EXHIBIT 11
COMPUTATION OF EARNINGS PER COMMON SHARE
THREE MONTHS NINE MONTHS
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9/30/97 9/30/96 9/30/97 9/30/96
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PRIMARY
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Net earnings applicable to common stock:
Net earnings/(loss)....................................... $ 174,325 $ 454,261 $ (109,169) $ 913,002
Deduct preferred stock dividends paid..................... (31,830) (31,830) (95,490) (95,490)
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Net earnings/(loss) applicable to common stock................ $ 142,495 $ 422,431 $ (204,659) $ 817,512
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Weighted average number of common shares and common
equivalents outstanding:
Weighted average common shares outstanding................ 5,082,101 4,036,619 4,943,591 3,509,115
Additional shares assuming conversion of options and
warrants................................................ 336,587 407,153 482,175
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Weighted average number of common shares and common
equivalents outstanding................................. 5,418,688 4,443,772 4,943,591 3,991,290
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Primary earnings/(loss) per share............................. $ 0.03 $ 0.10 $ (0.04) $ 0.21
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FULLY DILUTED*
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Net earnings applicable to common stock on a fully diluted
basis:
Net earnings applicable to common stock per above......... $ 142,495 $ 422,431 $ 817,512
Add net interest expense related to convertible
debentures.............................................. 84,375 76,464 15,464
Add dividends on convertible preferred stock.................. 31,830 31,830 95,490
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Net earnings applicable to common stock on a fully diluted
basis....................................................... $ 258,700 $ 530,725 $ 928,466
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Total shares for fully diluted:
Shares used in calculating primary earnings per share..... 5,418,688 4,443,772 3,991,290
Additional shares to be issued under full dilution using
ending market price..................................... 825 -- --
Additional shares to be issued under full conversion of
convertible debentures.................................. 1,000,000 931,111 703,704
Additional shares to be issued under full conversion of
preferred stock......................................... 294,723 294,723 294,723
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Total shares for fully diluted............................ 6,714,236 5,669,604 4,989,717
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Fully diluted earnings per share.............................. $ 0.04 $ 0.09 $ 0.19
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* This calculation is submitted in accordance with Securities Exchange Act of
1934 Release No. 9083, although not required by footnote 8, paragraph 40, of
APB No. 15 because it results in anti-dilution. In addition, common
equivalent shares are not considered in the computation of earnings per
common share for March 31, 1997, as the impact would be antidilutive.