EX-11.1 3 dex111.txt COMPUTATION OF PER SHARE EARNINGS Exhibit 11.1
Net Income (Loss) Per Common Share: Diluted Quarter Ended 9/30/02 ------------------ 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 ------------------ $ 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 ------------------ Adjusted weighted-average shares for third quarter of 2002. 64,597,902 ------------------ Net Income (Loss) Per Common Share $ 0.00 ------------------ Total Options outstanding at 9/30/02: Vested and Non-Vested 7,153,500 --------------------------------------------------------------------------------------------------- Options with exercise price (less than) $0.07 370,000 ------------------ Anti-Dilutive Options 6,783,500 Total Warrants outstanding at 9/30/02: Vested and non-vested 3,303,553 --------------------------------------------------------------------------------------------------- Warrants with exercise price (less than) $0.07 500,000 ------------------ Anti-Dilutive Warrants 2,803,553 Treasury Stock Method: Options ------------------------------- 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 ------------------ Proceeds received by company $ 18,500 Treasury stock method assumes: Company repurchases stock at average price for quarter $ 0.07 ------------------ Shares repurchased by Company 264,285 Treasury Stock Method: Warrants -------------------------------- 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 ------------------ Proceeds received by company $ 25,000 Treasury stock method assumes: Company repurcahses stock @ avg price for quarter $ 0.07 ------------------ Shares repurchased by Company 357,142 Incremental Shares: Options 105,714 Incremental Shares: Warrants 142,857 ------------------ Total 248,571