| x | Quarterly                Report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

----

| o | Transition                Report pursuant to 13 or 15(d) of the Securities Exchange Act of                1934 |
|---|----------------------------------------------------------------------------------------------------------------|

----

| Nevada                                         |   | 88-0490890                                       |
|------------------------------------------------|--------|--------------------------------------------------|
| (State                or other jurisdiction of |   | (IRS                Employer Identification No.) |
| incorporation                or organization)  |   |                                             |

| 5841                East Charleston, Suite 230-145      |   |                                |
|---------------------------------------------------------|--------|-------------------------------------|
| Las                Vegas, Nevada                        |   | 89142                               |
| (Address                of principal executive offices) |   | (Postal                or Zip Code) |

----

----

|                                                                                                                              | Page                No. |
|-----------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| PART                I. FINANCIAL INFORMATION                                                                                      |                    |
|                                                                                                                              |                    |
| ITEM                I - Unaudited Consolidated Financial                                                                          |                    |
| Statements                                                                                                                        |                    |
|                                                                                                                              |                    |
| Consolidated                Balance Sheets as of January 31,                                                                      |                    |
| 2008                (Unaudited) and July 31, 2007 (Audited)                                                                       |  3                 |
|                                                                                                                              |                    |
| Consolidated                Statements of Operations                                                                              |                    |
| for                the Three and Six Months Ended January 31,                                                                     |                    |
| 2008                and 2007 and from Inception (April 12, 2000)                                                                  |                    |
| to                January 31, 2008 (Unaudited)                                                                                    |  4                 |
|                                                                                                                              |                    |
| Consolidated                Statement of Stockholders                                                                             |                    |
| Equity                (Deficit) (Unaudited)                                                                                       |  5                 |
|                                                                                                                              |                    |
| Consolidated                Statements of Cash Flows                                                                              |                    |
| for                the Three and Six Months Ended January 31,                                                                     |                    |
| 2008                and 2007 and from Inception (April 12, 2000)                                                                  |                    |
| to                January 31, 2008 (Unaudited)                                                                                    |  6                 |
|                                                                                                                              |                    |
| Notes                to Consolidated Financial Statements                                                                         |  7                 |
|                                                                                                                              |                    |
| ITEM                2 - Management's Discussion and Analysis of                                                                   |                    |
| Financial                Condition and Results of                                                                                 |                    |
| Operations.                                                                                                                       |  11                |
|                                                                                                                              |                    |
| ITEM                3 – Controls and Procedures.                                                                       |  16                |
|                                                                                                                              |                    |
| PART                II. OTHER INFORMATION                                                                                         |  16                |
|                                                                                                                              |                    |
| ITEM                1 – Legal Proceedings                                                                              |  16                |
|                                                                                                                              |                    |
| ITEM                4 – Submission of Matters to a Vote of Security                Holders                             |  17                |
|                                                                                                                              |                    |
| ITEM                6 - Exhibits                                                                                                  |  18                |
|                                                                                                                              |                    |
| EXHIBIT              31 - Certification pursuant to Section 302 of the Sarbanes-Oxley Act              of              2002  |                    |
|                                                                                                                              |                    |
| EXHIBIT              32 - Certification pursuant to Section 906 of the Sarbanes-Oxley Act              of              2002  |                    |

