Note 2 - Earnings Per Share

3 Months Ended

Aug. 31, 2024

Notes to Financial Statements

Earnings Per Share [Text Block]

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 as of August 31 are as follows:

	2024		2023
Preferred stock convertible into common stock		3,333,333		-

The following tables set forth the computation of basic and diluted earnings per share for the three months ended August 31, 2024 and 2023:

	2024		2023
Basic earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	187,372	$	1,598,020
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Income per share of common stock - basic	$	0.01	$	0.06
Diluted earnings per share of common stock:
Numerator -
Net income attributable to common stockholders	$	187,372	$	1,598,020
Add: Preferred stock dividends for assumed conversion		-		146,199
Net income attributable to common stockholders	$	187,372	$	1,744,219
Denominator -
Weighted-average shares outstanding - basic		28,279,701		28,279,701
Incremental shares from assumed conversion of options, warrants and preferred stock, as appropriate		496,295		3,828,053
Weighted average common stock outstanding - diluted		28,775,996		32,107,754
Income per share of common stock - diluted	$	0.01	$	0.05