Earnings Per Share

3 Months Ended

Aug. 31, 2015

Income (Loss) Attributable to Common Stockholders:

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 (loss) attributable to common stockholders by the weighted-average 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. For the three months ended August 31, 2015, equity instruments which have been excluded are Greystone’s convertible preferred stock which is convertible into 3,333,334 shares of common stock and common stock options to purchase 1,150,000 of common stock. For the three months ended August 31, 2014, 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, 2015 and 2014:

	2015			2014
Numerator:
Net income (loss) attributable to common shareholders	$	(91,315	)	$	214,498
Denominator:
Weighted-average shares outstanding:
Basic		27,411,201			26,461,201
Incremental shares from assumed conversion of options		-			1,624,528
Diluted shares		27,411,201			28,085,729
Earnings per share:
Basic	$	0.00		$	0.01
Diluted	$	0.00		$	0.01