U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                  Form 10-KSB
                         Commission File No: 333-103096

(Mark One)

X Annual report under section 13 or 15(d) of the Securities Exchange Act of 1934
for the fiscal year ended December 31, 2003.

_____Transition report under section 13 or 15(d) of the Securities Exchange Act
of 1934 for the transition period from ____ to ____.

                        ALTERNATIVE ENERGY SOURCES, INC.
                        --------------------------------
             (Exact name of registrant as specified in its charter)

               Delaware                                74-3038728
               --------                                ----------
      (State of Incorporation)            (I.R.S. Employer Identification No.)

                                610 North Howard
                                Tekoa, WA 99033
                              -------------------
              (Address of Principal Executive Offices) (Zip Code)

                                 (509) 626-8316
                                 --------------
              (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  X     No
                                  -----     -----

Indicate the number of shares outstanding of each of the issuer's classes of
common stock at the latest practicable date. As of December 31, 2003, the
registrant had 8,300,000 shares of common stock, $0.0001 par value, issued and
outstanding.

Transitional Small Business Disclosure Format (Check one):  Yes   No X



<PAGE>

                               TABLE OF CONTENTS

                           FORM 10-KSB ANNUAL REPORT
                        ALTERNATIVE ENERGY SOURCES, INC.

Statement Regarding Forward-Looking Information

PART I.

Item 1.   Description of Business
Item 2.   Description of Property
Item 3.   Legal Proceedings
Item 4.   Submission of Matters to a Vote of Security Holders


PART II

Item 5.   Market for the Registrant's Common Equity And Related
          Stockholder Matters
Item 6.   Management's Discussion and Analysis of Financial Condition
          and Results of Operations
Item 7.   Financial Statements
Item 8.   Changes in and Disagreements on Accounting and Financial
          Disclosures

Item 8A.  Controls and Procedures

PART III

Item 9.   Directors, Executive Officers, Promoters and Control
          Persons; Compliance with Section 16 (a) of The Exchange Act
Item 10.  Executive Compensation
Item 11.  Security Ownership of Certain Beneficial Owners and
          Management
Item 12.  Certain Relationships and Related Transactions

PART IV

Item 13.  Exhibits and Reports of Form 8-K
Item 14.  Principal Accountant Fees and Services

SIGNATURES
CERTIFICATIONS


<PAGE>

PART I

STATEMENT REGARDING FORWARD-LOOKING INFORMATION.

This report contains various forward-looking statements that are based on the
Company's beliefs as well as assumptions made by and information currently
available to the Company. When used in this report, the words "believe,"
"expect," "anticipate," "estimate" and similar expressions are intended to
identify forward-looking statements. Such statements may include statements
regarding seeking business opportunities, payment of operating expenses, and the
like, and are subject to certain risks, uncertainties and assumptions which
could cause actual results to differ materially from projections or estimates
contained herein. Factors which could cause actual results to differ materially
include, among others, unanticipated delays or difficulties in location of a
suitable business acquisition candidate, unanticipated or unexpected costs and
expenses, competition and changes in market conditions, lack of adequate
management personnel and the like. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially form those anticipated, estimated or
projected. The Company cautions again placing undue reliance on forward-looking
statements all of that speak only as of the date made.



<PAGE>


ITEM 1. Description of Business

Alternative Energy Sources, Inc. was incorporated on April 8, 2002. Alternative
Energy is a development stage company that plans to profit by providing
consulting services and selling wind power systems to the residential,
agricultural and small business sectors throughout Washington, Idaho, Montana,
and Oregon.

Our mailing address is at 610 North Howard, Tekoa, Washington 99033. The
telephone number of our principal executive office is (509) 626-8316. The fax
number is (509) 921-5605.

The Company is authorized to issue up to 75,000,000 (seventy-five million)
common shares, par value $0.0001.

The Company is headed up by Andrew Stinson officer and director and Bruce Gage,
Director, together they own a total of 5,000,000 shares (61.0%) of the Company's
issued and outstanding common stock.

The Company has not commenced any commercial operations or material operating
activities and has had no revenues or income from the date of inception through
the date of this filing. The Company has no full-time employees and owns no real
estate.

The Company registered certain shares of its common stock on a Form 10-SB
registration statement filed pursuant to the Securities Exchange Act of 1934
(the "Exchange Act") and Rule 12(g) thereof. The balance of its shares of common
stock, with the exception of those shares held by its officer and directors,
were registered by way of a Form SB-2 registration statement and subsequent
filing of its Form 424 prospectus, which was effective as of September 12, 2003.
The Company files with the Securities and Exchange Commission its periodic and
episodic reports under Rule 13(a) of the Exchange Act, including quarterly
reports on Form 10-QSB and annual reports Form 10-KSB. As a reporting company
under the Exchange Act, the Company may register additional securities on Form
S-8 (provided that it is then in compliance with the reporting requirements of
the Exchange Act) and on Form S-3 (provided that is has during the prior 12
month period timely filed all reports required under the Exchange Act), and its
class of common stock registered under the Exchange Act may be traded in the
United States securities markets provided that the Company is then in compliance
with applicable laws, rules and regulations, including compliance with its
reporting requirements under the Exchange Act.

There has been no bankruptcy, receivership, or similar proceeding by or against
the Company. In addition, there has been no material reclassification,
consolidation, merger, or purchase or sale of a significant amount of assets not
done in the ordinary course of business.

