U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   Form 10-QSB

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

For the quarter ended:    June 30, 2000

Commission file no.:    0-25657


                      DIVERSIFIED PRODUCT INSPECTIONS, INC.
          ------------------------------------------------------------
                 (Name of Small Business Issuer in its Charter)


            Florida                                           65-0877741
------------------------------------                        -------------------
(State or other jurisdiction of                             (I.R.S.Employer
incorporation or organization)                              Identification No.)

3 Main Street
Oakridge, TN                                                   37830
------------------------------------------                  ----------------
(Address of principal executive offices)                    (Zip Code)

Issuer's telephone number: (865) 482-8480

Securities to be registered under Section 12(b) of the Act:

   Title of each class                                 Name of each exchange
                                                       on which registered

            None                                            None
-----------------------------------                -----------------------------

Securities to be registered under Section 12(g) of the Act:

                    Common Stock, $.0001 par value per share
            --------------------------------------------------------
                                (Title of class)


Copies of Communications Sent to:
                                     Donald F. Mintmire
                                     Mintmire & Associates
                                     265 Sunrise Avenue, Suite 204
                                     Palm Beach, FL 33480
                                     Tel: (561) 832-5696 - Fax: (561) 659-5371




<PAGE>



         Indicate by Check whether the issuer (1) filed all reports  required to
be filed by  Section 13 or 15(d) of the  Exchange  Act during the past 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
                                ----              ----

         As of June 30, 2000, there are 11,116,900 shares of voting stock of the
registrant issued and outstanding.








                                     PART I

Item 1. Financial Statements






                          INDEX TO FINANCIAL STATEMENTS


Consolidated Balance Sheets.............................................F-2

Consolidated Statements of Operations...................................F-3

Consolidated Statements of Stockholders' Equity (Deficiency)............F-4

Consolidated Statements of Cash Flows...................................F-5

Notes to Consolidated Financial Statements..............................F-6













                                       F-1

<PAGE>



<TABLE>
<CAPTION>
                      Diversified Product Inspections, Inc.
                           Consolidated Balance Sheets


                                                                    December 31,          June 30,
                                                                        1999                2000
                                                                 ------------------- -------------------
                                                                                         (unaudited)
<S>                                                              <C>                 <C>
                                   ASSETS
CURRENT ASSETS
   Cash and equivalents                                          $            53,335 $            23,624
   Accounts receivable                                                        69,226              79,336
   Deferred tax assets                                                        22,556              69,173
                                                                 ------------------- -------------------
           Total current assets                                              145,117             172,133
                                                                 ------------------- -------------------

PROPERTY AND EQUIPMENT
   Equipment                                                                  56,639             100,032
   Vehicles                                                                   45,886              45,886

         Less accumulated depreciation                                       (32,722)            (48,070)
                                                                 ------------------- -------------------

           Net property and equipment                                         69,803              97,848
                                                                 ------------------- -------------------

OTHER ASSETS
   Other assets                                                                    0               4,400
   Deposit on real property                                                        0             247,125
                                                                 ------------------- -------------------
           Total other assets                                                      0             251,525
                                                                 ------------------- -------------------

Total Assets                                                     $           214,920 $           521,506
                                                                 =================== ===================

             LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
CURRENT LIABILITIES
   Accounts payable                                              $            15,935 $            17,194
   Accrued expenses
       Income taxes                                                           11,401              14,779
       Salaries                                                              298,275             393,002
   Current portion of long-term debt                                          10,551              19,025
   Line of credit payable                                                     21,585              16,809
                                                                 ------------------- -------------------

          Total current liabilities                                          357,747             460,809
                                                                 ------------------- -------------------

LONG-TERM DEBT
   Deferred taxes                                                              5,178               5,178
   Notes payable, net of current portion                                      31,915              58,786
   Loan from shareholder                                                       4,025               4,025
                                                                 ------------------- -------------------

          Total long-term debt                                                41,118              67,989
                                                                 ------------------- -------------------
Total Liabilities                                                            398,865             528,798
                                                                 ------------------- -------------------

STOCKHOLDERS' EQUITY (DEFICIENCY)
  Common  stock, $1.00 and $0.0001 par value, authorized
     10,000,000  and 50,000,000 shares; 9,000,000 and
     11,116,900 issued and outstanding shares                              9,000,000               1,112
  Additional paid-in capital                                              (8,639,900)            799,801
  Accumulated deficit                                                       (544,045)           (808,205)
                                                                 ------------------- -------------------

