Note 2 - Earnings Per Share

9 Months Ended

Feb. 29, 2024

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.

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 February 29(28) are as follows:

	2024		2023
For the nine months ended February 29(28):
Preferred stock convertible into common stock		3,333,333		-
For the three months ended February 29(28):
Preferred stock convertible into common stock		3,333,333		-

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

For the nine months ended February 29(28), 2024 and 2023:

	2024		2023
Basic earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	2,567,830	$	4,471,124
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Income per share of common stock - basic	$	0.09	$	0.16
Diluted earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	2,567,830	$	4,471,124
Add: Preferred stock dividends for assumed conversion		-		361,267
Net income allocated to common stockholders	$	2,567,830	$	4,832,391
Denominator -
Weighted-average shares outstanding – basic		28,279,701		28,279,701
Incremental shares from assumed conversion of warrants and preferred stock, as appropriate		495,000		3,825,723
Weighted average common stock outstanding – diluted		28,774,701		32,105,424
Income per share of common stock – diluted	$	0.09	$	0.15

For the three months ended February 29(28), 2024 and 2023:

	2024		2023
Basic earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	151,456	$	3,562,996
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Income per share of common stock - basic	$	0.01	$	0.13
Diluted earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	151,456	$	3,562,996
Add: Preferred stock dividends for assumed conversion		-		132,500
	$	151,456	$	3,695,496
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Incremental shares from assumed conversion of warrants and preferred stock, as appropriate		495,455		3,824,564
Weighted average common stock outstanding – diluted		28,775,156		32,104,265
Income per share of common stock - diluted	$	0.01	$	0.12