Note 2 - Earnings Per Share

6 Months Ended

Nov. 30, 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 (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income (loss) 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.

Greystone excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive. Instruments which have an anti-dilutive effect for the periods ended November 30 are as follows:

	2023		2022
For the six months ended November 30:
Preferred stock convertible into common stock		3,333,333		3,333,333
For the three months ended November 30:
Preferred stock convertible into common stock		3,333,333		3,333,333
Warrants exercisable into common stock		-		500,000
Total		3,333,333		3,833,333

The following tables set forth the computation of basic and diluted earnings per share.

For the six months ended November 30, 2023 and 2022:

	2023		2022
Basic earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	2,416,374	$	908,128
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Income per share of common stock - basic	$	0.09	$	0.03
Diluted earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	2,416,374	$	908,128
Add: Preferred stock dividends for assumed conversion		-		-
Net income allocated to common stockholders	$	2,416,374	$	908,128
Denominator -
Weighted-average shares outstanding – basic		28,279,701		28,279,701
Incremental shares from assumed conversion of warrants and preferred stock, as appropriate		494,861		493,506
Weighted average common stock outstanding – diluted		28,774,562		28,773,207
Income per share of common stock – diluted	$	0.08	$	0.03

For the three months ended November 30, 2023 and 2022:

	2023		2022
Basic earnings per share of common stock:
Numerator -
Net income (loss) attributable to common stockholders	$	818,354	$	(306,596	)
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Net income (loss) per share of common stock - basic	$	0.03	$	(0.01	)
Diluted earnings per share of common stock:
Numerator -
Net income (loss) attributable to common stockholders	$	818,354	$	(306,596	)
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Incremental shares from assumed conversion of warrants and preferred stock, as appropriate		495,079		-
Weighted average common stock outstanding – diluted		28,774,780		28,279,701
Net income (loss) per share of common stock - diluted	$	0.03	$	(0.01	)