Earnings Per Share

9 Months Ended

Feb. 28, 2013

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 available to common stockholders by the weighted-average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income 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.  Equity instruments which have been excluded are certain options to purchase common stock totaling 350,000 and 1,940,000 shares for the nine and three months ended February 28, 2013 and February 29, 2012, respectively, and convertible preferred stock which is convertible into 3,333,334 shares of common stock for both the nine months and three months ended February 28, 2013, and 2012.

The following table sets forth the computation of basic and diluted shares for the nine and three months ended February 28, 2013 and February 29, 2012:

		February 28, 2013	February 29, 2012
For the Nine-Month Periods:
	Weighted-average shares outstanding:
Basic		26,111,201	26,111,201
	Incremental shares from assumed conversion of options	1,254,799	-
	Diluted shares	27,366,000	26,111,201
For the Three-Month Periods:
	Weighted-average shares outstanding:	26,111,201	26,111,201
Basic
	Incremental shares from assumed conversion of options	1,443,322	-
	Diluted shares	27,554,523	26,111,201