**EXHIBIT 11**

 

# **GATEWAYENERGY CORPORATION & SUBSIDIARIES**

 

**STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS**

 
|                                                                                                                            |   | **Three Months Ended  September 30,**** ** |     | **Nine Months Ended  September 30,**** ** |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|----------|-----------------------------------------------------|--------|
|                                                                                                                            |   | **2003**                                             |     | **2002**                                            |   | **2003** |   | **2002** |   |
| Weighted average number of common shares outstanding                                                                            |   | 15,426,317                                           |     | 15,426,318                                          |   | 15,426,317 |   | 15,385,234 |   |
|                                                                                                                            |   |                                                 |     |                                                |   |   |   |   |   |
| Add shares issuable pursuant to common stock  options/warrants less shares assumed repurchased at the average market price  (1) |   | 67,612                                               |     | —                                              |   | 36,624 |   | 13,283 |   |
|                                                                                                                            |   |                                                 |     |                                                |   |   |   |   |   |
| Tentative numer of shares for computation of fully  diluted earnings per share                                                  |   | 15,493,929                                           |     | 15,426,318                                          |   | 15,462,941 |   | 15,398,517 |   |
|                                                                                                                            |   |                                                 |     |                                                |   |   |   |   |   |
| Loss from continuing operations                                                                                                 |   | $                                                    | (216,202 | )                                                   | $      | (199,964 | ) | $ | (722,830 | ) | $ | (840,449 | ) |
| Discontinued operations                                                                                                         |   | —                                               |     | 70,314                                              |   | — |   | 86,611 |   |
| Loss before cumulative effect of change in  accounting principal                                                                |   | $                                                    | (216,202 | )                                                   | $      | (129,650 | ) | $ | (722,830 | ) | $ | (753,838 | ) |
| Cumulative effect of change in accounting  principal                                                                            |   | —                                               |     | —                                              |   | (105,777 | ) | — |   |
| Net (loss)                                                                                                                      |   | $                                                    | (216,202 | )                                                   | $      | (129,650 | ) | $ | (828,607 | ) | $ | (753,838 | ) |
|                                                                                                                            |   |                                                 |     |                                                |   |   |   |   |   |
| Basic and diluted loss per common share:                                                                                        |   |                                                 |     |                                                |   |   |   |   |   |
| Continuing operations                                                                                                           |   | $                                                    | (0.01    | )                                                   | $      | (0.01 | ) | $ | (0.05 | ) | $ | (0.05 | ) |
| Discontinued operations                                                                                                         |   | —                                               |     | —                                              |   | — |   | — |   |
| Cumulative effect of change on accounting  principal                                                                            |   | —                                               |     | —                                              |   | — |   | — |   |
| Net loss                                                                                                                        |   | $                                                    | (0.01    | )                                                   | $      | (0.01 | ) | $ | (0.05 | ) | $ | (0.05 | ) |

 

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(1)          These figures are not used in the diluted earnings per sharecalculations as their effect would be anti-dilutive.

 

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