Earnings Per Share

9 Months Ended

Feb. 29, 2016

Income (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:

	2016		2015
Nine-month periods ended February 29(28):
Options to purchase common stock		675,000		1,150,000
Preferred stock convertible into common stock		3,333,333		3,333,333
Total		4,008,333		4,483,333
Three-month periods ended February 29(28):
Options to purchase common stock		675,000		-
Preferred stock convertible into common stock		3,333,333		3,333,333
Total		4,008,333		3,333,333

The following tables set forth the computation of basic and diluted earnings per share for the nine-month and three-month periods ended February 29(28), 2016 and 2015:

	2016			2015
Nine-month periods ended February 29(28):
Numerator -
Net loss available to common stockholders	$	(314,263	)	$	(382,764	)
Denominator -
Weighted-average shares outstanding - basic		27,640,033			26,828,417
Incremental shares from assumed conversion of options		-			-
Diluted shares		27,640,033			26,828,417
Loss per share -
Basic and Diluted	$	(0.01	)	$	(0.01	)
Three-month periods ended February 29(28):
Numerator -
Net income (loss) available to common stockholders	$	(200,528	)	$	198,859
Denominator -
Weighted-average shares outstanding - basic		27,866,201			27,309,812
Incremental shares from assumed conversion of options		-			704,839
Diluted shares		27,886,201			28,014,651
Loss per share -
Basic and Diluted	$	(0.01	)	$	0.01