Earnings Per Share

6 Months Ended

Nov. 30, 2012

Earnings Per Share

Note 2.       Earnings Per Share

Basic earnings per share is based on the weighted-average effect of all common shares issued and outstanding and is calculated by dividing net income available to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding.

Greystone excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive.  Equity instruments which have been excluded are certain options to purchase common stock totaling 350,000 and 1,940,000 shares for the six and three months ended November 30, 2012 and 2011, respectively, and convertible preferred stock which is convertible into 3,333,334 shares of common stock for both the six months and three months ended November 30, 2012, and 2011.

The following table sets forth the computation of basic and diluted earnings per share for the six and three months ended November 30, 2012 and 2011:

	2012	2011
For the Six Months Ended November 30:
Numerator:
Net income available to common stockholders:	$       834,608	$      623,934
Denominator:
Weighted-average shares outstanding:
Basic	26,111,201	26,111,201
Incremental shares from assumed conversion of options	1,130,769	-
Diluted shares	27,241,970	26,111,201
Earnings per share:
For the Six Months Then Ended
Basic	$             0.03	$            0.02
Diluted	$             0.03	$            0.02
For the Three Months ended November 30:
Numerator:
Net income available to common stockholders:	$           2,603	$      237,248
Denominator:
Weighted-average shares outstanding:	26,111,201	26,111,201
Basic
Incremental shares from assumed conversion of options	1,336,364	-
Diluted shares	27,447,565	26,111,201
Earnings per share:
For the  Three Months Then Ended:
Basic	$             0.00	$            0.01
Diluted	$             0.00	$            0.01