<PAGE>   1
                                                                    Exhibit 11.1

           Computation of Basic and Diluted Earnings Per Common Share

EARNINGS
<TABLE>
<CAPTION>
                                                       Three Months Ended             Nine Months Ended
                                                     12/31/96      12/31/97        12/31/96        12/31/97
                                                   ---------       ---------       ---------       --------- 
<S>                                                <C>             <C>             <C>             <C>      
Net (Loss) Income                                  $(270,850)      $  63,320       $(346,805)      $  18,629
Series A Preferred Stock Dividends                     -               -             (91,542)          - 
Series B Preferred Stock Dividends                     -               -            (232,333)        (67,066) 
Series B Preferred Stock Dividends in arrears       (116,166)        (67,066)        (116,166)       (134,132)
                                                   ---------       ---------       ---------       ---------
 
Pro Forma Loss Applicable to Common Stock          $(387,016)      $  (3,746)      $(786,846)      $(182,569)
</TABLE>


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<TABLE>
<CAPTION>

SHARES
<S>                                             <C>            <C>              <C>            <C>       
Weighted Average Common Shares for the
  period ended                                  8,053,369      16,577,098       8,044,967      13,286,233

Additional Shares Assuming Conversion of:
  Employee Options Exercised
                                                        0               0               0               0
                                                ---------      ----------       ---------      ----------
Pro Forma Shares for Basic Earnings
  Per Common Share                              8,053,369      16,577,098       8,044,967      13,286,233
                                                ---------      ----------       ---------      ----------
Additional Shares Assuming Conversion of:
  Preferred Stock
                                                        0               0               0               0
                                                ---------      ----------       ---------      ----------
Pro Forma Shares for Diluted Earnings
  Per Common Share                              8,053,369      16,577,098       8,044,967      13,286,233
                                                =========      ==========       =========      ==========
</TABLE>



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<TABLE>
<CAPTION>

<S>                                                <C>     <C>    <C>     <C>    <C>     <C>   <C>     <C> 
Basic Earnings Per Common Share                    $(      .05)   $(      .00)   $(      .10)  $(      .01)
Diluted Earnings Per Share                        *$(      .05)  *$(      .00)  *$(      .10) *$(      .01)
</TABLE>

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*    Common Stock Equivalents Have an Anti-Dilutive Effect on Earnings Per Share
     and are Excluded From This Exhibit.