----

**HYBRID      TECHNOLOGIES, INC.**

**A      Development Stage Company**

**Consolidated      Balance Sheets**

|                                                                                                                                                                                                                                     |   | **(unaudited)**      |            |          |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-----------------|---------------|--------|
|                                                                                                                                                                                                                                     |   | **January 31,** |            | July 31, |   |
|                                                                                                                                                                                                                                     |   | **2008**             |            | 2007          |   |
| **ASSETS**                                                                                                                                                                                                                               |   |                 |            |          |   |   |   |
| Current                assets:                                                                                                                                                                                                           |   |                 |            |          |   |   |   |
| Cash                                                                                                                                                                                                                                     |   | **$**                | **47,622**      |          | $      | 3,775 |   |
| Marketable                securities - restricted                                                                                                                                                                                        |   |                 | **41,700**      |          |   | 41,224 |   |
| Accounts                receivable, net of allowance for doubtful accounts of $9,678 at January                31, 2008 and $139,003, at July 31, 2007                                                                                   |   |                 | **14,801**      |          |   | 1,994 |   |
| Inventories                                                                                                                                                                                                                              |   |                 | **460,004**     |          |   | 425,775 |   |
| Other                current assets                                                                                                                                                                                                      |   |                 | **2,958**       |          |   | 60,233 |   |
| Due                from related parties                                                                                                                                                                                                  |   |                 | **67,975**      |          |   | 24,505 |   |
| ***Total                current assets***                                                                                                                                                                                                |   |                 | **635,060**     |          |   | 557,506 |   |
|                                                                                                                                                                                                                                     |   |                 |            |          |   |   |   |
| Property                and equipment, net                                                                                                                                                                                               |   |                 | **2,145,061**   |          |   | 2,120,343 |   |
|                                                                                                                                                                                                                                     |   |                 |            |          |   |   |   |
| Other                assets                                                                                                                                                                                                              |   |                 | **70,810**      |          |   | 51,600 |   |
|                                                                                                                                                                                                                                     |   | **$**                | **2,850,931**   |          | $      | 2,729,449 |   |
|                                                                                                                                                                                                                                     |   |                 |            |          |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY (DEFICIENCY)**                                                                                                                                                                     |   |                 |            |          |   |   |   |
|                                                                                                                                                                                                                                     |   |                 |            |          |   |   |   |
| Current                liabilities:                                                                                                                                                                                                      |   |                 |            |          |   |   |   |
| Current                portion of long-term debt                                                                                                                                                                                         |   | **$**                | **12,662**      |          | $      | 241,460 |   |
| Accounts                payable and accrued expenses                                                                                                                                                                                     |   |                 | **411,549**     |          |   | 489,788 |   |
| Customer                deposit                                                                                                                                                                                                          |   |                 | **35,000**      |          |   | **-** |   |
| Deferred                revenue                                                                                                                                                                                                          |   |                 | -               |          |   | 2,990 |   |
| ***Total                current liabilities***                                                                                                                                                                                           |   |                 | **459,211**     |          |   | 734,238 |   |
|                                                                                                                                                                                                                                     |   |                 |            |          |   |   |   |
| Long-term                debt - less current portion above                                                                                                                                                                               |   |                 | **3,579,883**   |          |   | 803,258 |   |
|                                                                                                                                                                                                                                     |   |                 |            |          |   |   |   |
| Commitments                and contingencies                                                                                                                                                                                             |   |                 | **-**           |          |   | - |   |
|                                                                                                                                                                                                                                     |   |                 |            |          |   |   |   |
| Minority                interest                                                                                                                                                                                                         |   |                 | **-**           |          |   | 2,377 |   |
| Stockholders'                equity (deficiency):                                                                                                                                                                                        |   |                 |            |          |   |   |   |
| Preferred                stock, $.001 par value, 5,000,000 shares authorized, no shares                issued                                                                                                                            |   |                 | **-**           |          |   | - |   |
| Common                stock, $.001 par value, 35,714,285 authorized; 15,643,340 shares                issued                and outstanding at January 31, 2008 39,500,511 shares issued and                outstanding at July 31, 2007 |   |                 | **5,643**       |          |   | 39,501 |   |
| Additional                paid in capital                                                                                                                                                                                                |   |                 | **46,603,561**  |          |   | 46,569,703 |   |
| Deficit                accumulated during the development stage                                                                                                                                                                          |   |                 | **(47,791,788** | **)**         |   | (45,411,768 | ) |
| Common                stock held in escrow (10,000,000 shares)                                                                                                                                                                           |   |                 | **-**           |          |   | - |   |
| Cumulative                other comprehensive (loss)                                                                                                                                                                                     |   |                 | **(5,579**      | **)**         |   | (7,860 | ) |
| *Total                stockholders' equity (deficiency)*                                                                                                                                                                                 |   |                 | **(1,188,163**  | **)**         |   | 1,189,576 |   |
|                                                                                                                                                                                                                                     |   | **$**                | **2,850,931**   |          | $      | 2,729,449 |   |

