Alternate Energy Holdings, Inc. - Form 10-Q

10-Q 1 form10q.htm FORM 10-Q Alternate Energy Holdings, Inc. - Form 10-Q - Filed by newsfilecorp.com

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: June 30, 2010

[ ] 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: 000-53451

ALTERNATE ENERGY HOLDINGS, INC.
(Exact name of registrant as specified in its charter)

Nevada	20-5689191
(State or other jurisdiction of	(I.R.S. Empl. Ident. No.)
incorporation or organization)

911 E. Winding Creek Dr., Suite 150,
Eagle, Idaho 83616
(Address of principal executive offices, Zip Code)

208-939-9311
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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.

Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

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. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer [ ]	Accelerated Filer [ ]

Non-Accelerated Filer [ ]	Smaller reporting company [X]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [ ] No [X]

The number of shares outstanding of each of the issuer’s classes of common equity, as of August 11, 2010 is as follows:

Class of Securities	Shares Outstanding
Common Stock, $0.001 par value	322,368,209

Transitional Small Business Disclosure Format (check one):

Yes [ ] No [X]

ITEM 1. FINANCIAL STATEMENTS

ALTERNATE ENERGY HOLDINGS, INC.

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

TABLE OF CONTENTS

	Page
Condensed Consolidated Balance Sheets	2
Unaudited Condensed Consolidated Statements of Operations	3
Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity	4
Unaudited Condensed Consolidated Statements of Cash Flows	9
Notes to Unaudited Condensed Consolidated Financial Statements	11

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2010 (Unaudited) AND DECEMBER 31, 2009

		June 30,
		2010			December 31,
		Unaudited			2009

ASSETS

CURRENT ASSETS:
Cash and Cash Equivalents	$	1,491,136		$	597,577
Short-Term Investment		6,811,350			-0-
Deposit		100,000			100,000
Prepaid Expenses		11,000			11,220

Total Current Assets		8,413,486			708,797

PROPERTY AND EQUIPMENT - Net		70,755			-

OTHER ASSETS:

Asset held for Sale		309,711			-

Security Deposit		3,000			3,000

Total Other Assets		312,711			3,000

TOTAL ASSETS	$	8,796,952		$	711,797

LIABILITY AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts Payable	$	550,849		$	5,472
Short-Term Borrowings		50,582			-

Total Current Liabilities		601,431			5,472

NON-CONTROLLING INTEREST		-			-

STOCKHOLDERS' EQUITY:

Common Stock, par value $.001, 500,000,000 shares authorized; 314,684,744 issued and 314,284,744 outstanding and 136,150,108 issued and 135,750,108 outstanding, respectively		314,685			136,150
Additional Paid in Capital		23,275,003			11,677,947
Accumulated Other Comprehensive Income		62,251			-
Treasury Stock (400,000 shares at cost)		(20,000	)		(20,000	)
Deficit Accumulated During Development Stage		(15,436,418	)		(11,087,772	)

Total Stockholders' Equity		8,195,521			706,325

TOTAL LIABILITY AND STOCKHOLDERS' EQUITY	$	8,796,952		$	711,797

The accompanying notes are an integral part of these condensed consolidated financial statements.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED INCOME STATEMENTS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009
AND THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH JUNE 30, 2009 (Unaudited)

		Three Months Ended						Six Months Ended						Inception to
		June 30,						June 30,						June 30,
		2010			2009			2010			2009			2010

REVENUES	$	-		$	-		$	-		$	-		$	-

OPERATING EXPENSES:
General and Administrative Expenses		1,735,812			1,200,864			4,364,573			1,463,181			16,488,126

NET LOSS FROM OPERATIONS		(1,735,812	)		(1,200,864	)		(4,364,573	)		(1,463,181	)		(16,488,126	)

OTHER INCOME (EXPENSE)
Investment Income		12,102			7			12,302			90			44,489
Miscellaneous Income		3,707			-			3,707			5,479
														9,186
Gain on Sales of Investments		-			-			-			-			1,627
Interest Expense		(82	)		-			(82	)		-			(3,594	)
Total Other Expense		15,727			7			15,927			5,569			51,708

LOSS BEFORE NON-CONTROLLING INTEREST IN VARIABLE INTEREST ENTITY		(1,720,085	)		(1,200,857	)		(4,348,646	)		(1,457,612	)		(16,436,418	)

Non-Controlling Interest in Variable Interest Entity		-			-			-			-			1,000,000

Net Loss	$	(1,720,085	)	$	(1,200,857	)	$	(4,348,646	)	$	(1,457,612	)	$	(15,436,418	)

BASIC AND DILUTED
NET LOSS PER COMMON STOCK	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.01	)

WEIGHTED AVERAGE SHARES OUTSTANDING		281,067,991			104,438,757			236,138,322			97,719,032

The accompanying notes are an integral part of these condensed consolidated financial statements

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
AND THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH JUNE 30, 2010 (Unaudited)

