Edgar Filing: ALTERNATE ENERGY CORP

UNITED STATES

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

———————

FORM 10-Q

———————


ü	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934
For the quarterly period ended: June 30, 2008
or

	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
	ACT OF 1934
For the transition period from: _____________ to _____________

Commission File Number: 000-28015

———————

ALTERNATE ENERGY CORP.

(Exact name of registrant as specified in its charter)

———————


Nevada	86-0884116
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

3325 North Service Rd, Suite 105

Burlington, Ontario

Canada L7N 3G2

(Address of Principal Executive Office) (Zip Code)

905.332.3110

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

———————


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.			ü	Yes		No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer		Accelerated filer
Non-accelerated filer	(Do not check if a smaller	Smaller reporting company			ü
	reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
				Yes	ü	No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of September 4, 2008, there were 329,539,948 shares of Common Stock outstanding.

ALTERNATE ENERGY CORP.

(A Development Stage Company)

QUARTERLY REPORT ON FORM 10-Q
FOR THE FISCAL QUARTER ENDED JUNE 30, 2008

INDEX


PART I - FINANCIAL INFORMATION
		Page
Item 1	Consolidated Balance Sheets as of June 30, 2008, and December 31, 2007 (Unaudited)	1
	Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2008 and 2007 “Restated” and the period from May 23, 2003 (inception) through June 30. 2008 “Restated”(Unaudited)	2
	Consolidated Statement of Stockholders’ Deficit for the Six Months Ended June 30, 2008 and 2007 “Restated” and the period from May 23, 2003 (inception) through June 30. 2008 (Unaudited)	3
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2008 and 2007 “Restated” (Unaudited)	4
	Notes to the Unaudited Consolidated Financial Statements	5
Item 2	Management's Discussion and Analysis or Plan of Operation	11
Item 3	Quantitative and Qualitative Disclosures about Market Risk	17
Item 4	Controls and Procedures	17

PART II - OTHER INFORMATION
Item 1	Legal Proceedings	18
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	18
Item 3	Defaults Upon Senior Securities	18
Item 4	Submission of Matters to a Vote of Security Holders	18
Item 5	Other Information	18
Item 6	Exhibits and Reports on Form 8-K	19

PART I

FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.


ALTERNATE ENERGY CORP. (A Development Stage Company) Consolidated Balance Sheets
	June 30, 2008 *Unaudited*			December 31, 2007
ASSETS
Current
Cash	$	4,122		$	30,908
Prepaid expenses and sundry assets		7,767			54,985
Marketable securities – restricted		39,273			28,529
		51,162			114,422
Other
Prepaid expenses and sundry assets		––			15,994
Property and equipment, net of accumulated amortization of $102,327 and $97,030 at June 30, 2008 and December 31, 2007, respectively		36,618			49,516
TOTAL ASSETS	$	87,780		$	179,932

LIABILITIES
Current
Accounts payable	$	144,653		$	292,569
Accrued liabilities		187,415			165,261
Due to directors and officers		322,333			706,521
Due to related parties		211,586			194,392
TOTAL LIABILITIES		865,987			1,358,743

STOCKHOLDERS’ DEFICIT
Capital stock: (par value $0.001) 327,614,948 and 148,134,019 issued and outstanding at June 30, 2008 and December 31, 2007, respectively		327,615			148,134
Additional paid in capital		32,646,810			30,383,725
Accumulated other comprehensive loss		(113,971	)		(141,889	)
Deficit accumulated during development stage		(33,638,661	)		(31,568,781	)
TOTAL STOCKHOLDERS’ DEFICIT		(778,207	)		(1,178,811	)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	87,780		$	179,932

{See accompanying notes to the financial statements.}


ALTERNATE ENERGY CORP.
(A Development Stage Company)
Consolidated Statements of Operations
(Unaudited)
	Three Months Ended June 30, 2008 (Unaudited)			Three Months Ended June 30, 2007 “Restated” (Unaudited)			Six Months Ended June 30, 2008 (Unaudited)			Six Months Ended June 30, 2007 “Restated” (Unaudited)			May 23, 2003 (Inception) To June 30, 2008 “Restated” (Unaudited)
REVENUE	$	––		$	––		$	––		$	––		$	––

EXPENSES
Administrative		16,276			48,898			85,456			112,647			1,732,668
Consulting fees		831,675			157,475			1,289,622			354,157			16,065,403
Professional fees		8,068			18,258			33,220			167,258			1,607,194
Research and development		99			100,744			62,538			164,294			756,949
Financing expense		15,219			9,795			33,850			17,919			679,500
Impairment of intangible assets		––			––			––			––			2,165,458
Management fee		––			––			––			––			240,000
Recovery of loan		––			––			––			––			(202,000	)
Depreciation		2,913			11,394			8,210			24,198			239,956
NET LOSS FROM OPERATIONS		(874,250	)		(346,564	)		(1,512,896	)		(840,473	)		(23,285,128	)

OTHER INCOME (EXPENSES)
Other income		301			––			3,950			––			19,333
Loss on sale of equipment		––			––			––			––			(65,235	)
Losses on settlements		(560,934	)		––			(560,934	)		––			(343,491	)
Gain on adjustment on derivative / warrant liability to fair value of underlying securities		––			––			––			––			907,912

NET LOSS FOR THE PERIOD	$	(1,434,883	)	$	(346,564	)	$	(2,069,880	)	$	(840,473	)	$	(22,766,609	)
COMPREHENSIVE LOSS
Gains/(losses) on foreign currency translation		(26,711	)		(30,254	)		17,174			57,251			(5,051	)
Unrealized gains/(losses) on investments		15,817			(7,200	)		10,744			(22,400	)		(108,920	)
TOTAL COMPREHENSIVE LOSS	$	(1,445,777	)	$	(384,018	)	$	(2,041,962	)	$	(805,622	)	$	(22,880,580	)

NET LOSS PER SHARE, BASIC AND DILUTED	$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.01	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING		178,645,732			139,269,217			165,379,576			137,378,931

