QUARTERLY REPORT FOR 06/30/03

                     U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549
                                   FORM 10-QSB

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2003

[ ]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934

               For the transition period from_________ to________

                          Commission File No. 000-28593

                            NATIONAL COMPANIES, INC.
        (Exact name of small business issuer as specified in its charter)

          Florida                                               65-0962627
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                               Identification No.)

                 4350 Oakes Rd., Suite 512, Davie, Florida 33314
                    (Address of Principal Executive Offices)

                                 (954) 584-2151
                           (Issuer's telephone number)

      (Former name, address and fiscal year, if changed since last report)

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that the issuer was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of August 15, 2003: 3,575,538 shares of common stock outstanding,
$0.001 par value.

<PAGE>
                                TABLE OF CONTENTS



 Part I-- FINANCIAL INFORMATION
      Item 1. Financial Statements
                 Consolidated Balance Sheet
                 Consolidated Statements of Operations:
                 Consolidated Statement of Shareholders' Deficit
                 Statements of Cash Flows
                 Notes to Financial Statements
      Item 2. Management's Discussion and Analysis of Financial Condition
      Item 3. Controls and Procedures

 Part II-- OTHER INFORMATION
      Item 1. Legal Proceedings
      Item 2. Changes in Securities
      Item 3. Defaults 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
      Signature

                                       1


<PAGE>

PART I. FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

BASIS OF PRESENTATION

As used herein, the term "Company" refers to National Companies, Inc., a Florida
corporation, and its subsidiaries and predecessors unless otherwise indicated.
The accompanying unaudited financial statements are presented in accordance with
generally accepted accounting principles for interim financial information and
the instructions to Form 10-QSB and item 310 under subpart A of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
The accompanying statements should be read in conjunction with the audited
financial statements for the year ended December 31, 2002. In the opinion of
management, all adjustments (consisting only of normal occurring accruals)
considered necessary in order to make the financial statements not misleading,
have been included. Operating results for the six and three months ended June
30, 2003 are not necessarily indicative of results that may be expected for the
year ending December 31, 2003. The financial statements are presented on the
accrual basis.



                                        2
<PAGE>




                            NATIONAL COMPANIES, INC.

                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                                                        December 31,      June 30,
                                                                                            2002           2003
                                                                                       ------------    ------------
                                                                                                        (Unaudited)
<S>                                                                                    <C>                  <C>
                                     ASSETS

        Current Assets
              Cash and cash equivilents                                                $         --         660,869
              Inventory                                                                $     43,937          79,167
              Prepaid commissions                                                         7,213,056       7,287,394
              Merchant processing deposit                                                   500,000          50,000
              Advance to related company                                                    500,000         500,000
              Income tax refund receivable                                                  109,000              --
              Other                                                                          38,386              --
                                                                                       ------------    ------------
                    Total current assets                                                  8,404,379       8,577,430

        Prepaid commissions-long term                                                     2,890,388       3,052,222

        Advance to related company-long term                                              1,316,853       1,291,486

        Equipment and leasehold improvements
            net of accumulated depreciation of $119,186 in 2003 and $105,836 in 2002        221,199         174,550

        Data base and web site-net of accumulated amortization of $85,500 in 2003
            and $76,000 in 2002                                                              19,000           9,500
                                                                                       ------------    ------------
                                                                                       $ 12,851,819    $ 13,105,188
                                                                                       ============    ============



                      LIABILITIES & SHAREHOLDERS' DEFICIT


        Current Liabilities

              Cash overdraft                                                           $    227,690             --
              Accounts payable and accrued liabilities                                      242,249    $    235,143
              Income tax payable                                                                 --          11,000
              Revenue received in advance                                                 9,322,833       9,401,292
                                                                                       ------------    ------------
                    Total current liabilities                                             9,792,772       9,647,435
                                                                                       ------------    ------------
        Revenue received in advance-long term                                             3,628,819       3,864,973
                                                                                       ------------    ------------
        Shareholders' Deficit

              Common stock-par value $.001; 10,000,000 shares authorized,
                   3,575,538 in 2003 and 2002, issued and outstanding                        97,168          97,168
              Deficit                                                                      (666,940)       (504,388)
                                                                                       ------------    ------------
                    Total shareholders' deficit                                            (569,772)       (407,220)
                                                                                       ------------    ------------
                                                                                       $ 12,851,819    $ 13,105,188
                                                                                       ============    ============

</TABLE>

                                       3


   The accompanying notes are an integral part of these financial statements.

<PAGE>
                            NATIONAL COMPANIES, INC.

