2. Earnings Per Share

3 Months Ended

Aug. 31, 2014

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.  For the three months ended August 31, 2014, and 2013, equity instruments which have been excluded are Greystone’s convertible preferred stock which is convertible into 3,333,334 shares of common stock.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended August 31, 2014 and 2013:

	2014		2013
Numerator:
Net income available to common shareholders	$	214,498	$	1,448,652
Denominator:
Weighted-average shares outstanding:
Basic		26,461,201		26,111,201
Incremental shares from assumed   conversion of options		1,624,528		1,453,846
Diluted shares		28,085,729		27,565,047
Earnings per share:
Basic	$	0.01	$	0.06
Diluted	$	0.01	$	0.05