
| Total Current Assets                                                                                                                                                |   |        | 2,413,732   |   |    |   | 2,487,525 |   |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Property, Plant and Equipment, net of accumulated depreciation of $5,141,988 and $4,885,135 at August 31, 2010 and May 31, 2010, respectively                       |   |        | 6,105,116   |   |    |   | 5,779,245 |   |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Assets of Greystone Properties, LLC, net of accumulated depreciation of $310,906 and $298,386 at August 31, 2010 and May 31, 2010                                   |   |        | 1,753,440   |   |    |   | 1,765,960 |   |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Other Assets                                                                                                                                                        |   |        | 96,053      |   |    |   | 95,176 |   |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Total Assets                                                                                                                                                        |   | $           | 10,368,341  |   |    | $      | 10,127,906 |   |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Liabilities and Deficit                                                                                                                                             |   |        |        |   |    |   |   |   |
| Current Liabilities:                                                                                                                                                |   |        |        |   |    |   |   |   |
| Current portion of long-term debt                                                                                                                                   |   | $           | 8,854,631   |   |    | $      | 8,950,837 |   |
| Advances payable - related party                                                                                                                                    |   |        | 817,080     |   |    |   | 851,581 |   |
| Current portion of Greystone Properties, LLC long-term debt                                                                                                         |   |        | 55,932      |   |    |   | 55,067 |   |
| Accounts payable and accrued expenses                                                                                                                               |   |        | 2,059,881   |   |    |   | 1,301,344 |   |
| Accounts payable and accrued expenses - related parties                                                                                                             |   |        | 1,772,900   |   |    |   | 1,660,195 |   |
| Preferred dividends payable                                                                                                                                         |   |        | 2,364,040   |   |    |   | 2,282,122 |   |
| Total Current Liabilities                                                                                                                                           |   |        | 15,924,464  |   |    |   | 15,101,146 |   |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Long-Term Debt, net of current portion                                                                                                                              |   |        | 1,456,483   |   |    |   | 1,549,486 |   |
| Long-Term Debt of Greystone Properties, LLC, net of current portion                                                                                                 |   |        | 1,144,498   |   |    |   | 1,158,810 |   |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Deficit:                                                                                                                                                            |   |        |        |   |    |   |   |   |
| Preferred stock, $0.0001 par value, cumulative, 20,750,000 shares authorized, 50,000 shares  issued and outstanding, liquidation preference of $5,000,000 |   |        | 5           |   |    |   | 5 |   |
| Common stock, $0.0001 par value, 5,000,000,000 shares authorized, 26,111,201 issued and outstanding                                                                 |   |        | 2,611       |   |    |   | 2,611 |   |
| Additional paid-in capital                                                                                                                                          |   |        | 53,041,309  |   |    |   | 53,017,317 |   |
| Accumulated deficit                                                                                                                                                 |   |        | (62,048,043 | )      |    |   | (61,527,891 | ) |
| Total Greystone Stockholders’ Deficit                                                                                                                         |   |        | (9,004,118  | )      |    |   | (8,507,958 | ) |
| Non-controlling interest                                                                                                                                            |   |        | 847,014     |   |    |   | 826,422 |   |
| Total Deficit                                                                                                                                                       |   |        | (8,157,104  | )      |    |   | (7,681,536 | ) |
|                                                                                                                                                                |   |        |        |   |    |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                                                                                   |   | $           | 10,368,341  |   |    | $      | 10,127,906 |   |