                      CONSOLIDATED STATEMENTS OF OPERATIONS

                    Three Months Ended June 30, 2003 and 2002
                    Six Months Ended June 30, 2003 and 2002
<TABLE>
<CAPTION>


                                                  Six months ended  Six months ended      Three months ended June 30,
                                                    June 30, 2003    June 30, 2002          2003              2002
                                                     ----------        ----------        ----------        ----------
                                                     (Unaudited)      (Unaudited)        (Unaudited)       (Unaudited)
<S>                                                  <C>               <C>               <C>               <C>
Revenue

       Sales                                         $7,034,991        $5,727,335        $3,552,372        $3,666,514

       Commissions-related party                             --           257,043                --           133,331

       Other income                                      77,790           131,196            32,825            74,918
                                                     ----------        ----------        ----------        ----------
                                                      7,112,781         6,115,574         3,585,197         3,874,763

Direct costs                                          5,324,952         4,259,399         2,771,958         2,709,162
                                                     ----------        ----------        ----------        ----------
       Gross profit                                   1,787,829         1,856,175           813,239         1,165,601

Selling, general, and administrative expenses         1,660,719         1,750,127           686,129         1,078,760
                                                     ----------        ----------        ----------        ----------
       Income from operations                           127,110           106,048           127,110            86,841

       Interest income                                  130,442            19,607            60,271             9,053
                                                     ----------        ----------        ----------        ----------
Net income before provision for income tax              257,552           125,655           187,381            95,894

       Provision for Income tax                          95,000            36,000            95,000            25,300
                                                     ----------        ----------        ----------        ----------
Net income                                           $  162,552        $   89,655        $   92,381        $   70,594
                                                     ==========        ==========        ==========        ==========

Income per share-basic                               $    0.045        $    0.029        $    0.026        $    0.020
                                                     ==========        ==========        ==========        ==========

Weighted - average common shares outstanding          3,575,538         3,058,567         3,575,538         3,575,538
                                                     ==========        ==========        ==========        ==========
</TABLE>


   The accompanying notes are an integral part of these financial statements.

                                       4

<PAGE>

                            NATIONAL COMPANIES, INC.

                 CONSOLIDATED STATEMENT OF SHAREHOLDERS' DEFICIT

                                  June 30, 2003
<TABLE>
<CAPTION>

                                                                      Common Stock
                                                                 Shares           Amount          Deficit
                                                               ---------        ---------        ---------


<S>                                                            <C>              <C>              <C>
Balance December 31, 2001                                      2,500,000        $  44,682        ($381,488)

      Common stock issued for services                         1,075,538           52,486               --

      Net (loss) for the year ended December 31, 2002                 --               --         (285,452)
                                                               ---------        ---------        ---------
Balance December 31, 2002                                      3,575,538        $  97,168         (666,940)

      Net income for the six months ended June 30, 2003               --               --          162,552
                                                               ---------        ---------        ---------
Balance June 30, 2003 (Unaudited)                              3,575,538        $  97,168        ($504,388)
             === ====                                          =========        =========        =========

</TABLE>

                                       5

<PAGE>


                     NATIONAL COMPANIES, INC. and SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                     Six Months Ended June 30, 2003 and 2002
<TABLE>
<CAPTION>
                                                                                         Six months ended June 30,
                                                                                         2003                 2002
                                                                                      -----------         -----------
                                                                                      (Unaudited)          (Unaudited)
<S>                                                                                   <C>                 <C>
Cash flows from operating activities
        Net income                                                                    $   162,552         $    89,655
        Adjustments to reconcile net  income to net cash
          provided by operating activities
               Issuance of common stock for services                                           --              52,486
               Depreciation and amortization                                               56,149              33,572
               (Increase) in inventory                                                    (35,230)
               (Increase) in prepaid commissions                                         (236,171)         (2,114,943)
               Decrease (increase) in other assets                                         38,385             (45,140)
               (Decrease) increase in accounts payable and accrued liabilities             (7,106)            133,189
               Increase (decrease) in income tax payable-net                               95,000             (63,000)
               Increase in revenue received in advance                                    314,613           2,519,722
                                                                                      -----------         -----------
                    Total adjustments                                                     225,640             515,886
                                                                                      -----------         -----------

                    Net cash provided by operating activities                             388,192             605,541
                                                                                      -----------         -----------
Cash flows from investing activities
        Purchase of equipment                                                                  --             (19,675)
        Refund of income tax                                                               25,000                  --
        Refund of merchant processing deposits                                            450,000                  --
        Decrease (increase) in advance to related company                                  25,367             (19,508)
                                                                                      -----------         -----------
                    Net cash provided (used) by investing activities                      500,367             (39,183)
                                                                                      -----------         -----------