Strategic Business Plan of Issuer

Alternative Energy plans to market wind energy systems to residential,
agricultural and small businesses. Wind energy systems are based upon turbines
that transform the kinetic energy of the wind into mechanical or electrical
energy that can be harnessed for practical use. A common use of mechanical
energy includes the pumping of water in rural or remote locations for irrigation
and other agricultural applications. Wind electric turbines generate electricity
for homes and businesses and for sale of alternative energy to utility
companies. Wind power has the potential of supplying affordable, inexhaustible
energy to the customer without causing pollution, generating hazardous wastes,
or depleting natural resources.


<PAGE>


Alternative Energy plans to market its services to the residential,
agricultural, and small business sectors throughout the northwest (Washington,
Idaho, Montana and Oregon). Alternative Energy plans to market through media
including but not limited to: (1) advertisements in the phone book (yellow
pages); (2) advertisements in business journals and periodicals relating to the
construction, agricultural and environmental industries; (3) participation in
trade shows throughout the northwest; (4) construction of a web site where
individuals can go to get information regarding wind power systems and learn
about Alternative Energy Sources; and (5) offer both written and oral
communications to the public regarding the potential benefits of wind power.

Alternative Energy's strategy is to seek potential clients
(residential/agricultural/small businesses) that (1) have a good wind source
(min. of 9 mph); (2) have the required space; (3) have the local zoning rules/
process or neighborhood covenants that allow wind turbines on at least 60-80
foot towers; (4) are concerned with future electricity prices and are willing to
look at a long term investment; and (5) have a desire to be more self-sufficient
or completely independent of the electric utility. Alternative Energy has
identified through wind maps (provided by Bonneville Power Administration and
True Wind Solutions among others) several geographical locations within Central
and Southern Washington and Idaho, Eastern Montana, and Northern and Central
locations within Oregon that have at least a 9 mph wind source. Management plans
to focus its marketing efforts, as described above, within these areas where
potential clients meet the required average wind speed. However, investors need
to be aware that currently management has only identified the geographical areas
that have the potential for the minimum required wind speeds. Alternative Energy
will have to rely on its marketing to these specific geographical areas in order
to promote its business and locate potential clients that meet the remaining
four elements mentioned above. Whether there are potential clients within these
geographic locations are based upon speculation and is reliant purely upon the
opinion of management. Alternative Energy cannot give any assurance whatsoever
those potential clients, if any, will be receptive to Alternative Energy's
proposed business plan.

ITEM 2. Description of Property

Alternative Energy Sources, Inc.'s principle executive address is 624 North
Howard, Tekoa, WA 99033. Andrew Stinson, President, is currently providing his
home office and mailing address for Alternative Energy. Mr. Stinson contributes
this office space along with his services to the Company. The approximate fair
market value of $500 per month for the services and office space has been
charged to operations since inception.

ITEM 3. Legal Proceedings

The Company is not a party to any pending legal proceedings, and no such
proceedings are known to be contemplated.


<PAGE>


No director, officer, or affiliate of the Company and no owner of record or
beneficial owner of more than 5.0% of the securities of the Company, or any
associate of any such director, officer or security holder is a party adverse to
the Company or has a material interest adverse to the Company in reference to
pending litigation.

ITEM 4. Submission of Matters to a Vote of Security Holders

There have been no matters submitted to the security holders for a vote.

Part II

ITEM 5. Market for the Registrant's Common Equity And Related Stockholder
Matters

Alternative Energy is in the process of filing for trading on the OTC Electronic
Bulletin Board which is sponsored by the National Association of Securities
Dealers (the "NASD"). There can be no assurance that Alternative Energy will be
cleared for trading by the NASD. The OTC Electronic Bulletin Board is a network
of security dealers who buy and sell stock. The dealers are connected by a
computer network that provides information on current "bids", "asks" and volume.

As of the date of this filing, there is no public market for our securities.
There has been no public trading of our securities, and, therefore, no high and
low bid pricing. As of December 31, 2003, Alternative Energy had thirty-eight
(38) shareholders of record. We have paid no cash dividends and have no
outstanding options.

ITEM 6. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Plan of Operation

There have been no operating revenues since inception. Management's plan of
operation is to market wind energy systems to residential, agricultural and
small businesses. Wind energy systems are based upon turbines that transform the
kinetic energy of the wind into mechanical or electrical energy that can be
harnessed for practical use. A common use of mechanical energy includes the
pumping of water in rural or remote locations for irrigation and other
agricultural applications. Wind electric turbines generate electricity for homes
and businesses and for sale of alternative energy to utility companies. Wind
power has the potential of supplying affordable, inexhaustible energy to the
customer without causing pollution, generating hazardous wastes, or depleting
natural resources. Management's strategy in development of the business is to
seek potential clients residential/agricultural/small businesses) that (1) have
a good wind source (min. of 9 mph); (2) have the required space; (3) have the
local zoning rules/ process or neighborhood covenants that allow wind turbines
on at least 60-80 foot towers; (4) are concerned with future electricity prices
and are willing to look at a long term investment; and (5) have a desire to be
more self-sufficient or completely independent of the electric utility. Whether
there are potential clients within these geographic locations are based upon
speculation and is reliant purely upon the opinion of management.  Management



<PAGE>

cannot give any assurance whatsoever those potential clients, if any, will be
receptive to the Company's proposed business plan.

Product Research and Development

The Company does not anticipate any costs or expenses to be incurred for product
research and development within the next twelve months.

There were none and there is no anticipated purchase or sale of plant or
significant equipment in the next twelve months.