**SEE      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL      STATEMENTS**

----

**HYBRID      TECHNOLOGIES, INC.**

**A      Development Stage Company**

**Consolidated      Statements of Operations**

**(UNAUDITED)**

|                                                         |   | **SIX MONTHS ENDED** |           | **THREE MONTHS ENDED** |   | INCEPTION  |   |
|--------------------------------------------------------------|--------|--------------------------------|----------------|----------------------------------|--------|------------|--------|
|                                                         |   | **JANUARY 31,**           |           | **JANUARY 31,**             |   | THROUGH    |   |
|                                                         |   | **2008**                       |           | 2007                             |   | **2008**   |   | 2007 |   | January 31, 2008 |   |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |
| Sales                                                        |   | **$**                          | **639,025**    |                             | $      | 601,293    |   | **$** | **301,937** |   | $ | 325,179 |   | $ | 2,408,278 |   |
| Cost                of sales                                 |   |                           | **612,847**    |                             |   | 618,165    |   |   | **241,074** |   |   | 311,589 |   |   | 2,762,143 |   |
| Gross                Profit (loss)                           |   |                           | **26,178**     |                             |   | (16,872    | )      |   | **60,863** |   |   | 13,590 |   |   | (353,865 | ) |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Costs                and expenses:                           |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| General                and administrative                    |   |                           | **1,974,054**  |                             |   | 7,634,181  |   |   | **1,041,331** |   |   | 6,374,198 |   |   | 40,151,986 |   |
| Research                and development                      |   |                           | **400,830**    |                             |   | 332,126    |   |   | **327,288** |   |   | 43,952 |   |   | 6,370,446 |   |
|                                                         |   |                           | **2,374,884**  |                             |   | 7,966,307  |   |   | **1,368,619** |   |   | 6,418,150 |   |   | 46,522,432 |   |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Loss                from operations                          |   |                           | **(2,348,706** | **)**                            |   | (7,983,179 | )      |   | **(1,307,756** | **)** |   | (6,404,560 | ) |   | (46,876,297 | ) |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Other                income (expense):                       |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Interest                expense                              |   |                           | **(45,085**    | **)**                            |   | (41,154    | )      |   | **(18,005** | **)** |   | (24,611 | ) |   | (786,522 | ) |
| Interest                income                               |   |                           | **476**        |                             |   | 1,232      |   |   | **234** |   |   | 914 |   |   | 21,337 |   |
| Loss                from sale of other assets                |   |                           | **(3,903**     | **)**                            |   | -          |   |   | **(3,903** | **)** |   | - |   |   | (318,284 | ) |
| Other                income (expenses)                       |   |                           | **14,821**     |                             |   | 1,675      |   |   | **15,199** |   |   | (360 | ) |   | 905,802 |   |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                loss before discontinued operations       |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| and                minority interest                         |   |                           | **(2,382,397** | **)**                            |   | (8,021,426 | )      |   | **(1,314,231** | **)** |   | (6,428,617 | ) |   | (47,053,964 | ) |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Loss                from discontinued operations             |   |                           | **-**          |                             |   | -          |   |   | **-** |   |   | - |   |   | (757,024 | ) |
|                                                         |   |                           | **(2,382,397** | **)**                            |   | (8,021,426 | )      |   | **(1,314,231** | **)** |   | (6,428,617 | ) |   | (47,810,988 | ) |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Minority                interest in net loss                 |   |                           | **2,377**      |                             |   | -          |   |   | **2,377** |   |   | - |   |   | 19,200 |   |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                      |   |                           | **(2,380,020** | **)**                            |   | (8,021,426 | )      |   | **(1,311,854** | **)** |   | (6,428,617 | ) |   | (47,791,788 | ) |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income                    |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Foreign                currency translation                  |   |                           | **(1,691**     | **)**                            |   | -          |   |   | **(5,663** | **)** |   | - |   |   | (9,551 | ) |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                comprehensive loss                        |   | **$**                          | **(2,381,711** | **)**                            | $      | (8,021,426 | )      | **$** | **(1,317,517** | **)** | $ | (6,428,617 | ) | $ | (47,801,339 | ) |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Net                loss per share - basic and diluted        |   | **$**                          | **(0.35**      | **)**                            | $      | (0.30      | )      | **$** | **(0.16** | **)** | $ | (0.23 | ) |   |   |   |
|                                                         |   |                           |           |                             |   |       |   |   |   |   |   |   |   |   |   |   |
| Weighted                number of shares - basic and diluted |   |                           | **6,815,453**  |                             |   | 26,703,565 |   |   | **7,987,977** |   |   | 27,520,883 |   |   |   |   |

