EARNINGS PER SHARE COMPUTATIONS: MODIFIED TREASURY STOCK METHOD: Total exercise proceeds $12,712,869 ---------- Period - end outstanding shares 6,567,903 ---------- 20% of period - end outstanding shares 1,313,581 x Average share price during period $3.4375 ---------- Proceeds used to purchase shares 4,515,435 ---------- Remaining proceeds 8,197,434 Proceeds used to retire average debt 12,813,451 ---------- Remaining proceeds to be invested ($4,616,017) ========== Adjusted Income (Loss): Net income(loss) ($694,681) Dividends and accretion to preferred stock (335,272) ---------- Adjusted Income (Loss) (1,029,953) Interest expense on retired debt (10.25%) 328,345 Interest income on proceeds invested (2.5%) 0 Tax effect of interest adjustments (40%) (131,338) ---------- Net income (loss) for E.P.S. purposes (832,946) ---------- Shares: Weighted average shares outstanding 6,397,598 Weighted average equivalent shares outstanding 5,706,804 20% of period - end outstanding shares (1,313,581) --------- Total shares for E.P.S. purposes 10,790,821 ========== Net income (loss) per share ($0.08) ========== Maximum income (minimum loss) per share: Adjusted Income (Loss) ($1,029,953) divide by Weighted average shares outstanding 6,397,598 ---------- Net income (loss) per share ($0.16) ==========