2. Earnings Per Share

9 Months Ended

Feb. 28, 2014

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 for the nine-month periods ended February 28, 2014 and 2013 and the three-month period ended February 28, 2013, respectively, are (1) certain options to purchase common stock totaling 350,000 shares and (2) convertible preferred stock which is convertible into 3,333,334 shares of common stock. Equity instruments which have been excluded for the three-month period ended February 28, 2014 due to the loss available to common stockholders are (1) certain options to purchase common stock totaling 2,450,000 shares and (2) convertible preferred stock which is convertible into 3,333,334 shares of common stock.

The following table sets forth the computation of basic and diluted common stock to calculate earnings per share for the nine-month and three-month periods ended February 28, 2014 and 2013:

	2014			2013
Nine-Month Periods ended February 28, 2014 and 2013:
Numerator -
Net income available to common stockholders	$	1,084,473		$	882,998
Denominator -
Weighted-average shares outstanding
Basic		26,111,201			26,111,201
Incremental shares from assumed conversion of options		1,441,008			1,254,799
Diluted Shares		27,552,209			27,366,000
Three-Month Periods ended February 28, 2014 and 2013:
Numerator -
Net income (loss) available to common stockholders	$	(213,553	)	$	48,390
Denominator -
Weighted-average shares outstanding
Basic		26,111,201			26,111,201
Incremental shares from assumed conversion of options		-			1,443,322
Diluted Shares		26,111,201			27,554,523