{See accompanying notes to the financial statements.}


ALTERNATE ENERGY CORP. (A Development Stage Company) Consolidated Statement of Stockholders’ Deficit For the Six Months Ended June 30, 2008 (Unaudited)
					Additional		Accumulated Other Comprehensive			Deficit Accumulated During			Total
	Common Stock				Paid-in		Income			Development			Stockholders’
	Shares		Amount		Capital		(Loss)			Stage			Deficit
December 31, 2007		148,134,019		148,134		30,383,725		(141,889	)		(31,568,781	)		(1,178,811	)
Stock options issued for services		––		––		207,030		––			––			207,030
Modifications of options		––		––		58,826		––			––			58,826
Issue of shares for services		57,021,216		57,021		713,389		––			––			770,410
Issue of shares for cash		920,000		920		19,240		––			––			20,160
Stock options exercised for cash		100,000		100		150		––			––			250
Stock options exercised through reduction of note		14,572,500		14,573		39,358		––			––			53,931
Warrants issued for services		––		––		8,248		––			––			8,248
Issue of shares for note conversion - director		101,000,000		101,000		1,119,000		––			––			1,220,000
Issue of shares for note conversion – related party		700,000		700		7,000		––			––			7,700
Shares issued to settle trade payables		5,167,213		5,167		56,840		––			––			62,007
Unrealized gains on securities		––		––		––		10,744			––			10,744
Imputed interest on director note		––		––		34,004		––			––			34,004
Foreign currency translation/adjustment		––		––		––		17,174			––			17,174
Net loss		––		––		––		––			(2,069,880	)		(2,069,880	)
June 30, 2008 (Unaudited)		327,614,948	$	327,615	$	32,646,810	$	(113,971	)	$	(33,638,661	)	$	(778,207	)

{See accompanying notes to the financial statements.}


ALTERNATE ENERGY CORP. (A Development Stage Company) Consolidated Statements of Cash Flows *Unaudited*
Six months Ending June 30	2008			“Restated” 2007			May 23, 2003 (Inception) To June 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,069,880	)	$	(840,473	)	$	(22,766,609	)
Adjustments to reconcile net loss from operations to net cash used in operating activities:
Stock based expenses		1,044,515			426,490			14,889,549
Impairment of intangible assets		––			––			2,165,458
Depreciation and amortization		8,210			24,198			239,956
Accretion of principal related to convertible debt		––			––			494,715
Gain on derivatives related to warrants		––			––			(907,912	)
Loss on sale of marketable securities		––			––			143,130
Loss (Gain) on settlement		560,934			––			343,491
Loss on sale of equipment		––			––			65,235
Imputed interest		34,004			––			123,246
Changes in operating assets and liabilities
Decrease (increase) in prepaid expenses and sundry assets		60,722			(24,306	)		(10,257	)
Increase (decrease) accounts payable and accrued liabilities		49,404			97,039			333,227
Increase (decrease) in due to directors and officers		227,062			––			1,069,250
Increase (decrease) in deferred revenue		––			––			(81,086	)
Net cash used in operating activities		(85,029	)		(317,052	)		(3,898,607	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment		––			(2,043	)		(433,015	)
Purchase of patents and technology		––			––			(154,373	)
Proceeds from buy out of lease		8,000			––			8,000
Proceeds from sale of equipment		4,689			––			63,214
Investment in marketable securities		––			––			(153,562	)
Net cash provided by (used in) investing activities		12,689			(2,043	)		(669,736	)

CASH FLOWS FROM FINANCING ACTIVITIES
Issue of common shares for cash		20,410			25,000			3,525,225
Advances from directors and officers		7,970			160,547			493,695
Principal received from notes payable		––						500,000
Cash received in settlement		––			––			85,000
Net cash provided by financing activities		28,380			185,547			4,603,920

EFFECT OF FOREIGN EXCHANGE RATES		17,174			57,251			(31,455	)
NET INCREASE (DECREASE) IN CASH DURING PERIOD		(26,786	)		(76,297	)		4,122

CASH, BEGINNING OF THE PERIOD		30,908			97,443			––

CASH, END OF THE PERIOD	$	4,122		$	21,146		$	4,122
Non-cash activities
Common shares issued for patents and technology (net)		––			––			2,032,007
Issuance of common stock for note conversion								502,415
Shares issued to settle related party debt		7,700			––			7,700
Shares issued to settle trade payables		62,007			––			62,007
Common shares issued in satisfaction of		1,220,000			––			1,645,000
director and officer debt								0
Stock options issued for note conversion		53,931			––			53,931
Gain of marketable securities		10,744						10,744

{See accompanying notes to the financial statements.}

ALTERNATE ENERGY CORP.

(A Development Stage Company)

NOTES TO THE (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED June 30, 2008

1. GENERAL

The unaudited consolidated financial statements have been prepared on the same basis as the audited financial statements and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation for each of the periods presented and to make the financial statements not misleading. The results of operations for interim statements are not necessarily indicative of results to be achieved for full fiscal years.

As contemplated by the Securities and Exchange Commission (the “SEC”) under Rule 10-01 of Regulation S-X, the accompanying financial statements and related footnotes have been condensed and do not contain certain information that is included in the Company’s annual financial statements and footnotes thereto. For further information, refer to the financial statements and related footnotes for the year ended December 31, 2007 included in the Company’s Annual Report on Form 10-KSB.

2. BACKGROUND INFORMATION

Alternate Energy Corp. (the “Company”), formerly known as COI Solutions, Inc., was incorporated in the State of Nevada on August 1, 1997. On May 22, 2003, we acquired all the assets of AEC I, Inc. formerly known as Alternate Energy Corporation, and changed our name to Alternate Energy Corp. The Company commenced active business operations on June 1, 2003 and is considered to be a development stage company under SFAS 7. Since 2003, the Company has had the objective of producing a clean, on demand hydrogen technology that would have global, multiple market applications on both a small and large scale. The Company’s hydrogen production system leverages a non-toxic proprietary chemical reaction that yields high quality hydrogen along with a number of globally valuable chemical compounds. The Company’s process is entirely chemical, not requiring electrolysis or any external source of electrical power.