Cash flows from financing activities
        (Decrease)  in cash overdraft                                                    (227,690)                 --
                                                                                      -----------         -----------
Net cash (used) by financing activities                                                  (227,690)                 --
                                                                                      -----------         -----------

Net increase in cash                                                                      660,869             566,358

Cash - beginning                                                                                0             447,991
                                                                                      -----------         -----------
Cash- ending                                                                          $   660,869         $ 1,014,349
                                                                                      ===========         ===========


</TABLE>


   The accompanying notes are an integral part of these financial statements.


                                       6

<PAGE>


                     NATIONAL COMPANIES, INC. AND SUBSIDIARY
                          NOTES TO FINANCIAL STATEMENTS
                                  March 31 2003

Note 1.     Summary of Significant Accounting Policies

Certain information and footnote disclosures, normally included in financial
statements prepared in accordance with generally accepted accounting principles,
have been condensed or omitted in this Form 10-QSB in compliance with the Rules
and Regulations of the Securities and Exchange Commission. However, in the
opinion of National Companies, Inc. the disclosures contained in this Form
10-QSB are adequate to make the information fairly presented. See Form 10-KSB
for the year ended December 31, 2002 for additional information relevant to
significant accounting policies followed by the Company.

Note 2.     Basis of Presentation

In the opinion of the Company, the accompanying unaudited financial statements
reflect all adjustments (consisting of normal recurring accruals) necessary to
present fairly the financial position as of June 30, 2003 and the results of
operations for the three-month periods ended June 30, 2003 and June 30, 2002.
The results of operations for the six months ended June 30, 2003 are not
necessarily indicative of the results that may be expected for the entire year.

Note 3.     Benefit Contracts

The Company's time payment program for Benefit Package sales are payable over 20
months bearing interest of approximately 18 percent. The amount of contracts
entered into for the three months ending June 30, 2003 were $691,920 and for the
three months ended June 30, 2002 were $1,551,205, with the balance to be
collected at June 30, 2003 of $4,964,534 and at June 30, 2002 of $4,172,061. The
receivables, and corresponding commissions payable, are not recorded, in
compliance with the Securities and Exchange Commissions Staff Accounting
Bulletin No. 101, until received.

Note 4.     Subsidiary

The Company created a wholly owned subsidiary and began operations in July 2002.
The subsidiary is in the business of selling wireless telephones and accessories
to the customers of National Companies, Inc. In June 2003 the subsidary was
merged into the parent.

Note 5.     Contingencies.

An affiliate of the Company is owned by the majority shareholder of the Company
who is also the president and Chairman of the Board of the Company and is also
the president and Chairman of the Board of the affiliate. The affiliate sold
health insurance of two health care providers to customers of the Company. The
State of Florida Department of Insurance has initiated proceedings against one
health care provider, asserting that it was operating without a state license
and was not a valid ERISA plan exempt from state regulation. The State of Texas
Department of Insurance has initiated a receivership proceeding against the
other health care provider, asserting that it was operating without a state
license and was not a valid ERISA plan exempt from state regulation. The
Company's understanding, that as of April 11, 2003, neither plan is operating or
paying claims. The amount of unpaid claims that the Company is aware of as of
April 11, 2003 is approximately $652,000. In addition, three lawsuits have been
filed against the Company and the affiliate, asserting claims based upon these
and other facts, requesting damages, costs and fees. Management is unable to
assess the effect, if any, these matters will have on the Company. Accordingly,
no provision has been made in these financial statements in this matter.

                                       7
<PAGE>



ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
            RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Generally, the inclusion of the words "believe," "expect," "intend," "estimate,"
"anticipate," "will," and similar expressions identify statements that
constitute "forward-looking statements." All statements addressing operating
performance, events, or developments that we expect or anticipate will occur in
the future, including statements relating to sales growth, earnings or earnings
per share growth, and market share, as well as statements expressing optimism or
pessimism about future operating results, are forward-looking statements.

The forward-looking statements are and will be based upon our management's
then-current views and assumptions regarding future events and operating
performance, and are applicable only as of the dates of such statements. We
undertake no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.

