TELKONET, INC COMPUTATION OF LOSSES PER COMMON AND COMMON EQUIVALENT SHARES FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999 2000 1999 ------------ ---------- Shares outstanding at beginning of period - - Weighted average of common shares issued during the period 21,815,371 - ------------ ---------- Weighted average of common shares outstanding during the period 20,841,349 - Stock options and warrants outstanding - - Shares used in computing earnings per common share 20,841,349 - Loss per common share ($(929,720)/20,841,349) $ .04 ============ Loss per common share ($(33,973)/0) $ (.00) ========== E-1