There are no employees of the Company, excluding the current President, Andrew
Stinson, and Director, Bruce Gage, of the corporation and no changes are
anticipated in the next twelve months.

Results of Operations

There were no revenues from sales for the year ended December 31, 2003. The
Company sustained a net loss of $15,435 for the period then ended for ongoing
costs related to its development stage operations.

Liquidity and Capital Resources

As of December 31, 2003, the current cash on hand was $2,005. These funds will
be directed first towards maintaining the requirements of a reporting company
under the 1934 Act, which will generally include accounting and EDGAR filing
fees. Additional funds will be directed towards basic working capital and the
capital requirements to continue the Company's development of its proposed
business of marketing wind power systems to residential, agricultural, and small
businesses throughout the Pacific Northwest.

Management believes the current funds available to the Company will not be
sufficient for the continued ongoing operational costs of the Company beyond the
next sixty to ninety days. Therefore, it will be necessary to find additional
funds either through loans from the officer and/or directors, or through private
funding from the sale of the Company's common stock. Currently, no steps have
been taken for the furtherance of either of the above options. However, if the
Company is unsuccessful in beginning operations and generating revenue or in the
alternative is unsuccessful in obtaining additional funding, it will most likely
be unable to continue as a going concern.

<PAGE>


ITEM 7. FINANCIAL STATEMENTS

                       Alternative Energy Sources, Inc.
                          (A Development Stage Company)



                        Alternative Energy Sources, Inc.
                                Table of Contents



         Report of Independent Auditors

         Balance Sheet

         Statements of Operations

         Statements of Stockholders' Equity

         Statements of Cash Flows

         Notes to Financial Statements

<PAGE>

                        REPORT OF INDEPENDENT AUDITORS


Stockholders and Board of Directors
Alternative Energy Sources, Inc.

We have audited the  accompanying  balance sheet of Alternative  Energy Sources,
Inc. (A  Development  Stage  Company) as of December 31,  2003,  and the related
statements  of  operations,  stockholders'  equity and cash flows for the period
from inception (April 8, 2002) to December 31, 2002, the year ended December 31,
2003 and the period from inception  (April 8, 2002) to December 31, 2003.  These
financial  statements are the  responsibility of the Company's  management.  Our
responsibility  is to express an opinion on these financial  statements based on
our audit.

We conducted our audit in accordance with auditing standards  generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant estimates by management, as well as evaluating the overall financial
statement  presentation.  We believe that our audit provides a reasonable  basis
for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the financial  position of Alternative  Energy Sources,
Inc. (A  Development  Stage Company) as of December 31, 2003, and results of its
operations and its cash flows for the period from  inception  (April 8, 2002) to
December  31,  2002,  , the year ended  December  31,  2003 and the period  from
inception  (April 8, 2002) to December 31, 2003 in  conformity  with  accounting
principles generally accepted in the United States of America.

The  accompanying  financial  statements  have been  prepared  assuming that the
Company  will  continue  as a  going  concern.  As  discussed  in  Note 4 to the
financial statements,  the Company has suffered a loss from operations and is in
the development stage. These factors raise substantial doubt about the Company's
ability to continue  as a going  concern.  Management's  plans in regard to this
matter are also discussed in Note 4. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.


Stark Winter Schenkein & Co., LLP




Denver, Colorado
March 2, 2004



<PAGE>

                     Alternative Energy Sources, Inc.
                       (A Development Stage Company)
                               Balance Sheet
                             December 31, 2003

                                  Assets

Current assets
  Cash                                                          $         2,005
                                                                ===============

                   Liabilities and Stockholders' Equity

Current liabilities
  Total current liabilities                                     $             -
                                                                ---------------

Stockholders' equity
  Common stock, $.0001 par value, 75,000,000 shares
   authorized, 8,200,000 shares issued and outstanding                      820
  Additional paid-in capital                                             21,280
  (Deficit) accumulated during the development stage                    (20,095)
                                                                ---------------

                                                                $         2,005
                                                                ===============



See The accompanying notes to the financial statements.

<PAGE>

<TABLE>
<CAPTION>


                                        Alternative Energy Sources, Inc.
                                        (A Development Stage Company)
                                           Statement of Operations
        Period From Inception (April 8, 2002) to December 31, 2002, the Year Ended December 31, 2003 and
                     the Period From Inception (April 8, 2002) to December 31, 2003


                                                      Inception to       Year Ended        Inception to
                                                      December 31,      December 31,       December 31,
                                                          2002              2003               2003
                                                      ------------      -----------        -----------
<S>                                                   <C>              <C>                 <C>
Revenue                                                 $       -        $      -         $        -
                                                      ------------      -----------        -----------

Operating Costs and Expenses:
  General and administrative                                4,660          15,435             20,095
                                                      ------------      -----------        -----------

Net (loss)                                              $  (4,660)      $ (15,435)        $  (20,095)
                                                      ============      ===========        ===========

Per Share Information - basic and fully diluted:

Weighted average common shares outstanding              6,955,620        8,200,000          7,201,299
                                                      ============      ===========        ===========

(Loss) per share                                        $   (0.00)      $    (0.00)       $    (0.00)
                                                      ============      ===========        ===========


See The accompanying notes to the financial statements.
</TABLE>


<PAGE>

<TABLE>

                                        Alternative Energy Sources, Inc.
                                        (A Development Stage Company)
                                      Statement of Stockholders' Equity
                         Period From Inception (April 8, 2002) to December 31, 2003


