1ST NET TECHNOLOGIES, INC.
AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
--------------------------
DECEMBER 31, DECEMBER 31,
1999 1998
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<S> <C> <C>
Net Income............................................ $(1,525,313) $ (286,076)
Weighted Average Number of common shares
outstanding......................................... 4,633,350 3,165,500
Incremental Shares for Computing fully diluted
earnings per share.................................. 515,000 5,000
Total Number of Shares for Computing fully diluted
earnings per share.................................. 5,148,350 3,170,500
Primary Earnings Per Share............................ $ (.33) $ (0.090)
Diluted Earnings Per Share............................ $ (.33) $ (0.090)
</TABLE>
In February 1997, the FASB issued Statement of Financial Accounting
Standard No. 128, "Earnings Per Share" (SFAS 128). SFAS 128 specifies the
computation, presentation, and disclosure requirements of earnings per share
and supersedes Accounting Principles Board Opinion 5, "Earnings Per Share".
SFAS 128 requires dual presentation of basic and, where applicable, diluted
earnings per share. Basic earnings per share, which excludes the impact of
common stock equivalents, replaces primary earnings per share. Diluted
earnings per share which utilizes the average market price per share or ending
market price per share when applying the treasury stock method in determining
common stock equivalents, replaces fully-diluted earnings per share. SFAS 128
is effective for the Company in 1999 and 1998. In the years ended December
31, 1999, and 1998, this adoption of SFAS 128 has not been presented in the
presentation of Diluted earnings per share for those periods, due to the anti-
dilutive effect of losses in both periods. Basic earnings per share have been
computed using the weighted average number of common shares and common share
equivalents outstanding.
