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

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Item 1- Financial Statements

|   | Consolidated Balance Sheet as of March 31, 2008                                                  |
|--------|--------------------------------------------------------------------------------------------------|
|   |                                                                                                  |
|   | Consolidated Statements of Operations for the three and nine monthsended March 31, 2008 and 2007 |
|   |                                                                                                  |
|   | Consolidated Statements of Cash Flows for the three months endedMarch 31, 2008 and 2007          |
|   |                                                                                                  |
|   | Notes to Consolidated Financial Statements                                                       |
|   |                                                                                             |

Item 2 - Management's Discussion and Analysis or Plan of Operations
Item 3- Controls and Procedures 
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

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| **Current Assets**                                                                                            |   |    |
|---------------------------------------------------------------------------------------------------------------|--------|---------|
| Cash and Cash Equivalents                                                                                     | $      | 410,513 |
| Accounts receivable                                                                                           |   | 30,845  |
| Inventory                                                                                                     |   | 414,036 |
| Prepaid expenses                                                                                              |   | 60,000  |
|                                                                                                          |   |    |
|             ** **Total        current assets |   | 915,394 |
|                                                                                                          |   |    |
| Equipment, net of accumulated depreciation                                                                    |   | 12,123  |
| Intangible assets, net        of accumulated amortization                                                     |   | 10,911  |
|                                                                                                          |   |    |
|              Total        assets             | $      | 938,428 |
|                                                                                                          |   |    |
|                                                                                                          |   |    |

|                                                                                                                              |   |    |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------|
| **Liabilities**                                                                                                                   |   |    |
| **Current liabilities**                                                                                                           |   |    |
| Accounts payable                                                                                                                  | $      | 101,573 |
| Income taxes payable                                                                                                              |   | 129,623 |
|                                                                                                                              |   |         |
|              Total      current liabilities                      |   | 231,196 |
|                                                                                                                              |   |         |
| Stockholders' equity                                                                                                              |   |         |
| Common stock, $.001 par value, 100,000,000      shares           Authorized, 27,375,921 issued and outstanding     |   | 27,376  |
| Additional paid-in-capital                                                                                                        |   | 440,585 |
| Retained earnings                                                                                                                 |   | 239,271 |
|                                                                                                                              |   |    |
|              Total      stockholders' equity                     |   | 707,232 |
|                                                                                                                              |   |         |
|              **Total      liabilities and stockholders' equity** | $      | 938,428 |
|                                                                                                                              |   |    |

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|                                                     |   | **2008**   |        |   | **2007**   |   |
|----------------------------------------------------------|--------|------------|--------|--------|------------|--------|
|                                                     |   |       |   |   |       |   |
| **Revenue, net**                                         | $      | 654,807    |        | $      | 474,858    |        |
|                                                     |   |       |   |   |       |   |
| **Cost of sales**                                        |        |            |        |        |            |        |
| Merchandise                                              |        | 127,781    |        |        | 56,814     |        |
| Other costs                                              |   | 24,833     |   |   | 16,749     |        |
|                                                     |   |       |   |   |       |        |
| Total cost of      sales                                 |   | 152,614    |        |   | 73,563     |        |
|                                                     |   |       |   |   |       |        |
| Gross margin                                             |   | 502,193    |        |        | 401,294    |        |
|                                                     |        |            |        |        |            |        |
| Operating expenses                                       |        |            |        |        |            |        |
| Advertising and promotion                                |        | 41,674     |        |        | 74,220     |        |
| Sales Commissions                                        |        | 252,848    |        |        | 89,090     |        |
| General and administrative                               |   | 93,985     |        |   | 51,561     |        |
|                                                     |        |            |        |        |            |        |
| Total operating costs and expenses                       |   | 388,507    |   |   | 214,871    |        |
|                                                     |        |            |        |        |            |        |
| Net income (loss) before provision for income      taxes |        | 113,686    |        |        | 186,423    |   |
|                                                     |        |            |        |        |            |        |
| Provision for income taxes                               |   | 47,312     |   |   | 5,886      |        |
|                                                     |        |            |        |        |            |        |
| Net income (loss)                                        | $      | 66,374     |        | $      | 180,537    |   |
|                                                     |   |       |        |   |       |        |
| Weighted average number of shares outstanding            |   | 27,031,168 |        |   | 27,031,168 |        |
|                                                     |   |       |        |   |       |        |
| Net income (loss) per share                              | $      | .002       |        | $      | .006       |        |
|                                                     |   |       |        |   |       |        |

