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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, 2011 |
|---|----------------------------------------------------------------------------------------------------------------------------------------|

| 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, 2011 (Unaudited) and May 31, 2011                               | 1 |
|                                                                                                     |                                                                                                         |   |
|                                                                                                     | Consolidated Statements of Operations (Unaudited) For the Three-Month Periods Ended August 31, 2011 and 2010 | 2 |
|                                                                                                     |                                                                                                         |   |
|                                                                                                     | Consolidated Statements of Cash Flows (Unaudited) For the Three-Month Periods Ended August 31, 2011 and 2010 | 3 |
|                                                                                                     |                                                                                                         |   |
|                                                                                                     | Notes to Consolidated Financial Statements (Unaudited)                                                       | 4 |
|                                                                                                     |                                                                                                         |   |
|                                                                                                     |                                                                                                         |   |
| Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations | 7                                                                                                            |
|                                                                                                     |                                                                                                         |
|                                                                                                     |                                                                                                         |   |
| Item 4.  Controls and Procedures                                                               | 10                                                                                                           |
|                                                                                                     |                                                                                                         |
|                                                                                                     |                                                                                                         |
|                                                                                                     |                                                                                                         |   |
| PART II.  OTHER INFORMATION                                                                    |                                                                                                         |
|                                                                                                     |                                                                                                         |   |
| Item 5.  Other Information                                                                     | 11                                                                                                           |
|                                                                                                     |                                                                                                         |
| Item 6.  Exhibits                                                                              | 12                                                                                                           |
|                                                                                                     |                                                                                                         |   |
|                                                                                                     |                                                                                                         |
| SIGNATURES                                                                                               | 13                                                                                                           |
|                                                                                                     |                                                                                                         |
| Index to Exhibits                                                                                        | 14                                                                                                           |

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|                                                                                                                   |   | August 31,  |        |   | May 31, |   |
|------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|---------|--------|
|                                                                                                                   |   | 2011        |        |   | 2011    |   |
|                                                                                                                   |   | (Unaudited) |        |   |    |   |
| Assets                                                                                                                 |   |        |        |   |    |   |
| Current Assets:                                                                                                        |   |        |        |   |    |   |
|     Cash                                                                                           |   | $           | 317,356     |   |    | $      | 169,420 |   |
|     Accounts receivable -                                                                          |   |        |        |   |    |   |   |   |
|         Trade, net of allowance of $75,000 at August 31, 2011 and May 31, 2011 |   |        | 1,500,324   |   |    |   | 1,769,387 |   |
|         Related party                                                          |   |        | 625,929     |   |    |   | 652,402 |   |
|     Inventory                                                                                      |   |        | 1,217,584   |   |    |   | 543,557 |   |
|     Prepaid expenses and other                                                                     |   |        | 39,523      |   |    |   | 70,990 |   |
| Total Current Assets                                                                                                   |   |        | 3,700,716   |   |    |   | 3,205,756 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Property, Plant and Equipment                                                                                          |   |        | 9,983,652   |   |    |   | 9,237,236 |   |
| Less: Accumulated Depreciation                                                                                         |   |        | (5,589,664  | )      |    |   | (5,346,073 | ) |
|     Property, Plant and Equipment, net                                                             |   |        | 4,393,988   |   |    |   | 3,891,163 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Assets of Variable Interest Entity                                                                                     |   |        | 4,663,339   |   |    |   | 4,663,339 |   |
| Less: Accumulated Depreciation                                                                                         |   |        | (869,592    | )      |    |   | (840,894 | ) |
|     Assets of Variable Interest Entity, net                                                        |   |        | 3,793,747   |   |    |   | 3,822,445 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Other Assets                                                                                                           |   |        | 95,783      |   |    |   | 100,693 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Total Assets                                                                                                           |   | $           | 11,984,234  |   |    | $      | 11,020,057 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Liabilities and Deficit                                                                                                |   |        |        |   |    |   |   |   |
| Current Liabilities:                                                                                                   |   |        |        |   |    |   |   |   |
|     Current portion of long-term debt                                                              |   | $           | 3,722,179   |   |    | $      | 3,689,738 |   |
|     Advances payable - related party                                                               |   |        | 690,580     |   |    |   | 725,080 |   |
|     Current portion of variable interest entities' long-term debt                                  |   |        | 369,517     |   |    |   | 383,016 |   |
|     Accounts payable and accrued expenses                                                          |   |        | 2,086,703   |   |    |   | 1,927,162 |   |
|     Accounts payable and accrued expenses - related parties                                        |   |        | 1,730,759   |   |    |   | 1,621,838 |   |
| Total Current Liabilities                                                                                              |   |        | 8,599,738   |   |    |   | 8,346,834 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Long-Term Debt, net of current portion                                                                                 |   |        | 5,451,017   |   |    |   | 5,192,259 |   |
| Long-Term Debt of Variable Interest Entities, net of current portion                                                   |   |        | 7,106,222   |   |    |   | 7,185,955 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Deficit:                                                                                                               |   |        |        |   |    |   |   |   |
|     Common stock, $0.0001 par value                                                                |   |        |        |   |    |   |   |   |
|        Shares authorized: 5,000 000 000                                             |   |        |        |   |    |   |   |   |
|        Shares issued:  26,111,201 at August 31, 2011 and May 31, 2011     |   |        | 2,611       |   |    |   | 2,611 |   |
|     Additional paid-in capital                                                                     |   |        | 48,089,298  |   |    |   | 48,089,298 |   |
|     Accumulated deficit                                                                            |   |        | (61,801,507 | )      |    |   | (62,297,986 | ) |
| Total Greystone Stockholders' Deficit                                                                                  |   |        | (13,709,598 | )      |    |   | (14,206,077 | ) |
|     Non-controlling interests                                                                      |   |        | 4,536,855   |   |    |   | 4,501,086 |   |
| Total Deficit                                                                                                          |   |        | (9,172,743  | )      |    |   | (9,704,991 | ) |
|                                                                                                                   |   |        |        |   |    |   |   |   |
| Total Liabilities and Deficit                                                                                          |   | $           | 11,984,234  |   |    | $      | 11,020,057 |   |
|                                                                                                                   |   |        |        |   |    |   |   |   |