**SEE      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

----

**HYBRID        TECHNOLOGIES, INC.**

**A        Development Stage Company**

**Consolidated      Statement of Stockholder's Equity (Deficiency)**

**(Unaudited)**

|                                              |   |              |        |    |   |        |   | Deficit         |       |               |   |        |   |
|---------------------------------------------------|--------|-------------------|-------------|---------|--------|-------------|--------|-----------------|------------|--------------------|--------|-------------|--------|
|                                              |   |              |        |    |   |        |   | Accumulated     |       | Cumulative         |   |        |   |
|                                              |   |              |        |    |   | Additional  |   | during the |       | other              |   |        |   |
|                                              |   | Common stock |        | Paid-in |   | Development |   | Comprehensive   |       |               |   |
|                                              |   | Shares            |        | Amount  |   | Capital     |   | Stage           |       | Income (loss) |   | Total       |   |
| **Balance                July 31, 2006**          |   |              | 25,895,130  |    | $      | 25,895      |   | $               | 37,598,409 |               | $      | (34,792,011 | )      | $ | - |   | $ | 2,832,293 |   |
|                                              |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| Stock                issuances                    |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| Value                of stock options issued      |   |              |        |    |   |        |   |            | 2,103,600  |               |   |        |   |   |   |   |   | 2,103,600 |   |
| Exercise                of options                |   |              | 1,206,000   |    |   | 1,206       |   |            | 4,280,094  |               |   | -           |   |   | - |   |   | 4,281,300 |   |
| Value                of stock issued for services |   |              | 3,100,000   |    |   | 3,100       |   |            | 2,596,900  |               |   | -           |   |   | - |   |   | 2,600,000 |   |
| Stock                dividends                    |   |              | 9,299,381   |    |   | 9,300       |   |            | (9,300     | )                  |   | -           |   |   | - |   |   | - |   |
| Net                loss for the year              |   |              | -           |    |   | -           |   |            | -          |               |   | (10,619,757 | )      |   | - |   |   | (10,619,757 | ) |
|                                              |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| Foreign                currency transactions      |   |              | -           |    |   | -           |   |            | -          |               |   | -           |   |   | (7,860 | ) |   | (7,860 | ) |
|                                              |   |              |             |    |   |             |   |            |            |               |   |             |   |   |  |   |   |  |   |
| **Balance                July 31, 2007**          |   |              | 39,500,511  |    |   | 39,501      |   |            | 46,569,703 |               |   | (45,411,768 | )      |   | (7,860 | ) |   | 1,189,576 |   |
|                                              |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| Stock                issuances                    |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| Common                stock issued as collateral  |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| pre-reverse                stock split            |   |              | 10,000,000  |    |   | -           |   |            | -          |               |   | -           |   |   | - |   |   | - |   |
| Reverse                stock split                |   |              | (42,428,598 | )       |   | (33,858     | )      |            | 33,858     |               |   | -           |   |   | - |   |   |   |   |
| Common                stock issued as collateral  |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| post-reverse                stock split           |   |              | 8,571,427   |    |   | -           |   |            | -          |               |   | -           |   |   | - |   |   | - |   |
|                                              |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| Net                loss for the period            |   |              | -           |    |   | -           |   |            | -          |               |   | (2,380,020  | )      |   | - |   |   | (2,380,020 | ) |
|                                              |   |              |        |    |   |        |   |            |       |               |   |        |   |   |   |   |   |   |   |
| Foreign                currency transactions      |   |              | -           |    |   | -           |   |            | -          |               |   | -           |   |   | 2,281 |   |   | 2,281 |   |
|                                              |   |              |             |    |   |             |   |            |            |               |   |             |   |   |  |   |   |  |   |
| **Balance                January 31, 2008**       |   |              | 15,643,340  |    | $      | 5,643       |   | $               | 46,603,561 |               | $      | (47,791,788 | )      | $ | (5,579 | ) | $ | (1,188,163 | ) |