													Deficit
											Accumulated		Accumulated
		Number of				Additional					Other		During
	Price per	Common		Common		Paid in			Treasury		Comprehensive		Development
	Share	Shares Issued		Stock		Capital			Stock		Income		Stage			Total
Founder Shares issued August 29, 2005	0.00	14,800,000	$	14,800	$	(14,800	)	$	-	$	-	$	-		$	-
Issuance of Common Stock for Services
October	0.05	3,249,999		3,250		54,250			-		-		-			57,500
Amortization of common stock for services
October		-		-		8,750			-		-		-			8,750
November		-		-		8,750			-		-		-			8,750
December		-		-		8,750			-		-		-			8,750
Issuance of Common Stock for Receivable:
September	0.04	600,000		600		24,400			-		-		-			25,000
November	0.05	300,000		300		14,700			-		-		-			15,000
Net Loss		-		-		-			-		-		(100,692	)		(100,692	)
Balances, December 31, 2005		18,949,999	$	18,950	$	104,800		$	-	$	-	$	(100,692	)	$	23,058
Nussential Holdings Inc. shareholders prior to merger	0.00	4,252,088		4,252		(4,252	)		-		-		-			-
Issuance of Common Stock for Services
September	1.01	1,149,999		1,150		1,157,599			-		-		-			1,158,749
November	0.90	100,000		100		89,900			-		-		-			90,000
Amortization of common stock for services
January		-		-		8,750			-		-		-			8,750
February		-		-		8,750			-		-		-			8,750
March		-		-		8,750			-		-		-			8,750
April		-		-		8,750			-		-		-			8,750

May		-		-		8,750		-			-		-			8,750
June		-		-		8,750		-			-		-			8,750
July		-		-		8,750		-			-		-			8,750
August		-		-		8,750		-			-		-			8,750
Issuance of Common Stock for Cash
March	0.05	1,000,000		1,000		49,000		-			-		-			50,000
May	0.05	400,000		400		19,600		-			-		-			20,000
June	0.05	100,000		100		4,900		-			-		-			5,000
October	0.65	273,000		273		176,227		-			-		-			176,500
November	0.33	116,000		116		38,550		-			-		-			38,666
December	0.42	75,000		75		31,758		-			-		-			31,833
Purchase of Treasury Stock		-		-		-		(20,000	)		-		-			(20,000	)
Net Loss		-		-		-		-			-		(1,394,711	)		(1,394,711	)
Balances, December 31, 2006		26,416,086	$	26,416	$	1,738,082	$	(20,000	)	$	-	$	(1,495,403	)	$	249,095
Issuance of Common Stock for Services
February	0.50	920,000		920		459,080		-			-		-			460,000
March	0.50	300,000		300		149,700		-			-		-			150,000
April	0.25	100,000		100		24,900		-			-		-			25,000
June	0.25	550,000		550		136,950		-			-		-			137,500
August	0.40	531,552		532		212,089		-			-		-			212,621
September	0.11	4,583,200		4,583		478,697		-			-		-			483,280
October	0.40	366,400		366		146,194		-			-		-			146,560
November	0.15	457,000		457		65,943		-			-		-			66,400
December	0.10	57,500		58		5,692		-			-		-			5,750
Issuance of Common Stock for Cash
January	0.53	23,000		23		12,227		-			-		-			12,250
February	0.50	55,000		55		27,445		-			-		-			27,500
March	0.50	10,000		10		4,990		-			-		-			5,000
April	0.40	25,000		25		9,975		-			-		-			10,000
May	0.25	206,000		206		51,294		-			-		-			51,500
June	0.24	180,000		180		42,820		-			-		-			43,000
July	0.25	2,591,000		2,591		645,159		-			-		-			647,750
August	0.25	2,521,036		2,521		626,238		-			-		-			628,759

September	0.25	64,000		64		15,936		-			-		-			16,000
October	0.25	20,000		20		4,980		-			-		-			5,000
November	0.20	287,500		287		57,213		-			-		-			57,500
December	0.10	2,451,000		2,451		242,649		-			-		-			245,100
Net Loss		-		-		-		-			-		(3,394,200	)		(3,394,200	)
Balances, December 31, 2007		42,715,274	$	42,715	$	5,158,253	$	(20,000	)	$	-	$	(4,889,603	)	$	291,365

Issuance of Common Stock for Services
January	0.10	1,312,250		1,312		129,913		-			-		-			131,225
February	0.10	70,000		70		6,930		-			-		-			7,000
March	0.10	183,250		183		18,142		-			-		-			18,325
April	0.10	20,000		20		1,980		-			-		-			2,000
May	0.10	14,556,875		14,557		1,441,131		-			-		-			1,455,688
June	0.10	4,365,342		4,365		432,169		-			-		-			436,534
July	0.20	798,625		798		158,927		-			-		-			159,725
August	0.20	71,500		72		14,228		-			-		-			14,300
September	0.20	25,430		25		5,061		-			-		-			5,086
October	0.20	207,147		207		41,222		-			-		-			41,429
November	0.20	10,853		11		2,160		-			-		-			2,171
December	0.10	3,140,777		3,141		310,934		-			-		-			314,075
Issuance of Common Stock for Cash																-
January	0.10	7,720,000		7,720		764,280		-			-		-			772,000
February	0.10	1,120,750		1,121		110,954		-			-		-			112,075
March	0.10	225,000		225		22,275		-			-		-			22,500
April	0.10	250,000		250		24,750		-			-		-			25,000
May	0.10	50,000		50		4,950		-			-		-			5,000
June	0.10	576,000		576		57,024		-			-		-			57,600
July	0.10	307,301		308		31,072		-			-		-			31,380
August	0.15	182,000		182		28,018		-			-		-			28,200
September	0.20	153,666		154		39,946		-			-		-			40,100

