ALTERNATE ENERGY HOLDINGS, INC. - FORM 10-Q

Attached files

file	filename
EX-32 - EXHIBIT 32 - ALTERNATE ENERGY HOLDINGS, INC.	ex32.htm
EX-31.1 - EXHIBIT 31.1 - ALTERNATE ENERGY HOLDINGS, INC.	ex31-1.htm
EX-31.2 - EXHIBIT 31.2 - ALTERNATE ENERGY HOLDINGS, INC.	ex31-2.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended March 31, 2011

o 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. Employer
incorporation or organization)	Identification No.)

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 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.

Yes ý No o

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes oNo o

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. (Check one)

Large Accelerated Filer o Accelerated Filer o

Non- Accelerated Filer o Smaller reporting company ý

(Do not check if a smaller reporting company)

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

Yeso No ý

As of May 16, 2011, there were 326,387,791 shares of common stock, $0.001 par value, outstanding.

ALTERNATE ENERGY HOLDINGS, INC.

TABLE OF CONTENTS

		Page No.
PART I - FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements.	3

Item 2.	Management’s Discussion and Analysis of Financial Condition And Results of Operations.	17

Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	21

Item 4.	Controls And Procedures.	21

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings.	22

Item 1A.	Risk Factors.	22

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	23

Item 3.	Defaults Upon Senior Securities.	23

Item 4.	[Removed and Reserved]	23

Item 5.	Other Information.	23

Item 6.	Exhibits.	23

SIGNATURES		24

the terms “we”, “us”, “our”, “Company” , “AEHI” and “Alternate Energy Holdings” refer to Alternate Energy Holdings, Inc. and our wholly owned subsidiaries.

PART I - FINANCIAL INFORMATION

ITEM 1.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2011 (Unaduited) AND DECEMBER 31, 2010

ASSETS
	March 31,
	2010			December 31
	Unaudited			2010
CURRENT ASSETS:
Cash and Cash Equivalents	$	497,173		$	234,426
Short-Term Investments		6,109,015			6,916,498

Total Current Assets		6,606,188			7,150,924

PROPERTY AND EQUIPMENT - Net		66,984			70,595

OTHER ASSET
Assets Held for Sale - Energy Neutral Model Home		-			278,000
Construction in Progress - Energy Neutral Homes		503,315			298,657
Security Deposit		3,000			3,000
Total Other Assets		506,315			579,657


TOTAL ASSETS	$	7,179,487		$	7,801,176


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITY
Accounts Payable	$	201,666		$	166,577
Due to Employee		-			60,000
Accrued Payroll		50,500			25,000

Total Current Liability		252,166			251,577

STOCKHOLDERS' EQUITY:

Common Stock, par value $.001, 150,000,000 shares authorized; 325,087,791 issued and 324,687,791outstanding and 325,087,791 issued and 324,687,791 outstanding, respectively		325,087			325,087
Additional Paid in Capital		27,063,779			27,063,779
Accumulated Other Comprehensive Income		(199,030	)		(243,773	)
Treasury Stock (400,000 shares at cost)		(20,000	)		(20,000	)
Deficit Accumulated During Development Stage		(20,242,515	)		(19,575,494	)

Total Stockholders' Equity		6,927,321			7,549,599

TOTAL LIABILITY AND STOCKHOLDERS'
EQUITY	$	7,179,487		$	7,801,176
The accompanying notes are an integral part of these consolidated financial statements.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED INCOME STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
AND THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH MARCH 31, 2011 (Unaudited)

	Three Months			Three Months			Inception to
	March 31,			March 31,			March 31,
	2011			2010			2011

REVENUES	$	169,000		$	-		$	169,000

COST OF SALES		161,588			-			161,588

GROSS PROFIT		7,412			-			7,412

OPERATING EXPENSES:
General and Administrative Expenses		660,656			2,628,761			21,418,647

NET LOSS FROM OPERATIONS		(653,244	)		(2,628,761	)		(21,411,235	)

OTHER INCOME (EXPENSE)
Investment Income		77,249			200			242,202
Miscellaneous Income		-			-			9,186
(Loss) Gain on Sales of Investments		(90,985	)		-			59,778
Impairment on Deposit		-						(100,000	)
Impairment on Asset Held for Sale		-			-			(38,419	)
Interest Expense		(41	)		-			(4,027	)
Total Other Income		(13,777	)		200			168,720

LOSS BEFORE NON-CONTROLLING INTEREST
IN VARIABLE INTEREST ENTITY		(667,021	)		(2,628,561	)		(21,242,515	)

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

Net Loss	$	(667,021	)	$	(2,628,561	)	$	(20,242,515	)

BASIC AND DILUTED
NET LOSS PER COMMON STOCK	$	(0.00	)	$	(0.01	)

WEIGHTED AVERAGE SHARES OUTSTANDING		325,087,791			237,108,234
The accompanying notes are an integral part of these consolidated financial statements.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH MARCH 31, 2011 (Unaudited)

