1 Exhibit 11.1 fine.com CORPORATION STATEMENT REGARDING COMPUTATION OF NET INCOME PER SHARE Three Months Ended July 31, Six Months Ended July 31, -------------------------- -------------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- Weighted average common shares 1,055,541 1,055,541 1,055,541 1,055,541 outstanding Net effect of stock options exercised and granted, and preferred stock issued during the 12-month period prior to the Company's filing of its initial public offering at less than the offering price, calculated using the treasury stock method at the initial offering price of $6.50 per share, and treated as outstanding for 99,585 99,585 99,585 99,585 ---------- ---------- ---------- ---------- all periods presented Shares used in computation of net income per share 1,155,126 1,155,126 1,155,126 1,155,126 ========== ========== ========== ========== Net income $ 27,868 $ 2,652 $ 71,292 $ 6,543 ========== ========== ========== ========== Net income per share $ 0.02 $ 0.00 $ 0.06 $ 0.01 ========== ========== ========== ========== -15-