Exhibit 11 WebSecure, Inc. Computation of Shares Used in Computing Net Loss Per Common and Common Equivalent Shares The following table presents information used in calculating the net loss per common and common equivalent shares: Period from Cumulative Inception from Inception Year Ended (July 19, 1995) to (July 19, 1995) August 31, 1996 August 31, 1995 to August 31, 1996 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- Weighted average number of shares of common stock outstanding, as adjusted for application of SAB No. 83(a): Founders 782,500 782,500 782,500 For professional services 20,000 20,000 20,000 Private offering 500,000 500,000 500,000 Issurance of common stock in connection with the acquisition of research and development 802,500 802,500 802,500 Common stock equivalents: Assumed exercise of stock options calculated under the treasury stock method 200,050 200,050 200,050 Convertible securities: Conversion of 625 000 shares of Class B common stock to common stock 2,500,000 2,500,000 2,500,000 - -------------------------------------------------------------------------------------------------------------------------- Shares used in computing loss per share of common and common equivalent shares 4,805,050 4,805,050 4,805,050 - -------------------------------------------------------------------------------------------------------------------------- Net loss applicable to common and common equivalent shares $(7,924,014) $(33,626) $(7,957,640) Net loss per share of common and common equivalent shares $ (1.65) $(.01) $(1.66) - -------------------------------------------------------------------------------------------------------------------------- - ------------------------------- (a) Pursuant to Securities and Exchange Commission Staff Accounting Bulletin No. 83 ("SAB No. 83"), common stock and common equivalent share issued within one year of the initial public offering at a price less than the initial public offering price is treated as outstanding for all periods presented.