Earnings Per Share

6 Months Ended

Nov. 30, 2015

Loss Per Share of Common Stock -

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) available to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income (loss) 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, as follows:

	2015		2014
Six-month periods ended November 30:
Options to purchase common stock		675,000		1,400,000
Preferred stock convertible into common stock		3,333,333		3,333,333
Total		4,008,333		4,733,333
Three-month periods ended November 30:
Options to purchase common stock		675,000		1,400,000
Preferred stock convertible into common stock		3,333,333		3,333,333
Total		4,008,333		4,733,333

The following tables set forth the computation of basic and diluted earnings per share for the six-month and three-month periods ended November 30, 2015 and 2014:

	2015			2014
Six-month periods ended November 30:
Numerator -
Net loss available to common stockholders	$	(113,735	)	$	(581,623	)
Denominator -
Weighted-average shares outstanding - basic		27,520,217			26,591,666
Incremental shares from assumed conversion of options		-			-
Diluted shares		27,520,217			26,591,666
Loss per share -
Basic and Diluted	$	(0.00	)	$	(0.02	)
Three-month periods ended November 30:
Numerator -
Net loss available to common stockholders	$	(22,420	)	$	(796,121	)
Denominator -
Weighted-average shares outstanding - basic		27,630,432			26,723,564
Incremental shares from assumed conversion of options		-			-
Diluted shares		27,630,432			26,723,564
Loss per share -
Basic and Diluted	$	(0.00	)	$	(0.03	)