			Number of										Accumulated
			Common				Additional						Other
	Price per		Shares		Common		Paid in			Treasury			Comprehensive		Net
	Share		Issued		Stock		Capital			Stock			Income		Loss			Total
Founder Shares issued August 29, 2005		-		14,800,000	$	14,800	$	(14,800	)	$	-		$	-	$	-		$	-
Issuance of Common Stock for Services
October		0.0176		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 Payables:
September		0.0417		600,000		600		24,400			-			-		-			25,000
November		0.0500		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		-		4,252,088		4,252		(4,252	)		-			-		-			-
Issuance of Common Stock for Services
September		1.0077		1,149,999		1,150		1,157,599			-			-		-			1,158,749
November		0.9000		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		0.0500		1,000,000		1,000		49,000			-			-		-			50,000
May		0.0500		400,000		400		19,600			-			-		-			20,000
June		0.0500		100,000		100		4,900			-			-		-			5,000
October		0.6465		273,000		273		176,227			-			-		-			176,500
November		0.3333		116,000		116		38,550			-			-		-			38,666
December		0.4244		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		0.5000		920,000		920		459,080			-			-		-			460,000
March		0.5000		300,000		300		149,700			-			-		-			150,000
April		0.2500		100,000		100		24,900			-			-		-			25,000
June		0.2500		550,000		550		136,950			-			-		-			137,500
August		0.4000		531,552		532		212,089			-			-		-			212,621
September		0.1055		4,583,200		4,583		478,697			-			-		-			483,280
October		0.4000		366,400		366		146,194			-			-		-			146,560
November		0.1453		457,000		457		65,943			-			-		-			66,400
December		0.1000		57,500		58		5,692			-			-		-			5,750
Issuance of Common Stock for Cash
January		0.5300		23,000		23		12,227			-			-		-			12,250
February		0.5000		55,000		55		27,445			-			-		-			27,500
March		0.5000		10,000		10		4,990			-			-		-			5,000
April		0.4000		25,000		25		9,975			-			-		-			10,000
May		0.2500		206,000		206		51,294			-			-		-			51,500
June		0.2389		180,000		180		42,820			-			-		-			43,000
July		0.2500		2,591,000		2,591		645,159			-			-		-			647,750
August		0.2494		2,521,036		2,521		626,238			-			-		-			628,759
September		0.2500		64,000		64		15,936			-			-		-			16,000
October		0.2500		20,000		20		4,980			-			-		-			5,000
November		0.2000		287,500		287		57,213			-			-		-			57,500
December		0.1000		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
The accompanying notes are an integral part of these consolidated financial statements.

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH MARCH 31, 2011 (Unaudited)

			Number of									Accumulated
			Common				Additional					Other
	Price per		Shares		Common		Paid in		Treasury			Comprehensive		Net
	Share		Issued		Stock		Capital		Stock			Income		Loss			Total
Issuance of Common Stock for Services
January		0.1000		1,312,250		1,312		129,913		-			-		-			131,225
February		0.1000		70,000		70		6,930		-			-		-			7,000
March		0.1000		183,250		183		18,142		-			-		-			18,325
April		0.1000		20,000		20		1,980		-			-		-			2,000
May		0.1000		14,556,875		14,557		1,441,131		-			-		-			1,455,688
June		0.1000		4,365,342		4,365		432,169		-			-		-			436,534
July		0.2000		798,625		798		158,927		-			-		-			159,725
August		0.2000		71,500		72		14,228		-			-		-			14,300
September		0.2000		25,430		25		5,061		-			-		-			5,086
October		0.2000		207,147		207		41,222		-			-		-			41,429
November		0.2000		10,853		11		2,160		-			-					2,171
December		0.1000		3,140,777		3,141		310,934		-			-					314,075
Issuance of Common Stock for Cash
January		0.1000		7,720,000		7,720		764,280		-			-		-			772,000
February		0.1000		1,120,750		1,121		110,954		-			-		-			112,075
March		0.1000		225,000		225		22,275		-			-		-			22,500
April		0.1000		250,000		250		24,750		-			-		-			25,000
May		0.1000		50,000		50		4,950		-			-		-			5,000
June		0.1000		576,000		576		57,024		-			-		-			57,600
July		0.1021		307,301		308		31,072		-			-		-			31,380
August		0.1549		182,000		182		28,018		-			-		-			28,200
September		0.2609		153,666		154		39,946		-			-		-			40,100
December		0.1000		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		0.1000		395,290		395		39,134		-			-		-			39,529
March		0.0500		138,065		138		6,765		-			-		-			6,903
April		0.0500		18,425,000		18,425		902,825		-			-		-			921,250
May		0.0500		945,400		945		46,325		-			-		-			47,270
June		0.0500		718,500		719		35,206		-			-		-			35,925
July		0.0500		755,000		755		36,995		-			-		-			37,750
August		0.0500		1,567,957		1,568		76,830		-			-		-			78,398
September		0.0500		1,431,340		1,431		70,136		-			-		-			71,567
October		0.0500		50,000		50		2,450		-			-		-			2,500
November		0.0500		441,580		442		21,637		-			-		-			22,079
December		0.0500		3,914,400		3,915		191,805		-			-		-			195,720
Issuance of Common Stock for Contract Option Fee
December		0.0500		500,000		500		24,500		-			-		-			25,000
Issuance of Common Stock for Cash
January		0.1000		25,000		25		2,475		-			-		-			2,500
February		0.0500		800,000		800		39,200		-			-		-			40,000
March		0.0500		330,600		330		16,200		-			-		-			16,530
April		0.0500		1,745,000		1,745		85,505		-			-		-			87,250
May		0.0500		700,000		700		34,300		-			-		-			35,000
June		0.0500		4,345,000		4,345		212,905		-			-		-			217,250
August		0.0500		440,000		440		21,560		-			-		-			22,000
September		0.0500		2,470,000		2,470		121,030		-			-		-			123,500
October		0.0500		3,509,000		3,509		171,941		-			-		-			175,450
November		0.0500		5,338,700		5,339		261,596		-			-		-			266,935
December		0.0500		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