In February 2004, the Company incorporated a wholly-owned subsidiary, 2040412 Ontario Inc. in the Province of Ontario, Canada. The subsidiary holds title to certain property and equipment reflected in the Company’s accounts.

Alternate Energy Corp. (AEC) is an energy company committed to delivering innovative, practical, and environmentally responsible fuel, power and chemical solutions to consumer, commercial, and government markets.

The Company has been working diligently to continue to raise capital for the continuation of its business strategy to refine, build, certify and sell hydrogen production units for backup power, as well as the possible building of pilot plants to create and market high demand, chemical by-products. The Company has not been successful to date in its fund raising efforts, and as a result has hired a Chief Restructuring Officer to negotiate with the Company’s creditors and evaluate the options available to the Company. These options include different financing alternatives and potential mergers, acquisitions, or business combinations with other companies.

3. GOING CONCERN

These financial statements have been prepared on a going concern basis and do not include any adjustments to the measurement and classification of the recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company has experienced a loss for the six months ended June 30, 2008 of $2,069,880, has a deficit accumulated in the development stage of $33,638,661 and has negative working capital of $814,825. The Company’s ability to realize its assets and discharge its liabilities in the normal course of business is dependent upon continued support. The Company is currently attempting to obtain additional financing from its existing shareholders and other strategic investors to continue its operations. However, there can be no assurance that the Company will obtain sufficient additional funds from these sources.

These conditions cause substantial doubt about the Company’s ability to continue as a going concern. A failure to continue as a going concern would require that stated amounts of assets and liabilities be reflected on a liquidation basis that could differ from the going concern basis.

4. MARKETABLE SECURITIES - RESTRICTED

As of June 30, 2008, the Company holds 800,000 restricted shares of common stock of Carthew Bay Technologies, Inc. (OTC: CWBYF) and the rights to purchase 1,500,000 warrants at $0.19 for a period of three years. The shares are

considered restricted because they are being held as collateral by our former auditor with an outstanding balance owed. During the six months ended June 30, 2008, the Company had an unrealized gain on marketable securities of $10,744.

5. RELATED PARTY TRANSACTIONS

As of June 30, 2008, the Company was indebted $322,333 (as of December 31, 2007 - $706,521) to a director, Blaine Froats. The agreement was put in writing and executed on January 1, 2005 and amended on January 1, 2006 and January 2, 2007 to reflect the outstanding amount owed. The amount of $322,333 does not represent a one-time lump sum but rather a series of transactions between January 2003 and June 2008.

The Company is indebted to Marilyn Froats, spouse of Blaine Froats, for $211,586 as of June 30, 2008 (as of December 31, 2007 – $25,000 was due to Jason Froats and $169,392 was due to Marilyn Froats) in consulting fees for the services rendered during the period between July 1, 2005 to June 30, 2008.

6. CAPITAL STOCK

The Company is authorized under its charter to issue 500,000,000 shares of common stock, par value 0.001 per share. At June 30, 2008 and December 31, 2007, there were 327,614,948 and 148,134,019 shares of common stock issued and outstanding, respectively.

During the six months ended June 30, 2008, the Company issued 57,021,216 shares of common stock for services valued at $770,410 based on the quoted market price of the Company’s common stock on the date of issue. On April 16, 2008, the Company entered into an agreement with Coral Capital Partners and its designee, Erik Nelson, to engage Erik Nelson as the Company’s Chief Restructuring Officer for a term of three months. The agreement will renew automatically unless either party has given at least thirty days prior written notice. The compensation under this agreement entails the issuance of 48,846,216 shares of common stock which were issued in June of 2008, and a cash fee based upon the value received for the accomplishment of a successful restructuring of the Company. The Company has valued the stock at $586,155 based on the quoted market price of the Company’s common stock on the date of issuance. This amount is included in the total stock for services value $770,410.

During the six months ended June 30, 2008, certain vendors were issued 5,167,213 shares of the Company’s common stock in settlement of $62,007 of trade payables. This was a non-cash transaction.

During the six months ended June 30, 2008, consultants exercised 100,000 options, at an exercise price of $0.0025, or $250. This was a cash transaction.

During the six months ended June 30, 2008, certain related parties exercised their option to purchase 14,572,500 shares of the Company’s common stock in satisfaction of $53,931 of the debt owed him by the Company. This was a non-cash transaction where options were exercised and debt was reduced.

During the six months ended June 30, 2008, the Company sold 920,000 shares of common stock for $20,160 cash.

During the six months ended June 30, 2008, 101,000,000 shares of the Company’s common stock were issued to a director for a total debt reduction of $520,000. This was a non-cash transaction, and the difference between the fair market value of the shares granted and the debt reduction was recognized as a loss on settlement of $700,000.

During the six months ended June 30, 2008, 700,000 shares of the Company’s common stock were issued to related parties for a total debt reduction of $25,000. This was a non-cash transaction, and the difference between the fair market value of the shares granted and the debt reduction was recognized as a gain on settlement in the financial statements.

During January 2008, the Company granted 12,500,000 fully vested stock options pursuant to the Stock Plan. The weighted-average estimated fair value of the stock options granted was $0.02 per share using the Black-Scholes model with the following assumptions:


Term	3 years
Expected volatility	155.58%
Risk-free interest rate	2.28%

Based on the Company's limited forfeiture history, the Company utilized a zero percent rate for estimated forfeitures. The total fair value of options granted during the six months ended June 30, 2008 was $207,030.

On January 25, 2008, the Company re-valued 6,202,500 options to $0.02. The aggregate sum of the 6,202,500 options was at an exercise price of $0.03. These options were re valued to retain good faith in the Company’s service personnel pertaining to the downward flux in stock price. The re pricing of the options using the BlackScholes option pricing model with a volatility of 248% and a discount rate of 2.28% was compared to the previous model and the difference in fair value of $8,786 was expensed in accordance with pargraph 51 of FASB statement 123R.

