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**Exhibit      11**

**Nano-Proprietary,      Inc.**

**Computation      of Income (Loss) Per Share**

|                                                                   |   | Three                Months ended Sept. 30, |       | Nine                Months ended Sept. 30, |   |
|------------------------------------------------------------------------|--------|---------------------------------------------|------------|--------------------------------------------|--------|
|                                                                   |   | 2005                                        |       | 2004                                       |   | 2005 |   | 2004 |   |
|                                                                   |   |                                        |       |                                       |   |   |   |   |   |
| Computation                of loss per common share:                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                   Net loss applicable to common  shares |   | $                                           | (1,005,078 | )                                          | $      | (1,100,534 | ) | $ | (3,448,451 | ) | $ | (3,475,704 | ) |
|                                                                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                   Weighted average number of common shares   |   |                                        | 99,179,808 |                                       |   | 96,800,352 |   |   | 98,729,768 |   |   | 96,450,666 |   |
|                                                                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                   Net income (loss) per common share         |   | $                                           | (0.01      | )                                          | $      | (0.01 | ) | $ | (0.03 | ) | $ | (0.04 | ) |
|                                                                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
| Computation                of income ( loss ) per common               |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                   share assuming full dilution**             |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                        |            |                                       |   |  |   |   |  |   |   |  |   |