Exhibit 11
COMPUTATION OF NET LOSS PER COMMON SHARE
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
1999 1998 1999 1998
---- ---- ---- ----
NET LOSS PER SHARE
Loss from Operations applicable to
Common Stock $ (358,293) $ (487,396) $ (910,459) $(1,907,303)
========== ========== ========== ===========
Weighted Average Common and
Equivalent Shares Outstanding 3,901,431 3,686,280 3,891,555 3,682,891
---------- ---------- ---------- -----------
Net Loss Per Share $ (0.09) $ (0.13) $ (0.23) $ (0.52)
========== ========== ========== ===========
NET LOSS PER SHARE -
ASSUMING DILUTION (See "NOTE")
Loss from Operations applicable to
Common Stock $ (358,293) $ (487,396) $ (910,459) $(1,907,303)
========== ========== ========== ===========
Weighted Average Common and
Equivalent Shares Outstanding 3,901,431 3,686,280 3,891,555 3,682,891
Add: (A) Assuming Exercise of Stock Options 66,921 22,380 77,450 39,150
(B) Assuming Exercise of Warrants 12,687 51,674 15,455 55,808
---------- ---------- ---------- -----------
Weighted Average Common Shares
Outstanding - As Adjusted 3,981,038 3,760,334 3,984,460 3,777,849
========== ========== ========== ===========
Net Loss Per Share - Assuming Dilution $ (0.09) $ (0.13) $ (0.23) $ (0.50)
========== ========== ========== ===========
NOTE:
The calculation for Net Loss Per Common Share - Assuming Dilution is submitted
in accordance with Securities Exchange Act of 1934 Release No. 9083 although not
required by Financial Accounting Standards Board No. 128 "Earnings Per Share"
("FASB 128") since the results are anti-dilutive.
(A) - For 1999, 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 September 30, 1999
Three Months Nine Months
------------ ---------
Options assumed exercised 207,550 247,550
Proceeds assumed realized $188,443 $243,243
Shares assumed reacquired:
- During three months ($188,443/$1.34) 140,629
- During nine months ($243,243/$1.43) 170,100
Net additional shares assumed outstanding 66,921 77,450
COMPUTATION OF NET LOSS PER COMMON SHARE - CONTINUED
For 1998, 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 September 30, 1998
Three Months Nine Months
------------ -----------
Options assumed exercised 254,050 398,693
Proceeds assumed realized $1,475,738 $2,448,489
Shares assumed reacquired:
- During three months ($1,475,738/$6.37) 231,670
- During nine months ($2,448,489/$6.81) 359,543
Net additional shares assumed outstanding 22,380 39,150
(B) - For 1999, 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 September 30, 1999
Three Months Nine Months
------------ -----------
Warrants assumed exercised 50,000 60,000
Proceeds assumed realized $50,000 $63,700
Shares assumed reacquired:
- During three months ($50,000/$1.34) 37,313
- During nine months ($63,700/$1.43) 44,545
Net additional shares assumed outstanding 12,687 15,455
For 1998, 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 September 30, 1999
Three Months Nine Months
------------ -----------
Warrants assumed exercised 115,661 115,661
Proceeds assumed realized $407,600 $407,600
Shares assumed reacquired:
- During three months ($407,600/$6.37) 63,987
- During nine months ($407,600/$6.81) 59,853
Net additional shares assumed outstanding 51,674 55,808