                                                                                                       (Deficit)
                                                                                                     Accumulated
                                                                                                      During the
                                              Common Stock                          Additional        Development
                                                Shares            Amount        Paid in Capital         Stage           Total
                                              -----------       ----------      ---------------       ----------      --------
<S>                                           <c>                <c>            <c>                   <c>              <c>
Balance at inception                                   -         $      -           $      -           $     -        $     -

Common shares issued for cash
  at inception at $.0004 per share            5,000,000                500              1,500                 -          2,000
Common shares issued for cash
  at $.003 per share                          3,200,000                320              9,280                 -          9,600
Contribution of services by shareholder               -                  -              4,500                 -          4,500
Net (loss) for the period                             -                  -                  -            (4,660)        (4,660)
                                             ----------         ----------         ----------          ---------      ---------

Balance, December 31, 2002                    8,200,000                820             15,280            (4,660)        11,440

Contribution of services by shareholder               -                  -              6,000                 -          6,000
Net (loss) for the year                               -                  -                  -            (15,435)      (15,435)
                                             ----------         ----------         ----------          ---------      ---------

Balance, December 31, 2003                    8,200,000              $ 820           $ 21,280          $ (20,095)      $ 2,005
                                             ----------         ----------         ----------          ---------      ---------




See The accompanying notes to the financial statements.
</TABLE>

<PAGE>

<TABLE>
                                         Alternative Energy Sources, Inc.
                                          (A Development Stage Company)
                                            Statement of Cash Flows
        Period From Inception (April 8, 2002) to December 31, 2002, the Year Ended December 31, 2003 and
                         the Period From Inception (April 8, 2002) to December 31, 2003


                                                         <c>                 <c>                 <c>
                                                                 Inception to        Year Ended        Inception to
                                                                 December 31,       December 31,       December 31,
                                                                   2002               2003                 2003
                                                                -------------      -------------      -------------
Cash flows from operating activities:
Net (loss)                                                      $  (4,660)          $ (15,435)         $ (20,095)
Adjustments to reconcile net (loss) to net cash
(used in) operating activities:
Contribution of services by shareholder                             4,500              6,000             10,500
                                                               -------------      -------------      -------------
  Net cash (used in) operating activities                            (160)            (9,435)            (9,595)
                                                               -------------      -------------      -------------
Cash flows from investing activities:
  Net cash provided by (used in) investing activities                   -                  -                  -
                                                               -------------      -------------      -------------
Cash flows from financing activities:
Common shares issued for cash                                      11,600                  -             11,600
                                                               -------------      -------------      -------------
  Net cash provided by financing activities                        11,600                  -             11,600
                                                               -------------      -------------      -------------

Increase (decrease) in cash and cash equivalents                   11,440             (9,435)             2,005
Cash and cash equivalents, beginning of period                          -             11,440                  -
                                                               -------------      -------------      -------------

Cash and cash equivalents, end of period                         $ 11,440            $ 2,005            $ 2,005

                                                               =============      =============      =============
Supplemental cash flow information:
   Cash paid for interest                                        $      -                $ -                $ -
                                                               =============      =============      =============
   Cash paid for income taxes                                    $      -                $ -                $ -
                                                               =============      =============      =============



See The accompanying notes to the financial statements.
</TABLE>
<PAGE>




                        Alternative Energy Sources, Inc.
                          (A Development Stage Company)
                          Notes to Financial Statements
                                December 31, 2003



Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

The Company was incorporated on April 8, 2002 in the State of Delaware and is in
the  development  stage.  The  Company  intends to develop  its  business in the
alternative energy sector. Company has chosen December 31, as a year-end and has
had no significant activity from inception to December 31, 2003.

Revenue Recognition

The Company  recognizes  revenue  when  services  are  provided or products  are
shipped.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of
three months or less to be cash equivalents.

Financial Instruments

Fair value estimates  discussed herein are based upon certain market assumptions
and pertinent  information  available to management as of December 31, 2003. The
respective  carrying  value of certain  on-balance-sheet  financial  instruments
approximated their fair values.  These financial  instruments include cash. Fair
values  were  assumed  to  approximate   carrying  values  for  these  financial
instruments  because  they are short term in nature and their  carrying  amounts
approximate fair values.

Organization and Start-up Costs

The Company expenses organization and start-up costs as incurred.

Offering Costs

The Company defers costs  associated with the raising of capital until such time
as the offering is  completed,  at which time the costs are charged  against the
capital  raised.  Should the  offering  be  terminated  the costs are charged to
operations during the period when the offering is terminated.

Net Income (Loss) Per Common Share

The Company  calculates  net income (loss) per share as required by Statement of
Financial  Accounting Standards (SFAS) 128, "Earnings per Share." Basic earnings
(loss) per share is  calculated  by dividing  net income  (loss) by the weighted
average number of common shares  outstanding  for the period.  Diluted  earnings
(loss) per share is  calculated  by dividing  net income  (loss) by the weighted
average  number  of  common  shares  and  dilutive   common  stock   equivalents
outstanding.  During  periods in which the Company  incurs  losses  common stock
equivalents, if any, are not considered, as their effect would be anti dilutive.


<PAGE>


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 the amounts  reported in the  financial
statements  and  accompanying  notes.  Actual  results  could  differ from those
estimates.

Segment Information

The Company follows SFAS 131,  "Disclosures  about Segments of an Enterprise and
Related Information."  Certain information is disclosed,  per SFAS 131, based on
the  way  management  organizes  financial   information  for  making  operating
decisions and assessing performance.  The Company currently operates in a single
segment and will  evaluate  additional  segment  disclosure  requirements  as it
expands its operations.

