[DESCRIPTION] COMPUTATION OF INCOME (LOSS) PER SHARE Exhibit 11.1 Computation of Income (Loss) Per Share Three months ended Six months ended June 30, June 30, ---------------------- ---------------------- 1997 1996 1997 1996 ---------- ---------- ---------- ---------- (unaudited) (unaudited) Net income (loss): Loss before extraordinary gain $ 38,894 ($ 153,179) $ 11,010 ($ 407,237) Extraordinary gain from early retirement of debt 216,376 38,145 216,376 ---------- ---------- ---------- ---------- Net income (loss) $ 38,894 $ 63,197 $ 49,155 ($ 190,861) ========== ========== ========== ========== Primary income (loss) per share: Adjustments to shares outstanding: Actual weighted average shares outstanding 4,022,894 4,022,894 4,022,894 4,015,202 Net additional shares issuable upon conversion of warrants and options 3,692 ( 94,610) ---------- ---------- ---------- ---------- Adjusted shares outstanding 4,022,894 4,026,586 4,022,894 3,920,592 Primary income (loss) per share: Loss before extraordinary gain $ .01 ($ .04) $ .00 ($ .10) Extraordinary gain .00 .05 .01 .06 ---------- ---------- ---------- ---------- Net income (loss) per share$ .01 $ .01 $ .01 ($ .04) ========== ========== ========== ========== Fully diluted income (loss) per share: Adjustments to shares outstanding: Actual weighted average shares outstanding 4,022,894 4,022,894 4,022,894 4,015,202 Net additional shares issuable upon conversion of warrants and options 3,692 ( 143,721) --------- ---------- ---------- ---------- Adjusted shares outstanding 4,022,894 4,026,586 4,022,894 3,871,481 Fully diluted income (loss) per share: Loss before extraordinary gain $ .01 ($ .04) $ .00 ($ .11) Extraordinary gain .00 .05 .01 .06 ---------- ---------- ---------- ---------- Net income (loss) per share$ .01 $ .01 $ .01 ($ .05) ========== ========== =========== ==========