1 EXHIBIT 11.1 VERSATILITY INC. STATEMENT REGARDING COMPUTATION OF PRO FORMA NET INCOME (LOSS) PER SHARE YEAR ENDED SIX MONTHS ENDED APRIL 30, 1996 OCTOBER 31, 1996 -------------- ---------------- Net Income (Loss)............................................... $ 656,870 $ 418,171 ---------- ---------- Shares Outstanding.............................................. 4,000,000 4,000,000 Add: Shares issuable upon conversion of Series A Redeemable Convertible Preferred Stock.............................. 992,061 992,061 Shares issuable from the assumed exercise of options as determined by the application of the treasury stock method................................................... 611,144 611,144 ---------- ---------- 5,603,205 5,603,205 ========== ========== Pro Forma Net Income (Loss) Per Common Share.................... $ .12 $ .07 ========== ========== The above computations include all common equivalent shares issued within the 12 months preceding the filing date as if they were outstanding for all periods presented (using the treasury stock method and the anticipated public offering price).