Exhibit 11.1
Net Income (Loss) Per Common Share: Diluted
Quarter Ended
9/30/02
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Income available to common stockholders: Third quarter of 2002 91,320
Add: Interest for quarter 3 of 2002 on $243,000 note payable 6,352
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$ 97,672
Weighted average shares at 9/30/02 17,660,111
Convertible Preferred stock (1 to 20 ratio. 2,085,461 shares outstanding at 9/30/02) 41,709,220
NP convertible to preferred stock, which is then convertible to common stock):
$243,000 convertible to 243,000 shares of preferred stock: convertible to common stock
at a ratio of 1 to 20 ratio. 4,860,000
Options cancelled during third quarter 2002 120,000
Plus: Incremental shares from assumed coversions: Options/Warrants 248,571
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Adjusted weighted-average shares for third quarter of 2002. 64,597,902
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Net Income (Loss) Per Common Share $ 0.00
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Total Options outstanding at 9/30/02: Vested and Non-Vested 7,153,500
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Options with exercise price (less than) $0.07 370,000
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Anti-Dilutive Options 6,783,500
Total Warrants outstanding at 9/30/02: Vested and non-vested 3,303,553
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Warrants with exercise price (less than) $0.07 500,000
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Anti-Dilutive Warrants 2,803,553
Treasury Stock Method: Options
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Options outstanding at 9/30/02, with exercise price (less than) average price for 2002 quarter 3 370,000
Exercise price of options $ 0.05
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Proceeds received by company $ 18,500
Treasury stock method assumes:
Company repurchases stock at average price for quarter $ 0.07
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Shares repurchased by Company 264,285
Treasury Stock Method: Warrants
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Warrants outstanding at 9/30/02, with exercise price (less than) average price for 2002 quarter 3 500,000
Exercise price of warrants 0.05
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Proceeds received by company $ 25,000
Treasury stock method assumes:
Company repurcahses stock @ avg price for quarter $ 0.07
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Shares repurchased by Company 357,142
Incremental Shares: Options 105,714
Incremental Shares: Warrants 142,857
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Total 248,571