2. Earnings Per Share

3 Months Ended

Aug. 31, 2013

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 shares for the three months ended August 31, 2013 and 2012, respectively, and convertible preferred stock which is convertible into 3,333,334 shares of common stock for the three months ended August 31, 2013, and 2012.

The following table sets forth the computation of basic and diluted earnings per share for the three months ended August 31, 2013 and 2012:

	2013		2012
Numerator:
Net income available to common shareholders	$	1,448,652	$	832,005
Denominator:
Weighted-average shares outstanding:
Basic		26,111,201		26,111,201
Incremental shares from assumed   conversion of options		1,453,846		844,565
Diluted shares		27,565,047		26,955,766
Earnings per share:
Basic	$	0.06	$	0.03
Diluted	$	0.05	$	0.03