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|                                                                  |   | Three Months Ended August 31, |       |
|-----------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                                  |   | 2011                          |       |   | 2010 |   |
|                                                                  |   |                          |       |   |   |   |
|                                                                  |   |                          |       |   |   |   |
| Sales                                                                 |   | $                             | 5,783,624  |   |   | $ | 4,994,208 |   |
|                                                                  |   |                          |       |   |   |   |   |   |
| Cost of Sales                                                         |   |                          | 4,627,974  |   |   |   | 4,738,456 |   |
|                                                                  |   |                          |       |   |   |   |   |   |
| Gross Profit                                                          |   |                          | 1,155,650  |   |   |   | 255,752 |   |
|                                                                  |   |                          |       |   |   |   |   |   |
| General, Selling and Administrative Expenses                          |   |                          | 411,987    |   |   |   | 491,084 |   |
|                                                                  |   |                          |       |   |   |   |   |   |
| Operating Income (Loss)                                               |   |                          | 743,663    |   |   |   | (235,332 | ) |
|                                                                  |   |                          |       |   |   |   |   |   |
| Other Income (Expense):                                               |   |                          |       |   |   |   |   |   |
|     Other Income (Expense)                        |   |                          | (2,950     | ) |   |   | 7,650 |   |
|     Interest Expense                              |   |                          | (265,353   | ) |   |   | (189,960 | ) |
| Total Other Expense, net                                              |   |                          | (268,303   | ) |   |   | (182,310 | ) |
|                                                                  |   |                          |       |   |   |   |   |   |
| Net Income (Loss)                                                     |   |                          | 475,360    |   |   |   | (417,642 | ) |
|                                                                  |   |                          |       |   |   |   |   |   |
| Loss (Income) Attributable to Variable Interest Entities, net         |   |                          | 4,375      |   |   |   | (20,592 | ) |
|                                                                  |   |                          |       |   |   |   |   |   |
| Preferred Dividends                                                   |   |                          | —    |   |   |   | (81,918 | ) |
|                                                                  |   |                          |       |   |   |   |   |   |
| Net Income (Loss) Available to Common Stockholders                    |   | $                             | 479,735    |   |   | $ | (520,152 | ) |
|                                                                  |   |                          |       |   |   |   |   |   |
| Income (Loss) Available to Common Stockholders                        |   |                          |       |   |   |   |   |   |
|     Per Share of Common Stock - Basic and Diluted |   | $                             | 0.02       |   |   | $ | (0.02 | ) |
|                                                                  |   |                          |       |   |   |   |   |   |
| Weighted Average Shares of Common Stock Outstanding -                 |   |                          |       |   |   |   |   |   |
|     Basic and Diluted                             |   |                          | 26,211,201 |   |   |   | 26,211,201 |   |