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|                                                  |   | Three Months Ended August 31, |       |
|-------------------------------------------------------|--------|-------------------------------|------------|
|                                                  |   | 2010                          |       |   | 2009 |   |
|                                                  |   |                          |       |   |   |   |
| Sales                                                 |   | $                             | 4,994,208  |   |   | $ | 4,376,663 |   |
|                                                  |   |                          |       |   |   |   |   |   |
| Cost of Sales                                         |   |                          | 4,738,456  |   |   |   | 3,705,682 |   |
|                                                  |   |                          |       |   |   |   |   |   |
| Gross Profit                                          |   |                          | 255,752    |   |   |   | 670,981 |   |
|                                                  |   |                          |       |   |   |   |   |   |
| General, Selling and Administration Expenses          |   |                          | 491,084    |   |   |   | 539,552 |   |
|                                                  |   |                          |       |   |   |   |   |   |
| Operating Income (Loss)                               |   |                          | (235,332   | ) |   |   | 131,429 |   |
|                                                  |   |                          |       |   |   |   |   |   |
| Other Income (Expense):                               |   |                          |       |   |   |   |   |   |
| Other Income                                          |   |                          | 7,650      |   |   |   | 12,000 |   |
| Interest Expense                                      |   |                          | (189,960   | ) |   |   | (214,819 | ) |
| Total Other Expense, net                              |   |                          | (182,310   | ) |   |   | (202,819 | ) |
|                                                  |   |                          |       |   |   |   |   |   |
| Net Loss                                              |   |                          | (417,642   | ) |   |   | (71,390 | ) |
|                                                  |   |                          |       |   |   |   |   |   |
| Less: Income Attributable to Non-controlling Interest |   |                          | (20,592    | ) |   |   | (20,270 | ) |
|                                                  |   |                          |       |   |   |   |   |   |
| Preferred Dividends                                   |   |                          | (81,918    | ) |   |   | (81,918 | ) |
|                                                  |   |                          |       |   |   |   |   |   |
| Net Loss Attributable to Common Stockholders          |   | $                             | (520,152   | ) |   | $ | (173,578 | ) |
|                                                  |   |                          |       |   |   |   |   |   |
| Loss Attributable to Common Stockholders              |   |                          |       |   |   |   |   |   |
| Per Share of Common Stock - Basic and Diluted         |   | $                             | (0.02      | ) |   | $ | (0.01 | ) |
|                                                  |   |                          |       |   |   |   |   |   |
| Weighted Average Shares of Common Stock Outstanding - |   |                          |       |   |   |   |   |   |
| Basic and Diluted                                     |   |                          | 26,111,000 |   |   |   | 26,111,000 |   |

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|                                                                            |   | Three Months Ended August 31, |     |
|---------------------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                            |   | 2010                          |     |   | 2009 |   |
|                                                                            |   |                          |     |   |   |   |
| Cash Flows from Operating Activities:                                           |   |                          |     |   |   |   |
| Net loss                                                                        |   | $                             | (417,642 | ) |   | $ | (71,390 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |   |                          |     |   |   |   |   |   |
| Depreciation and amortization                                                   |   |                          | 272,246  |   |   |   | 248,663 |   |
| Stock-based compensation                                                        |   |                          | 23,992   |   |   |   | 23,992 |   |
| Recognition of deferred income                                                  |   |                          | —  |   |   |   | (12,000 | ) |
| Changes in receivables                                                          |   |                          | 392,018  |   |   |   | (897,725 | ) |
| Changes in inventory                                                            |   |                          | (264,189 | ) |   |   | 171,363 |   |
| Changes in prepaid expenses and other                                           |   |                          | 16,861   |   |   |   | 6,140 |   |
| Change in other assets                                                          |   |                          | (3,750   | ) |   |   | (2,820 | ) |
| Changes in accounts payable and accrued expenses                                |   |                          | 481,241  |   |   |   | 977,647 |   |
| Net cash provided by operating activities                                       |   |                          | 500,777  |   |   |   | 443,870 |   |
|                                                                            |   |                          |     |   |   |   |   |   |
| Cash Flows from Investing Activities:                                           |   |                          |     |   |   |   |   |   |
| Purchase of property and equipment                                              |   |                          | (192,724 | ) |   |   | (126,245 | ) |
|                                                                            |   |                          |     |   |   |   |   |   |
| Cash Flows from Financing Activities:                                           |   |                          |     |   |   |   |   |   |
| Payments on long-term debt and advances to related parties                      |   |                          | (223,709 | ) |   |   | (341,929 | ) |
| Payments on Greystone Properties, LLC, long-term debt                           |   |                          | (13,447  | ) |   |   | (12,634 | ) |
| Non-controlling interest distribution                                           |   |                          | —  |   |   |   | (43,071 | ) |
| Net cash used in financing activities                                           |   |                          | (237,156 | ) |   |   | (397,634 | ) |
|                                                                            |   |                          |     |   |   |   |   |   |
| Net Increase (Decrease) in Cash                                                 |   |                          | 70,897   |   |   |   | (80,009 | ) |
| Cash, beginning of period                                                       |   |                          | 163,749  |   |   |   | 274,765 |   |
|                                                                            |   |                          |     |   |   |   |   |   |
| Cash, end of period                                                             |   | $                             | 234,646  |   |   | $ | 194,756 |   |
|                                                                            |   |                          |     |   |   |   |   |   |
| Non-cash Activities:                                                            |   |                          |     |   |   |   |   |   |
| Accrual for purchase of property and equipment                                  |   | $                             | 390,000  |   |   | $ | — |   |
| Preferred Dividend Accrual                                                      |   |                          | 81,918   |   |   |   | 81,918 |   |
| Supplemental Information:                                                       |   |                          |     |   |   |   |   |   |
| Interest Paid                                                                   |   | $                             | 100,310  |   |   | $ | 128,511 |   |