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

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
FOR THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH MARCH 31, 2011 (Unaudited)


			Number of									Accumulated
			Common				Additional					Other
	Price per		Shares		Common		Paid in		Treasury			Comprehensive			Net
	Share		Issued		Stock		Capital		Stock			Income			Loss			Total
Issuance of Common Stock for Services
January		0.0500		17,500,000		17,500		857,500		-			-			-			875,000
February		0.0500		20,475,200		20,475		1,003,285		-			-			-			1,023,760
March		0.0500		1,307,546		1,308		64,069		-			-			-			65,377
April		0.0500		735,800		735		36,055		-			-			-			36,790
May		0.1000		100,000		100		9,900		-			-			-			10,000
June		0.1000		5,500,000		5,500		544,500		-			-			-			550,000
July		0.1500		5,854,465		5,854		872,316		-			-			-			878,170
August		0.5000		462,000		462		230,538		-			-			-			231,000
October		0.7000		145,000		145		101,355		-			-			-			101,500
November		0.7365		2,056,030		2,056		1,512,124		-			-			-			1,514,180
Issuance of Common Stock for Contract Option Fee
August		0.4000		500,000		500		199,500		-			-			-			200,000
September		0.7000		250,000		250		174,750		-			-			-			175,000
Issuance of Common Stock for Cash
January		0.0500		4,691,240		4,691		229,871		-			-			-			234,562
February		0.0500		42,188,960		42,189		2,067,259		-			-			-			2,109,448
March		0.0500		30,048,710		30,049		1,472,387		-			-			-			1,502,436
April		0.0500		4,610,000		4,610		225,890		-			-			-			230,500
May		0.1000		44,028,600		44,029		4,358,831		-			-			-			4,402,860
June		0.1000		7,348,580		7,349		727,509		-			-			-			734,858
July		0.4000		65,000		65		25,935		-			-			-			26,000
August		0.5000		425,000		425		212,075		-			-			-			212,500
September		0.7400		223,547		223		165,201		-			-			-			165,424
October		0.7000		279,145		279		195,123		-			-			-			195,402
November		0.7000		142,860		143		99,859		-			-			-			100,002
Comprehensive Loss:
Unrealized Loss on Short-Term Investments						-		-		-			(243,773	)		-			(243,773	)
Net Loss						-		-		-			-			(8,487,722	)		(8,487,722	)
Total Comprehensive Loss				-		-		-		-			-			-			(8,731,495	)
Balance - December 31, 2010				325,087,791	$	325,087	$	27,063,779	$	(20,000	)	$	(243,773	)	$	(19,575,494	)	$	7,549,599

Comprehensive Loss:
Unrealized Gain on Short-Term Investments						-		-		-			44,743			-			44,743
Net Loss						-		-		-			-			(667,021	)		(667,021	)
Total Comprehensive Loss				-		-		-		-			-			-			(622,278	)
Balance - March 31, 2011				325,087,791	$	325,087	$	27,063,779	$	(20,000	)	$	(199,030	)	$	(20,242,515	)	$	6,927,321

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

ALTERNATE ENERGY HOLDINGS, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010
AND THE PERIOD FROM INCEPTION (AUGUST 29, 2005) THROUGH MARCH 31, 2011 (Unaudited)