**SEE      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

----

**HYBRID      TECHNOLOGIES, INC.**

**A      Development Stage Company**

**Consolidated      Statements of Cash Flows**

**(UNAUDITED)**

|                                                                        |   |                           |           | Inception        |   |
|-----------------------------------------------------------------------------|--------|--------------------------------|----------------|------------------|--------|
|                                                                        |   | **SIX MONTHS ENDED** |           | through          |   |
|                                                                        |   | **JANUARY 31,**           |           | January 31, |   |
|                                                                        |   | **2008**                       |           | 2007             |   | 2008 |   |
|                                                                        |   |                           |           |             |   |   |   |
| Cash                provided (used in) Operating Activities:                |   |                           |           |             |   |   |   |   |   |   |
| Net                (loss) for the period                                    |   | **$**                          | **(2,380,020** | **)**            | $      | (8,021,425 | ) | $ | (47,791,788 | ) |
| Adjustments                to reconcile net (loss) to cash                  |   |                           |           |             |   |   |   |   |   |   |
| Depreciation                & Amortization                              |   |                           | **58,659**     |             |   | 74,316 |   |   | 775,218 |   |
| Bad                debt expense                                             |   |                           | **9,678**      |             |   | - |   |   | 186,582 |   |
| Gain/loss                of sale of other assets                            |   |                           | **-**          |             |   | - |   |   | 314,381 |   |
| Minority                interest in loss                                    |   |                           | **(2,377**     | **)**            |   | - |   |   | (19,200 | ) |
| Stock-based                compensation                                     |   |                           | **-**          |             |   | 5,459,600 |   |   | 23,745,641 |   |
| (Increase)                decrease in marketable securities - restricted    |   |                           | **(476**       | **)**            |   | - |   |   | (476 | ) |
| (Increase)                in accounts receivable                            |   |                           | **(22,485**    | **)**            |   | (12,925 | ) |   | (201,383 | ) |
| (Increase)                in inventories                                    |   |                           | **(34,229**    | **)**            |   | (224,896 | ) |   | (460,004 | ) |
| (Increase)                decrease in prepaid expenses and other assets     |   |                           | **57,275**     |             |   | 3,669 |   |   | (2,958 | ) |
| Loss                on sale of property and equipement                      |   |                           | **3,903**      |             |   | - |   |   | 3,903 |   |
| (Increase)                in other assets                                   |   |                           | **(19,210**    | **)**            |   | - |   |   | (69,210 | ) |
| Increase                (decrease) in accounts payable and accrued expenses |   |                           | **(78,239**    | **)**            |   | 54,998 |   |   | 411,549 |   |
| Increase                in customer deposits                                |   |                           | **35,000**     |             |   | 2,990 |   |   | 37,990 |   |
| Decrease                in deferred revenue                                 |   |                           | **(2,990**     | **)**            |   |   |   |   | (2,990 | ) |
| Write                off of mineral property                                |   |                           | **-**          |             |   | - |   |   | 5,150 |   |
| Loss                from discontinued operations                            |   |                           | **-**          |             |   | - |   |   | 757,024 |   |
| ***Cash                used in operating activities***                      |   |                           | **(2,375,511** | **)**            |   | (2,663,673 | ) |   | (22,310,571 | ) |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
| Cash                provided (used in) Investing Activities:                |   |                           |           |             |   |   |   |   |   |   |
| Increase                in other assets                                     |   |                           | **-**          |             |   | (11,310 | ) |   | (1,493,577 | ) |
| Proceeds                from sale of other assets                           |   |                           | **-**          |             |   | - |   |   | 1,136,372 |   |
| Increase                in restricted cash                                  |   |                           | **-**          |             |   | - |   |   | (40,215 | ) |
| Purchase                of mineral property                                 |   |                           | **-**          |             |   | - |   |   | (5,150 | ) |
| Purchase                of property and equipment                           |   |                           | **(88,350**    | **)**            |   | (125,368 | ) |   | (1,120,432 | ) |
| Proceeds                from sale of property and equipment                 |   |                           | **1,070**      |             |   | - |   |   | 1,070 |   |
| ***Cash                used in investing activities***                      |   |                           | **(87,280**    | **)**            |   | (136,678 | ) |   | (1,521,932 | ) |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
| Cash                provided (used in) by Financing Activities:             |   |                           |           |             |   |   |   |   |   |   |
| Sale                of minority interest in subsidiaries                    |   |                           | **-**          |             |   | - |   |   | 19,200 |   |
| Proceeds                from the exercise of stock options                  |   |                           | **-**          |             |   | 1,207,000 |   |   | 15,292,895 |   |
| Collection                of stock receivable                               |   |                           | **-**          |             |   | - |   |   | 50,000 |   |
| Proceeds                from the issuance of debt                           |   |                           | **3,596,611**  |             |   | - |   |   | 6,516,611 |   |
| Advances                from related parties                                |   |                           | **2,712,008**  |             |   | 3,742,261 |   |   | 11,554,239 |   |
| Payments                of related party advances                           |   |                           | **(2,755,478** | **)**            |   | (2,448,749 | ) |   | (8,422,475 | ) |
| Payments                of debt                                             |   |                           | **(1,048,784** | **)**            |   | (140,188 | ) |   | (1,384,066 | ) |
| Proceeds                from the issuance of common stock                   |   |                           | **-**          |             |   | - |   |   | 259,300 |   |
| ***Cash                provided by financing activities***                  |   |                           | **2,504,357**  |             |   | 2,360,324 |   |   | 23,885,704 |   |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
| Effect                of exhange rate changes on cash and cash equivalents  |   |                           | **2,281**      |             |   | - |   |   | (5,579 | ) |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
| Net                increase (decrease) in cash                              |   |                           | **43,847**     |             |   | (440,027 | ) |   | 47,622 |   |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
| Cash                at beginning of period                                  |   |                           | **3,775**      |             |   | 519,181 |   |   | - |   |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
| Cash                at end of period                                        |   | **$**                          | **47,622**     |             | $      | 79,154 |   | $ | 47,622 |   |
|                                                                        |   |                           |           |             |   |   |   |   |   |   |
| Supplemental                information:                                    |   |                           |           |             |   |   |   |   |   |   |
| Cash                paid during the year for:                               |   |                           |           |             |   |   |   |   |   |   |
| Interest                paid                                                |   | **$**                          | **45,006**     |             | $      | 40,989 |   |   |   |   |
| Income                taxes paid                                            |   | **$**                          | **-**          |             | $      | - |   |   |   |   |
| Non                - cash financing activities:                             |   |                           |           |             |   |   |   |   |   |   |
| Fixed                assets acquired by the issuance of debt                |   | **$**                          | **-**          |             | $      | - |   | $ | 1,300,000 |   |
| Shares                issued for related party advances                     |   | **$**                          | **-**          |             | $      | - |   | $ | 3,000,000 |   |