Income Taxes

The Company  follows SFAS 109  "Accounting  for Income  Taxes" for recording the
provision for income  taxes.  Deferred tax assets and  liabilities  are computed
based upon the difference  between the financial  statement and income tax basis
of assets and  liabilities  using the enacted  marginal tax rate applicable when
the related  asset or liability is expected to be realized or settled.  Deferred
income  tax  expenses  or  benefits  are  based on the  changes  in the asset or
liability  each period.  If available  evidence  suggests that it is more likely
than not  that  some  portion  or all of the  deferred  tax  assets  will not be
realized, a valuation allowance is required to reduce the deferred tax assets to
the amount that is more likely than not to be realized.  Future  changes in such
valuation  allowance are included in the provision for deferred  income taxes in
the period of change.

Stock-Based Compensation

The Company  accounts for equity  instruments  issued to employees  for services
based on the fair value of the equity instruments issued and accounts for equity
instruments  issued  to other  than  employees  based  on the fair  value of the
consideration received or the fair value of the equity instruments, whichever is
more reliably measurable.

The Company  accounts for stock based  compensation in accordance with SFAS 123,
"Accounting  for  Stock-Based  Compensation."  The  provisions of SFAS 123 allow
companies  to either  expense the  estimated  fair value of stock  options or to
continue to follow the intrinsic value method set forth in Accounting Principles
Board  Opinion  25,  "Accounting  for Stock  Issued to  Employees"  (APB 25) but
disclose  the pro forma  effects on net income  (loss) had the fair value of the
options  been  expensed.  The Company has elected to continue to apply APB 25 in
accounting for its stock option incentive plans.

Impairment of Long-Lived Assets

The Company  accounts for long-lived  assets and goodwill in accordance with the
provisions of SFAS 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets" and SFAS 142, "Goodwill and Other Intangible  Assets." SFAS 144 requires
that  long-lived  assets and certain  identifiable  intangibles  be reviewed for
impairment  whenever  events  or  changes  in  circumstances  indicate  that the
carrying amount of an asset may not be recoverable. Recoverability of assets to


<PAGE>

be held and used is measured by a comparison of the carrying  amount of an asset
to future net cash flows  expected to be generated by the asset.  If such assets
are  considered to be impaired,  the  impairment to be recognized is measured by
the amount by which the carrying  amount of the assets exceeds the fair value of
the assets.  Assets to be disposed of are  reported at the lower of the carrying
amount or fair value  less costs to sell.  SFAS 142  requires  annual  tests for
impairment of goodwill and intangible  assets that have indefinite  useful lives
and  interim  tests when an event has  occurred  that more  likely  than not has
reduced the fair value of such assets.

Recent Pronouncements

In May 2003, the Financial  Accounting Standards Board ("FASB") issued SFAS 150,
"Accounting  for Certain  Financial  Instruments  with  Characteristics  of both
Liabilities  and Equity." SFAS 150 changes the  accounting  guidance for certain
financial  instruments  that,  under previous  guidance,  could be classified as
equity or "mezzanine" equity by now requiring those instruments to be classified
as liabilities (or assets in some circumstances) on the balance sheet.  Further,
SFAS 150  requires  disclosure  regarding  the  terms of those  instruments  and
settlement  alternatives.  SFAS 150 is  generally  effective  for all  financial
instruments  entered  into or  modified  after May 31,  2003,  and is  otherwise
effective at the beginning of the first interim period  beginning after June 15,
2003.  The  adoption  of SFAS 150 in the first  quarter  of  fiscal  2004 is not
expected  to have any  material  impact  on the  Company's  financial  position,
results of operations or cash flows.

In December 2002, the Financial  Accounting  Standards  Board (FASB) issued SFAS
148  "Accounting  for Stock-Based  Compensation--Transition  and  Disclosure--an
amendment of SFAS 123." SFAS 148 provides  alternative methods of transition for
a voluntary  change to the fair value based method of accounting for stock-based
employee  compensation  from the  intrinsic  value-based  method  of  accounting
prescribed  by APB 25. As  allowed  by SFAS 123,  the  Company  has  elected  to
continue  to apply  the  intrinsic  value-based  method of  accounting,  and has
adopted the disclosure  requirements of SFAS 123. The Company currently does not
anticipate adopting the provisions of SFAS 148.

In July 2002, the FASB issued SFAS 146,  "Accounting  for Costs  Associated with
Exit or Disposal  Activities." SFAS 146 provides new guidance on the recognition
of costs  associated  with exit or disposal  activities.  The standard  requires
companies to recognize costs  associated  with exit or disposal  activities when
they are incurred  rather than at the date of  commitment to an exit or disposal
plan.  SFAS 146 supercedes  previous  accounting  guidance  provided by the EITF
Issue No. 94-3 "Liability  Recognition for Certain Employee Termination Benefits
and Other  Costs to Exit an  Activity  (including  Certain  Costs  Incurred in a
Restructuring)."  EITF Issue No. 94-3 required  recognition of costs at the date
of  commitment  to an  exit  or  disposal  plan.  SFAS  146  is  to  be  applied
prospectively to exit or disposal activities  initiated after December 31, 2002.
Early  application is permitted.  The adoption of SFAS 146 by the Company is not
expected to have a material impact on the Company's financial position,  results
of operations, or cash flows.