December	0.10	125,000		125		12,375		-			-		-			12,500
Net Loss		-		-		-		-			-		(3,820,601	)		(3,820,601	)
Balances, December 31, 2008		78,187,040	$	78,187	$	8,816,694	$	(20,000	)	$	-	$	(8,710,204	)	$	164,677

Issuance of Common Stock for Services
January	0.10	395,290		395		39,134		-			-		-			39,529
March	0.05	138,065		138		6,765		-			-		-			6,903
April	0.05	18,425,000		18,425		902,825		-			-		-			921,250
May	0.05	945,400		945		46,325		-			-		-			47,270
June	0.05	718,500		719		35,206		-			-		-			35,925
July	0.05	755,000		755		36,995		-			-		-			37,750
August	0.05	1,567,957		1,568		76,830		-			-		-			78,398
September	0.05	1,431,340		1,431		70,136		-			-		-			71,567
October	0.05	50,000		50		2,450		-			-		-			2,500
November	0.05	441,580		442		21,637		-			-		-			22,079
December	0.05	3,914,400		3,915		191,805		-			-		-			195,720
Issuance of Common Stock for Contract Option Fee
December	0.05	500,000		500		24,500		-			-		-			25,000
Issuance of Common Stock for Cash
January	0.10	25,000		25		2,475		-			-		-			2,500
February	0.05	800,000		800		39,200		-			-		-			40,000
March	0.05	330,600		330		16,200		-			-		-			16,530
April	0.05	1,745,000		1,745		85,505		-			-		-			87,250
May	0.05	700,000		700		34,300		-			-		-			35,000
June	0.05	4,345,000		4,345		212,905		-			-		-			217,250
August	0.05	440,000		440		21,560		-			-		-			22,000
September	0.05	2,470,000		2,470		121,030		-			-		-			123,500
October	0.05	3,509,000		3,509		171,941		-			-		-			175,450
November	0.05	5,338,700		5,339		261,596		-			-		-			266,935
December	0.05	8,977,236		8,977		439,933		-			-		-			448,910
Net Loss		-		-		-		-			-		(2,377,568	)		(2,377,568	)

Balances, December 31, 2009		136,150,108	$	136,150	$	11,677,947	$	(20,000	)	$	-	$	(11,087,772	)	$	706,325
Issuance of Common Stock for Services
January	0.05	17,500,000		17,500		857,500		-			-		-			875,000
February	0.05	20,475,200		20,475		1,003,285		-			-		-			1,023,760
March	0.05	1,307,546		1,308		64,069		-			-		-			65,377
April	0.05	735,800		735		36,055		-			-		-			36,790
May	0.10	100,000		100		9,900		-			-		-			10,000
June	0.10	5,500,000		5,500		544,500		-			-		-			550,000
Issuance of Common Stock for Cash
January	0.05	4,691,240		4,691		229,871		-			-		-			234,562
February	0.05	42,188,960		42,189		2,067,259		-			-		-			2,109,448
March	0.05	30,048,710		30,049		1,472,387		-			-		-			1,502,436
April	0.05	4,610,000		4,610		225,890		-			-		-			230,500
May	0.10	44,028,600		44,029		4,358,831		-			-		-			4,402,860
June	0.10	7,348,580		7,349		727,509		-			-		-			734,858
Comprehensive Loss:
Unrealized Gain on Short-Term	-	-		-		-		-			62,251		-			62,251
Investments

Net Loss		-		-		-		-			-		(4,348,646	)		(4,348,646	)
Total Comprehensive Loss		-		-		-		-			-		-			(4,286,395	)
Balances, June 30, 2010		314,684,744	$	314,685	$	23,275,003	$	(20,000	)	$	62,251	$	(15,436,418	)	$	8,195,521

The accompanying notes are an integral part of these condensed consolidated financial statements

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010 AND 2009
AND THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH JUNE 30, 20010 (Unaudited)

		Six Months			Six Months			Inception to
		June 30			June 30			June 30
		2010			2009			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(4,348,646	)	$	(1,457,612	)	$	(15,436,418	)
Adjustments to reconcile Net Loss to Net Cash
Used by Operating Activities -
Common stock issued for services		2,560,927			1,050,877			9,711,985
Commons Stock Issued for Contact Option Fee		-			-			25,000
Loss from Variable Interest Entity		-			-			(1,000,000	)
Depreciation		7,862			-			7,862
Change in operating Assets and Liabilities -
Deposits		-			-			(100,000	)
Prepaid Expenses		220			5,197			(11,000	)
Security Deposits		-			-			(3,000	)
Accounts Payable		545,377			(16,244	)		550,849
Total Adjustments		3,114,386			1,039,830			9,181,696
Net Cash Used by Operating Activities		(1,234,260	)		(417,782	)		(6,254,722	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets		(78,617	)		-			(78,617	)

