Exhibit 11.1 INTEGRATED ALARM SERVICES GROUP, INC. STATEMENT OF COMPUTATION OF EARNINGS PER SHARE Weighted Average Total Shares Three Months Nine Months ------------- ----------------------- -------------- Year 2003 - --------- Shares outstanding January 1, 2003 709,719 709,719 709,719 Shares issued for IASI and Morlyn on January 31, 2003 881,192 881,192 781,130 242/273 Shares issued upon IPO on July 29, 2003 22,000,000 15,304,348 64/92 5,157,509 64/273 Shares issued upon exercise of overallotment on August 27, 2003 982,729 373,864 35/92 125,991 35/273 ------------- --------------- ------------- Shares outstanding September 30, 2003 24,573,640 17,269,123 6,774,349 ============= =============== ============== Net Income (loss) $ (4,365,689) $ (20,481,802) =============== ============= Net Income (loss) per share $ (0.25) $ (3.02) =============== ============= Year 2004 - --------- Shares outstanding January 1, 2004 24,607,731 24,607,731 24,607,731 Shares issued for Criticom (contingent) purchase 34,091 34,091 92/92 33,469 269/274 Shares issued upon conversion of debt: April 26, 2004 36,036 36,036 92/92 20,648 157/274 June 2, 2004 3,604 3,604 92/92 1,578 120/274 ------------- --------------- ------------- Shares outstanding September 30, 2004 24,681,462 24,681,462 24,663,426 ============= =============== ============= Net income (loss) $ (2,147,211) $ (3,585,963) =============== ============= Net income (loss) per share $ (0.09) $ (0.15) =============== =============