**SEE      NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

----

**Note      1. Financial statement presentation**

*Reclassification*

*Financial      accounting standards*

**Note      2. Property and equipment**

|                                           |   | **(unaudited)**                |          |                    |   |
|------------------------------------------------|--------|--------------------------------|---------------|-------------------------|--------|
|                                           |   | **January 31, 2008** |          | July 31, 2007 |   |
| Building                  improvements         |   | **$**                     | **1,272,352** |                    | $      | 1,270,637 |   |
| Computer                  equipment            |   |                           | **34,893**    |                    |   | 22,286 |   |
| Furniture                  and fixtures        |   |                           | **143,008**   |                    |   | 115,944 |   |
| Office                  equipment              |   |                           | **85,626**    |                    |   | 92,539 |   |
| Machinery                  and equipment       |   |                           | **73,536**    |                    |   | 27,389 |   |
| Vehicles                                       |   |                           | **75,439**    |                    |   | 73,203 |   |
| Software                  costs                |   |                           | **22,291**    |                    |   | 19,993 |   |
| Land                                           |   |                           | **700,000**   |                    |   | 700,000 |   |
|                                           |   |                           | **2,407,145** |                    |   | 2,321,991 |   |
| Less                  accumulated depreciation |   |                           | **(262,084**  | **)  **       |   | (201,648 | ) |
|                                           |   | **$**                     | **2,145,061** |                    | $      | 2,120,343 |   |

----

**Note      3. Going concern**

**Note      4. Inventories**

|                                                |   | **(unaudited)**                |        |                    |   |
|-----------------------------------------------------|--------|--------------------------------|-------------|-------------------------|--------|
|                                                |   | **January 31, 2008** |        | July 31, 2007 |   |
| Raw                  materials and work in progress |   | **$**                          | **429,794** |          | $      | 323,170 |   |
| Finished                  goods                     |   |                           | **30,210**  |                    |   | 102,605 |   |
|                                                |   | **$**                          | **460,004** |                    | $      | 425,775 |   |