In April 2002, the FASB issued SFAS 145,  "Rescission of FASB  Statements No. 4,
44, and 64,  Amendment of FASB  Statement  No. 13, and  Technical  Corrections."
Among other things,  this statement  rescinds FASB  Statement No. 4,  "Reporting
Gains and Losses  from  Extinguishment  of Debt"  which  required  all gains and
losses from extinguishment of debt to be aggregated and, if material, classified
as an  extraordinary  item, net of related income tax effect.  As a result,  the
criteria  in APB  Opinion  No.  30,  "Reporting  the  Results of  Operations  --
Reporting the Effects of Disposal of a Segment of a Business, and Extraordinary,
Unusual and Infrequently Occurring Events and Transactions," will now be used to
classify those gains and losses. The provisions of SFAS 145 related to the


<PAGE>

classification  of debt  extinguishment  are effective for years beginning after
May 15, 2002.  The adoption of SFAS 145 by the Company is not expected to have a
material impact on the Company's financial position,  results of operations,  or
cash flows.

Note 2. STOCKHOLDERS' EQUITY

During December 2002 the Company  affected a ten for one forward stock split and
during  September 2003 the Company  affected a five for one forward stock split.
All share and per share  amounts  have  been  restated  to give  effect to these
splits.

At inception,  the Company issued  5,000,000 shares of its common stock for cash
aggregating $2,000, to certain officers.

During July and August 2002 the Company issued  3,200,000 shares of common stock
for cash aggregating $9,600 pursuant to a private placement offering.

During  the  period  from  inception  to  December  31,  2002 and the year ended
December  31,  2003 an officer  contributed  administrative  services  valued at
$4,500 and $6,000 to the capital of the Company.

During  the year  ended  December  31,  2003 the  Company  filed a  Registration
Statement on Form SB-2 with the Securities  and Exchange  Commission to register
an aggregate of 3,200,000  shares of common stock held by current  shareholders.
The Company will receive no proceeds from the sale of these securities.

Note 3. INCOME TAXES

The Company  accounts  for income taxes under SFAS 109,  "Accounting  for Income
Taxes",  which  requires use of the  liability  method.  SFAS 109 provides  that
deferred  tax assets  and  liabilities  are  recorded  based on the  differences
between the tax bases of assets and liabilities  and their carrying  amounts for
financial reporting purposes, referred to as temporary differences. Deferred tax
assets  and  liabilities  at the end of each  period  are  determined  using the
currently  enacted tax rates  applied to taxable  income in the periods in which
the deferred tax assets and liabilities are expected to be settled or realized.

The provision for income taxes differs from the amount  computed by applying the
statutory  federal income tax rate to income before  provision for income taxes.
The sources and tax effects of the differences are as follows:

         Income tax provision at
          the federal statutory rate                                34 %
         Effect of operating losses                                (34)%
                                                                   -----
                                                                       -
                                                                   =====

As of December 31, 2003,  the Company has a net operating loss  carryforward  of
approximately  $10,000.  This loss will be  available to offset  future  taxable
income.  If not used,  this  carryforward  will expire in 2023. The deferred tax
asset  relating to the operating  loss  carryforward  has been fully reserved at
December 31, 2003.


<PAGE>


Note 4. BASIS OF REPORTING

The Company's financial statements are presented on a going concern basis, which
contemplates  the  realization of assets and  satisfaction of liabilities in the
normal course of business.

The Company has experienced a loss from operations  during its development stage
as a result of its investment  necessary to achieve its operating plan, which is
long-range in nature.  For the period from  inception to December 31, 2003,  the
Company  incurred  a net  loss of  $20,095.  In  addition,  the  Company  has no
significant assets or revenue generating operations.

The  Company's  ability to continue as a going  concern is  contingent  upon its
ability to attain profitable  operations by securing  financing and implementing
its business  plan. In addition,  the  Company's  ability to continue as a going
concern must be considered in light of the problems,  expenses and complications
frequently  encountered by entrance into established markets and the competitive
environment in which the Company operates.

The financial  statements do not include any adjustments to reflect the possible
future effects on the recoverability and classification of assets or the amounts
and classification of liabilities that may result from the possible inability of
the Company to continue as a going concern.





<PAGE>




ITEM 8. Changes in and Disagreements on Accounting and Financial Disclosures

None.

Item 8A. Controls and Procedures

Under the supervision and with the participation of the management of the
Company, including the chief executive officer and chief financial officer, the
Company has established a system of controls and other procedures designed to
ensure that information required to be disclosed in its periodic reports filed
under the Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms. These disclosure controls and procedures
have been evaluated under the direction of the chief executive officer and chief
financial officer within the last 90 days. Based on such evaluations, the chief
executive officer and chief financial officer have concluded that the disclosure
controls and procedures are effective. There have been no significant changes in
the system of internal controls or in other factors that could significantly
affect internal controls subsequent to the evaluation by the chief executive
officer and chief financial officer.

PART III

ITEM 9. Directors, Executive Officers, Promoters and Control Persons; Compliance
with Section 16 (a) of The Exchange Act

The Directors and Officers of the Company, all of those whose terms will expire
at the 2004 shareholders meeting, or at such a time as their successors shall be
elected and qualified, are as follows:

Name                    Age   Term Served              Title

Andrew Stinson           31   Since inception         President, Director and
                                                      Chief Financial Officer

Bruce Gage              46   Since Inception         Director

Either of the above persons may be deemed a "promoter" of, Alternative Energy as
that term is defined in the rules and regulations promulgated under the
Securities and Exchange Act of 1933.