	Three Months			Three Months			Inception to
	March 31,			March 31,			March 31,
	2011			2010			2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(667,021	)	$	(2,628,561	)	$	(20,242,515	)
Adjustments to reconcile Net Loss to Net Cash
Used by Operating Activities -
Common Stock Issued for Services		-			1,964,137			12,436,836
Common Stock Issued for Contract Option Fee		-			-			400,000
Loss from Variable Interest Entity		-			-			(1,000,000	)
Impairment on Asset Held for Sale		-			-			38,419
Depreciation		3,611			-			12,505
(Loss) Gain on Sales of Investments		90,985			-			(59,778	)
Change in operating Assets and Liabilities -
Security Deposits		-			-			(3,000	)
Construction in Progress - Energy Neutral Homes		(204,658	)		-			(503,315	)
Accounts Payable		35,089			42,768			201,666
Accrued Payroll		25,500			-			50,500
Total Adjustments		(49,473	)		2,006,905			11,573,833
Net Cash Used by Operating Activities		(716,494	)		(621,656	)		(8,668,682	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Fixed Assets		-			(22,097	)		(79,489	)
Purchase of Short-Term Investments		(645,756	)		-			(14,742,681	)
Proceeds from Sale of Short-Term Investments		1,406,997			-			8,455,995
Proceeds from Sale of Energy Neutral Home		278,000			-			278,000
Purchase of Energy Neutral Model Home		-			(297,365	)		(278,000	)
Net Cash Provided (Used) by Investing Activities		1,039,241			(319,462	)		(6,366,175	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Receipt of Cash for Common Stock		-			3,846,446			14,552,030
Cash Received from Non-Controlling Members		-			-			1,000,000
Purchase of Treasury Stock		-			-			(20,000	)
Advance Due to Related Party		106,914			-			106,914
Payment to Related Party		(106,914	)		-			(106,914	)
Payment of Employee Advance		(60,000	)		-			(60,000	)
Advance Due to Employee		-			-			60,000
Net Cash (Used) Provided by Financing Activities		(60,000	)		3,846,446			15,532,030

NET INCREASE IN CASH		262,747			2,905,328			497,173

CASH - BEGINNING		234,426			597,577			-

CASH - ENDING	$	497,173		$	3,502,905		$	497,173



Supplemental Disclosures:
Cash paid for Income Taxes	$	-		$	-		$	-
Cash paid for Interest	$	41		$	-		$	4,027

  The accompanying notes are an integral part of these 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, LLC, Green World Water, LLC, Energy Neutral, LLC 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. During fiscal year 2010 and 2011, Energy Neutral LLC completed construction of the model "energy neutral" home and one additional "energy neutral" home and is in the process of constructing four other "energy neutral" homes in Boise, Idaho, which feature unique design elements as well as standard “energy neutral” elements, including the Energy Star Certification and solar power generation. The homes are designed and built with the goal of consuming less energy than they produce.

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 March 31, 2011 and December 31, 2010. The uninsured balances at March 31, 2011 and December 31, 2010 were $212,709 and $-0-, respectively.

ALTERNATE ENERGY HOLDINGS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

Basic and Diluted Net Loss per Share

Basic and diluted net loss per share calculations are presented in accordance with FASB ASC 260-10, and are 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. Alternate Energy Holdings, Inc. has not issued any stock options or stock warrants since its inception through March 31, 2011. For the three months ended March 31, 2011 and 2010, -0- and 36,000,000 shares of restricted stock were issued for officer/board services, respectively.

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 utilizes 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.

ALTERNATE ENERGY HOLDINGS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued

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
	March 31,
	2011			2010
Net Loss	$	(667,021	)	$	(2,628,561	)
Unrealized Gain on Short-
Term Investments		44,743			-0-
Comprehensive Income	$	(622,278	)	$	(2,628,561	)

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.

Revenue Recognition on Sale of Real Estate

Sales and the associated gains and losses of real estate assets are recognized in accordance with the provisions of ASC Topic 360-20., "Property, Plant and Equipment - Real Estate Sale". The specific timing of a sale is measured against various criteria in ASC Topic 360-20 related to the transaction and any continuing involvement in the form of management of financial assistance associated with the properties.

The Company utilizes the full accrual method and if the criteria are not met, the Company defers some or all of the gain recognition and accounts for the continued operations of the property by applying the finance, leasing, deposit, installment or cost recovery methods, as appropriate, until the sale criteria are met.

ALTERNATE ENERGY HOLDINGS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - INCOME TAXES

Alternate Energy Holdings, Inc. uses the liability method, where deferred tax assets and liabilities are determined based on the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes. Alternate Energy Holdings, Inc. incurred net losses in the three months ending March 31, 2011 and 2010 and therefore, has no tax liability. The deferred tax asset generated by the carry-forward is approximately $ 13,172,005 at March 31, 2011 and will expire in 2029.

Components of deferred tax assets at March 31, 2011 are as follows:

Deferred tax asset – net operating loss
Carry-forwards	$	13,172,005
Valuation Allowance		(13,172,005	)
Net deferred tax asset	$	-0-

The Company has adopted ASC 740-10 “Income Taxes”. As a result of the assessment the Company has recognized no material tax adjustments to the unrecognized tax benefits. At the adoption date of January 1, 2008 and as of March 31, 2011, the Company has no unrecognized tax benefits. By statue, tax years ending December 31, 2010 through 2008 remain open to examination by the major taxing jurisdictions to which the Company is subject.

