1 EXHIBIT 11 NOISE CANCELLATION TECHNOLOGIES, INC. AND SUBSIDIARIES Computation of Net (Loss) Per Share (In thousands, except per share amounts) Nine months ended September 30, ---------------------------------- PRIMARY 1994 1995 Net (loss) ($14,468) ($4,802) 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) ($14,468) ($4,802) ========== =========== Weighted average number of shares outstanding. 81,970 86,804 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 5,457 5,624 Shares issuable upon conversion of Series B preferred shares - - ---------- ----------- SHARES USED FOR COMPUTATION 87,427 92,428 ========== =========== PRIMARY NET (LOSS) PER SHARE ($0.17) ($0.05) ========== =========== FULLY DILUTED Net (loss) ($14,468) ($4,802) 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) ($14,468) ($4,802) ========== =========== Weighted average number of shares outstanding. 81,970 86,804 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 5,457 4,218 Shares issuable upon conversion of Series B preferred shares - - ---------- ----------- SHARES USED FOR COMPUTATION 87,427 91,022 ========== =========== FULLY DILUTED NET (LOSS) PER SHARE ($0.17) ($0.05) ========== ===========