**EXHIBIT 11**

 

# **GATEWAYENERGY CORPORATION & SUBSIDIARIES**

#  

**STATEMENTREGARDING COMPUTATION OF PER SHARE EARNINGS**

 
| ** **                                                                                                                      | ** ** | **Three Months Ended  September 30,** | ** ** | **Nine Months Ended  September 30,** | ** ** |
|---------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------|------------|-------------------------------------------|------------|
| ** **                                                                                                                      | ** ** | **2004**                                   | ** ** | **2003**                                  | ** ** | **2004** | ** ** | **2003** | ** ** |
| Weighted  average number of common shares outstanding                                                                           |       | 15,778,349                                 |       | 15,426,317                                |       | 15,726,615 |   | 15,426,317 |   |
|                                                                                                                            |       |                                       |       |                                      |       |   |   |   |   |
| Add shares  issuable pursuant to common stock options/warrants less shares assumed  repurchased at the average market price (1) |       | —                                     |       | 67,612                                    |       | 20,571 |   | 36,624 |   |
|                                                                                                                            |       |                                       |       |                                      |       |   |   |   |   |
| Tentative  numer of shares for computation of fully diluted earnings per share                                                  |       | 15,778,349                                 |       | 15,493,929                                |       | 15,747,186 |   | 15,462,941 |   |
|                                                                                                                            |       |                                       |       |                                      |       |   |   |   |   |
| Loss from  continuing operations                                                                                                |       | $                                          | (151,065   | )                                         | $          | (216,202 | ) | $ | (552,678 | ) | $ | (722,830 | ) |
| Discontinued  operations – gain on sale of properties                                                                      |       | —                                     |       | —                                    |       | 42,480 |   | — |   |
| Loss before  cumulative effect of change in accounting principle                                                                |       | $                                          | (151,065   | )                                         | $          | (216,202 | ) | $ | (510,198 | ) | $ | (722,830 | ) |
| Cumulative  effect of change in accounting principle                                                                            |       | —                                     |       | —                                    |       | — |   | (105,777 | ) |
| Net loss                                                                                                                        |       | $                                          | (151,065   | )                                         | $          | (216,202 | ) | $ | (510,198 | ) | $ | (828,607 | ) |
|                                                                                                                            |       |                                       |       |                                      |       |   |   |   |   |
| Basic and  diluted loss per common share:                                                                                       |       |                                       |       |                                      |       |   |   |   |   |
| Continuing  operations                                                                                                          |       | $                                          | (0.01      | )                                         | $          | (0.01 | ) | $ | (0.03 | ) | $ | (0.04 | ) |
| Discontinued  operations                                                                                                        |       | —                                     |       | —                                    |       | — |   | — |   |
| Cumulative  effect of change in accounting principle                                                                            |       | —                                     |       | —                                    |       | — |   | (0.01 | ) |
| Net loss                                                                                                                        |       | $                                          | (0.01      | )                                         | $          | (0.01 | ) | $ | (0.03 | ) | $ | (0.05 | ) |

 

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(1)               These figures are not used in the dilutedearnings per share calculations as their effect would be antidilutive.

 

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