OTC Bulletin Board S & P Company Insight for HYDROGEN ENGINE
Profile
	Business Summary: Hydrogen Engine Center, Inc., a development stage company, engages in the design, manufacture, and distribution of spark-ignited internal combustion engines and power generator sets used in the industrial and power generation markets primarily in the United States and Canada.   Address   602 East Fair Street   Algona , IA 50511   Phone: 515-295-3178   Fax: 515-295-2453   Website: http://www.hydrogenenginecenter.com Auditor   LWBJ Transfer Agent   Interstate Transfer Co. Employees:  15 ShareHolders:  241 Founded:  1983 Domicile:  Nevada
Background
	Hydrogen Engine Center, Inc., a development stage company, engages in the design, manufacture, and distribution of spark-ignited internal combustion engines and power generator sets used in the industrial and power generation markets primarily in the United States and Canada. Its engines run on alternative fuels, such as gasoline, propane, natural gas, ethanol, and hydrogen. The company sells its engines and engine products under the brand name Oxx Power. Hydrogen Engine Center's product line includes 4.9L, 6-cylinder Oxx Power engine, 4.9L, 6 cylinder Oxx Power Hydrogen engine, Oxx Power Power Units, 50kW Oxx Power Hydrogen Genset, 250kW 4 + 1 Hydrogen Genset, and Oxx Boxx Engine Controller. The company's engines are used in various applications, such as airport vehicles, forklifts, wood chippers, irrigation pumping equipment, farm tractors and equipment, delivery vehicles, yard tractors, cranes, construction equipment, mining vehicles, and buses, as well as in electric power projects. It has a strategic alliance with Startech Environmental Corp. to utilize the by-product hydrogen gas created during the Startech plasmification waste treatment process to create electricity. The company was founded in 2003 and is based in Algona, Iowa. History:  INCORPORATED in Nevada Aug. 3, 2000, as Green Mt. Labs., Inc.; and on Sept. 29, 2000, merged an Idaho corporation of the same name (incorporated July 12, 1983). Name changed to Hydrogen Engine Center, Inc. Aug. 30, 2005, in connection with the acquisition, on that date, of Hydrogen Engine Center, Inc. (an Iowa corporation organized on May 19, 2003) through merger of a wholly owned subsidiary of the company into the acquired concern. The company issued 16,297,200 Common shares to the sole stockholder of the acquired company in exchange for all of that company's issued and outstanding Common stock.   Subsidiaries: Hydrogen Engine Center (HEC) Canada, Inc. Hydrogen Engine Center, Inc. (Iowa)
Management
	Management Officers Position  David F. McManamy Chairman  Theodore G. Hollinger President, Chief Executive Officer & Chief Scientific Officer  Bruce  Jensen Chief Financial Officer  Michael A. Schiltz Secretary  Sandra M. Batt Investor Relations Contact Directors  David F. McManamy  Stephen T. Parker  Jan  Rowinski  Philip G. Ruggieri  Thomas O. Trimble
Annual Report
	Annual Report   Income Statement   2008 2007 REVENUES Sales 1,358,647 740,799 EXPENSES Cost of Goods Sold Material, Labor, and Overhead (1,282,985) (644,517) Inventory Markdown (recovery) (261,464) (533,876) Sales and Marketing (183,724) (219,875) General and Administrative (2,031,325) (2,790,255) Research and Development (825,228) (1,370,151) Interest Expense (138,989) (173,158) Interest Income 6,813 73,057 Loss on Disposal of Assets - (6,734) Vendor Settlements - (448,011) Earnings before Taxes (3,358,255) (5,372,721) TAXES AND OTHER EXPENSES Net Income (Loss) (3,358,255) (5,372,721) CHARGES ON NET INCOME Preferred Stock Adjustments - (1,889,063) Net Income Available to Common Shareholders (3,358,255) (7,261,784) SUPPLEMENTARY INFO Gross Profit/loss (185,802.00) (437,594.00) Operating Income (Loss) (3,226,079.00) (5,265,886.00) Basic