Note 2 - Earnings Per Share

3 Months Ended

Aug. 31, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

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 attributable to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income attributable 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.

The following tables set forth the computation of basic and diluted earnings per share for the three months ended August 31, 2023 and 2022:

	2023		2022
Basic earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	1,598,020	$	1,214,724
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Income per share of common stock - basic	$	0.06	$	0.04
Diluted earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	1,598,020	$	1,214,724
Add: Preferred stock dividends for assumed conversion		146,199		109,418
Net income allocated to common stockholders	$	1,744,219	$	1,324,142
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Incremental shares from assumed conversion of options, warrants and preferred stock, as appropriate		3,828,053		3,826,754
Weighted average common stock outstanding - diluted		32,107,754		32,106,455
Income per share of common stock - diluted	$	0.05	$	0.04