On May 22, 2008, the Company re-valued its 16,802,500 total outstanding options to $0.013. The aggregate sum of the 16,802,500 options was at an exercise price of $0.0025. These options were re valued to retain good faith in the Company’s service personnel pertaining to the downward flux in stock price. The re pricing of the options using the BlackScholes option pricing model with a volatility of 248% and a discount rate of 2.28% was compared to the previous model and the difference in fair value of $50,041 was expensed in accordance with pargrpah 51 of FASB statement 123R.

7. STOCK WARRANTS

During the six months ended June 30, 2008, the Company issued warrants to purchase 250,000 shares of the Company's common stock at an exercise price of $0.08 per share. These warrants have a term of seven years. The fair value of these warrants of approximately $8,248 was calculated using the Black-Scholes pricing model with the following assumptions- dividend yield of 0%; a volatility of 154% and a discount rate of 5.07%. In accordance with EITF 00-19, Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company's Own Stock, these warrants have been accounted for as permanent equity instruments.

8. RESTATEMENT

In its June 30, 2007 Form 10Q filing, the Company failed to disclose the components of Other comprehensive income on the face of the Statement of Operations for the three and six months ended June 30, 2007. Also, there were several audit adjustments recorded as part of our December 31, 2007 audit that affected the three and six month period ended June 30, 2007.

In all other material respects, the financial statements are unchanged.


ALTERNATE ENERGY CORP.
(A Development Stage Company)
Consolidated Statements of Operations
(Unaudited)
Three months ending June 30	2007 (as reported)			Adjustments			2007 (restated)
REVENUE	$	––		$	––		$	––

EXPENSES
Administrative		48,898						48,898
Consulting fees		157,475						157,475
Professional fees		16,958			1,300	(a)		18,258
Research and development		100,744						100,744
Financing expense		––			9,795	(b)		9,795
Impairment of intangible assets		––						––
Management fee		––						––
Recovery of loan		––						––
Depreciation		11,394						11,394
NET (LOSS) FROM OPERATIONS		(335,468	)		(11,095	)		(346,564	)

OTHER INCOME (EXPENSES)
Other income								––
Loss on sale of equipment		––						––
Gain on settlement		––						––
Gain on adjustment on derivative / warrant liability to fair value of underlying securities		––						––

NET (LOSS) FOR THE PERIOD	$	(335,468	)		(11,095	)	$	(346,564	)
COMPREHENSIVE LOSS
Loss on foreign currency translation					(30,254	) (c)		(30,254	)
Unrealized gains (loss) on investments		––			(7,200	) (c)		(7,200	)
TOTAL COMPREHENSIVE LOSS		(335,468	)	$	(48,549	)	$	(384,018	)

NET (LOSS) PER SHARE, BASIC AND DILUTED	$	(0.002	)	$	(0.001	)	$	(0.003	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING		139,269,217						139,269,217

(a)

To properly record professional fees related to the three months ended June 30, 2007.

(b)

To properly record imputed interest on related party notes for the three months ended June 30, 2007.

(c)

To properly disclose comprehensive income, including loss on foreign currency translation and unrealized loss on marketable securities for the three months ended June 30, 2007.


ALTERNATE ENERGY CORP.
(A Development Stage Company)
Consolidated Statements of Operations
(Unaudited)
Six months ending June 30	2007 (as reported)			Adjustments			2007 (restated)
REVENUE	$	––		$	––		$	––

EXPENSES
Administrative		144,647			(32,000	) (a)		112,647
Consulting fees		354,157						354,157
Professional fees		164,657			2,601	(b)		167,258
Research and development		164,294						164,294
Financing expense		––			17,919	(c)		17,919
Impairment of intangible assets		––						––
Management fee		––						––
Recovery of loan		––						––
Depreciation		24,198						24,198
NET (LOSS) FROM OPERATIONS		(851,952	)		11,480			(840,473	)

OTHER INCOME (EXPENSES)
Other income		––						––
Loss on sale of equipment		––						––
Gain on settlement		––						––
Gain on adjustment on derivative / warrant liability to fair value of underlying securities		––						––

NET (LOSS) FOR THE PERIOD	$	(851,952	)		11,480			(840,473	)
COMPREHENSIVE LOSS
Loss on foreign currency translation					57,251	(d)		57,251
Unrealized gains (loss) on investments		––			(22,400	) (d)		(22,400	)
TOTAL COMPREHENSIVE LOSS	$	(851,952	)	$	46,331		$	(805,622	)

NET (LOSS) PER SHARE, BASIC AND DILUTED	$	(0.006	)	$	(0.00	)	$	(0.006	)

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING		137,378,931						137,378,931

(a)

To properly record adjustment for the change in an estimated liability.

(b)

To properly record professional fees related to the six months ended June 30, 2007.

(c)

To properly record imputed interest on related party notes for the six months ended June 30, 2007.

(d)

To properly disclose comprehensive income, including loss on foreign currency translation and unrealized loss on marketable securities for the six months ended June 30, 2007.

9. SUBSEQUENT EVENTS

On July 2, 2008 we issued 1,000,000 shares of our common stock to three consultants in return for services rendered valued at $10,000, based on the quoted market price of the Company’s common stock on the date of issuance.

On July 9, 2008, with the assistance of our Chief Restructuring Officer, we signed a letter of intent for a possible merger with a Texas-based oil company that is contingent on the Company bringing its financial filings fully current with the SEC and successfully regaining its listing on the OTCBB on a timely basis. Assuming the foregoing is accomplished, the terms and conditions of the possible merger would be subject to a Definitive Agreement. Subject to the terms and conditions of a Definitive Agreement and the Company obtaining a sufficient fairness opinion, the current operations of the Company would be divested to the current officers and directors in return for the cancellation of the outstanding liabilities owed to those officers and directors. If finalized this transaction would result in a change in control of the Company. This possible transaction, if finalized, would dilute the current shareholders of the Company.

On July 28, 2008, we issued 300,000 shares of our common stock to a consultant in return for services rendered valued at $4,500, based on the quoted market price of the Company’s common stock on the date of issuance.

On September 2, 2008, we issued 125,000 shares of our common stock to a consultant in return for services rendered valued at $1,750, based on the quoted market price of the Company’s common stock on the date of issuance.