There are no other persons nominated or chosen to become directors or executive
officers, nor do we have any employees other than above mentioned officer and
director. The By-laws of Alternative Energy require no fewer than one member on
the board of directors and no more than seven.

Officer and Director Background:

Andrew Stinson: President and Director. From 2002 to present Mr. Stinson hold
the position of an educator at Tekoa Oaksdale School District. From 1994 to 2002
Mr. Stinson held the position of an educator for LaCrosse School District, Where
he taught (and currently teaches) biology, chemistry, physics, and geology at
both the junior high and senior high levels. Mr. Stinson is also involved in
coaching basketball and tennis. Education: Graduated Cum Laude with a Bachelor
of Science from Eastern Washington University in 1994.

Bruce Gage: Director. In 1994 Mr. Bruce Gage was involved in the start-up and
development of WOW Pollutions Control Systems ("WOW"), Otis Orchards, WA. WOW
Pollution Control Systems is a small business enterprise that is involved with
the distribution and sales of environmentally conscious products to the
residential, business and farming sectors. Specifically, WOW is an authorized
distributor for Reznor waste oil heater and boiler systems. WOW also sells
wastewater treatment systems designed to recycle wastewater produced from
business operations such as car washes and maintenance facilitiesn mixtures that
are designed for petroleum related clean-ups. The company is also involved with
the sale of alternative energy systems, such as windmills and solar panel
systems. Since 1994, Mr. Gage has acted as an independent contractor with WOW,
providing technical consulting and sales services for the company. Mr. Gage has
experience with bio-remediation of soil related to petroleum products, providing
design and installation of wastewater treatment systems, and waste oil
reclamation systems. In addition, in 1999 Mr. Gage introduced and began the
sales of alternative energy products through WOW as an independent contractor,
which included solar and wind power systems. Mr. Gage plans to begin selling the
alternative energy product lines, specifically the wind power systems through
Alternative Energy Sources within the next twelve months and within the next
eighteen months have all wind power systems sold through Alternative Energy.
Although there are no agreements in place or anticipated in the future, WOW, has



<PAGE>

been put on notice and is fully aware of Mr. Gage's plans with Alternative
Energy and no conflict of interest is anticipated between the businesses.
Education: In 1981 Mr. Gage completed the Pre-Physical Therapy program at
Eastern Washington University.

The term of office for each Director is one year, or until his successor is
elected and qualified at the Company's annual meeting of Shareholders, subject
to ratification by the Shareholders. The term of office for each Officer is one
year or until a successor is elected and qualified and is subject to removal by
the Board. No Officer or Director of the Company has been the subject of any
Order, Judgment, or Decree of any court of competent jurisdiction, of any
regulatory agency enjoining him from acting as an investment advisor,
underwriter, broker, or dealer in the securities, or as an affiliated person,
director, or employee of an investment company, bank savings and loan
association, or insurance company or from engaging in or continuing any conduct
or practice in connection with the purchase or sale of any securities nor has
any person been the subject of any order of a state authority barring or
suspending for more than sixty days, the right of such person to be engaged in
such activities or to be associated with such activities. No Officer or Director
of the Company has been convicted in any criminal proceedings (excluding traffic
violations) or the subject of a criminal proceeding which is presently pending.

ITEM 10. Executive Compensation

Alternative Energy's current officer and directors receive no compensation and
have received no restricted stock awards, options, or any other payouts. As
such, we have not included a Summary Compensation Table.

There are no current employment agreements between Alternative Energy and its
executive officer or directors. The officer and directors currently devote an
immaterial amount of time, no more than 10-15% of their time, to manage the
affairs of Alternative Energy. The directors and principal officers have agreed
to work with no remuneration until such time as we receive sufficient revenues
necessary to provide proper salaries to all officers and compensation for
directors' participation. The officers and the board of directors have the
responsibility to determine the timing of remuneration for key personnel based
upon such factors as positive cash flow to include stock sales, product sales,
estimated cash expenditures, accounts receivable, accounts payable, notes
payable, and a cash balance of not less than $150,000 at each month end. When
positive cash flow reaches $25,000 at each month end and appears sustainable,
the board of directors will re-address compensation for key personnel and enact
a plan at that time which will benefit Alternative Energy as a whole. At this
time, management cannot accurately estimate when sufficient revenues will occur
to implement this compensation, or the exact amount of compensation.

There are no annuity, pension or retirement benefits proposed to be paid to
officers, directors or employees of the corporation in the event of retirement
at normal retirement date pursuant to any presently existing plan provided or
contributed to by the corporation or any of its subsidiaries, if any.


<PAGE>

ITEM 11. Security Ownership of Certain Beneficial Owners and Management

The following table sets forth certain information with respect to the
beneficial ownership of our common stock as it relates to our named Director and
executive Officer, and each person known to Alternative Energy to be the
beneficial owner of more than five percent (5%) of said securities, and all of
our directors and executive officers as a group:

Name and Position             Shares             Percent       Security

Andrew Stinson
President and Director        3,750,000           45.7%         Common

Bruce Gage
Director                      1,250,000           17.1%         Common

Officers and Directors as
a Group                       5,000,000           61.0%         Common

Andrew Stinson and Bruce Gage's address is 610 North Howard, Tekoa, Washington
99033.

