| Utah                                                                  |  | 87-9369569                           |
|-----------------------------------------------------------------------|--|--------------------------------------|
| (State or other jurisdiction of incorporation        or organization) |  | (IRS Employer Identification Number) |

----

Item 1- Financial Statements

|   | Consolidated Balance Sheet      as of June 30, 2007 and December 31, 2006                            |
|--------|------------------------------------------------------------------------------------------------------|
|   |                                                                                                      |
|   | Consolidated Statements      of Operations for the three and six months ended June 30, 2007 and 2006 |
|   |                                                                                                      |
|   | Consolidated Statements of Cash      Flows for the six months ended June 30, 2007 and 2006           |
|   |                                                                                                      |
|   | Notes to Consolidated Financial Statements                                                           |
|   |                                                                                                 |

Item 2 - Management's Discussion and Analysis or Plan of Operations
Item 1 - Legal Proceedings
Item 2 - Changes in Securities and Use of Proceeds
Item 3 - Default upon Senior Securities
Item 4 - Submission of Matters to a Vote of Security Holders
Item 5 - Other Information
Item 6 - Exhibits and Reports on Form 8-K
Signatures

----

| **Current Assets**                                                                                            |   |    |
|---------------------------------------------------------------------------------------------------------------|--------|---------|
| Cash and Cash Equivalents                                                                                     | $      | 316,488 |
| Accounts receivable                                                                                           |   | 52,368  |
| Inventory                                                                                                     |   | 56,526  |
|                                                                                                          |   |    |
|              **Total        current assets** |   | 425,382 |
|                                                                                                          |   |    |
| Equipment, net of accumulated depreciation                                                                    |   | 6,373   |
| Intangible assets, net of accumulated amortization                                                            |   | 11,537  |
|                                                                                                          |   |    |
|              Total        assets             | $      | 443,292 |
|                                                                                                          |   |    |
|                                                                                                          |   |    |
|                                                                                                                               |   |    |
|------------------------------------------------------------------------------------------------------------------------------------|--------|---------|
| **Liabilities**                                                                                                                    |   |    |
|                                                                                                                               |   |    |
| **Current liabilities**                                                                                                            |   |    |
| Line of credit                                                                                                                     | $      | 132     |
| Accounts payable                                                                                                                   |   | 39,835  |
| Income taxes payable                                                                                                               |   | 80,821  |
|                                                                                                                               |   |         |
|              **Total        current liabilities**                 |   | 120,788 |
|                                                                                                                               |   |         |
| **Stockholders' equity**                                                                                                           |   |         |
| Common stock, $.001 par value, 200,000,000        shares             Authorized , 31,230,295 issued and outstanding |   | 31,230  |
| Additional paid-in-capital                                                                                                         |   | 256,770 |
| Retained earnings                                                                                                                  |   | 34,504  |
|                                                                                                                               |   |    |
|              **Total        stockholders' equity**                |   | 322,504 |
|                                                                                                                               |   |         |
|              Total        liabilities and stockholders' equity    | $      | 443,292 |
|                                                                                                                               |   |    |

----

|                                                     |   | SIX MONTH  |   |   | THREE MONTHS |   |
|----------------------------------------------------------|--------|------------|--------|--------|--------------|--------|
|                                                     |   | 2007       |        |        | 2006         |   |   | 2007 |  |  | 2006 |   |
|                                                     |   |       |   |   |         |   |   |   |   |   |   |   |
| **Revenue, net**                                         | $      | 1,057,406  |   | $      | 179,877      |   | $ | 582,548 |  | $ | 159,279 |  |
|                                                     |   |            |   |   |              |   |   |   |   |   |   |   |
| **Cost of sales**                                        |   |            |   |   |              |   |  |  |  |  |  |  |
| Merchandise                                              |   | 151,079    |   |   | 44,227       |   |  | 94,265 |  |  | 26,227 |  |
| Other costs                                              |   | 39,423     |   |   | 3,215        |   |   | 22,674 |   |   | 2,767 |  |
|                                                     |   |            |   |   |              |   |   |   |   |   |   |  |
| Total cost of      sales                                 |   | 190,502    |   |   | 47,442       |   |   | 116,939 |  |   | 28,994 |  |
|                                                     |   |            |   |   |              |   |   |   |   |   |   |  |
| Gross margin                                             |   | 866,904    |   |   | 132,435      |   |  | 465,609 |  |  | 130,285 |  |
|                                                     |   |            |   |   |              |   |  |  |  |  |  |  |
| **Operating expenses**                                   |   |            |   |   |              |   |  |  |  |  |  |  |
| Advertising and promotion                                |   | 165,531    |   |   | 95,014       |   |  | 91,311 |  |  | 49,610 |  |
| Sales commissions                                        |   | 278,530    |   |   | 27,398       |   |  | 189,440 |  |  | 27,298 |  |
| General and administrative                               |   | 145,677    |   |   | 72,022       |   |   | 94,116 |  |   | 45,773 |  |
|                                                     |   |            |   |   |              |   |  |  |  |  |  |  |
| Total operating costs and expenses                       |   | 589,738    |   |   | 194,434      |   |   | 374,867 |   |   | 122,861 |  |
|                                                     |   |            |   |   |              |   |  |  |  |  |  |  |
| Net income (loss) before provision for income      taxes |   | 277,166    |   |   | (61,998      | )      |  | 90,743 |  |  | 7,424 |   |
|                                                     |   |            |   |   |              |   |  |  |  |  |  |  |
| Provision for income taxes                               |   | 80,821     |   |   | -            |   |   | 74,935 |   |   | - |  |
|                                                     |   |            |   |   |              |   |  |  |  |  |  |  |
| Net income (loss)                                        | $      | 196,345    |   | $      | (61,998      | )      | $ | 15,808 |  | $ | 7,424 |   |
|                                                     |   |       |   |   |         |   |   |   |  |   |   |  |
| Net income (loss) per share                              | $      | .006       |   | $      | (.002        | )      | $ | .001 |  | $ | .000 |  |
|                                                     |   |       |   |   |         |   |   |   |  |   |   |  |
| Weighted average number of shares outstanding            |   | 31,230,295 |   |   | 25,000,000   |   |  | 31,230,295 |  |  | 25,000,000 |  |
|                                                     |   |       |   |   |         |   |   |   |   |   |   |   |
|                                                     |   |       |   |   |         |   |   |   |   |   |   |   |