On September 4, 2008, we issued 500,000 shares of our common stock to a consultant in return for services rendered valued at $7,000, based on the quoted market price of the Company’s common stock on the date of issuance.

ITEM. 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

The following Management’s Discussion and Analysis and Plan of Operation should be read in conjunction with the financial statements, and the notes thereto included herein.

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ, perhaps materially, from any future results, performance or achievements expressed or implied by forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

Our product development efforts;

The commercialization of our products;

Anticipated operating losses and capital expenditures;

Our estimates regarding our needs for additional financing;

Our estimates for future revenues and profitability; and

Sources of revenues and anticipated revenues, including contributions from corporate collaborations, license agreements and other collaborative efforts for the development and commercialization of our product candidates, and the continued viability and duration of those agreements and efforts.

In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “intend,” “potential” and similar expressions intended to identify forward-looking statements. These statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Any forward-looking statements, speak only as of the date on which they are made, and we do not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this Form 10-Q, except as required by law.

Background

We are a development stage company. We have not earned revenues from our technology through June 30, 2008. We are currently developing our core technology which is focused on production of on-demand, pure, safe hydrogen. Hydrogen has numerous applications, such as a fuel to power internal combustion engines and fuel cells, and in bulk form, as a process ingredient in the food, pharmaceutical, oil refining, glass production and several other major manufacturing industries. Our hydrogen production process is designed to overcome three major industry obstacles: affordability, storage and safety. Our hydrogen production system leverages a chemical process that yields fuel-cell quality hydrogen with no known harmful by-products. Our hydrogen-maker can be scaled according to application and designed to directly supply almost any application on an as-needed basis, eliminating the need to store hydrogen in a compressed state.

Since 2003, our objective has been to create a clean, on-demand hydrogen technology that has multiple market applications. Our hydrogen production system leverages a non-toxic proprietary chemical reaction that yields high quality hydrogen and potentially valuable chemical compounds as by-products. Our unique production method yields no waste or emissions and does not require the use of fossil fuels or electricity. It is also environmentally friendly because it produces hydrogen without utilizing any toxic ingredients or producing harmful emissions.

The process of making hydrogen produces a number of chemical by-products. These chemicals have many applications. If we can produce these by-products in significant volume, we believe we could generate revenues from their sales which could subsidize the cost of producing the hydrogen gas. We believe this ‘subsidized model’ approach to producing bulk hydrogen is unique in the alternate energy industry and we believe it will make us more competitive because we can offer hydrogen at a lower cost than our competitors.

Our hydrogen production process is designed to overcome three major industry obstacles: affordability, storage and safety. Our hydrogen-maker can be scaled according to application and designed to directly supply almost any application on an as-needed basis, eliminating the need to store hydrogen in a compressed state.

Our fund raising efforts have not been successful and we have no reasonable expectations of future funding. On April 16, 2008, the Company hired a Chief Restructuring Officer for the purposes of negotiating revised payment terms with our creditors, to consider and help us evaluate different funding options, and to evaluate companies interested in potential mergers, acquisitions, or business combinations with the company. We are considering other business ventures and options at this time as there can be no assurance that our current business plan will ever achieve revenue and ultimately profitability.

Basis of Presentation

These consolidated financial statements present the accounts of Alternate Energy Corp. and its wholly-owned subsidiary, 2040412 Ontario, Inc. All significant intercompany accounts and transactions have been eliminated.

CRITICAL ACCOUNTING POLICIES, ESTIMATES AND NEW ACCOUNTING PRONOUNCEMENTS

Management's discussion and analysis of its financial condition and plan of operations is based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires that we make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. At each balance sheet date, management evaluates its estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. The estimates and critical accounting policies that are most important in fully understanding and evaluating our financial condition and results of operations include those stated in our financial statements and those listed below:

Going Concern

These financial statements have been prepared on a going concern basis and do not include any adjustments to the measurement and classification of the recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company has experienced losses during the six months ended June 30, 2008 of $2,069,880, has a deficit accumulated in the development stage of $33,638,661 and has negative working capital of $814,825. The Company’s ability to realize its assets and discharge its liabilities in the normal course of business is dependent upon continued support. The Company is currently attempting to obtain additional financing through a restructuring effort to continue its operations. However, there can be no assurance that the Company will obtain sufficient additional funds from these sources.

Comprehensive Income

The Company has adopted SFAS No. 130, “Reporting Comprehensive Income”, which establishes standards for the reporting of comprehensive income, its components and accumulated balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners or distributions to owners. Among other disclosures, SFAS No. 130 requires that all items that are required to be recognized under the current accounting standards as a component of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements. Comprehensive income is displayed in the statement of shareholders’ equity and in the balance sheet as a component of shareholders’ deficit.

Use of Estimates

The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Stock Option Plans and Stock-Based Compensation

The Company applies the fair-value-based method of accounting prescribed by SFAS No. 123 (R), “Accounting for Stock-Based Compensation,” in accounting for its stock options granted to employees and stock granted to non-employees. As such, compensation expense for employees is recorded on the date of the grant, which vests immediately based on the fair market value of the stock and is expensed in the period in which the option was granted. Compensation cost for non-employees is recognized when services are received using the fair value of the Company’s equity instruments at those dates.

Revenue Recognition

Revenues are recognized when all of the following criteria have been met: persuasive evidence for an arrangement exists; delivery has occurred; the fee is fixed or determinable; and, collection is reasonably assured. Upfront contract payments received from the sale of services not yet earned are initially recorded as deferred revenue on the balance sheet.

Revenue from time and material service contracts is recognized as the services are provided. Revenue from fixed price, long-term service or development contracts is recognized over the contract term based on the percentage of services that are provided during the reporting period compared with the total estimated services to be provided over the entire contract. Losses on fixed price contracts are recognized during the reporting period in which the loss first becomes apparent. Payment terms vary by contract.