The above referenced common shares were paid for and issued in May 2002, for
consideration of $0.0004 per share and total consideration of $2,000. (Please
note that the above share total reflects the 10:1 forward split, effective
December 12, 2002; and a subsequent forward split of 5:1, effective September
15, 2003)

ITEM 12. Certain Relationships and Related Transactions

Currently, there are no contemplated transactions that Alternative Energy may
enter into with our officers, directors or affiliates. If any such transactions
are contemplated we will file such disclosure in a timely manner with the SEC on
the proper form making such transaction available for the public to view.

Alternative Energy has no formal written employment agreement or other contracts
with our current officer, and there is no assurance that the services to be
provided by him will be available for any specific length of time in the future.
Andrew Stinson and Bruce Gage anticipate initially devoting at a minimum of
twelve to fifteen hours per month of their available time to Alternative
Energy's affairs. If and when the business operations increase and a more
extensive time commitment is needed, Andrew Stinson and/or Bruce Gage are
prepared to devote more time to Alternative Energy's affairs, in the event that
becomes necessary. The amounts of compensation and other terms of any full time
employment arrangements would be determined, if and when, such arrangements
become necessary.


<PAGE>

PART IV

ITEM 13. Exhibits and Reports of Form 8-K

EXHIBITS

The following exhibits are incorporated into this Form 10-KSB Annual Report:

  EXHIBIT NO.           DESCRIPTION

                        Articles of Incorporation*
                        Bylaws*
                        Form 8K**
                        ------------
* previously filed with the Company's Form SB-2 on February 11, 2003 and is
hereby incorporated into this filing by reference. **8-K filed on September 18,
2003. Disclosed a 5:1 forward split of the Company's common stock; the split was
effective for all shareholders of record on September 15, 2003. The current
report also disclosed the change in the Company's principle executive address as
610 North Howard, Tekoa, WA 99033

ITEM 14.  Principal Accountant Fees and Services.

The Company's board of directors reviews and approves audit and permissible
non-audit servics performed by its independent accountants, as well as the fees
charged for such services. In its review of non-audit service fees and its
appointment of Stark Winter Schenkein & Co., LLP as the Company's independent
accountants, the board of directors considered whether the provision of such
services is compatible with maintaining independence. All of the services
provided and fees charged by Stark Winter Schenkein & Co., LLP in 2003 were
approved by the board of directors.

Audit Fees

The aggregate fees billed by for professional services for the audit of the
annual financial statements of the Company and the reviews of the financial
statements included in the Company's quarterly reports on Form 10-QSB for 2003
was $4,575. There were no fees paid in 2002.

Tax Fees

There were fees not billed during the last two fiscal years for professional
services rendered for tax complaince.

All Other Fees

There were no other fees billed by during the last two fiscal years for products
and services provided.

SIGNATURES

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

ALTERNATIVE ENERGY SOURCES, INC.
(Registrant)

Date: March 4, 2004

By: /s/ Andrew Stinson
    -------------------
    Andrew Stinson
    President, Chief Executive Officer,
    Chief Financial Officer and Director

Date:  March 4, 2004

By: /s/ Bruce Gage
    ----------------
    Bruce Gage
    Director



<PAGE>

CERTIFICATIONS

I, Andrew Stinson, President, Chief Executive Officer, Chief Financial Officer
and Director of Alternative Energy Sources, Inc. (the "Company"), certify that:

1.  I  have  reviewed  this  annual  report  on  Form  10-KSB  of  the  Company;

2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this annual report is being prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this annual
report (the "Evaluation Date"); and

     c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

     a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

     b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and



<PAGE>

6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date:  March 4, 2004

By: /s/ Andrew Stinson
-----------------------------
Andrew Stinson
President, Chief Executive Officer,
Chief Financial Officer and Director

<PAGE>


CERTIFICATIONS

I, Bruce Gage, Director of Alternative Energy Sources, Inc. (the "Company"),
certify that:

1.  I  have  reviewed  this  annual  report  on  Form  10-KSB  of  the  Company;

2. Based on my knowledge, this annual report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this annual
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this annual report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this annual report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

     a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this annual report is being prepared;

     b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this annual
report (the "Evaluation Date"); and

     c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

     a) all significant deficiencies in the design or operation of internal
controls which could adversely affect the registrant's ability to record,
process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and

     b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
annual report whether there were significant changes in internal controls or in
other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.

Date:  March 4, 2004

By: /s/ Bruce Gage
    ----------------
    Bruce Gage
    Director



<PAGE>

                 CERTIFICATION PURSUANT TO 18 U.S.C. SEC. 1350
                  (SECTION 906 OF SARBANES-OXLEY ACT OF 2002)

                      Alternative Energy Sources, Inc.

     In connection with the Annual Report of, Alternative Energy Sources, Inc.
(the "Company") on Form 10-KSB for the period ending December 31, 2003 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Andrew Stinson, President, Chief Executive Officer, Chief Financial Officer
and Director of the Company, hereby certify, pursuant to 18 U.S.C. Sec. 1350, as
adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.

Dated:  March 4, 2004

By:  /s/ Andrew Stinson
     ----------------------------------
     Andrew Stinson, President, Chief Executive Officer,
     Chief Financial Officer and Director



                 Alternative Energy Sources, Inc.

     In connection with the Annual Report of, Alternative Energy Sources, Inc.
(the "Company") on Form 10-KSB for the period ending December 31, 2003 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Bruce Gage, Director of the Company, hereby certify, pursuant to 18 U.S.C.
Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002,
that:

     (1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.



Date:  March 4, 2004

By:    /s/ Bruce Gage
       ----------------
       Bruce Gage
       Director