Purchase of Short-term Investments		(6,749,099	)		-			(6,749,099	)
Purchase of Energy Neutral Home		(309,711	)		-			(309,711	)
Net Cash used by Investing Activities		(7,137,427	)		-			(7,137,427	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Receipt of Cash for Common Stock		9,214,664			398,530			13,852,703
Cash Received from Non-Controlling Members		-			-			1,000,000
Proceeds from Short-Term Borrowings		50,582			-			50,582
Purchase of Treasury Stock		-			-			(20,000	)
Payments to Related Parties		-			(5,000	)		(50,000	)
Advances from Related Parties		-			50,000			50,000
Net Cash Provided by Financing Activities		9,265,246			443,530			14,883,285

NET INCREASE IN CASH		893,559			25,748			1,491,136

CASH – BEGINNING		597,577			112,519			-

CASH – ENDING	$	1,491,136		$	138,267		$	1,491,136

Supplemental Disclosures:

Cash paid for Income Taxes	$	-	$	-	$	-
Cash paid for Interest	$	82	$	-	$	3,594

Non-Cash Investing and Financing Activities:
Receivable for Sale of Common Stock	$	-	$	-	$	40,000

The accompanying notes are an integral part of these condensed consolidated financial statements

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Alternate Energy Holdings, Inc., (and its subsidiaries Idaho Energy Complex Corporation, International Reactors, Inc. and Reactor Development, LLC) formerly Nussentials Holdings Inc., is a development stage enterprise focused on the purchase, optimization and construction of green energy sources – primary nuclear power plants.

Sunbelt Energy Resources Inc. was formed on August 29, 2005 to operate in the alternate energy industry and has limited operational activity. In September 2006, Sunbelt acquired Nussential Holdings, Inc. by exchanging 17,900,000 shares of Sunbelt which represented 100% for 21,399,998 shares of common stock of Nussential Holdings Inc. As a result of the acquisition, the shareholders of Sunbelt owned a majority of the voting stock of Nussentials Holdings, Inc. which changed its name to Alternate Energy Holdings, Inc. The merger has been accounted for as a reverse merger whereby Alternate Energy Holdings, Inc. is the accounting acquirer resulting in a recapitalization of Alternate Energy Holdings, Inc.’s equity. In connection with and simultaneous to the reverse merger, Nussentials Corporation, a wholly owned subsidiary of Nussentials Holdings Inc. was transferred to Nussential Holdings, Inc. majority shareholder through issuance of 4,252,088 shares of common stock.

Use of Estimates

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses and the and disclosures of contingent assets and liabilities. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

Alternate Energy Holdings, Inc. considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. The Federal Deposit Insurance Corporation insures up to $250,000 balances at June 30, 2010 and December 31, 2009. The uninsured balances at June 30, 2010 and December 31, 2009 were $1,241,136 and $347,577, respectively.

Property and Equipment

Property and equipment are stated at cost and are being depreciated over 5 to 7 years using the straight line and declining balance method to compute depreciation.

Basic and Diluted Net Loss per Share

Basic and diluted net loss per share calculations is presented in accordance with FASB ASC 260-10 “Earnings per Share”, and is calculated on the basis of the weighted average number of common shares outstanding during the year. They include the dilutive effect of common stock equivalents in years with net income. Basic and diluted net loss per share is the same due to the absence of common stock equivalents.

Stock Based Compensation

Alternate Energy Holdings, Inc.’s non-employees, share-based expense are recorded in accordance with FASB ASC 505-50 “Equity Based Payments to Non-Employees.” Alternate Energy Holdings, Inc. has not issued any stock options or stock warrants since its inception through June 30, 2010. For the six months ended June 30, 2010 and 2009, 41,500,000 and 17,950,000 shares of restricted stock were issued for officer/board services, respectively.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

The Company considers fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company utilities the following three-level fair value hierarchy to establish the priorities of the inputs used to measure fair value:

-	Level 1 – Quoted prices in active market for identical assets or liabilities.

-	Level 2 – Observable inputs other than quoted market prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets: quoted prices for identical or similar assets and liabilities in markets that are not active: or other inputs that are observable or can be corroborated by observable market data.

-	Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

Comprehensive Income (Loss)

Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other Comprehensive income (loss) is primarily the result of unrealized gains and losses on Short-Term investments. The following table set forth the components of comprehensive income (loss):

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2010			2009			2010			2009
Net Loss	$	(1,720,085	)	$	(1,200,857	)	$	(4,348,646	)	$	(1,457,612	)

Unrealized Gain on Short-Term Investments		62,251			0			62,251			0
Comprehensive Income	$	(1,657,834	)	$	(1,200,857	)	$	(4,286,395	)	$	(1,457,612	)

Basis of Presentation

The condensed consolidated financial statements of Alternate Energy Holdings, Inc. (The Company) included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote disclosures normally included in the financial statements prepared in conjunction with generally accepted principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the annual audited financial statements and the notes thereto included in the Company’s registration statement, Form 10-K and other reports filed with the SEC. The accompanying unaudited interim consolidated financial statements reflect all adjustments of a normal and recurring nature which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows of the Company for the interim periods presented. The results of operations for these periods are not necessarily comparable to, or indicative of, results of any other interim period or for the fiscal year taken as a whole. Certain information that is not required for interim financial reporting purposes has been omitted.