Recently Adopted Accounting Standards

In September 2006, the FASB issued SFAS No. 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans – an amendment of FASB Statements No. 87, 88, 106 and 132(R).” (SFAS 158”) SFAS 158 requires an employer that sponsors one or more single-employer defined benefit plans to (a) recognize the overfunded or underfunded status of a benefit plan in its statement of financial position, (b) recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise during the year but are not recognized as components of net periodic benefit cost pursuant to SFAS 87, “Employers’ Accounting for Pensions”, or SFAS 106, “Employers’ Accounting for Postretirement Benefits Other Than Pensions”, (c) measure defined benefit plan assets and obligations as of the date of the employer’s fiscal year-end, and (d) disclose in the notes to financial statements additional information about certain effects on net periodic benefit cost for the next fiscal year that arise from delayed recognition of the gains or losses, prior service costs or credits, and transition asset or obligation. SFAS 158 is effective for the Company’s fiscal year ending December 31, 2008. The adoption of SFAS 158 is not expected to have a material impact on the Company’s financial position, results of operation or cash flows.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurement.” ("SFAS 157") The Statement provides guidance for using fair value to measure assets and liabilities. The Statement also expands disclosures about the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurement on earnings. This Statement applies under other accounting pronouncements that require or permit fair value measurements. This Statement does not expand the use of fair value measurements in any new circumstances. Under this Statement, fair value refers to the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the entity transacts. SFAS 157 is effective for the Company for fair value measurements and disclosures made by the Company in its fiscal year beginning on January 1, 2008. The adoption of SFAS 157 is not expected to have a material impact on the Company’s financial position, results of operation or cash flows.

RESULTS OF OPERATIONS

FOR THREE MONTHS ENDED JUNE 30, 2008,

COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2007

REVENUES

Since inception, we have had no revenues.

EXPENSES

We had total expenses of $874,250 and $346,564 during the three months ended June 30, 2008 and 2007, respectively. Our expenses for the three months ended June 30, 2008 and 2007 consisted of $16,276 and $48,898 in administrative expenses, $831,675 and $157,475 in consulting fees, $8,068 and $18,258 in professional fees, $99 and $100,744 for research and development, $15,219 and $9,975 for financing expense, and $2,913 and $11,394 in depreciation, respectively.

There was a decrease of $32,622 in administrative expenses in the fiscal quarter ending June 30, 2008 as compared to the fiscal quarter ending June 30, 2007. This decrease is attributed to reduction in expenditures to overall administrative needs over a multitude of areas, including travel, insurance and communications requirements.

There was an increase in consulting fee expenses of $674,200 in the fiscal quarter ending June 30, 2008 as compared to the fiscal quarter ending June 30, 2007. The increase is partly attributed to issuance of 57,021,216 shares of our common stock valued at $770,410 based on the quoted market price of the common stock on the date of issuance.

Professional fees decreased by $10,190 in the fiscal quarter ending June 30, 2008 as compared to the fiscal quarter ending June 30, 2007. This decrease is largely attributed to a reduction of legal expenses in connection with general operational activity.

There was a decrease in research and development expenses of $100,645 in the fiscal quarter ending June 30, 2008 as compared to the fiscal quarter ending June 30, 2007 as we work to restructure our business strategy, we have reduced our research and development costs.

There was an increase in financing fees of $5,424 in the fiscal quarter ending June 30, 2008 as compared to the fiscal quarter ending June 30, 2007, which represents interest imputed on the non-interest bearing advances from directors and related parties.

There was a decrease of $8,481 in depreciation expenses relative to our fixed assets as per our scheduled depreciation table.

Over the next 12 months, we anticipate that our expenses will not increase substantially over our expenses during the six months ending June 30, 2008, unless additional financing is obtained. In the event significant financing is obtained, we would expect that expenses will only increase in proportion with the amount of funds received as a result of any such financing. We will continue as planned in the goals set for the continued development, sales and marketing of our hydrogen production system and sale of by-products.

NET LOSS

We had a net loss of $1,434,883 for the three months ended June 30, 2008, compared with a net loss of $346,564 in the three months ended June 30, 2007. The increase of $1,088,319 in the net loss in the three quarters ended June 30, 2008 compared to the three months ended June 30, 2007 was attributable to the above aforementioned.

RESULTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2008,

COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2007

REVENUES

Since inception, we have had no revenues.

EXPENSES

We had total expenses of $1,512,896 and $840,473 during the six months ended June 30, 2008 and 2007, respectively. Our expenses for the six months ended June 30, 2008 and 2007 consisted of $85,456 and $112,647 in administrative expenses, $1,289,622 and $354,157 in consulting fees, $33,220 and $167,258 in professional fees, $62,538 and $164,294 for research and development, $33,850 and $17,919 for financing expense, and $8,210 and $24,198 in depreciation, respectively.

There was a decrease of $27,191 in administrative expenses for the six months ending June 30, 2008 as compared to the six months ending June 30, 2007. This decrease is attributed to reduction in expenditures to overall administrative needs over a multitude of areas, including travel, insurance and communications requirements.

There was an increase in consulting fee expenses of $935,465 for the six months ending June 30, 2008 as compared to the six months ending June 30, 2007. The increase is partly attributed to issuance of 57,021,216 shares of our common stock valued at $770,410 based on the quoted market price of the common stock on the date of issuance.

Professional fees decreased by $134,038 for the six months ending June 30, 2008 as compared to the six months ending June 30, 2007. This decrease is largely attributed to a reduction of legal expenses in connection with general operational activity.

There was a decrease in research and development expenses of $101,756 for the six months ending June 30, 2008 as compared to the six months ending June 30, 2007 as we continue on our course of action with testing and development of our hydrogen production systems as well as our valuable byproducts.

There was an increase in financing fees of $15,931 for the six months ending June 30, 2008 as compared to the six months ending June 30, 2007, which represents interest imputed on the non-interest bearing advances from directors and related parties.

There was a decrease of $15,988 in depreciation expenses relative to our fixed assets as per our scheduled depreciation table.

Over the next 12 months, we anticipate that our expenses will not increase substantially over our expenses in the six month period ending June 30, 2008, unless additional financing is obtained. In the event significant financing is obtained, we would expect that expenses will only increase in proportion with the amount of funds received as a result of any such financing. We will continue as planned in the goals set for the continued development, sales and marketing of our hydrogen production system and sale of by-products.