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|   | 1.   | Basis of Financial Statements |
|--------|----------------|-------------------------------|

|   | 2.   | Earnings Per Share |
|--------|----------------|--------------------|

|                              |   |   |            |
|-----------------------------------|--------|--------|-----------------|
| Options to purchase common stock  |   |   | 1,970,000       |   |
|  Convertible preferred stock |   |   |  3,333,000 |   |
|                              |   |   |  5,303,000 |   |

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|   | 3.   | Inventory |
|--------|----------------|-----------|

|   | Inventory consists of the following: |
|--------|--------------------------------------|

|                  |   | August 31,2010 |          |   | May 31,2010 |    |
|-----------------------|--------|----------------|---------------|--------|-------------|---------|
|                  |   | (Unaudited)    |          |   |        |    |
|                  |   |           |          |   |        |    |
| Raw materials         |   | $              | 489,086       |   |        | $       | 331,539 |   |
| Finished goods        |   |           | 425,046       |   |        |    | 318,404 |   |
|                  |   |           |          |   |        |    |   |   |
| Total inventory  |   | $         |  914,132 |   |        | $  |  649,943 |   |

|   | 4.   | Variable Interest Entity (VIE) |
|--------|-----------|--------------------------------|

|   | 5.   | Fair Value of Financial Instruments |
|--------|-----------|-------------------------------------|

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|   | 6.   | Notes Payable |
|--------|----------------|---------------|

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| Cash provided by operating activities |   | $      | 500,777  |   |
|---------------------------------------|--------|--------|----------|--------|
|                                  |   |   |     |   |
| Cash used in investing activities     |   |   | (192,724 | )      |
|                                  |   |   |     |   |
| Cash used in financing activities     |   |   | (237,156 | )      |

|           |  Total | Less than1 year |  1-3 years |  4-5 years | Over5 Years |
|----------------|-------------|-----------------|-----------------|-----------------|-------------|
| Long-term debt | $10,311,114 | $8,854,631      | $547,592        | $381,160        | $527,731    |

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|   | 11.1 | Computation of Loss per Share is in Note 2 in the Notes to the financial statements. |
|--------|------|--------------------------------------------------------------------------------------|

|   | 31.1 | Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(b)(31) of Regulation S-K, as adopted |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Interim Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended, and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Interim Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

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|                                                 | GREYSTONE LOGISTICS, INC. |                                  |
|------------------------------------------------------|---------------------------|---------------------------------------|
|                                                 | (Registrant)              |                                  |
|                                                 |                      |                                  |
|                                                 |                      |                                  |   |
| Date:      October 20, 2010 | By:                       | /s/ Warren F. Kruger             |   |
|                                                 |                      | Warren F. Kruger                      |   |
|                                                 |                      | President and Chief Executive Officer |   |
|                                                 |                      |                                  |   |

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