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|                                                                                                                 |    | 2008     |   |   |    | 2007     |   |
|----------------------------------------------------------------------------------------------------------------------|---------|----------|--------|--------|---------|----------|--------|
| Cash flows from operating activities                                                                                 |    |     |   |   |    |     |   |
| Net Income (loss)                                                                                                    | $       | 66,373   |   |   | $       | 180,537  |        |
| Adjustments to reconcile net income (loss)      to net cash                                                          |         |          |   |   |    |          |   |
|    Provided      by operating activities                                                              |         |          |   |   |    |          |   |
|             Depreciation      and amortization           |         | 532      |   |   |    | 327      |   |
|    Change      in operating assets and liabilities                                                    |         |          |   |   |    |          |   |
|             Increase      in accounts receivable         |         | 15,578   |   |   |    | (135,125 | )      |
|             Increase      in inventory                   |         | (303,168 | )      |   |    | (4,713   | )      |
|             Increase      in prepaid expenses            |         | (50,000  | )      |   |    | -   |   |
|             Increase      (decrease) in accounts payable |    | 54,539   |   |   |    | (15,663  | )      |
|             Increase      in income taxes payable        |    | 11,465   |   |   |    | 5,886    |   |
|                                                                                                                 |         |          |   |   |    |          |   |
| Net cash used in operating activities                                                                                |    | (204,681 | )      |   |    | 31,249   |   |
|                                                                                                                 |    |     |   |   |    |     |   |
| Cash flows from investing activities                                                                                 |         |          |   |   |    |          |   |
|             Acquisition      of equipment                |    | (6,758   | )      |   |    | -        |   |
|                                                                                                                 |         |          |   |   |    |          |   |
| Net cash used by investing      activities                                                                           |    | (6,758   | )      |   |    | -        |   |
|                                                                                                                 |    |     |   |   |    |     |   |
| Cash flows from investing      activities                                                                            |         |          |   |   |    |          |   |
|             Increase      in common stock                |    | 179,961  |   |   |    | -        |   |
|             Net      Proceeds from line of credit, net   |    | -        |   |   |    | 9,201    |   |
|                                                                                                                 |         |          |   |   |    |          |   |
| Net cash provided by financing      activities                                                                       |    | 179,961  |   |   |    | 9,201    |   |
|                                                                                                                 |    |     |   |   |    |     |   |
| Net increase (decrease) in      cash and cash equivalents                                                            |    | (31,476  | )      |   |    | 40,450   |   |
|                                                                                                                 |         |          |   |   |    |          |   |
| Cash and cash equivalents      at beginning of year                                                                  |    | 441,989  |   |   |    | 89,910   |   |
|                                                                                                                 |         |     |   |   |    |     |   |
| Cash and cash equivalents      at end of year                                                                        |  $ | 410,513  |   |   |  $ | 130,360  |   |
|                                                                                                                 |    |     |   |   |    |     |   |
| Supplemental disclosure of      cash flow information                                                                |         |          |   |   |    |          |   |
|                                                                                                                 |         |          |   |   |    |          |   |
| Income taxes paid                                                                                                    | $       | 35,757   |   |   | $       | -        |   |
|                                                                                                                 |         |          |   |   |    |          |   |
| Interest paid                                                                                                        | $       | 564      |   |   | $       | -        |   |

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|                                                          |   | 2008   |   |   |   | 2007    |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|---------|--------|
| Federal income tax                                            | $      | 36,735 |   |   | $      | 3,581   |   |
| State income tax                                              |   | 11,477 |   |   |   | 2,305   |   |
|                                                          |   |   |   |   |   |    |   |
| Total                                                         | $      | 46,852 |   |   | $      | 5,886   |   |
|                                                          |   |   |   |   |   |    |   |
| Income taxes based on statutory      tax rates are as follows |   |   |   |   |   |    |   |
|                                                          |   |   |   |   |   |    |   |
| Federal income taxes                                          | $      | 38,652 |   |   | $      | 58,242  |   |
| State income tax                                              |   | 10,050 |   |   |   | 16,612  |   |
| Other                                                         |   | (1,850 | )      |   |   | (68,968 | )      |
| Less net operating loss benefit                               |   |   |   |   |   |    |   |
|                                                          |   |   |   |   |   |         |   |
| Total                                                         | $      | 41,852 |   |   | $      | 5,886   |   |

|   | Intangible assets, at cost  | $      | 12,510 |   |
|--------|-----------------------------|--------|--------|--------|
|   | Less - amortization allowed |   | 1,609  |   |
|   |                        |   |   |   |
|   |                        | $      | 11,901 |   |
|   |                        |   |   |   |

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|   | 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: May 6, 2008 | By s/ Michael Forster                                                 |   |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|              |       Michael      Forster                                                                                                                                                                                                                                                              |   |
|              |       Chief Executive      Officer                                                                                                                                                                                                                                                      |   |

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