<PAGE>
SURGE COMPONENTS, INC. AND SUBSIDIARIES
EXHIBIT II
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION>
Six Months Ended Year Ended
May 31 November 30,
2000 1999 1999 1998
------ ------ ------ ------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Basic earnings:
Net income (loss) $1,277,455 $ (163,317) $ 85,064 $ (274,166)
---------- ------------ ---------- ----------
Shares:
Weighted common shares outstanding 4,931,374 4,857,084 4,858,024 4,836,835
Convertible notes -- -- -- --
Employee's stock options -- -- -- --
---------- ------------ ---------- ----------
Total weighted shares outstanding 4,931,374 4,857,084 4,858,024 4,836,835
---------- ------------ ---------- ----------
Basic earnings (loss) per common share $ .26 $ (.03) $ .02 $ (.06)
========== ============ ========== ==========
Diluted earnings:
Net income (loss) $1,277,455 $ (163,317) $ 85,064 $ (274,166)
---------- ------------ ---------- ----------
Shares:
Weighted common shares outstanding 4,931,374 4,857,084 4,858,024 4,836,835
Convertible notes 882,826 -- -- --
Employee stock options 1,902,110 - 1,018,444 --
---------- ------------ ---------- ----------
Total weighted shares outstanding 7,716,310 4,857,084 5,876,468 4,836,835
---------- ------------ ---------- ----------
Diluted earnings (loss) per common share $ .17 $ (.03) $ .01 $ (.06)
========== ============ ========== ==========
</TABLE>