By their nature, all forward-looking statements involve risks and uncertainties.
Actual results, revenues, expenses, gross margins, cash flows, financial
condition, liquidity and net income, as well as factors such as our competitive
position, and the demand for the products and services offered through our
programs, may differ materially from those contemplated by the forward-looking
statements or those currently being experienced by the Company for a number of
reasons, including but not limited to: the strength of the economy and other
economic conditions in our markets, including recession, inflation, and
deflation; our ability to maintain mutually beneficial relationships with our
independent marketing directors and customers; increased competition; the
effects of litigation, our ability to generate sufficient cash flows to support
capital expansion and general operating activities; changes in laws and
regulations; the impact of unforeseen events, including war or terrorist
activities; and consumer confidence.

The foregoing list is not exhaustive. There can be no assurance that we have
correctly identified and appropriately assessed all factors affecting our
business or that the publicly available and other information with respect to
these matters is complete and correct. Additional risks and uncertainties not
presently known to us or that we currently believe to be immaterial also may
adversely impact us. Should any risks and uncertainties develop into actual
events, these developments could have material adverse effects on our business,
financial condition, and results of operations. For these reasons, you are
cautioned not to place undue reliance on our forward-looking statements.

OVERVIEW

The company was founded as a Florida corporation in 1999 as a direct sales
organization. The Company sells benefit packages through independent marketing
directors. Our marketing plan is based on the utilization of group buying
initiatives to distribute products at discounts to the end consumer. We have
developed strategic alliances for supplying products and services to the
Company's customers located throughout the United States. We are one of only
about 150 companies that maintain membership in the prestigious Direct Selling
Association (DSA). Membership in the DSA is granted only to those companies that
demonstrate the highest standards of business practices consistent with the
DSA's high ideals.

12-MONTH PLAN OF OPERATIONS

Over the next twelve (12) months we will focus on increasing the number of
independent marketing directors and customers located throughout the United
States. We intend to grow and develop our market share with a marketing plan
focused on our core business, the sale of benefit packages. Our marketing
strategy is at the core of our success. We understand that although the benefit
programs and the discounted products and services offered are a key component of
our focus, without the proper marketing and direct sales, these benefits will go
unsold. The constant focus of our management team will include (i) an emphasis
on training, recognition and motivation, (ii) cultivating and attracting both
new and strong leaders, (iii) promoting unique offerings of cost-effective
products and services, as well as (iv) making executive management available and
accessible.

                                       8
<PAGE>

We have adopted Internet technology enthusiastically and maintain an Internet
site as a means of communication, training and ordering for our customers. The
Company is committed to not losing sight of the fact that our products, services
and independent sales force are our hallmarks.

We have adopted an operational strategy to form strategic alliances with
multiple business partners. As a direct sales and distribution organization, we
do not engage in manufacturing activities nor are we an underwriter and/or
originating lender for any of our products. Our customers purchase all goods and
services directly from our suppliers -- companies that either are affiliated
with National or are independent vendors. In this manner we have a high level of
control of the supply chain. We believe these strategic alliances and affiliated
companies will further reduce our risk, capital investment, need for facilities
and direct responsibility for employees and will provide the necessary resources
and business practices.

To distinguish ourselves from the competition, we plan to identify, develop and
launch additional services, product lines and strategic alliances. Our strategic
partners include United Parcel Service (UPS), Wells Fargo, Mircle Ear,
Lenscrafters, Southeastern Gems and The Phoenix American Insurance Group for
extended service contracts.

RECENT FINANCIAL RESULTS
FISCAL 2003 COMPARED TO FISCAL 2002

REVENUE. To date, sale of benefit packages by our IMDs have accounted for
substantially all of our revenues. Revenues for the quarter ended June 30, 2003
were $3,552,372. This represents a decrease of 3.1% as compared to revenues of
$3,666,514 for the quarter ended June 30, 2002. Our Net Income from operations
for the quarter ended June 30, 2003 was $92,381 as compared to $70,594 for the
quarter ended June 30, 2002. By comparison, net income per share on a basic and
diluted basis for the quarter ended June 30, 2003 was $0.026 verses a $0.020 for
the quarter ended June 30, 2002.

DIRECT COSTS. Direct Costs of services increased from $2,709,162 in the quarter
ended June 30, 2002 to $2,771,958 for the quarter ended June 30, 2003. As a
percentage of revenues, Direct Costs increased from 73.9% in the quarter ended
June 30, 2002 to 78.0% in the quarter ended June 30, 2003. The increase as a
percentage of revenues is due to the fact that our revenue to direct costs
varies depending upon sales volume. Historically, the variance is usually within
several percentage points.

SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative
expenses decreased by $392,631, or (36.4%), from $1,078,760 in the quarter ended
June 30, 2002 to $686,129 in the quarter ended June 30, 2003. As a percentage of
revenues, selling, general and administrative expenses decreased from 29.4% in
the quarter ended June 30, 2002 to 19.3% in the quarter ended June 30, 2003.
Selling, general and administrative expenses decreased primarily because of a
decrease in professional and consulting fees.

LIQUIDITY AND CAPITAL RESOURCES
We generally fund our working capital needs from operations. Working capital
increased from a deficit of ($1,388,393) at December 31, 2002, to a deficit of
($1,070,005) at June 30, 2003. Over the same time period, cash increased from an
overdraft of ($227,690), to a cash balance of $660,869 at June 30, 2003.

At June 30, 2003 the Company is in a negative cash and working capital position
and has a net capital deficiency. Management believes that this working capital
deficiency can be funded from continuing operations. The Company's majority
shareholder, president and Chairman of the Board has informed the Company that
he has the ability and intent to advance the Company's cash needs, if necessary,
for a short period of time. If the Company experiences a prolonged need for
working capital, the Company believes it will be able to raise needed working
capital from private placements of debt or equity securities. There can be no
assurance, however, that working capital needs will be funded from operations,
or that private capital sources will be available on acceptable terms, or at
all.


                                       9
<PAGE>

To date, inflation has not had a material impact on our financial results.
However, inflation could adversely affect our future financial results.

CRITICAL ACCOUNTING POLICIES

We have adopted various accounting policies that govern the application of
accounting principles generally accepted in the United States in the preparation
of our financial statements. Our significant accounting policies are described
in the footnotes to the consolidated financial statements at June 30, 2003, as
included in this quarterly report on Form 10-QSB. We consider these accounting
policies to be critical accounting policies. Certain accounting policies involve
significant judgments and assumptions by us, but do not have a material impact
on the carrying value of our assets and liabilities and results of operations.
The judgments and assumptions we use are based on historical experience and
other factors that we believe to be reasonable under the circumstances. Because
of the nature of the judgments and assumptions we make, actual results could
differ from these judgments and from estimates which could have an impact on our
carrying values of assets and liabilities and our results of operations.

ITEM 3.     CONTROLS AND PROCEDURES

Within the 90 days prior to the date of this Quarterly Report, the Company
conducted an evaluation, under the supervision and with the participation of the
Company's management, including the Company's Chief Executive Officer and
Principal Financial Officer (its principal executive officer and principal
financial officer, respectively), of the effectiveness of the design and
operation of the Company's disclosure controls and procedures pursuant to
Exchange Act Rules 13a-14. Based upon that evaluation, the Company's Chief
Executive Officer and Principal Financial Officer concluded that the Company's
disclosure controls and procedures are effective in timely alerting them to
material information relating to the Company (including its consolidated
subsidiaries) required to be included in the Company's periodic SEC filings.
There have been no significant changes in the Company's internal controls or in
other factors, which could significantly affect internal controls, subsequent to
the date the Company carried out its evaluation.


                                       10
<PAGE>

PART II - OTHER INFORMATION


Item 1.     Legal Proceedings.


The Company is a defendant in three lawsuits that relate to the matters that are
described in Note 5. "Contingencies" to the financial statements included in
this report. At this time, Management is unable to assess the effect, if any,
the matters described in Note 5 will have on the Company.

Item 2.     Changes in Securities.                                     None

Item 3.     Defaults Upon Senior Securities.                           Not
                                                                    Applicable

Item 4.     Submission of Matters to a Vote of Security Holders.       None



Item 5.     Other Information.                                         None

Item 6.     Exhibits and Reports of Form 8-K.

            (a)      Exhibits required by Item 601 of Regulation S-B.

                     The Exhibits listed on the Exhibit Index to this
                     Form 10-QSB are filed as part of this Report.

            (b)      Reports on Form 8-K.                              None


                                       11
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed in its
behalf by the undersigned, thereunto duly authorized.



                             NATIONAL COMPANIES, INC.

Date:  August 19, 2003       By: /s/ Richard Loehr
                             ------------------------------
                             Richard Loehr
                             Chairman and CEO


Date:  August 19, 2003       By: /s/ Carol Boozer
                             -----------------------------
                             Carol Boozer
                             Vice President and Principal Financial and
                             Principal Accounting Officer


                                       12
<PAGE>



                                  EXHIBIT INDEX

Exhibit         Description
-------         -----------

31.1     Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
         2002.

31.2     Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of
         2002.

32.1     Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
         to Section 906 of the Sarbanes-Oxley Act of 2002.


32.2     Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
         to Section 906 of the Sarbanes-Oxley Act of 2002.