1
EXHIBIT 11.1
EXHIBIT 11 STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
YEAR ENDED JULY 31,
1995 1996 1997
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Primary
Average shares outstanding 2,137,848 2,137,848 2,137,848
Issuance of common stock to purchase
Telephone Warehouse 1,817,468 1,817,468 1,817,468
Assumed conversion of Series A,
Preferred Stock 2,137,850 2,137,850 2,137,850
Warrants issued in connection with
debt refinancing 106,596 106,596 106,596
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Total 6,199,762 6,199,762 6,199,762
Net income (loss) $ 8,139 $ 65,998 $ (45,831)
Accretion of Series A Preferred Stock to
redemption value - (1,062) (62,640)
Fair value of Common Stock
distributed to preferred shareholder
to induce conversion of Series A
Preferred Stock - - (320,000)
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Net income (loss) per share
applicable to common shareholders $ 8,139 $ 64,936 $ (428,471)
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Per share amount $ - $ .01 $ (.07)
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Fully Diluted
Average shares outstanding 2,137,848 2,137,848 2,137,848
Issuance of Common Stock to purchase
Telephone Warehouse 1,817,468 1,817,468 1,817,468
Assumed conversion of Series A
Preferred Stock 2,137,850 2,137,850 2,137,850
Warrants issued in connection with
debt refinancing 106,596 106,596 106,596
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Total 6,199,762 6,199,762 6,199,762
Net income (loss) $ 8,139 $ 65,998 $ (45,831)
Accretion of Series A Preferred Stock
to redemption value - (1,062) (62,640)
Fair value of Common Stock
distributed to preferred shareholder
to induce conversion of Series A
Preferred Stock - - (320,000)
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Net income (loss) per share applicable
to common shareholders $ 8,139 $ 64,936 $ (428,471)
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Per share amount $ - $ .01 $ (.07)
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