Recently Issued Accounting Pronouncements

In June 2009, the FASB issued revised authoritative guidance related to variable interest entities, which requires entities to perform a qualitative analysis to determine whether a variable interest give the entity a controlling financial interest in a variable interest entity. The guidance also requires an ongoing reassessment of variable interests and eliminates the quantitative approach previously required for determining whether an entity is the primary beneficiary. This guidance, which was reissued by the FASB in December 2009 as ASU No. 2009-17, “Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities,” amends ASC Topic 810, “Consolidation”, and was effective as of January 1, 2010 for the Company. The adoption of this guidance did not have a significant impact on the consolidated financial statements.

Alternate Energy Holdings, Inc. does not expect the adoption of any other recently issued accounting pronouncements to have a significant impact on their financial position, results of operations, or cash flow.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - COMMON STOCK

During 2006, Alternate Energy Holdings, Inc.
- Issued 4,252,088 shares of common stock to the Nussential Holdings shareholders in the reverse merger – See Note 1 for the details.
- Issued 1,249,999 shares of common stock valued at $ 1,318,749 for services.
- Issued 1,964,000 shares of common stock for cash received in the amount of $ 321,999.
- Purchased 400,000 shares of treasury stock for cash in the amount of $ 20,000.
During 2007, Alternate Energy Holdings, Inc.
- Issued 7,865,652 shares of common stock valued at $ 1,687,111 for services.
- Issued 8,433,536 shares of common stock for cash received in the amount of $ 1,749,359.
During 2008, Alternate Energy Holdings, Inc.
- Issued 24,762,049 shares of common stock valued at $ 2,587,558 for services.
- Issued 10,709,717 shares of common stock for cash received in the amount of $ 1,106,355.
During 2009, Alternate Energy Holdings, Inc.
- Issued 28,282,532 shares of common stock valued at $ 1,433,891 for services.
- Issued 500,000 shares of common stock valued at $25,000 for a contract option fee.
- Issued 29,180,536 shares of common stock for cash received in the amount of $ 1,460,325.
During 2010, Alternate Energy Holdings, Inc.
- Issued 45,618,546 shares of common stock valued at $2,560,927 for services.
- Issued 132,916,090 shares of common stock for cash received in the amount of $ 9,214,664.

NOTE 3 - COMMITMENTS

Alternate Energy Holdings, Inc leases its office space under a one-year lease and on a month-to-month basis under another lease. The one year lease is dated June 9, 2009 and expires August 2010. Rent expense for the six months ending June 30, 2010 and 2009 was $27,660 and $26,275, respectively. The following is a schedule of future minimum payments under the operating lease at June 30, 2010:

June 30, 2010

2,440

Alternate Energy Holdings, Inc. has entered into contract dated December 11, 2009 to purchase land in Idaho. This option holds the contract open until December 18, 2010.

NOTE 4 - VARIABLE INTEREST ENTITY

FASB ASC 810 “Consolidation of Variable Interest Entities” requires consolidation of certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. Reactor Development, LLC was formed for the purpose of developing and managing an energy complex. Alternate Energy Holdings, Inc. invested $1,000,000 which represents approximately 50% of Reactor Development LLC’s capital structure as of December 31, 2007. Furthermore, the daily operating decisions of Reactor Development, LLC are made by the members of Alternate Energy Holdings, Inc.’s management. Under FASB ASC 810, Reactor Development, LLC is deemed a variable Interest Entity to Alternate Energy Holdings, Inc. and as such Reactor Development, LLC’s financial information has been consolidated with Alternate Energy Holdings, Inc.

The consolidated financial statements includes the full operating activities of Reactor Development, LLC, with amounts allocated to Reactor Development, LLC disclosed under “Non-Controlling Interest in Variable Interest Entity” in the accompanying consolidated income statement. Assets and liabilities of Reactor Development, LLC were $ -0- and $ -0-, respectively, at June 30, 2010 and December 31, 2009, respectively.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 5 - DEPOSIT

Deposit represents monies held in escrow for a potential joint venture project that will develop and manufacture a hybrid engine in China.

NOTE 6 – ASSET HELD FOR SALE

Alternate Energy Holdings, Inc has constructed a model home to demonstrate that a competitively priced and energy cost efficient home can be constructed using energy-efficient techniques. The home creates more power than its uses on a month-to-month basis. The home is to be used to market the Energy Neutral brand name. The home is currently listed for sale.

NOTE 7 – LINE OF CREDIT

Alternate Energy has a Variable Credit Line with UBS Bank. The line has been approved for $2,600,000 and has a balance $50,582 and $-0- outstanding on it as of June 30, 2010 and 2009, respectively. Interest is being charged a rate of 2.00% above the 30 day LIBOR rate. The line is secured by investments of the Company held by UBS bank.

NOTE 8 – AVAILABLE-FOR-SALE-SECURITIES

The Company’s investments consist of equity investments in mutual funds. An investment company is professionally managing the portfolio of the investments. The Company’s investments are classified as available-for sale and are recorded on the consolidated balance sheet at fair value based on Level 1 inputs. Unrealized gains and losses on the investments are included as a separate component of other comprehensive income. The Company will recognize an impairment charge if a decline in the fair value of its investments below cost basis is judged to be other-than-temporary. Unrealized gains, included in other comprehensive income at June 30, 2010 and 2009 were $62,251 and $-0-, respectively.

