**EXHIBIT NO. 11**

 

**ROTARY POWER INTERNATIONAL, INC.**

**COMPUTATION OF INCOME (LOSS) PER COMMON SHARE**

 

 

 

 
|                                                                                                      |   | **Twelve Months Ended  December 31,** |       |
|-----------------------------------------------------------------------------------------------------------|--------|---------------------------------------|------------|
|                                                                                                      |   | **2001**                              |       | **2000** |   |
| BASIC                                                                                                     |   |                                  |       |   |   |
|                                                                                                      |   |                                  |       |   |   |
| Shares outstanding,  beginning of period                                                                  |   | 11,482,855                            |       | 6,212,855 |   |
|                                                                                                      |   |                                  |       |   |   |
| Weighted average number  of shares issued, retired and issuable share equivalents                         |   | 5,171,083                             |       | 2,408,100 |   |
|                                                                                                      |   |                                  |       |   |   |
| Weighted average number  of common and common equivalent shares outstanding                               |   | 16,653,938                            |       | 8,620,955 |   |
|                                                                                                      |   |                                  |       |   |   |
| Loss before extraordinary  items                                                                          |   | $                                     | (2,324,210 | ) | $ | (2,184,230 | ) |
| Net income (loss)                                                                                         |   | $                                     | 1,161,263  |   | $ | (2,184,230 | ) |
|                                                                                                      |   |                                  |       |   |   |
| Loss before extraordinary  items per common share                                                         |   | $                                     | (0.14      | ) |   |   |
| Net income (loss) per  common share                                                                       |   | $                                     | 0.07       |   | $ | (0.25 | ) |
|                                                                                                      |   |                                  |       |   |   |
| DILUTED                                                                                                   |   |                                  |       |   |   |
| Weighted average number  of common and common equivalent shares outstanding as adjusted to full  dilution |   | 18,504,727                            |       | 10,493,086 |   |
|                                                                                                      |   |                                  |       |   |   |
| Loss before extraordinary  items                                                                          |   | $                                     | (2,324,210 | ) | $ | (2,184,230 | ) |
| Net income (loss)                                                                                         |   | $                                     | 1,161,263  |   | $ | (2,184,230 | ) |
|                                                                                                      |   |                                  |       |   |   |
| Loss before extraordinary  items per common share                                                         |   | $                                     | (0.13      | )* |   |   |
| Net income (loss) per  common share                                                                       |   | $                                     | 0.06       |   | $ | (0.21 | )* |

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*Thecalculations are submitted in accordance with SEC requirements, although theyare not in accordance with FAS No. 128 because they are anti-dilutive.

 

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