EXHIBIT 11
COMPUTATION OF NET INCOME (LOSS) PER SHARE
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------- --------
2002 2001 2002 2001
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NET INCOME (LOSS) PER SHARE
Net Income (Loss) from Operations
applicable to Common Stock $82,711 $(123,545) $55,083 $(422,259)
Weighted Average Common Shares Outstanding 3,901,431 3,901,431 3,901,431 3,901,431
--------- --------- --------- ---------
Net Income (Loss) Per Share $0.02 $ (0.03) $ 0.01 $ (0.11)
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NET INCOME (LOSS) PER SHARE -
ASSUMING DILUTION (See "NOTE")
Net Income (Loss) from Operations
applicable to Common Stock $82,711 $(123,545) $55,083 $(422,259)
======= ========== ======= ==========
Weighted Average Common Shares Outstanding 3,901,431 3,901,431 3,901,431 3,901,431
Add: Assumed Conversion of Preferred Stock 1,040,000 - 1,040,000 -
Assumed Exercise of Stock Options (A) (C) 131,509 - 134,780 -
Assumed Exercise of Warrants (B) (C) 309,796 - 320,000 -
Weighted Average Common Shares --------- --------- --------- ---------
Outstanding - Assuming Dilution 5,382,736 3,901,431 5,396,211 3,901,431
========= ========= ========= =========
Net Income(Loss) Per Share - Assuming
Dilution $ 0.02 $ (0.03) $0.01 $ (0.11)
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NOTE:
(A) - For 2002, the dilutive options (i.e., the average market price is greater
than the exercise price), assume that options are exercised and proceeds
realized as indicated below. Next, using the treasury stock method with the
average market price per share during each period and the total shares assumed
to be reacquired as of the beginning of each period, the additional shares
included as outstanding are indicated below.
PERIOD ENDED JUNE 30, 2002
THREE MONTHS SIX MONTHS
------------ ----------
Options assumed exercised 455,367 455,367
Proceeds assumed realized $317,381 $317,381
Shares assumed reacquired:
- During three months ($317,381/$.98) 323,858
- During six months ($317,381/$.99) 320,587
Net additional shares assumed outstanding 131,509 134,780
(B) - For 2002, the dilutive warrants (i.e., the average market price is greater
than the exercise price), assume that warrants are exercised and proceeds
realized as indicated below. Next, using the treasury stock method with the
average market price per share during each period and the total shares assumed
to be reacquired as of the beginning of each period, the additional shares
included as outstanding are indicated below.
PERIOD ENDED JUNE 30, 2002
THREE MONTHS SIX MONTHS
------------ ----------
Warrants assumed exercised 1,320,000 1,320,000
Proceeds assumed realized $990,000 $990,000
Shares assumed reacquired:
- During three months ($990,000/$0.98) 1,010,204
- During six months ($990,000/$0.99) 1,000,000
Net additional shares assumed outstanding 309,796 320,000
(C) - For 2001, the calculation of net loss per share assuming dilution is not
applicable since the results are anti-dilutive.