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. The words “believe,” “expect,” “anticipate,” “project,” “target,” “optimistic,” “intend,” “aim,” “will” or similar expressions are intended to identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. These statements are based on the beliefs of our management as well as assumptions made by and information currently available to us and reflect our current view concerning future events. As such, they are subject to risks and uncertainties that could cause our results to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: our significant operating losses; our limited operating history; uncertainty of capital resources; the speculative nature of our business; our ability to successfully implement new strategies; present and possible future governmental regulations; operating hazards; competition; the loss of key personnel; and any of the factors discussed in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the most recently completed fiscal year; other risks identified in this report; and any statements of assumptions underlying any of the foregoing. You should also carefully review other reports that we file with the SEC. We assume no obligation, and do not intend, to update these forward-looking statements, except as required by law.

When used in this report, the terms “AEHI”, “our company”, “we”, “our”, and “us” refer to Alternate Energy Holdings, Inc., a Nevada corporation, and its subsidiaries International Reactors, Inc., or International Reactors, Idaho Energy Complex Corporation, or Idaho Energy Complex, Reactor Land Development, LLC, or Reactor Land Development, Energy Neutral, Inc., or ENI, and Green World Water™ Inc, or GWW.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General Overview

Our business consists of (1) the acquisition and development of a nuclear plant site in Payette, Idaho, and obtaining licenses for its construction and operation so that we can become the first ever independent nuclear power producer in the United States, (2) developing our Energy Neutral packages which we will sell and market in the future in order to assist homeowners, businesses and farmers to operate with minimal or no reliance on the electrical grid, and (3) identifying opportunities to assist developing countries to construct commercial nuclear reactors on oceanfront sites in order to co-generate clean energy and desalinate water.

Our Payette, Idaho Energy Complex

Through our subsidiaries, Idaho Energy Complex and Reactor Land Development, we are in the process of acquiring and developing a nuclear plant site in Payette, Idaho and obtaining related licenses for its construction and operation. Our management has significant experience in the nuclear industry, power generation, and facility development. Our Payette, Idaho project, or the Project, will involve acquiring land and water rights, permits and licenses, development rights and such other property and services necessary to develop an energy complex in Idaho, including one or more nuclear reactors that we expect to eventually operate as the first ever nuclear independent power producer.

Development of Energy Neutral Packages

In October 2009, our subsidiary, Energy Neutral™ Inc, began construction on a model home to demonstrate that a competitively-priced and energy cost efficient home can be constructed using energy-efficient techniques, Energy Star Appliances, photovoltaic solar panels, and in-home energy monitoring. Our efforts resulted in a home that creates more power than it uses on a month-to-month basis. The model home is complete and we will soon introduce its unique energy saving features to a range of potential users. We intend to use this model to market our Energy Neutral™ packages. We plan to work with construction companies to offer franchise opportunities that will make Energy Neutral™ a brand name in a new market of affordable renewable energy.

Nuclear Reactors and Desalination for Emerging Countries

Through our subsidiary, Green World Water™ Inc., we are identifying opportunities in developing countries to construct nuclear power plants that will, as a byproduct of energy production, desalinate water and provide potable water to communities where potable water is not readily available. We expect to develop commercial nuclear reactors on oceanfront sites, particularly in Latin America and western-friendly Middle Eastern countries, to co-generate clean energy and desalinate water. We believe that we can utilize available nuclear technology to address electrical energy needs while simultaneously producing fresh water from ocean intake. The Company has signed an agreement with China National Nuclear Corporation, or CNNC, a state owned enterprise in China relating to the production of desalinization reactors in China to market on a worldwide basis. The agreement grants AEHI, through GWW, rights to market desalination reactors (CP-W 650 and 1100) outside of China for 10 years in exchange for a commission of 2 to 10% depending on the final negotiated price. We have currently signed Memoranda of Understanding, or MOUs, with one international company in India relating to the commencement of discussions regarding the feasibility of desalination nuclear reactors.

Mini -Reactors

We have signed an MOU with New Mexico-based Hyperion Power Generation, Inc. The MOU sets forth the path of negotiations to form a joint venture between the two companies to license, build and market Hyperion's refrigerator-sized modular nuclear reactors on a world-wide basis. The purpose of this MOU is to indicate the intentions of AEHI and Hyperion Power to structure a joint venture to produce and sell the Hyperion reactors through AEHI China. Also, AEHI will seek applications of the Hyperion reactor in the US and assist with design certification for this application. Unlike most reactors, Hyperion transportable reactors are sealed at the factory and are not refueled onsite. When the reactor has exhausted its fuel, it is returned to the factory and a new reactor is simply installed in its place. Because of its small size, the reactor’s applications could fuel a wide variety of facilities including: hospitals, desalinization plants, emergency facilities, industrial parks, factories, military bases, and even small towns.

Plan of Operations

We estimate that the initial cost of the Project will be approximately $100.0 million. We plan on funding the Project through a private placement or other offering of securities of our subsidiary, Reactor Land Development, which would result in investors receiving, in the aggregate, approximately 10% ownership in the first reactor unit. Any shortfall will have to be funded through other means, such as a debt financing, cost-sharing with contractors and suppliers, or other securities offerings, including a securities offering by our company or any of our other subsidiaries.

