<PAGE>
EX 11.1
COMPUTATION OF NET INCOME (LOSS) PER SHARE
IMAGINON, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME (LOSS) PER SHARE
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30
-------------------------- -------------------------
<S> <C> <C> <C> <C>
2000 1999 2000 1999
----------- ----------- ----------- -----------
Net loss $(1,887,225) $(1,633,021) $(6,188,378) $(4,854,090)
Amortization of discount on preferred stock (127,659) (1,209,929)
Series F preferred stock dividend (36,667)
Series F preferred stock redemption
premium (200,000)
----------- ----------- ----------- -----------
Net loss applicable to common
shareholders $(1,887,225) $(1,760,680) $(6,425,045) $(6,064,019)
=========== =========== =========== ===========
Weighted average number of common
shares outstanding 44,677,116 41,186,568 44,625,154 37,786,268
Common equivalent shares representing
shares issuable upon exercise of
outstanding options and warrants and
conversion of preferred stock -*- -*- -*- -*-
----------- ----------- ----------- -----------
Basic and diluted loss per common share $(.04) $ (0.04) $ (.14) $ (.16)
=========== =========== =========== ===========
</TABLE>
* No impact to weighted average number of shares as the inclusion of additional
shares assuming the exercise of outstanding options and warrants and conversion
of preferred stock would have been antidilutive.
Diluted and supplementary net loss per share are not presented as the amounts
are not dilutively or incrementally different from basic net loss per share
amounts.
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