The reconciliation of the effective income tax rate of the Company to the statutory income tax rate for the fiscal year ended on December 31, 2010 and 2009 is as follows:

	2010			2009
Federal Income Tax Rate		34	%		34	%
State Income Tax Rate		0	%		0	%
Increase in Valuation Allowance		(34	%)		(34	%)
Effective Tax Rate		0	%		0	%

ALTERNATE ENERGY HOLDINGS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - 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.

- Purchase 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 54,136,041 shares of common stock valued at $5,094,064 for services.

- Issued 750,000 shares of common stock valued at $375,000 for two contract option fees.

- Issued 134,051,642 shares of common stock for cash received in the amount of $9,913,992.

During 2011, Alternate Energy Holdings, Inc.

- Did not issue any common stock for services or cash.

NOTE 4 - COMMITMENTS

Alternate Energy Holdings, Inc leases its office space under a two year lease and a home/office on a month-to-month basis under another lease. The two year lease is dated April 1, 2010 and expires April 30, 2012 and requires monthly payments of $2,000. Rent expense for the three months ending March 31, 2011 and 2010 was $10,000 and $13,440, respectively. The following is a schedule of future minimum payments under the operating lease for the three months ended March 31, 2011:

For the year Ended
December 31
2011	$	18,000
2012		8,000
Total	$	26,000

ALTERNATE ENERGY HOLDINGS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 – COMMITMENTS - continued

Alternate Energy Holdings, Inc. has entered into three contracts dated February 23, 2011, August 10, 2010 and September 10, 2010 to purchase land in Idaho. This option holds the contract open until December 11, 2011, January 10, 2012 and September 10, 2011, respectively. The expenses of these contracts are show as Issuance of Common Stock for Option Fee on the Stockholder’s Equity statement.

NOTE 5 - VARIABLE INTEREST ENTITY

FASB ASC 810 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 Holding, 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 March 31, 2011 and December 31, 2010, respectively.

ALTERNATE ENERGY HOLDINGS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 was to be used to market the Energy Neutral brand name. The home was sold in March 2011.

NOTE 7 – 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 March 31, 2011 and 2010 were $44,743 and $-0-, respectively.

NOTE 8 – DUE TO EMPLOYEE

In December, 2010 an employee advanced the Company $60,000 to cover working capital expenses. There were no formal repayment terms or interest charged on this advance. The monies were repaid in full in March 2011.

NOTE 9 – CONSTRUCTION IN PROGRESS

Alternate Energy Holdings, Inc. is in the process of developing a subdivision of five lower cost energy efficient affordable homes in the Panther subdivision in Boise, Idaho that are being constructed by a local builder. As of March 31, 2011 and December 31, 2010, $503,315 and $298,657 has been spent on these homes, respectively.

NOTE 10 – DUE TO RELATED PARTY

In January, 2011 the CEO advanced the Company $106,914 to cover working capital expenses. There were no formal repayment terms or interest charged on this advance. The monies were repaid in full in March 2011.

ALTERNATE ENERGY HOLDINGS, INC.

(A Development Stage Company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11 – LEGAL PROCEEDINGS

Currently, an action initiated by the U.S. Securities and Exchange Commission (“SEC”) is pending in the U.S. District Court for the District of Idaho, alleging, among other things, that our Company, and certain of our officers and directors, violated federal securities laws issuing materially false and misleading statements, artificially inflating the Company’s stock price, and subsequently liquidating the stock through secret sales (the “SEC” action). The company’s accounts were frozen on December 18, 2010 following the filing of the civil compliant by the SEC in connection with the SEC action: however, a federal judge subsequently dropped the freeze on all of the Company’s assets on February 4, 2011. The parties are currently in the discovery phase and management is unable to evaluate the likelihood of an unfavorable outcome.

On January 11, 2011, a class action lawsuit was filed in the U.S. District Court of the District of Idaho on behalf of purchases of the common stock of the company between September 20, 2006 through December 14, 2010, against the company and certain officers by Lance Teague. On March 7, 2011, plaintiff moved to appoint John O’Brien as Lead Plaintiff. The compliant alleges claims against the Company and certain senior officers and directors for violation of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 there under and claims against certain of its senior officers and directors for violations of Section 20A and Section 20(a) of the Exchange Act. The compliant seeks compensatory damages for all damages sustained as a result of the defendants’ alleged actions, including reasonable costs and expenses, rescission, and other relief the Court deemed just and proper. The Company believes the lawsuit is without merit and intents to vigorously defend itself. The parties are currently in the discovery phase and management is unable to evaluate the likelihood of an unfavorable outcome.

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the provisions of the Private Securities Litigation Reform Act of 1995 which represent our projections, estimates, expectations or beliefs concerning among other things, financial items that relate to management’s future plans or objectives or to our future economic and financial performance. In some cases, you can identify these statements by terminology such as “may”, “should”, “plans”, “believe”, “will”, “anticipate”, “estimate”, “expect” “project”, or “intend”, including their opposites or similar phrases or expressions. You should be aware that these statements are projections or estimates as to future events and are subject to a number of factors that may tend to influence the accuracy of the statements. These forward-looking statements should not be regarded as a representation by the Company or any other person that the events or plans of the Company will be achieved. You should not unduly rely on these forward-looking statements, which speak only as of the date of this Quarterly Report. We undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this Quarterly Report or to reflect the occurrence of unanticipated events. You should, however, review the factors and risks we describe in the reports we file from time to time with the Securities and Exchange Commission (“SEC”) after the date of this Quarterly Report. Actual results may differ materially from any forward looking statement.