**Note      5. Long-term debt**

|                                                           |   | **(unaudited)**                |          |                    |   |
|----------------------------------------------------------------|--------|--------------------------------|---------------|-------------------------|--------|
|                                                           |   | **January 31, 2008** |          | July 31, 2007 |   |
| Note                payable to Richard Howard,                 |   |                           |          |                    |   |   |   |
| paid                in full in November 2007                   |   | **$**                          | **-**         |                    | $      | 1,044,718 |   |
|                                                           |   |                           |          |                    |   |   |   |
| 10.875%                note payable to Bayview Loan            |   |                           |          |                    |   |   |   |
| Servicing,                LLC, payable in monthly              |   |                           |          |                    |   |   |   |
| installments                of approximately $11,388 including |   |                           |          |                    |   |   |   |
| interest,                collateralized by real property       |   |                           |          |                    |   |   |   |
| due                in full on or before December 2022          |   |                           | **995,934**   |                    |   | - |   |
|                                                           |   |                           |          |                    |   |   |   |
| 10%                note payable to Wyndom Capital              |   |                           |          |                    |   |   |   |
| Investments,                Inc., payable in October 2010      |   |                           |          |                    |   |   |   |
| collateralized                by 10,000,000 shares of          |   |                           |          |                    |   |   |   |
| the                Company's common stock                      |   |                           | **2,596,611** |                    |   | - |   |
|                                                           |   |                           | **3,592,545** |                    |   | 1,044,718 |   |
| Less                current portion                            |   |                           | **(12,662**   | **)  **       |   | (241,460 | ) |
|                                                           |   | **$**                          | **3,579,883** |                    | $      | 803,258 |   |

----

**Note      5. Long-term debt – continued**

| 2008       |   | $      | 12,662    |   |
|------------|--------|--------|-----------|--------|
| 2009       |   |   | 31,252    |   |
| 2010       |   |   | 2,631,437 |   |
| 2011       |   |   | 38,807    |   |
| 2012       |   |   | 43,245    |   |
| Thereafter |   |   | 835,142   |   |
|       |   | $      | 3,592,545 |   |

**Note      6. Stockholders’ Equity**

----

**Note      7. Segment information**

*      Disclosures about Segments of an Enterprise and Related      Information*

|                                              |   | **(UNAUDITED)**                |           | (UNAUDITED)                |   | **(UNAUDITED)**                |   | (UNAUDITED)                |           |
|---------------------------------------------------|--------|--------------------------------|----------------|----------------------------|--------|--------------------------------|--------|----------------------------|----------------|
|                                              |   | **SIX MONTHS**            |           | SIX MONTHS            |   | **THREE MONTHS**          |   | THREE MONTHS          |           |
|                                              |   | **ENDED**                      |           | ENDED                      |   | **ENDED**                      |   | ENDED                      |           |
|                                              |   | **January 31, 2008** |           | January 31, 2007 |   | **January 31, 2008** |   | January 31, 2007 |           |
|                                              |   |                           |           |                       |   |                           |   |                       |           |
| Revenues                  from external customers |   |                           |           |                       |   |                           |   |                       |           |   |   |   |   |
| Telecommunication                  services       |   |                           |           |                       |   |                           |   |                       |           |   |   |   |   |
| United                  States                    |   | **$**                          | **430,322**    |                       | $      | 601,293                        |   | **$**                      | **195,648**    |   | $ | 325,179 |   |
| India                                             |   |                           | **-**          |                       |   | -                              |   |                       | **-**          |   |   | - |   |
| Canada                                            |   |                           | **-**          |                       |   | -                              |   |                       | **-**          |   |   | - |   |
| Electric                  powered vehicle sales   |   |                           |           |                       |   |                           |   |                       |           |   |   |   |   |
| United                  States                    |   |                           | **208,703**    |                       |   | -                              |   |                       | **106,289**    |   |   | - |   |
| Hong                  Kong                        |   |                           | **-**          |                       |   | -                              |   |                       | **-**          |   |   | - |   |
| Total                  revenues                   |   | **$**                          | **639,025**    |                       | $      | 601,293                        |   | **$**                      | **301,937**    |   | $ | 325,179 |   |
|                                              |   |                           |           |                       |   |                           |   |                       |           |   |   |   |   |
| Loss                  from operations             |   |                           |           |                       |   |                           |   |                       |           |   |   |   |   |
| Telecommunication                  services       |   |                           |           |                       |   |                           |   |                       |           |   |   |   |   |
| United                  States                    |   | **$**                          | **(206,680**   | **)**                      | $      | (921,126                       | )      | **$**                      | **(26,086**    | **)** | $ | (490,174 | ) |
| India                                             |   |                           | **(191,392**   | **)**                      |   | -                              |   |                       | **(73,816**    | **)** |   | - |   |
| Canada                                            |   |                           | **(18,424**    | **)**                      |   | -                              |   |                       | **(6,625**     | **)** |   | - |   |
| Electric                  powered vehicle sales   |   |                           |           |                       |   |                           |   |                       |           |   |   |   |   |
| United                  States                    |   |                           | **(1,931,960** | **)**                      |   | (7,061,827                     | )      |                       | **(1,200,979** | **)** |   | (5,914,160 | ) |
| Hong                  Kong                        |   |                           | **(250**       | **)**                      |   | (226                           | )      |                       | **(250**       | **)** |   | (226 | ) |
| Total                  loss from operations       |   | **$**                          | **(2,348,706** | **)**                      | $      | (7,983,179                     | )      | **$**                      | **(1,307,756** | **)** | $ | (6,404,560 | ) |

