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**Exhibit      11**

**Nano-Proprietary,      Inc.**

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

|                                                                   |   | Nine                Months ended Sept. 30, |        |   | Nine                Months ended Sept. 30, |   |
|------------------------------------------------------------------------|--------|--------------------------------------------|-------------|--------|--------------------------------------------|--------|
|                                                                   |   | 2007                                       |        |   | 2006                                       |   |   | 2007 |   |   | 2006 |   |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |
| Computation                of loss per common share:                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |
|                   Net loss applicable to common  shares |   | $                                          | (759,910    | )      |                                       | $      | (1,931,038 | ) |   | $ | (3,335,584 | ) |   | $ | (5,110,787 | ) |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                   Weighted average number of common shares   |   |                                       | 107,173,060 |   |                                       |   | 101,862,093 |   |   |   | 106,034,229 |   |   |   | 100,469,473 |   |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                   Net income (loss) per common share         |   | $                                          | (0.01       | )      |                                       | $      | (0.02 | ) |   | $ | (0.03 | ) |   | $ | (0.05 | ) |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
| Computation                of income ( loss ) per common               |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                   share assuming full dilution**             |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                                                   |   |                                       |        |   |                                       |   |   |   |   |   |   |   |   |   |   |   |