Overview

The Company is in the business of serving the electric power generation industry by acquiring and developing nuclear plant sites and obtaining licenses for their construction and operation through its operating subsidiaries. The Company’s management has experience in the nuclear industry, power generation, and facility development. The Company formed Idaho Energy Complex and Reactor Land as its subsidiaries to manage and finance its business plan to develop a proposed site in Idaho for a reactor. Reactor Land began operations in September 2007, with the purpose of acquiring land and water rights, permits and licenses, development, rights and such other property and services necessary to develop an energy complex in Idaho, located in Payette County, including one or more nuclear reactors (referred to as the “Project”). The Payette County Commissioners have scheduled June 6, 2011 as the hearing date for the Company's plan to build a nuclear power plant in rural Payette County, Idaho. The hearing will determine whether Commissioners approve of a requested rezone of a proposed site from agricultural to industrial. An affirmative decision would also be the final approval required by the State of Idaho to build such a plant on this site. Payette County Planning and Zoning Commissioners previously recommended approval for the proposed rezone on December 9, 2010.

In October 2009, the Company’s Energy Neutral subsidiary began construction on a model home to demonstrate that a competitively-priced and energy cost efficient home can be constructed using renewables. Construction of the first model home was completed in 2009, with construction of five additional homes completed during 2010 and early 2011. During the first quarter of 2011, we closed on the sale of the model home and one of five additional homes. These homes serve to introduce Energy Neutral’s unique energy producing and saving features to a range of potential users. The Company is using these homes to market its Energy Neutral packages and a new energy neutral subdivision in Idaho (in which 5 of these homes were constructed). We hope to expand the Energy Neutral concept through licensing arrangements with third-parties.

In November 2007, we formed our wholly owned subsidiary, International Reactors, to assist developing countries with power generation, as well as the production of potable water. This line of business is now being conducted by our wholly-owned subsidiary, Green World Water, LLC, an Idaho limited liability company founded in 2010, and International Reactors is inactive. Green World Water seeks to construct commercial nuclear reactors on oceanfront sites, particularly in Latin America and western-friendly Middle Eastern countries to co-generate clean energy and desalinate water. Green World Water believes that advanced nuclear technology can be used to address electrical energy needs while simultaneously producing fresh water from ocean intake. The Company has an agreement with a third party consulting firm in China, which in turn has an agreement with a wholly owned subsidiary of China National Nuclear Corporation (CNNC). Pursuant to the consulting firm’s agreement with the CNNC subsidiary, the consulting firm along with Green World Water™ is marketing on a worldwide basis and providing other significant services in connection with the sale of desalinization reactors manufactured by CNNC and its subsidiary. Commissions received on sales made through the efforts of Green World Water and the consulting firm will be split 60%/40%, respectively.

Plan of Operations

The Company estimates that the total cost of the Project will be approximately $150.0 million. The initial $150.0 million is planned to be raised through the Reactor Land private placement, which shall result in the investors receiving in the aggregate approximately 10% ownership in the first reactor unit in the form of common stock. Any shortfall will have to be funded through such things as debt financing, cost-sharing by contractors and suppliers, or public offering.

While the success of the Project does not depend on financial assistance from the government, management believes that based on the 2005 Energy Policy Act, 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, which should be sufficient to cover all operating expenses during that timeframe. Furthermore, the excess heat from this plant will be used to produce biofuels from local crops and agricultural waste.

The intended use of the funds for the Reactor Land project is approximately 8% of the total shown below:

		In millions ($)
Payment to owner for site land		5

Payment for COLA plus 10% price escalation due to delays		50

Payments for third party project management, engineering support and G&A		25

Additional water rights		20

Long lead time equipment order deposit; reactor vessel and turbine		50

Total		$150

If the Reactor Land Development private placement does not raise the entire $150.00 million listed above, the Company will seek to raise the remaining balance through a public or private equity offering. The Company may adjust the budget categories in the execution of its permitting and development plans. The above line items represent managements best estimates, none of the line items is to be considered fixed or unchangeable.

Although the Company reserves the right to reallocate the funds according to field experience, the Company believes that the net proceeds from the planned offering will be sufficient to fund its initial capital requirements for the next year for operations. The foregoing assumes the offering will be fully subscribed, but there can be no assurance the Company will not require additional funds if unforeseen issues arise. Any additional required funds over the maximum offering amount will need to be financed as a loan. 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 management, which may also change according to unforeseen future events and market changes. There are no commitments for loans as of this date.

In the continuance of the Company’s business operations it does not intend to purchase or sell any significant assets and the Company does not expect a significant change in the number of its employees.

