Earnings Per Share

9 Months Ended

Feb. 28, 2023

Income 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 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 are the preferred stock convertible into 3,333,333 shares of common stock for the three months ended February 28, 2022.

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

For the nine months ended February 28, 2023 and 2022:

	2023		2022
Basic earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	4,471,124	$	3,044,535
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,472,256
Income per share of common stock - basic	$	0.16	$	0.11
Diluted earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	4,471,124	$	3,044,535
Add: Preferred stock dividends for assumed conversion		361,267		243,082
Net income allocated to common stockholders	$	4,832,391	$	3,287,617
Denominator -
Weighted-average shares outstanding – basic		28,279,701		28,472,256
Incremental shares from assumed conversion of options, warrants and preferred stock, as appropriate		3,825,723		3,828,828
Weighted average common stock outstanding – diluted		32,105,424		32,301,084
Income per share of common stock – diluted	$	0.15	$	0.10

For the three months ended February 28, 2023 and 2022:

	2023		2022
Basic earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	3,562,996	$	452,458
Denominator -
Weighted-average shares outstanding – basic		28,279,701		28,472,639
Income per share of common stock – basic	$	0.13	$	0.02
Diluted earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	3,562,996	$	452,458
Add: Preferred stock dividends for assumed conversion		132,500		-
Net income attributable to common stockholders	$	3,695,496	$	452,458
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,472,639
Incremental shares from assumed conversion of warrants or options, as appropriate		3,824,564		494,505
Weighted average common stock outstanding - diluted		32,104,265		28,967,144
Income per share of common stock – diluted	$	0.12	$	0.02