Gateway Energy Corporation & Subsidiaries

**Exhibit 11**

**Statement Regarding Computation of Per Share Earnings**

 

 
|                                                                                                                        |   | **Three  Months Ended**

**September 30,** |    | **Nine Months Ended**

**September 30,** |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|------------------------------------------|--------|
|                                                                                                                        |   |                                       |    |
|                                                                                                                        |   | **2001**                                   |    | **2000**                                 |   | **2001** |   | **2000** | ** ** |
|                                                                                                                        |   |                                       |    |                                     |   |   |   |   |   |
| Weighted average number of common  shares outstanding                                                                       |   | 15,358,640                                 |    | 15,312,172                               |   | 15,331,891 |   | 15,312,195 |   |
|                                                                                                                        |   |                                       |    |                                     |   |   |   |   |   |
| Add shares issuable  pursuant to common stock options/warrants less shares assumed repurchased at  the average market price |   | 107,220                                    |    | 2,300                                    | (1)    | 95,338 | (1) | - | (1) |
|                                                                                                                        |   |                                       |    |                                     |   |   |   |   |   |
| Tentative number of shares  for computation of fully diluted earnings per share                                             |   | 15,465,860                                 |    | 15,314,472                               |   | 15,427,229 |   | 15,312,195 |   |
|                                                                                                                        |   |                                       |    |                                     |   |   |   |   |   |
| Income (loss) applicable to  common stock                                                                                   |   | $                                          | 115,442 |                                     | $      | (103,922 | ) | $ | (443,183 | ) | $ | (755,172 | ) |
|                                                                                                                        |   |                                       |    |                                     |   |   |   |   |   |
| Basic income (loss) per  common share                                                                                       |   | $                                          | 0.01    |                                     | $      | (0.01 | ) | $ | (0.03 | ) | $ | (0.05 | ) |
|                                                                                                                        |   |                                       |    |                                     |   |   |   |   |   |
| Fully diluted income (loss)  per common share                                                                               |   | $                                          | 0.01    |                                     | $      | (0.01 | ) | $ | (0.03 | ) | $ | (0.05 | ) |

 

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(1) Not used in fully diluted earnings per sharecalculations as effect would be anti-dilutive.