<PAGE>
 
                                                                      EXHIBIT 11
                                                                                
                       COMPUTATION OF NET LOSS PER SHARE

<TABLE>
<CAPTION>
                                                                 YEAR ENDED DECEMBER 31,                                   
                                                             -------------------------------
                                                                 1998               1997                                  
                                                             ------------       ------------                                 
<S>                                                          <C>                <C>                                          
NET LOSS PER SHARE                                                                                                               
 Loss from Operations applicable to                                                                                              
             Common Stock                                    $(1,915,461)        $(2,578,448)                                      
                                                             ===========         ===========                                       
                                                                                                                                   
 Weighted Average Common and                                                                                                       
   Equivalent Shares Outstanding                               3,728,594           3,660,609                                       
                                                             -----------         -----------                                       
Net Loss Per Share                                           $     (0.51)        $     (0.70)                                      
                                                             ===========         ===========                                       
NET LOSS PER SHARE - ASSUMING DILUTION                                                                                             
 Loss from Operations applicable to                                                                                                
             Common Stock                                    $(1,915,461)        $(2,578,448)                                      
                                                             ===========         ===========                                       
 Weighted Average Common and                                                                                                       
   Equivalent Shares Outstanding                               3,728,594           3,660,609                                       
 Add:   (A)  Assuming Exercise of Stock Options                  119,737              50,495                                       
        (B)  Assuming Exercise of Warrants                        42,745              57,352                                       
                                                             -----------         -----------                                       
 Weighted Average Common Shares                                                                                                    
        Outstanding - As Adjusted                              3,891,076           3,768,456                                       
                                                             ===========         ===========                                       
Net Loss Per Share - Assuming Dilution                       $     (0.49)        $     (0.68)                                      
                                                             ===========         ===========                                       
</TABLE>
                                                                                
NOTE:

The calculation for Net Loss Per Common Share - Assuming Dilution is submitted
in accordance with Securities Exchange Act of 1934 Release No. 9083 although not
required by Financial Accounting Standards Board No. 128 "Earnings Per Share"
("FASB 128") since the results are anti-dilutive.

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<PAGE>
 
                  COMPUTATION OF NET LOSS PER SHARE, CONTINUED
                                        

NOTE (CONTINUED):

(A) - For the dilutive options (i.e., the average market price is greater than
the exercise price), assume that options are exercised and proceeds realized as
indicated below. Next, using the treasury stock method with the average market
price per share during each period and the total shares assumed to be reacquired
as of the beginning of each period, the additional shares included as
outstanding are indicated below.

<TABLE>
<CAPTION>
                                                            YEAR ENDED DECEMBER 31,                         
                                                          1998                    1997                      
                                                   ------------------    ------------------             
<S>                                                <C>                   <C>                                
Options assumed exercised                                179,550               194,863                         
Proceeds assumed realized                               $334,353            $1,183,819                         
Shares assumed reacquired:                                                                                     
- During 1998 ($334,353/$5.59)                            59,813                                               
- During 1997 ($1,183,819/$8.20)                                               144,368                         
Net additional shares assumed outstanding                119,737                50,495                          
</TABLE>

(B) - For the dilutive warrants (i.e., the average market price is greater than
the exercise price), assume that warrants are exercised and proceeds realized as
indicated below. Next, using the treasury stock method with the average market
price per share during each period and the total shares assumed to be reacquired
as of the beginning of each period, the additional shares included as
outstanding are indicated below.

<TABLE>
<CAPTION>
                                                       YEAR ENDED DECEMBER 31,
                                                     1998                   1997
                                                  -----------            -------------          
<S>                                               <C>                    <C>
Warrants assumed exercised                          115,661                 97,389                      
Proceeds assumed realized                          $407,600               $328,300                      
Shares assumed reacquired:                                                                              
- During 1998 ($407,600/$5.59)                       72,916                                             
- During 1997 ($328,300/$8.20)                                              40,037                      
Net additional shares assumed outstanding            42,745                 57,352                       
</TABLE>

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