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**Exhibit      11**

**Nano-Proprietary,      Inc.**

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

|                                                                   |   | Three                Months ended June 30, |        | Six                Months ended June. 30, |   |
|------------------------------------------------------------------------|--------|--------------------------------------------|-------------|-------------------------------------------|--------|
|                                                                   |   | 2007                                       |        | 2006                                      |   | 2007 |   | 2006 |   |
|                                                                   |   |                                       |        |                                      |   |   |   |   |   |
| Computation                of loss per common share:                   |   |                                       |        |                                      |   |   |   |   |   |
|                                                                   |   |                                       |        |                                      |   |   |   |   |   |
|                   Net loss applicable to common  shares |   | $                                          | (1,229,787  | )                                         | $      | (1,385,583 | ) | $ | (2,575,674 | ) | $ | (3,179,749 | ) |
|                                                                   |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |
|                   Weighted average number of common shares   |   |                                       | 106,608,465 |                                      |   | 101,511,825 |   |   | 105,455,375 |   |   | 100,265,915 |   |
|                                                                   |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |
|                   Net income (loss) per common share         |   | $                                          | (0.01       | )                                         | $      | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) |
|                                                                   |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |
| Computation                of income ( loss ) per common               |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |
|                   share assuming full dilution**             |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |
|                                                                   |   |                                       |             |                                      |   |  |   |   |  |   |   |  |   |