1 Exhibit 11 NOISE CANCELLATION TECHNOLOGIES, INC. AND SUBSIDIARIES COMPUTATION OF NET (LOSS) PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) SIX MONTHS ENDED JUNE 30, ---------------------------- PRIMARY 1994 1995 NET (LOSS) ($8,493) ($2,470) LESS: REDUCTION OF INTEREST EXPENSE OR INTEREST EARNED ATTRIBUTABLE TO UTILIZATION OF ASSUMED PROCEEDS FROM EXERCISE OF OPTIONS AND WARRANTS IN EXCESS OF AMOUNTS REQUIRED TO REPURCHASE 20% OF THE OUTSTANDING COMMON STOCK AT AVERAGE MARKET PRICE -------- -------- ADJUSTED NET (LOSS) ($8,493) ($2,470) ======== ======== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING. 81,518 86,215 ADD: COMMON EQUIVALENT SHARES (DETERMINED USING THE "TREASURY STOCK" METHOD) REPRESENTING SHARES ISSUABLE UPON ASSUMED EXERCISE OF OPTIONS AND WARRANTS IN EXCESS OF AVERAGE MARKET PRICE 5,937 1,959 SHARES ISSUABLE UPON CONVERSION OF SERIES B PREFERRED SHARES - - -------- -------- SHARES USED FOR COMPUTATION 87,455 88,174 ======== ======== PRIMARY NET (LOSS) PER SHARE ($0.10) ($0.03) ======== ======== FULLY DILUTED NET (LOSS) ($8,493) ($2,470) LESS: REDUCTION OF INTEREST EXPENSE OR INTEREST EARNED ATTRIBUTABLE TO UTILIZATION OF ASSUMED PROCEEDS FROM EXERCISE OF OPTIONS AND WARRANTS IN EXCESS OF AMOUNTS REQUIRED TO REPURCHASE 20% OF THE OUTSTANDING COMMON STOCK AT QUARTER-END MARKET PRICE IF GREATER THAN AVERAGE MARKET PRICE -------- -------- ADJUSTED NET (LOSS) ($8,493) ($2,470) ======== ======== WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING. 81,518 86,215 ADD: COMMON EQUIVALENT SHARES (DETERMINED USING THE "TREASURY STOCK" METHOD) REPRESENTING SHARES ISSUABLE UPON ASSUMED EXERCISE OF OPTIONS AND WARRANTS IN EXCESS OF YEAR-END MARKET PRICE IF GREATER THAN AVERAGE MARKET PRICE 5,937 1,959 SHARES ISSUABLE UPON CONVERSION OF SERIES B PREFERRED SHARES - - -------- -------- SHARES USED FOR COMPUTATION 87,455 88,174 ======== ======== FULLY DILUTED NET (LOSS) PER SHARE ($0.10) ($0.03) ======== ======== The above per share data are not reported on the statement of operations because such data is anti-dilutive. 20