1 Exhibit 11.1 Computation of Net Loss Per Share Year Ended June 30, ----------------------------------------- 1995 1996 1997 ----------------------------------------- Net Loss $(3,264,991) $(4,097,235) $(5,578,206) ----------------------------------------- Weighted average common shares Outstanding 2,032,946 2,459,315 7,286,146 Shares related to Staff Accounting Bulletin Topic 4D: Common Stock 158,641 118,981 0 Common Stock Options 663,135 497,351 0 Preferred Stock 502,493 376,870 0 Common & Preferred Stock Warrants 211,552 158,664 0 ----------------------------------------- Total shares outstanding for primary and fully diluted net loss per share 3,568,767 3,611,181 7,286,146 ========================================= Net loss per share $ (0.91) $ (1.13) $ (0.77) ----------------------------------------- Calculation of shares outstanding for computing pro forma net loss per share: Shares used in computing net loss per share 3,568,767 3,611,181 7,286,146 Adjustment to reflect the effect of the assumed conversion of convertible preferred stock from the date of issuance 1,726,297 1,530,770 0 ----------------------------------------- Total shares outstanding for pro forma net loss per share 5,295,064 5,141,951 7,286,146 ========================================= Pro forma net loss per share $ (0.62) $ (0.80) $ (0.77) ========================================= 69