Exhibit 11
COMPUTATION OF EARNINGS PER COMMON SHARE
THREE MONTHS
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3/31/97 3/31/96
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PRIMARY
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Net earnings applicable to common stock:
Net earnings (loss) $(341,663) $204,507
Deduct preferred stock dividends paid (31,830) (31,830)
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Net earnings applicable to common stock (373,493) 172,677
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Weighted average number of common shares
and common equivalent outstanding 4,787,462 3,233,078
Additional shares assuming conversion of
options and warrants -- 604,087
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Weighted average common shares outstanding 4,787,462 3,837,165
Basic earnings (loss) per share $ (.08) $ .05
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FULLY DILUTED*
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Net earnings (loss) applicable to common
stock on a diluted basis:
Net earnings applicable to common stock
per above 172,677
Add net interest expense related
to convertible
debentures 39,600
Add dividends on convertible preferred stock 31,830
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Net earnings applicable to common stock on a
diluted basis $242,683
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Total shares for diluted:
Weighted average common shares outstanding 3,837,165
Additional shares to be issued under full
conversion of convertible debentures 600,000
Addition shares to be issued under full
conversion of preferred stock 294,723
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Total shares for fully diluted $4,731,008
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Diluted earnings per share $ .05
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*This calculation is submitted in accordance with Securities
Exchange Act of 1934 Release No. 9083,
although not required by footnote 8, paragraph 40, of
APB No. 15 because it results in anti-dilution.
In addition, common equivalent shares are not considered
in the computation of earnings per common share March 31,1997
as the impact would be antidilutive.