EXHIBIT 11.1
YOUNG MINDS, INCORPORATED
COMPUTATION OF WEIGHTED AVERAGE COMMON STOCK OUTSTANDING
Years Ended Three Months Ended
------------------------------- -----------------------
December 31, June 30, September 30,
---------------- -----------------------
1994 1995 1996 1995 1996
---- ---- ---- ---- ----
Weighted Common Stock Outstanding 1,861,230 2,457,480 2,969,147 2,730,230 3,288,910
Common Stock Equivalents per SAB 83
Common shares and warrants issued
subsequent to August 1995 at prices
or exercise prices below the expected
offering price(1) 1,961,540 1,961,540 1,961,540 1,961,540 1,961,540
Assumed buyback of public shares(3) (160,523) (160,523) (160,523) (160,523) (160,523)
--------- --------- --------- --------- ---------
1,801,017 1,801,017 1,801,017 1,801,017 1,801,017
--------- --------- --------- --------- ---------
Common Stock Equivalents per APB 15
Outstanding warrants and options(2) 862,306 752,462
Assumed buyback of public shares(3) (104,340) (48,323)
--------- ---------
757,966 N/A N/A N/A 704,139
--------- ---------
Weighted Average Common Stock
Outstanding - Primary and Fully Dilutive 4,437,603 4,258,497 4,770,164 4,531,247 5,794,066
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
- ----------------
(1) Amount represents all common stock and options and warrants issued
within one year of the initial filing of the Company's registration
statement at a per share or exercise price per share below the
anticipated public offering price of $12.00 per share.
(2) Amount represents the total amount of common stock equivalents
outstanding as of December 31, 1994 and September 30, 1996, less
equivalents included in the SAB83 Calculation.
(3) Amount represents the repurchase of shares at an assumed purchase price
of $12.00 per share utilizing the proceeds received on the sale of
common stock or exercise of options or warrants.