1 EXHIBIT 11.1 CALCULATION OF BASIC AND DILUTED EARNINGS PER SHARE YEAR ENDED DECEMBER 31, --------------------------------------- 1995 1996 1997 ----------- ----------- ----------- Shares of common stock, beginning....................... 990,000 1,053,112 1,097,591 =========== =========== =========== Shares of common stock, ending.......................... 1,053,112 1,097,591 1,121,633 =========== =========== =========== Computation of weighted average number of basic and diluted shares: Common shares outstanding at the beginning of the year............................................... 990,000 1,053,112 1,097,591 Weighted average number of net shares issued.......... 9,510 23,875 133,676 ----------- ----------- ----------- WEIGHTED AVERAGE SHARES OUTSTANDING (BASIC)... 999,510 1,076,987 1,111,267 Weighted average of potential dilutive shares for: Stock options granted, computed using the treasury stock method..................................... -- -- -- Convertible preferred stock, computed using the "if converted" method................................ -- -- -- ----------- ----------- ----------- WEIGHTED AVERAGE NUMBER OF SHARES (DILUTED)... 999,510 1,076,987 1,111,267 =========== =========== Weighted average of additional shares deemed outstanding from the conversion of preferred stock.............................................. 5,170,015 ----------- TOTAL PRO FORMA AVERAGE SHARES OUTSTANDING.... 6,281,282 =========== Net loss................................................ $(1,234,159) $(2,777,052) $(5,250,634) =========== =========== =========== Basic and diluted loss per share........................ $ (1.23) $ (2.58) $ (4.72) =========== =========== =========== Pro forma basic and diluted loss per share.............. $ (0.84) ===========