NET LOSS

We had a net loss of $2,069,880 for the six months ended June 30, 2008, compared with a net loss of $840,473 in the six months ended June 30, 2007. The increase of $1,229,407 of the net loss for the six months ended June 30, 2008 compared to the six months ended June 30, 2007 was attributable to the above aforementioned.

LIQUIDITY AND CAPITAL RESOURCES

Our financial statements have been prepared on a going concern basis that contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We incurred a net loss of $2,069,880 and $840,473 for the six months ended June 30, 2008 and 2007, respectively, and have an accumulated deficit of $33,638,661 at June 30, 2008. We had $4,122 in cash on hand as of June 30, 2008. Management may obtain additional capital principally through the sale of equity securities. The realization of assets and satisfaction of liabilities in the normal course of business is dependent upon our ultimately obtaining profitable operations. We may not be successful in these activities. Should any of these events not occur, the accompanying financial statements will be materially affected.

The Company believes that it will not have sufficient cash to meet its short-term capital requirements through the third quarter of 2008. Therefore, we will need to raise sufficient funds to meet our long-term capital needs. Due to no cash generated

from operations, we currently do not have internally generated cash sufficient to pay all of our incurred expenses and other liabilities. As a result, we are dependent on investor capital and loans to meet our expenses and obligations. Although investor funds have allowed us to meet our obligations in the recent past, there can be no assurances that our present methods of generating cash flow will be sufficient to meet future obligations. Historically, we have, from time to time, been able to raise additional capital, but there can be no assurances that we will be able to raise additional capital in this manner.

Net cash used in operating activities was $85,029 for the six month period ended June 30, 2008, compared with $317,052 for the six month period ended June 30, 2007. The net cash used for this period resulted mainly from consulting fees. The consulting fees were paid in shares of our common stock as noted above in Expenses.

Net cash obtained from financing activities was $28,380 for the six month period ended June 30, 2008, compared with $185,547 for the six month period ended June 30, 2007. In the six month period ended June 30, 2008, we received advances from one of our directors.

Net cash provided by investing activities for the six month period ended June 30, 2008 and 2007 was $28,380 and ($2,043), respectively.

We do not believe that we will have sufficient cash to meet our short-term capital requirements, and there are no assurances that we will be able to raise sufficient funds to meet long-term capital needs. We may also seek alternative sources of financing, including more conventional sources such as bank loans and credit lines, although no assurances in this regard can be made. Further, the availability of any future financing may not be on terms that are satisfactory to us. We have hired a Chief Restructuring Officer to assist us in our negotiations with our creditors and evaluate the options available to the Company. If we are unsuccessful in raising additional funding, we may evaluate potential acquisitions involving complementary businesses, content, products, or technologies. We may enter into a business combination that results in a change in control of the company, or may substantially dilute our existing shareholders.

PLAN OF OPERATION

Over the next twelve months we will be working on the following initiatives:

Revenue Generation

We previously were in negotiations with Brasil Óleo de Mamona Ltda, known as BOM, to build a pilot plant supplying their company with hydrogen to fuel their hydrogenation process. However BOM Brazil is moving away from the production of hydrogenated oils. As a result negotiations were terminated with BOM Brazil.

We have developed other uses for hydrogen technology including using it as a fuel source for gasoline powered engines, and as a fuel additive to diesel powered engines. Our technology allows diesel powered engines to increase their fuel efficiency by ten to thirty percent, and slightly increase their power output at the same time. Our current business model is based upon convincing commercial trucking companies that there is a significant cost benefit to using our hydrogen technology to reduce their fuel costs combined with our ability to produce cheap and inexpensive hydrogen to sell and deliver to those companies.

The Company has not been successful to date in its fund raising efforts, and as a result has hired a Chief Restructuring Officer to negotiate with the Company’s creditors and evaluate the options available to the Company. These options include different financing alternatives and potential mergers, acquisitions, or business combinations with other companies.

Research and Development

In order to commercially develop our products and refine our hydrogen production process we will need to expend considerable resources in the way of research and development, which we are unable to do at this current time due to a lack of funding for those operations.

In order to restart and continue our research and development efforts, management estimates that the company will need to raise approximately $7 million dollars by the end of 2009. Our fund raising efforts have not been successful recently. As a result, we are unsure when we will be able to restart our research and development efforts. We have hired a Chief Restructuring Officer to help us consider different funding options, and to evaluate companies interested in potential mergers, acquisitions, or business combinations with the Company. If one of the funding options, or potential merger, acquisition, or business combinations takes place then our shareholders may be significantly diluted.

Subsequent Developments

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

None.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The following discusses our exposure to market risk related to changes in interest rates and foreign currency exchange rates. These exposures may change over time as business practices evolve and could have a material adverse impact on our business, financial condition and results of operations.

The Company’s operations are in the Canada and virtually all of its assets and liabilities give rise to significant exposure to market risks from changes in foreign currency rates arising from fluctuations in foreign exchange rates and the degree of volatility of these rates. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

ITEM 4.

CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based upon that evaluation, our principal executive officer and principal financial officer concluded that, as of the end of the period covered in this report, our disclosure controls and procedures were not effective to ensure that information required to be disclosed in reports filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the required time periods and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Our management, including our principal executive officer and principal financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. To address the material weaknesses, we performed additional analysis and other post-closing procedures in an effort to ensure our consolidated financial statements included in this annual report have been prepared in accordance with generally accepted accounting principles. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

There were no changes in our internal control over financial reporting during our most recent quarter that materially affected, or were reasonably likely to affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

On October 22, 2004, we instituted proceedings against Russell Rothman in the Ontario Superior Court of Justice (Case No. 04-CV-277760CM2). We are seeking the rescission of agreements between us and Mr. Rothman, return of shares paid to him, and the return of money paid. We had entered into an agreement with Mr. Rothman for the purchase of certain technology related to the production of hydrogen gas, for which he represented that he owned all right and title. On December 29, 2004 Rothman filed a countersuit against the Company in the Ontario Supreme Court of Justice for breach of contract in the amount of $2 billion and is asking for punitive damages in the amount of $10 million. On December 9, 2005, the Ontario Supreme Court of Justice ordered that Mr. Rothman’s pleadings be struck, that he issue new pleadings by January 9, 2006 and that he appear in court on February 9, 2006.