----

|                                                                                 |   | Three Months Ended August 31, |     |
|--------------------------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                                 |   | 2011                          |     |   | 2010 |   |
|                                                                                 |   |                          |     |   |   |   |
| Cash Flows from Operating Activities:                                                |   |                          |     |   |   |   |
|    Net income (loss)                                                  |   | $                             | 475,360  |   |   | $ | (417,642 | ) |
|    Adjustments to reconcile net income (loss) to net cash             |   |                          |     |   |   |   |   |   |
|     provided by operating activities:                            |   |                          |     |   |   |   |   |   |
|       Depreciation and amortization                    |   |                          | 276,509  |   |   |   | 272,246 |   |
|       Stock-based compensation                         |   |                          | —  |   |   |   | 23,992 |   |
|       Changes in receivables                           |   |                          | 295,536  |   |   |   | 392,018 |   |
|       Changes in inventory                             |   |                          | (674,027 | ) |   |   | (264,189 | ) |
|       Changes in prepaid expenses and other            |   |                          | 31,467   |   |   |   | 16,861 |   |
|       Change in other assets                           |   |                          | 690      |   |   |   | (3,750 | ) |
|       Changes in accounts payable and accrued expenses |   |                          | 268,462  |   |   |   | 481,241 |   |
| Net cash provided by operating activities                                            |   |                          | 673,997  |   |   |   | 500,777 |   |
|                                                                                 |   |                          |     |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                |   |                          |     |   |   |   |   |   |
|    Purchase of property and equipment                                 |   |                          | (183,390 | ) |   |   | (192,724 | ) |
|                                                                                 |   |                          |     |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                |   |                          |     |   |   |   |   |   |
|    Payments on long-term debt                                         |   |                          | (271,827 | ) |   |   | (97,208 | ) |
|    Payments on advances from related party                            |   |                          | (34,500  | ) |   |   | (126,501 | ) |
|    Payments on long-term debt of variable interest entities           |   |                          | (93,232  | ) |   |   | (13,447 | ) |
|    Capital contributions to variable interest entity                  |   |                          | 75,000   |   |   |   | — |   |
|    Distributions by variable interest entity                          |   |                          | (18,112  | ) |   |   | — |   |
| Net cash used in financing activities                                                |   |                          | (342,671 | ) |   |   | (237,156 | ) |
|                                                                                 |   |                          |     |   |   |   |   |   |
| Net Increase in Cash                                                                 |   |                          | 147,936  |   |   |   | 70,897 |   |
| Cash, beginning of period                                                            |   |                          | 169,420  |   |   |   | 163,749 |   |
|                                                                                 |   |                          |     |   |   |   |   |   |
| Cash, end of period                                                                  |   | $                             | 317,356  |   |   | $ | 234,646 |   |
|                                                                                 |   |                          |     |   |   |   |   |   |
| Non-Cash Activities:                                                                 |   |                          |     |   |   |   |   |   |
|    Acquisition of equipment by capital lease or debt                  |   | $                             | 563,026  |   |   | $ | 390,000 |   |
|    Preferred dividend accrual                                         |   |                          | —  |   |   |   | 81,918 |   |
| Supplemental Information:                                                            |   |                          |     |   |   |   |   |   |
|    Interest paid                                                      |   |                          | 159,995  |   |   |   | 100,310 |   |

