1 EXHIBIT 11 Health Grades, Inc. and Subsidiaries Computation of Per Share Earnings For the three months ended For the nine months ended September 30, September 30, 2000 1999 2000 1999 ----------- ----------- ----------- ----------- Weighted average shares outstanding 21,536,065 12,429,197 18,863,324 14,817,837 Effect of dilutive securities: Employee stock options -- -- -- 819,980 ----------- ----------- ----------- ----------- Weighted average number of common shares and common share equivalents used in computation 21,536,065 12,429,197 18,863,324 15,637,817 =========== =========== =========== =========== Net (loss) income $(2,472,519) $ (283,646) $(5,037,131) $ 1,592,603 =========== =========== =========== =========== Net (loss) income per common share (basic) (0.11) (0.02) (0.27) 0.11 =========== =========== =========== =========== Net (loss) income per common share (diluted) (0.11) (0.02) (0.27) 0.10 =========== =========== =========== ===========