1 EXHIBIT 11 LIFEQUEST MEDICAL, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS (LOSS) PER SHARE (Unaudited) Three Months Ended September 30, Nine Months Ended September 30, -------------------------------- ------------------------------- 1997 1998 1997 1998 ---- ---- ---- ---- COMPUTATION OF BASIC LOSS PER SHARE: Net loss $ (632,934) $ (533,234) $(1,428,334) $(1,269,914) Preferred Stock Dividends $ -- $ (13,256) $ -- $ (13,256) ----------- =========== =========== =========== Net loss available for common stock shareholders $ (632,934) $ (546,490) $(1,428,334) $(1,283,170) WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING USED FOR COMPUTATION 6,353,883 7,212,742 6,267,337 6,921,910 =========== =========== =========== =========== BASIC LOSS PER COMMON SHARE $ (0.10) $ (0.08) $ (0.23) $ (0.19) =========== =========== =========== =========== COMPUTATION OF DILUTED LOSS PER SHARE: Net loss $ (632,934) $ (533,234) $(1,428,334) $(1,269,914) Preferred Stock Dividends $ -- $ (13,256) $ -- $ (13,256) Interest on Convertible Debentures $ -- $ 68,055 $ -- $ 201,945 ----------- ----------- ----------- ----------- Net loss used for computation $ (632,934) $ (478,435) $(1,428,334) $(1,081,225) =========== =========== =========== =========== Weighted average shares of common stock outstanding 6,353,883 7,212,742 6,267,337 6,921,910 Weighted average incremental shares outstanding upon assumed conversion of options and other dilutive securities 517,233 136,583 508,692 179,870 Weighted average incremental shares outstanding upon assumed conversion of Convertible Debentures and Preferred Stock -- 1,824,293 -- 1,609,286 ----------- ----------- ----------- ----------- WEIGHTED AVERAGE SHARES OF COMMON STOCK AND COMMON STOCK EQUIVALENTS OUTSTANDING USED FOR COMPUTATION 6,871,116 9,173,618 6,776,029 8,711,066 =========== =========== =========== =========== DILUTED LOSS PER COMMON SHARE AND COMMON SHARE EQUIVALENTS (a) $ (0.09) $ (0.05) (0.21) (0.12) =========== =========== =========== =========== (a) This calculation is submitted in accordance with Item 601(b)(11) of Regulation S-B although it is not required by SFAS No. 128 because it is antidilutive. As a result, it is not the amount reflected on the statements of operations.