While the success of the Project does not depend on financial assistance from the any governmental entities, our management believes, based on the 2005 Energy Policy Act, that the Project may be eligible for an 80% Federal loan guarantee for the construction of new nuclear facilities, and an applicable Federal tax credit of $1.0 billion over eight years. These loan guarantees and tax credits should facilitate our financing initiatives and allow us to raise the requisite funding for operating expenses during that timeframe. In addition, we expect that the excess heat from the nuclear power plant will be used to produce biofuels from local crops and agricultural waste.

The intended use of the funds for the Project is approximately as shown below:

		In millions ($)
Payment to owner for site land		5
Payment for Construction and Operating License Application plus 10% price escalation due to delays		40
Payments for third party project management, and general and administrative expenses		15
Additional water rights		10
Long lead time equipment order deposit; reactor vessel and turbine		30
Total	$	100.0

Since the nature of our Project is constantly being refined, we may have to adjust the budget categories itemized above as our permitting and development plans proceed.

We do not, and will not, have the funds required to execute our business plan as outlined above, unless we are successful at raising capital through a private placement transaction or otherwise. The availability and terms of any future financing will depend on market and other conditions. The amount of proceeds and uses are based upon the projections by our management, which may also change according to unforeseen future events and market changes. We have no commitments for any financing as of the date of this report.

In the continuance of our business operations over the next twelve months, we do not intend to purchase or sell any significant assets nor do we expect a significant change in the number of our employees.

Project Economics

If we are able to raise the requisite funds to cover our operating expenses, then we expect to be able to develop a site licensed for construction of an advanced nuclear reactor by the end of 2014. In addition, we believe that by acquiring and obtaining the required permits and approvals for the proposed site now instead of waiting for increased demand for electricity which will only occur with increased economic development, we will be able to offer a site and an NRC license 3 to 4 years sooner than we might otherwise be able to, which will offer additional value to the Idaho site due to earlier power generation and revenue potential of the site.

Consolidated Results of Operations

Comparison of the Three Months Ended June 30, 2010 to June 30, 2009

During the three months ended June 30, 2010 and 2009, we did not recognize any revenues from our operations. During the three months ended June 30, 2010, we incurred operating expenses of $1,735,812 compared to $1,200,864 during the three months ended June 30, 2009. The increase of $534,948 was a result of an increase in our operational activities as compared to the three months ended June 30, 2009. The following table is a comparison of the significant operational expenses that we incurred during the three months ended June 30, 2010 and 2009:

		Three Months Ended
		June 30,		June 30,		INCREASE
		2010		2009		(DECREASE)

Consulting services	$	722,665	$	89,544	$	633,121
Marketing services	$	35,452	$	5,000	$	30,452
Public relations	$	42,750	$	61,294	$	(18,544	)
Legal fees	$	146,225	$	23,916	$	122,309
Board and Officer Services	$	672,000	$	965,000	$	(293,000	)

During the three months ended June 30, 2010, we recognized a net loss of $1,720,085 compared to a net loss of $1,200,857 during the three months ended June 30, 2009. The increase of $519,228 in net loss was a result of an increase in operational expenses primarily due to a $633,121 increase in consulting fees incurred during the quarter, a $30,452 increase in marketing expenses, and a $122,309 increase in legal expenses, which was partially offset by $18,544 reduction in public relations expenses and a $293,000 reduction in Board and Officer expenses. The Company’s basic and diluted loss per share was $0.01 during the three months ended June 30, 2010 versus a basic and diluted loss per share of $0.01 -0 during the three months ended June 30, 2009.

Comparison of the Six Months Ended June 30, 2010 to June 30, 2009

During the six months ended June 30, 2010 and 2009, we did not recognize any revenues from our operations. During the six months ended June 30, 2010, we incurred operating expenses of $4,364,573 compared to $1,463,181 during the six months ended June 30, 2009. The increase of $2,901,392 was a result of an increase in our operational activities as compared to the six months ended June 30, 2009. The following table is a comparison of the significant operational expenses that we incurred during the six months ended June 30, 2010 and 2009:

		Six Months Ended
		June 30,		June 30,		INCREASE
		2010		2009		(DECREASE)

Consulting services	$	1,170,983	$	155,483	$	1,015,500
Marketing services	$	37,452	$	20,590	$	16,862
Public relations	$	151,928	$	77,364	$	74,564
Legal fees	$	209,519	$	44,446	$	165,073
Board and Officer Services	$	2,582,000	$	1,000,000	$	1,582,000

During the six months ended June 30, 2010, we recognized a net loss of $4,348,646 compared to a net loss of $1,457,612 during the six months ended June 30, 2009. The increase of $2,891,034 in net loss was a result of an increase in operational expenses primarily due to increases in Board and Officer Services and consulting fees of $1,582,000 and $1,015,500, respectively, incurred during the period. The Company’s basic and diluted loss per share was $0.02 during the six months ended June 30, 2010 versus a basic and diluted loss per share of $0.01 during the six months ended June 30, 2009.

Liquidity and Capital Resources

As of June 30, 2010, we had total of cash and cash equivalents of $1,491,136, total current assets of $8,413,486 and current liabilities of $601,431. The following table provides detailed information about our net cash flow for all financial statements periods presented in this report.

