1 EXHIBIT 11 THREE MONTHS ENDED MARCH 31, 1998 1997 ---------- ---------- Net loss (1,799,146) (1,333,608) Preferred stock dividends (10,732) -- ---------- ---------- Net loss applicable to common shares (1,809,878) (1,333,608) ========== ========== Weighted average common stock outstanding 22,339,773 19,151,200 Common equivalent shares representing shares issuable upon exercise of stock options 5,061,275 8,377,133 Add back of common equivalent shares due to antidilutive shares (5,061,275) (8,377,133) ---------- ---------- Dilutive adjusted weighted average shares 22,339,773 19,151,200 ========== ========== Basic net (loss) per share (0.08) (0.07) Diluted net (loss) per share (0.08) (0.07) The following securities were not included in the diluted earnings per share because to do so would have been antidilutive for the periods presented. FOR THE THREE MONTHS ENDED MARCH 31, 1998 1997 ---------- ---------- Options 2,440,723 6,147,364 Warrants -- 300,000 Convertible debt -- 1,929,769 Convertible preferred stock 2,620,552 -- ---------- ---------- 5,061,275 8,377,133 ========== ========== Under the treasury stock method, the assumed net proceeds from the exercise of the weighted average number of common stock equivalents outstanding during the period are assumed to be used to repurchase common stock at its average market price during the period such repurchase of common stock reduces the dilutive effect of the common stock equivalents.