1 EXHIBIT 11 STATEMENT REGARDING COMPUTATION OF LOSS PER SHARE YEAR ENDED NINE MONTHS ENDED DECEMBER 31 SEPTEMBER 30 ------------------------------------------- --------------------------------- 1994 1995 1996 1996 1997 (Unaudited) HISTORICAL: Weighted average common shares outstanding 77,586 77,586 77,586 77,586 77,586 Net effect of dilutive stock options based on the treasury method 400,043 400,043 400,043 400,043 400,043 ----------- ---------- ----------- ----------- ----------- Total 477,629 477,629 477,629 477,629 477,629 Net loss $(1,287,772) $(1,959,874) $(5,577,688) $(4,218,092) $(3,304,416) Net income (loss) per common share $ (2.70) $ (4.10) $ (11.68) $ (8.83) $ (6.92) YEAR ENDED NINE MONTHS ENDED DECEMBER 31, 1996 SEPTEMBER 30,1997 ----------------- ------------------- PRO FORMA: Weighted average common shares outstanding 77,586 77,586 Weighted average preferred shares outstanding 6,758,094 7,585,514 Net effect of dilutive stock options based on the treasury method 400,043 400,043 ----------- ----------- Total 7,235,723 8,063,143 Net income (loss) $(5,577,688) $(3,304,416) Pro forma net loss per share $ (.77) $ (.41)