In addition, the United States and the global business community is experiencing severe instability in the commercial and investment banking systems which is likely to continue to have far-reaching effects on the economic activities in the country for an indeterminable period. The long-term impact on the United States economy and the Company’s operating activities and its ability to raise capital cannot be predicted at this time, but could be substantial.

Project Economics

The Company believes that if it is able to raise $150.0 million, it may develop a site licensed for construction of the advanced reactor by the end of 2014. The Company believes that by acquiring and obtaining the required permits and approvals for the proposed site now, it will be able to offer a site and an NRC license 3 to 4 years sooner than might otherwise be achievable, which will offer additional value to the Idaho site due to earlier power generation/revenue potential of the site. In the event that the Company obtains the required NRC license and other required approvals, the Company will hire a major contractor to work with the nuclear plant supplier in connection with the construction of the plant.

Consolidated Results of Operations

Comparison of the Three Months Ended March 31, 2011 to March 31, 2010

During the three months ended March 31, 2011, we recognized revenues of approximately $169,000, as compared to no revenues for the same period in the prior fiscal year. The increase in revenues is due to the sale of a Energy Neutral home that occurred during the three months ended March 31, 2011. During the three months ended March 31, 2011, we incurred operating expenses of $660,656 compared to $2,628,761 during the three months ended March 31, 2010. The decrease of $1,968,105 was primarily a result of substantial decreases in our operational activities as compared to the three months ended March 31, 2010. The following table is a comparison of the main operational expenses that we incurred during the three months ended March 31, 2011 and 2010:

	Three Months Ended
	March 31,		March 31,		INCREASE
	2011		2010		(DECREASE)

Consulting services	$	79,508	$	818,968	$	(739,460	)
Payroll	$	124,508	$	-	$	124,508
Public relations	$	-	$	109,178	$	(109,178	)
Legal fees	$	229,038	$	63,295	$	165,743
Stock based compensation to officers and directors	$	0	$	1,400,000	$	(1,400,000	)

During the three months ended March 31, 2011, we recognized a net loss of $(667,021) compared to a net loss of $(2,628,561) during the three months ended March 31, 2010. The decrease of $1,961,540 in net loss was a result of the $1,968,105 decrease in operational expenses due mainly to the decreases in consulting and board/officer stock base compensation incurred during the quarter. The Company’s basic and diluted loss per share was $.00 during the three months ended March 31, 2011 versus a basic and diluted loss per share of $.01 during the three months ended March 31, 2010.

Liquidity And Capital Resources

As of March 31, 2011, we had total of cash and cash equivalents of $497,173, total current assets of $6,606,188 and current liabilities of $252,166. The following table provides detailed information about our net cash flow for all financial statements periods presented in this report.

	Cash Flow
	Three Months Ended
	March 31,
	2011			2010

Net cash used in operating activities	$	(716,494	)	$	(621,656	)
Net cash provided (used) in investing activities	$	1,039,241		$	(319,462	)
Net cash (used) provided in financing activities	$	(60,000	)	$	3,846,446
Net cash inflow	$	262,747		$	2,905,328

Operating Activities

Net cash used in our operating activities increased by $94,838 for the three months ended March 31, 2011 as compared to the same period in 2010. This increase in funds used by our operating activities was primarily due to the construction costs associated with the Energy Neutral homes.

During the three months ended March 31, 2011, the net cash used in our operating activities was $716,494. Net cash used in our operating activities during the three month period ended March 31, 2011 includes non-cash items consisting of stock for services totaling $-0-. During the three months ended March 31, 2010, the net cash used in our operating activities was $621,656. Net cash used in our operating activities during the three month period ended March 31, 2010 includes non-cash items consisting of stock for services totaling $1,964,137.

Investing Activities

Net cash provided by investing activities increased by $1,358,703 for the three months ended March 31, 2011 as compared to the same period in 2010. During the three months ended March 31, 2011, the net cash used in our investing activities was $1,039,241, comprised of proceeds from short-term investments and sale of the demo Energy Neutral home. During the three months ended March 31, 2010 the net cash used in our investing activities was $319,462, comprised of the purchase of fixed assets and the construction of the demo Energy Neutral home.

Financing Activities

Net cash used in financing activities increased by $3,906,446 for the three months ended March 31, 2011 as compared to the same period in 2010. The increase in funds used by our financing activities was primarily due to issuance of shares of stock for cash during the three months ended March 31, 2011. During the three months ended March 31, 2011 the net cash used in our financing activities was $60,000, comprised of repayment of an employee advance. During the three months ended March 31, 2010 the net cash provided in our financing activities was $3,846,446, comprised of the issuance of stock for cash.

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. 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.