On January 9, 2006, Mr. Rothman substantially amended his claim, and is now seeking $12 million for breach of contract and punitive damages in the amount of $250,000. In 2007 Mr. Rothman asked the courts to require us to post a $50,000 bond as “Security Costs” because we are an American company operating in Canada. Such a bond is designed to protect the Defendant in a case from having to pay legal fees if they prevail in the case.

In 2002, the SEC brought suit against COI Solutions Inc., our predecessor company, and one of our former Chief Executive Officers, Robert Wilder, in the United States District Court for the Southern District of Florida. Subsequent to our acquisition of the assets of Alternate Energy Corporation in 2003 and complete management change, the SEC agreed to settle the litigation. We neither admitted nor denied the allegations of the SEC's complaint as part of the settlement. The settlement was entered by the District Court and included an injunction enjoining the company, its officers, and directors from violating securities laws in the future.

On February 17, 2005, the Court entered judgments of permanent injunction and other relief against defendants COI Solutions, Inc. and Mel Levine, a COI fundraiser, from violating Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. In addition to injunctive relief, the judgment against Mr. Levine provided for the imposition of a civil penalty. On March 30, 2005, the United States District Court for the Southern District of Florida entered a default judgment of permanent injunction against Robert Wilder. The Court found that Mr. Wilder violated Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5, thereunder. In addition to injunctive relief, the judgment provided for the imposition of a civil penalty to be paid by Mr. Wilder, which was set in the amount of $110,000 on June 30, 2005.

We may be involved from time to time in ordinary litigation, negotiation and settlement matters that will not have a material effect on our operations or finances. Other than the litigation described above, we are not aware of any pending or threatened litigation against us or our officers and directors in their capacity as such that could have a material impact on our operations or finances.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 5.

OTHER INFORMATION.

None

ITEM 6.

EXHIBITS AND REPORTS ON FORM 8-K.


Exhibit No.	Description of Exhibit
3.1	Articles of Incorporation, as filed August 1, 1997 (included as Exhibit 3.1 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).
3.2	Bylaws (included as Exhibit 3.2 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).
3.3	Articles of Amendment to the Articles of Incorporation, as filed August 23, 1997 (included as Exhibit 3.3 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).
3.4	Articles of Amendment to the Articles of Incorporation, as filed November 20, 1998 (included as Exhibit 3.4 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).
3.5	Articles of Amendment to the Articles of Incorporation, as filed May 16, 2003 (included as Exhibit 3.5 to the Form 10-SB12G filed November 10, 1999, and incorporated herein by reference).
4.1	2003 Stock Benefit Plan, dated July, 1, 2003 (included as Exhibit 4.1 to the Form S-8 filed July 23, 2003, and incorporated herein by reference).
4.2	Form of Class A Warrant (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).
4.3	Form of Class B Warrant (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).
4.4	Form of Class C Warrant (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).
4.5	Subscription Agreement between the Company and various subscribers (included as Exhibit 10.1 to the Form SB-2/A filed September 14, 2005, and incorporated herein by reference).
4.6	Subscription Agreement between the Company and various subscribers (included as Exhibit 4 to the Form 8-K filed March 15, 2005, and incorporated herein by reference).
10.1	Asset Purchase Agreement between the Company and AEC1, Inc., formerly known as Alternate Energy Corporation, dated February 20, 2003 (included as Exhibit 10.1 to the Form 8-K filed June 5, 2003, and incorporated herein by reference).
10.2	Form of Securities Purchase Agreement between the Company and various purchasers (included as Exhibit 10.1 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.3	Form of Registration Rights Agreement between the Company and various purchasers (included as Exhibit 10.2 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.4	Form of Common Stock Purchase Warrant between the Company and various purchasers (included as Exhibit 10.3 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.5	Securities Purchase Agreement between the Company and Feldman Weinstein, LLP (included as Exhibit 10.4 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.6	Form of Common Stock Purchase Warrant between the Company and various purchasers (included as Exhibit 10.5 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.7	Addendum to Securities Purchase Agreement between the Company and various purchasers (included as Exhibit 10.6 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).


10.8	Addendum to Registration Rights Agreement between the Company and various purchasers (included as Exhibit 10.7 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.9	Letter of Engagement for Marketing Communications and Manufacturing Consulting Management Services between the Company and Velocity Product Solutions Inc., dated September 25, 2003 (included as Exhibit 10.8 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.10	Letter of Engagement for Expanded Executive Management Services among the Company, Corbee Dutchburn and Lyle Goodis, dated October 30, 2003 (included as Exhibit 10.9 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.11	Addendum to October 30, 2003 Letter of Engagement for Expanded Executive Management Services among the Company, Corbee Dutchburn, and Lyle Goodis, dated December 5, 2003 (included as Exhibit 10.10 to the Form 10-KSB filed March 16, 2004, and incorporated herein by reference).
10.12	Funds Escrow Agreement between the Company and various subscribers (included as Exhibit 10.10 to the Form SB-2/A filed September 14, 2005, and incorporated herein by reference).
10.13	Security Agreement between the Company and Blaine Froats, dated January 1, 2005 (included as Exhibit 10.12 to the Form SB/2-A filed January 19, 2006, and incorporated herein by reference).
14.1	Corporate Code of Ethics (included as Exhibit 14 to From 10-KSB filed March 16, 2004, and incorporated herein by reference).
21.1	Subsidiaries of the registrant (filed herewith).
3 1.1	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Officers pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: September 25, 2008


	Alternate Energy Corp.


	By:	/s/ BLAINE FROATS
		Blaine Froats
		Chief Executive Officer


	Alternate Energy Corp.


	By:	/s/ JACK WASSERMAN
		Jack Wasserman
		Treasurer and Principal Accounting Officer