Exhibit 11.1

THE MIDDLETON DOLL COMPANY AND SUBSIDIARIES
COMPUTATION OF NET LOSS PER COMMON SHARE

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2007		2006			2007			2006
Net income (loss)	$	360,183	$	(922,606	)	$	(1,235,422	)	$	(2,384,847	)
Determination of shares:
Weighted average common shares
outstanding (basic)		3,802,589		3,727,589			3,776,765			3,727,589
Assumed conversion of stock options		72,957		--			35,417			--
Weighted average common shares
outstanding (diluted)		3,875,546		3,727,589			3,812,182			3,727,589
Basic income (loss) per share	$	0.09	$	(0.25	)	$	(0.33	)	$	(0.64	)
Diluted income (loss) per share	$	0.09	$	(0.25	)	$	(0.32	)	$	(0.64	)