		Cash Flow
		Six Months Ended
		June 30,
		2010			2009

Net cash provided by (used in) operating activities	$	(1,234,260	)	$	(417,782	)
Net cash used in investing activities	$	(7,137,427	)	$	-0-
Net cash provided by (used in) financing activities	$	9,265,246		$	443,530
Net cash inflow (outflow)	$	893,559		$	25,748

Operating Activities

Net cash used in our operating activities increased by $816,478 for the six months ended June 30, 2010 as compared to the same period in 2009. This increase in funds used by our operating activities was primarily due to increase in officer/board compensation and consulting services. This increase in funds used in our operating activities was partially offset by stock issued for services in the amount of $2,560,927.

During the six months ended June 30, 2010, the net cash used in our operating activities was $1,234,260. Net cash used in our operating activities during the six month period ended June 30, 2010 includes non-cash items consisting of stock for services totaling $2,560,927. During the six months ended June 30, 2009, the net cash used in our operating activities was $417,782. Net cash used in our operating activities during the six month period ended June 30, 2009 includes non-cash items consisting of stock for services totaling $1,050,877.

Investing Activities

During the six months ended June 30, 2010, the net cash used in our investing activities was $7,137,427, comprised of the purchase of short-term investments, fixed assets and the Energy Neutral Home. There was no net cash provided by or used in our investing activities for the six months ended June 30, 2009.

Financing Activities

Net cash provided by financing activities increased by $8,821,716 for the six months ended June 30, 2010 as compared to the same period of 2009. This increase in funds provided by our financing activities was primarily due to receipt of cash for shares of common stock.

As discussed above, we estimate that we will need to raise approximately $100 million in order to fund the Project. We plan on funding the Project through a private placement or other offering of securities of our subsidiary, Reactor Land Development, which would result in investors receiving, in the aggregate, approximately 10% ownership in the first reactor unit. We expect that any shortfall will have to be funded through other means, such as a debt financing, cost-sharing with contractors and suppliers, or other securities offerings, including a securities offering by our company or any of our other subsidiaries. If additional funds are raised through the issuance of equity securities, there may be a significant dilution in the value of our outstanding common stock.

Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity or capital expenditures or capital resources that is material to an investor in our securities.

Seasonality

Our business has not been subject to any material seasonal variations in operations, although this may change in the future.

Inflation

Our business, revenues and operating results have not been affected in any material way by inflation.

Critical Accounting Policies and Estimates

As discussed in Part II, Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2009, we consider our policies on use of estimates, cash and cash equivalents and stock based compensation to be the most critical in understanding the judgments that are involved in preparing our consolidated financial statements. There have been no significant changes to these policies in the three months ended June 30, 2010. For a detailed discussion on the application of these and other accounting policies, see Item 1 of Part I, “Financial Statements — Note 1 — Accounting Policies — Summary of Significant Accounting Policies”.

Recent Accounting Pronouncements

See Note 1 to the condensed consolidated financial statements included in Item 1, Financial Information, of this Quarterly Report on Form 10-Q.

ITEM 4T. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

Our management, including our Chief Executive Officer and Chief Financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this quarterly report as required by Rule 13a-15 under the Securities Exchange Act of 1934(the “Exchange Act”). Based upon that evaluation, management concluded that, as of the end of the period covered by this quarterly report, our disclosure controls and procedures (as defined in Rule 13a15(e) under the Exchange Act) are effective, in all material respects, to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive officer and Chief Financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Change in Internal Controls Over Financial Reporting

No change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during our most recent fiscal quarter that has materially affected, or is likely to materially affect, our internal control over financial reporting.

PART II
OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have a material adverse affect on our business, financial condition or operating results.

ITEM 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K is not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES OR USE OF PROCEEDS

Except as reported on our Current Report on Form 8-K filed with the SEC on June 8, 2010, there were no unregistered sales of equity securities during the fiscal quarter ended June 30, 2010.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

There were no defaults upon senior securities during the fiscal quarter ended June 30, 2010.

ITEM 4. (REMOVED AND RESERVED)

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

The following exhibits are filed with this report, except those indicated as having previously been filed with the SEC and are incorporated by reference to another report, registration statement or form. As to any shareholder of record requesting a copy of this report, we will furnish any exhibit indicated in the list below as filed with this report upon payment to us of our expenses in furnishing the information.

*Exhibit Number*		*Description*

31.1		Rule 13a-14(a)/15d-14(a) Certification - Principal Executive Officer

31.2		Rule 13a-14(a)/15d-14(a) Certification - Principal Accounting Officer

32		Section 1350 Certifications

SIGNATURES

In accordance with section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant caused this Report on Form 10-Q to be signed on its behalf by the undersigned, thereto duly authorized individuals.

Date: August 16, 2010

ALTERNATE ENERGY HOLDINGS, INC.

By: /s/ Donald L. Gillispie
Donald L. Gillispie
President, Chief Executive Officer and Director
(Principal Financial Officer)

By: /s/ Rick J. Bucci
Rick J. Bucci
Vice-President and Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)

EXHIBIT INDEX

*Exhibit Number*		*Description*

31.1		Rule 13a-14(a)/15d-14(a) Certification - Principal Executive Officer

31.2		Rule 13a-14(a)/15d-14(a) Certification - Principal Accounting Officer

32		Section 1350 Certifications