Exhibit 11.0 Computation of Earnings per Share The following represents the computation of earnings per share reflecting the assumption that the granted shares under the option and warrants plan which would be dilutive will be exercised. Three Months Ended Six Months Ended June 30, June 30, ------------------------- ------------------------- 2005 2004 2005 2004 ----------- ----------- ----------- ----------- Net earnings applicable to common shareholders - basic $ 498,183 $ 470,754 $ 1,126,117 $ 807,461 Add: Dividend to preferred shareholders 21,600 28,200 43,200 43,200 ----------- ----------- ----------- ----------- Net earnings - diluted $ 519,783 $ 498,954 $ 1,169,317 $ 850,661 =========== =========== =========== =========== Weighted average common shares outstanding - basic 12,652,370 12,483,979 12,636,465 12,447,374 Common share equivalents relating to stock options, warrants and preferred stock 3,966,627 3,582,024 3,981,388 3,606,673 ----------- ----------- ----------- ----------- Adjusted common and common equivalent shares for diluted computation 16,618,997 16,066,003 16,617,853 16,054,047 =========== =========== =========== =========== Net earnings per share: Basic $ 0.04 $ 0.04 $ 0.09 $ 0.06 Diluted $ 0.03 $ 0.03 $ 0.07 $ 0.05 Anti-dilutive options not included in the earnings per share computations 450,000 365,100 375,000 365,100 See notes to consolidated financial statements