Critical Accounting Policies

The Company has identified the policies below as critical to the Company business operations and the understanding of the Company results from operations. The impact and any associated risks related to these policies on the Company’s business operations is discussed throughout Management’s Discussion and Analysis of Financial Conditions and Results of Operations where such policies affect our reported and expected financial results. For a detailed discussion on the application of these and other accounting policies, see Note 1 in the Notes to the Condensed Consolidated Financial Statements beginning on page 9 for the three months ended March 31, 2011. Note that the Company’s preparation of this document requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Company’s financial statements, and the reported amounts of expenses during the reporting periods.

Use of Estimates

The preparation of 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. It is management’s opinion that all adjustments necessary for the fair statement of the results for the interim period have been made. All adjustments are of normal recurring nature or a description of the nature and amount of any adjustments other than normal recurring adjustments.

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 March 31, 2011 and 2010. The uninsured balances at March 31, 2011 and December 31, 2010 were $212,709 and $-0-, respectively.

Stock-Based Compensation

The Company’s non-employees, share-based expense is recorded in accordance with FASB ASC 505-50 (Prior authoritative with Emerging Issues Task Force No. 96-18, “Accounting for Equity Instruments That are Issued to Other than Employees for Acquisition, or in Conjunction with Selling, Goods or Services.”) The Company has not issued any stock options or stock warrants since its inception through March 31, 2011.

Recently-Issued Accounting Pronouncements

The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations, or cash flow.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Changes in United States interest rates would affect the interest earned on our cash and cash equivalents. Based on our overall cash and cash equivalents interest rate exposure at March 31, 2011, a near-term change in interest rates, based on historical movements, would not have a material adverse effect on our financial position or results of operations.

We have operated primarily in the United States. Accordingly, we have not had any significant exposure to foreign currency rate fluctuations.

ITEM 4.

CONTROLS AND PROCEDURES.

The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed in its reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

The Company carried out an evaluation, under the supervision and with the participation of management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures as of March 31, 2011, the end of the period covered by this Quarterly Report. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that its disclosure controls and procedures were effective as of March 31, 2011.

There were no significant changes in the Company’s internal controls over financial reporting, during the quarter ended March 31, 2011, that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting other than the remedial measures noted in the Company's Form 10-K.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

Class Action Litigation

On January 11, 2011, a class action lawsuit was filed in the U.S. District Court for the District of Idaho on behalf of purchasers of the common stock of the company between September 20, 2006 through December 14, 2010, against the company and certain of its officers and directors by Lance Teague. On March 7, 2011, plaintiff moved to appoint John O’Brien as Lead Plaintiff. The complaint alleged claims against the Company and certain of its senior officers and directors for violations of Section 10(b) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder and claims against certain of its senior officers and directors for violations of Section 20A and Section 20(a) of the Exchange Act. The complaint seeks compensatory damages for all damages sustained as a result of the defendants’ alleged actions, including reasonable costs and expenses, rescission, and other relief the Court deemed just and proper. The Company believes the lawsuit is without merit and intends to vigorously defend itself. The parties are currently in the discovery phase and management is unable to evaluate the likelihood of an unfavorable outcome.

Other Legal Proceedings

Currently, an action initiated by the U.S. Securities and Exchange Commission (“SEC”) is pending in the U.S. District Court for the District of Idaho, alleging, among other things, that our company, and certain of our officers and directors, violated the federal securities laws by issuing materially false and misleading statements, artificially inflating the company’s stock price, and subsequently liquidating the stock through secret sales (the “SEC Action”). The company’s accounts were frozen on December 18, 2010 following the filing of the civil complaint by the SEC in connection with the SEC Action; however, after oral argument and the submission of lengthy papers, the Court ordered that the freeze be lifted but also requested that the parties reach agreement to provide the SEC some form of relief in so doing. The parties reached an agreement that the Company shall report to the SEC on a monthly basis all if its expenses of $2,500 and above during the pendency of the litigation and further agreed not to violate any federal securities laws. The parties are currently in the discovery phase and management is unable to evaluate the likelihood of an unfavorable outcome.

The Company anticipates that it will from time to time become subject to claims and legal proceedings arising in the ordinary course of business. It is not feasible to predict the outcome of any such proceedings and the Company cannot assure that their ultimate disposition will not have a materially adverse effect on the Company business, financial condition, cash flows or results of operations.

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, 2010, 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 AND USE OF PROCEEDS.

There were no sales of unregistered equity securities during the quarter ended March 31, 2011.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4.

[REMOVED AND RESERVED]

ITEM 5.

OTHER INFORMATION.

None

ITEM 6.

EXHIBITS.

(a)

Exhibits:

31.1

Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *

31.2

Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. *

Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *

* Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 17, 2011

	ALTERNATE ENERGY HOLDINGS, INC.



	By: /s/ DONALD L. GILLISPIE
	Donald L. Gillispie
	President, Chief Executive Officer and Director
	( principal executive officer)

	By: /s/ RICK J. BUCCI
	Rick J. Bucci
	Vice-President and Chief Financial Officer
	(principal financial officer and principal
	accounting officer)

ALTERNATE ENERGY HOLDINGS, INC. - FORM 10-Q - May 17, 2011

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ALTERNATE ENERGY HOLDINGS, INC. Reports