Eps-continuing Operations (0.12) (0.28)   Balance Sheet   2008 2007 CURRENT ASSETS Cash and Cash Equivalents 36,482 713,289 Accounts Receivables 222,415 134,237 Inventories 493,742 1,655,359 Prepaid Expenses 61,304 89,901 Restricted Cash - 115,157 Total Current Assets 813,943 2,707,943 NON CURRENT ASSETS Buildings 2,271,209 2,271,209 Land Improvements 472,504 472,504 Equipment 900,994 908,999 Accumulated Depreciation (618,838) (375,178) Total Assets 3,839,812 5,985,477 CURRENT LIABILITIES Accounts Payable 342,283 146,585 Accrued Expenses 248,071 207,328 Deferred Compensation 119,108 - Accrued Interest 179,457 129,965 Notes Payable: bank 575,475 594,677 Current Portion Long-term-debt 292,737 30,350 Current Installments of Obligations Under Capital Leases 58,465 45,247 Deferred Revenue 87,306 - Unearned Grant 33,744 30,977 Total Current Liabilities 1,936,646 1,185,129 NON CURRENT LIABILITIES Long-term Debt Net of Current Maturities 1,277,999 1,338,235 Obligations Under Capital Leases 22,489 80,955 Preferred Stock Convertible - 1,933 SHAREHOLDERS' EQUITY Common Stock-par Value 30,158 27,590 Additional Paid in Capital 16,434,802 15,860,725 Deficit Accumulated during the Development Stage (15,863,933) (12,505,678) Accumulated Other Comprehensive Income (loss)-Foreign Currency 1,651 (3,412) Total Shareholders Equity 602,678 3,381,158 Total Liabilities & Shareholders Equity 3,839,812 5,985,477
Interim Report
	Interim Report      Data Not Available
Pro Forma Report
	Pro Forma Report      Data Not Available
Quarterly Report
	Quarterly Report Information      Quarterly Revenue, US$ Year Quarter Revenue   2008   1 160,000   2008   2 360,000   2008   3 350,000   2008   4 480,000   2008   Full Year 1,360,000   2007   1 240,000   2007   2 200,000   2007   3 90,000   2007   4 210,000   2007   Full Year 740,000   2006   1 30,000   2006   2 50,000   2006   3 130,000   2006   4 80,000   2006   Full Year 280,000   2005   1 10,000   2005   3 10,000   2005   Full Year 20,000   2004   4 20,000   2004   Full Year 20,000     Quarterly Net Income, US$ Year Quarter Revenue   2008   1 (860,000)   2008   2 (690,000)   2008   3 (730,000)   2008   4 (1,090,000)   2008   Full Year (3,360,000)   2007   1 (1,760,000)   2007   2 (1,120,000)   2007   3 (1,290,000)   2007   4 (1,200,000)   2007   Full Year (5,370,000)   2006   1 (920,000)   2006   2 (2,020,000)   2006   3 (1,640,000)   2006   Full Year (5,752,300)   2005   Full Year (1,122,600)   2004   Full Year (190,000)   2003   Full Year (110,000)     Quarterly EPS, US$ Year Quarter Revenue   2008   1 (.03)   2008   2 (.02)   2008   3 (.02)   2008   4 (.04)   2008   Full Year (.12)   2007   1 (.07)   2007   2 (.04)   2007   3 (.05)   2007   4 (.11)   2007   Full Year (.28)   2006   1 (.04)   2006   2 (.08)   2006   3 (.06)   2006   4 (.04)   2006   Full Year (.23)   2005   1 Nil   2005   2 Nil   2005   3 (.02)   2005   4 (.02)   2005   Full Year (.06)   2004   1 Nil   2004   2 Nil   2004   3 Nil   2004   4 Nil   2004   Full Year (.01)   2003   Full Year (.01)
Stock Data
	Capitalization as of 03/31/2008:     Authorized Shares Outstanding Shares Common $0.001 par 100,000,000 27,590,164 Series B Preferred $0.001 par 5,000,000 1,932,846so2   LONG TERM DEBT: $1,379,386.   Common $0.001 par   Stockholders:  02/21/2008, 241. PRINCIPAL STOCKHOLDERS: April 28, 2008, Theodore G. Hollinger owned or controlled 56.0% of the Common.   Transfer Agent:  Interstate Transfer Co.   Salt Lake City , UT   OTC Bulletin Board( Primary): HYEG   Exchange Year High Low OTC Bulletin Board 2008 0.8000 0.0700 OTC Bulletin Board 2007 3.5500 0.6500 OTC Bulletin Board 2006 23.5000 2.3500 OTC Bulletin Board 2005 9.5000 0.0395   DIVIDENDS: Common $0.001 par: No cash. Common split 3.8-for-1, Aug. 18, 2005.       so2Closely held. Convertible into Common as defined.