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SPATIALIZER AUDIO LABORATORIES, INC.
EXHIBIT 11.1 COMPUTATION OF LOSS PER COMMON SHARE
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
Ended Ended Ended Ended
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996
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PRIMARY EARNINGS PER COMMON SHARE:
Weighted Average Common Shares 20,806,429 18,067,477 20,202,341 17,816,232
Weighted Average Escrowed Performance Shares(1) (5,776,700) (5,776,700)
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Adjusted Weighted Average Common Shares 20,806,429 12,290,777 20,202,341 12,039,532
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Net Loss for Period (1,171,005) (1,774,506) (2,197,842) (2,528,900)
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Primary Loss Per Share (0.06) (0.14) (0.11) (0.21)
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FULLY DILUTED EARNINGS PER COMMON SHARE:
Adjusted Weighted Average Common Shares 20,806,429 12,290,777 20,202,341 12,039,532
Weighted Average Escrowed Performance Shares(1) 0 5,776,700 0 5,776,700
Shares to be issued on Option Exercise(2) 1,298,506 768,696 1,393,388 769,696
Shares to be issued on Warrant Exercise(2) 1,714 83,628 156,236 83,629
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Fully Diluted Weighted Average Common Shares 22,106,649 18,920,802 21,751,965 18,669,557
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Net Loss for Period (from above) (1,171,005) (1,774,508) (2,197,842) (2,528,900)
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Fully Diluted Loss Per Share (0.05) (0.09) (0.10) (0.14)
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(1) Escrowed performance shares were excluded from the
determination of primary loss per share until conditions for
release were met on December 30, 1996 at which time they
were released.
(2) Outstanding options and warrants to purchase common shares
have not been included in the calculation of primary loss
per share as the effect of including such securities would
be antidilutive. For purposes of computing the fully diluted
loss per share, the treasury stock method has been used and
the shares have been treated as outstanding for the entire
period.