----

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| Options to purchase common stock |   |   | 1,940,000 |   |
|----------------------------------|--------|--------|-----------|--------|
| Convertible preferred stock      |   |   | 3,333,000 |   |
|                             |   |   | 5,273,000 |   |

|            |   | August 31,  |      |   | May 31, |   |
|-----------------|--------|------------------|-----------|--------|---------|--------|
|            |   | 2011             |      |   | 2011    |   |
|            |   | (Unaudited)      |      |   |    |   |
|            |   |             |      |   |    |   |   |   |
| Raw materials   |   | $                | 525,771   |   |    | $      | 171,104 |   |
| Finished goods  |   |             | 691,813   |   |    |   | 372,453 |   |
| Total inventory |   | $                | 1,217,584 |   |    | $      | 543,557 |   |

----

| Assets:                                                             |   |   |       |
|---------------------------------------------------------------------|--------|--------|------------|
| Current assets                                                      |   | $      | 3,700,716  |   |
| Property, plant and equipment, net of accumulated depreciation      |   |   | 4,393,988  |   |
| Assets of variable interest entity, net of accumulated depreciation |   |   | 3,793,747  |   |
| Other assets                                                        |   |   | 95,783     |   |
| Total Assets                                                        |   | $      | 11,984,234 |   |
|                                                                |   |   |       |   |
| Liabilities and Deficit:                                            |   |   |       |   |
| Current liabilities                                                 |   | $      | 11,156,983 |   |
| Long-term debt, net of current portion                              |   |   | 5,451,017  |   |
| Long-term debt of variable interest entity, net of current portion  |   |   | 3,558,598  |   |
| Deficit -                                                           |   |   |       |   |
| Greystone stockholders’ deficit                               |   |   | (9,109,392 | ) |
| Non-controlling interests                                           |   |   | 927,028    |   |
| Total deficit                                                       |   |   | (8,182,364 | ) |
| Total Liabilities and Deficit                                       |   | $      | 11,984,234 |   |

----

----

----

| Cash provided by operating activities |   | $      | 673,997  |   |
|---------------------------------------|--------|--------|----------|--------|
|                                  |   |   |     |   |
| Cash used in investing activities     |   |   | (183,390 | )      |
|                                  |   |   |     |   |
| Cash used in financing activities     |   |   | (342,671 | )      |

|           |   | Total |      |   | Less than1 year |   |      | 1-3 years |   |   | 4-5 years |   |   | Over5 years |    |
|----------------|--------|-------|-----------|--------|-----------------|--------|-----------|-----------|--------|--------|-----------|--------|--------|-------------|---------|
| Long-term debt |   | $     | 9,173,196 |   |            | $      | 3,722,179 |      |   | $      | 5,168,410 |   |   | $           | 250,997 |   |   | $ | 31,610 |   |

----

----

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|   | 10.1  | Third 2011 Amendment to Loan Agreement dated March 5, 2005. |
|--------|------------|-------------------------------------------------------------|

|   | 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, and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of 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 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 24, 2011 | By:                       | /s/ Warren F. Kruger             |   |
|                   |                      | Warren F. Kruger                      |   |
|                   |                      | President and Chief Executive Officer |   |
|                   |                      |                                  |   |

|                   |   |                       |
|------------------------|--------|----------------------------|
|                   |   |                       |
|                   |   |                       |
|                   |   |                       |   |
| Date: October 24, 2011 | By:    | /s/ William W. Rahhal |   |
|                   |   | William W. Rahhal          |   |
|                   |   | Chief Financial Officer    |   |
|                   |   |                       |   |

----

| 10.1  | Third 2011 Amendment to Loan Agreement dated March 5, 2005. |
|------------|-------------------------------------------------------------|

| 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, and Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 31.2 | Certification of 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 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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