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 June 30, Six Months Ended June 30,
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2006 2005 2006 2005
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Net earnings applicable to common
shareholders, basic $ 727,474 $ 498,183 $ 1,290,737 $ 1,126,117
Add: Dividend to preferred shareholders -- 21,600 96,410 43,200
Less: Change in fair value of warrants (406,694) -- (841,215) --
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Net earnings, diluted $ 320,780 $ 519,783 $ 545,932 $ 1,169,317
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Weighted average common shares
outstanding, basic 18,931,169 12,652,370 17,005,769 12,636,465
Common share equivalents relating to:
Preferred stock -- 2,157,480 1,916,022 2,142,767
Stock options 719,502 671,434 786,722 689,647
Warrants 660,158 1,137,713 597,161 1,148,974
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Weighted average common shares outstanding 20,310,829 16,618,997 20,305,674 16,617,853
=========== =========== =========== ===========
Net earnings per share:
Basic $ 0.04 $ 0.04 $ 0.08 $ 0.09
Diluted $ 0.02 $ 0.03 $ 0.03 $ 0.07
Anti-dilutive preferred stock, stock
options and warrants not included in the
diluted earnings per share computations 1,955,272 450,000 1,988,270 375,000
See notes to consolidated financial statements.