|                                            |   | **January 31, 2008** |          | July 31, 2007 |   |
|-------------------------------------------------|--------|--------------------------------|---------------|-------------------------|--------|
| Identifiable                  assets :          |   |                           |          |                    |   |   |   |
| Telecommunication                  services     |   |                           |          |                    |   |   |   |
| United                  States                  |   | **$**                          | **121,399**   |                    | $      | 167,421 |   |
| India                                           |   |                           | **65,462**    |                    |   | 46,578 |   |
| Canada                                          |   |                           | **-**         |                    |   | 922 |   |
| Electric                  powered vehicle sales |   |                           |          |                    |   |   |   |
| United                  States                  |   |                           | **2,662,222** |                    |   | 2,512,431 |   |
| Hong                  Kong                      |   |                           | **1,848**     |                    |   | 2,097 |   |
| Total                  assets                   |   | **$**                          | **2,850,931** |                    | $      | 2,729,449 |   |

**Note      8. Subsequent events**

----

----

----

----

----

----

----

| Proposal                           |   | Votes                in Favor |       | Votes                Against |   | Abstentions/                Broker Nonvotes |   |
|------------------------------------|--------|-------------------------------|------------|------------------------------|--------|---------------------------------------------|--------|
|                               |   |                          |       |                         |   |                                        |   |
| Election                of         |   |                          |       |                         |   |                                        |   |   |   |   |
| Holly                Roseberry     |   |                          |       |                         |   |                                        |   |   |   |   |
| as                a Director       |   |                          | 32,935,220 |                         |   | —                                     |   |   | 432,722 |   |
|                               |   |                          |       |                         |   |                                        |   |   |   |   |
| Election                of         |   |                          |       |                         |   |                                        |   |   |   |   |
| Mehboob                Charania    |   |                          |       |                         |   |                                        |   |   |   |   |
| as                a Director       |   |                          | 32,947,800 |                         |   | —                                     |   |   | 420,142 |   |
|                               |   |                          |       |                         |   |                                        |   |   |   |   |
| Election                of         |   |                          |       |                         |   |                                        |   |   |   |   |
| Brian                Newman        |   |                          |       |                         |   |                                        |   |   |   |   |
| as                a Director       |   |                          | 33,014,119 |                         |   | —                                     |   |   | 353,823 |   |
|                               |   |                          |       |                         |   |                                        |   |   |   |   |
| Election                of         |   |                          |       |                         |   |                                        |   |   |   |   |
| Gregory                Navone      |   |                          |       |                         |   |                                        |   |   |   |   |
| as                a Director       |   |                          | 33,013,650 |                         |   | —                                     |   |   | 354,292 |   |
|                               |   |                          |       |                         |   |                                        |   |   |   |   |
| Increase                of         |   |                          |       |                         |   |                                        |   |   |   |   |
| Authorized                Common   |   |                          |       |                         |   |                                        |   |   |   |   |
| Stock                to 50,000,000 |   |                          |       |                         |   |                                        |   |   |   |   |
| shares                             |   |                          | 32,530,132 |                         |   | 723,362                                     |   |   | 114,446 |   |

----

| Ex                31 | Certification                of Chief Executive Officer and Principal Financial Officer Pursuant                to                Section 302 of the Sarbanes-Oxley Act of 2002, filed                herewith.                                                              |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |                                                                                                                                                                                                                                                                         |
| Ex                32 | Certification                of Chief Executive Officer and Principal 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. |

|   | Hybrid                Technologies, Inc.          |
|--------|---------------------------------------------------|
|   |                                              |
|   |                  /s/Holly Roseberry          |  |
|   | Holly                Roseberry                    |
|   | President                and Director             |
|   |  (Chief                Executive Officer and |
|   |  Principal                Financial Officer) |
|   |  Dated:                March 19, 2008        |

----