----

|                                                                                                           |    | 2007    |   |   |    | 2006     |   |
|----------------------------------------------------------------------------------------------------------------|---------|---------|--------|--------|---------|----------|--------|
| Cash flows from operating activities                                                                           |    |    |   |   |    |     |   |
| Net income (loss)                                                                                              | $       | 196,345 |   |   | $       | (61,998  | )      |
| Adjustments to reconcile net income (loss)      to net cash                                                    |         |         |   |   |    |          |   |
|    Provided      by operating activities:                                                       |         |         |   |   |    |          |   |
|             Depreciation      and amortization     |         | 729     |   |   |    | 209      |   |
|    Changes      in operating assets and liabilities                                             |         |         |   |   |    |          |   |
|             Increase      in accounts receivable   |         | (32,925 | )      |   |    | (11,667  | )      |
|             Increase      in inventory             |         | (5,564  | )      |   |    | (58,418  | )      |
|             Decrease      in accounts payable      |         | 4,645   |   |   |    | 2,100    |   |
|             Increase      in taxes payable         |    | 80,821  |   |   |    | -        |   |
|                                                                                                           |         |         |   |   |    |          |   |
| Net cash provided (used)      by operating activities                                                          |         | 244,051 |   |   |    | (129,774 | )      |
|                                                                                                           |    |    |   |   |    |     |   |
| Cash flows from investing      activities                                                                      |         |         |   |   |    |          |   |
|             Increase      in equipment             |    | (4,468  | )      |   |    | -        |   |
|                                                                                                           |         |         |   |   |    |          |   |
| Cash flows from financing activities                                                                           |         |         |   |   |    |          |   |
|             Proceeds      from line of credit, net |    | (13,005 | )      |   |    | 22,148   |   |
|                                                                                                           |         |         |   |   |    |          |   |
| Net increase (decrease) in      cash and cash equivalents                                                      |    | 226,578 |   |   |    | (107,626 | )      |
|                                                                                                           |         |         |   |   |    |          |   |
| Cash and cash equivalents      at beginning of period                                                          |    | 89,910  |   |   |    | 217,844  |   |
|                                                                                                           |         |    |   |   |    |     |   |
| Cash and cash equivalents      at end of period                                                                |  $ | 316,488 |   |   |  $ | 110,218  |   |
|                                                                                                           |    |    |   |   |    |     |   |
| Supplemental disclosure of      cash flow information:                                                         |         |         |   |   |    |          |   |
|                                                                                                           |         |         |   |   |    |          |   |
| Income taxes paid                                                                                              | $       | -       |   |   |    |     |   |
|                                                                                                           |         |         |   |   |    |          |   |
| Interest paid                                                                                                  | $       | 950     |   |   |    |     |   |
|                                                                                                           |    |    |   |   |    |     |   |
| Stock issued to acquire equipment      and inventory                                                           | $       | 18,000  |   |   |    |     |   |
|                                                                                                           |    |    |   |   |    |     |   |

----

----

----

|                                                          |   | 2007    |   |   |   | 2006   |
|---------------------------------------------------------------|--------|---------|--------|--------|--------|--------|
| Federal income tax                                            | $      | 62,955  |   |   | $      | -      |
| State income tax                                              |   | 17,866  |   |   |   | -      |
|                                                          |   |    |   |   |   |   |
| Total                                                         | $      | 80,821  |   |   | $      | -      |
|                                                          |   |    |   |   |   |   |
| Income taxes based on statutory      tax rates are as follows |   |    |   |   |   |   |
|                                                          |   |    |   |   |   |   |
| Federal income taxes                                          | $      | 95,638  |   |   | $      | -      |
| State income tax                                              |   | 24,986  |   |   |   | -      |
| Less net operating loss benefit                               |   | (39,803 | )      |   |   | -      |
|                                                          |   |    |   |   |   |        |
| Total                                                         | $      | 80,821  |   |   |   | -      |

----

----

|   | 31.1 Certification by Michael Forster President      pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|-----------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                 |
|   | 32.1 Certification by Michael Forster President      pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

|  | **POWER SAVE ENERGY COMPANY** |   |
|--|-------------------------------|--------|

| Date: August 9, 2007 | By s/ Michael Forster                                                 |   |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                 |       Michael      Forster                                                                                                                                                                                                                                                              |   |
|                 |       Chief Executive      Officer                                                                                                                                                                                                                                                      |   |

----