----

**Exhibit        11**

**Nano-Proprietary,        Inc.**

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

|                                                                     |   | Three                  Months ended June. 30, |        | Six                  Months ended June. 30, |   |
|--------------------------------------------------------------------------|--------|-----------------------------------------------|-------------|---------------------------------------------|--------|
|                                                                     |   | 2006                                          |        | 2005                                        |   | 2006 |   | 2005 |   |
|                                                                     |   |                                          |        |                                        |   |   |   |   |   |
| Computation                  of loss per common share:                   |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                                                                     |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                     Net loss applicable to common  shares |   | $                                             | (1,385,583  | )                                           | $      | (1,376,209 | ) | $ | (3,179,749 | ) | $ | (2,741,403 | ) |
|                                                                     |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                     Weighted average number of common shares   |   |                                          | 101,511,825 |                                        |   | 99,081,410 |   |   | 100,265,915 |   |   | 98,501,019 |   |
|                                                                     |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                     Net income (loss) per common share         |   | $                                             | (0.01       | )                                           | $      | (0.01 | ) | $ | (0.03 | ) | $ | (0.03 | ) |
|                                                                     |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                                                                     |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
| Computation                  of income ( loss ) per common               |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                     share assuming full dilution**             |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                                                                     |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |
|                                                                     |   |                                          |             |                                        |   |  |   |   |  |   |   |  |   |