2. Earnings Per Share

6 Months Ended

Nov. 30, 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 (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:

	2014		2013
Six-month periods ended November 30:
Options to purchase common stock		1,400,000		350,000
Preferred stock convertible into common stock		3,333,334		3,333,334
Total		4,733,334		3,683,334
Three-month periods ended November 30:
Options to purchase common stock		1,400,000		2,450,000
Preferred stock convertible into common stock		3,333,334		3,333,334
Total		4,733,334		5,783,334

The following tables set forth the computation of basic and diluted earnings per share for the six-month and three-month periods ended November 30, 2014 and 2013:

	2014			2013
Six-month periods ended November 30:
Numerator -
Net income (loss) available to common stockholders	$	(581,623	)	$	1,298,026
Denominator -
Weighted-average shares outstanding - basic		26,591,666			26,111,201
Incremental shares from assumed conversion of options		-			1,447,399
Diluted shares		26,591,666			27,558,600
Earnings (Loss) per share -
Basic	$	(0.02	)	$	0.05
Diluted	$	(0.02	)	$	0.05
Three-month periods ended November 30:
Numerator -
Net loss available to common stockholders	$	(796,121	)	$	(150,626	)
Denominator -
Weighted-average shares outstanding  - basic		26,723,564			26,111,201
Incremental shares from assumed conversion of options		-			-
Diluted shares		26,723,564			26,111,201
Earnings (Loss) per share -
Basic and Diluted	$	(0.03	)	$	(0.01	)