ATOMIC BURRITO, INC. COMPUTATION OF EARNINGS PER SHARE (UNAUDITED) Three Months Ended March 31 2000 1999 ------------ ----------- BASIC EARNINGS PER SHARE: Net income $ (135,329) $ 161,797 Dividends on preferred stock - (3,204) ------------ ------------ Net income applicable to common stock $ (135,329) $ 158,593 ============ ============ Shares used in computing basic earnings per share 4,277,313 3,734,721 ============ ============ Basic earnings per common share $ (.03) $ 0.042 ============ ============ DILUTED EARNINGS PER SHARE: Net income $ N/A $ 161,797 ============ ============ Shares used in computing basic earnings per share * 3,734,721 Effect of shares issuable under conversion of preferred stock * 49,422 Effect of shares issuable under common stock warrants under treasury stock method * 94,160 Effect of shares issuable under common stock options using treasury stock method * 63,552 ------------ ----------- Shares used in computing diluted earnings per share * - ------------ ----------- Diluted earnings per common share $ N/A $ .03 ============ =========== * Anti-dilutive