          Total stockholders' equity (deficiency)                           (183,945)             (7,292)
                                                                 ------------------- -------------------
Total Liabilities and Stockholders' Equity (Deficiency)          $           214,920 $           521,506
                                                                 =================== ===================
</TABLE>


     The accompanying notes are an integral part of the financial statements


                                       F-2

<PAGE>



<TABLE>
<CAPTION>
                      Diversified Product Inspections, Inc.
                      Consolidated Statements of Operations
                            Six Months Ended June 30,
                                   (unaudited)



                                                                                 1999                  2000
                                                                         --------------------  ---------------------
<S>                                                                      <C>                   <C>
REVENUES                                                                 $            295,075  $             478,597
                                                                         --------------------  ---------------------

OPERATING EXPENSES
    Compensation:
        Officers                                                                       90,000                 90,000
        Others                                                                         65,180                185,878
    Depreciation                                                                        7,378                 13,424
    General and administrative                                                        262,745                494,631
                                                                         --------------------  ---------------------

          Total operating expenses                                                    425,303                783,933
                                                                         --------------------  ---------------------

 Operating Income (Loss)                                                             (130,228)              (305,336)
                                                                         --------------------  ---------------------

OTHER INCOME (EXPENSE):
    Interest expense                                                                   (1,523)                (5,441)
                                                                         --------------------  ---------------------

          Total other income (expense)                                                 (1,523)                (5,441)
                                                                         --------------------  ---------------------

Net loss before income tax                                                           (131,751)              (310,777)

    Income tax expense                                                                      0                (46,617)
                                                                         --------------------  ---------------------

Net income                                                               $           (131,751) $            (264,160)
                                                                         ====================  =====================

Net loss per common share                                                $              (0.02) $               (0.02)
                                                                         ====================  =====================
Weighted average number of common shares outstanding                                9,000,000             11,116,900
                                                                         ====================  =====================
</TABLE>









     The accompanying notes are an integral part of the financial statements


                                       F-3

<PAGE>



<TABLE>
<CAPTION>
                      Diversified Product Inspections, Inc.
          Consolidated Statements of Stockholders' Equity (Deficiency)



                                                                                                        Total
                                                                         Additional                 Stockholders'
                                            Number of       Common        Paid-in                       Equity
                                              Shares        Stock         Capital       Deficit      (Deficiency)
                                           ------------ -------------- -------------- ------------ ----------------
<S>                                        <C>          <C>            <C>            <C>          <C>
BEGINNING BALANCE,
December 31, 1998                             9,000,000 $    9,000,000 $   (8,639,900)$   (530,576)$       (170,476)

Year ended December 31, 1999:
   Net loss                                           0              0              0      (13,469)         (13,469)
                                           ------------ -------------- -------------- ------------ ----------------

BALANCE, December 31, 1999                    9,000,000      9,000,000     (8,639,900)    (544,045)        (183,945)

Six months ended June 30, 2000:
-------------------------------
(unaudited)
   Shares issued for cash                       241,900        241,900        198,760            0          440,660
   Reverse merger                             1,875,000     (9,240,788)     9,240,941            0              153
   Net income (loss)                                  0              0              0     (264,160)        (264,160)
                                           ------------ -------------- -------------- ------------ ----------------

BALANCE, June 30, 2000 (unaudited)           11,116,900 $        1,112 $      799,801 $   (808,205)$         (7,292)
                                           ============ ============== ============== ============ ================
</TABLE>











     The accompanying notes are an integral part of the financial statements


                                       F-4



<PAGE>



<TABLE>
<CAPTION>
                      Diversified Product Inspections, Inc.
                      Consolidated Statements of Cash Flows
                            Six Months Ended June 30,
                                   (unaudited)


                                                                                     1999                  2000
                                                                              ------------------    -------------------
<S>                                                                           <C>                   <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)                                                             $         (131,751)   $          (264,160)
Adjustments to reconcile net loss to net cash used by operating activities:
     Depreciation                                                                          7,378                 13,424
     Income tax expense                                                                        0                (46,617)
Changes in operating assets and liabilities:
     (Increase) decrease in accounts receivable                                           64,798                (10,110)
     Increase (decrease) in accounts payable                                              44,562                  1,259
     Accrued income taxes                                                                      0                  3,378
     Increase (decrease) accrued salaries                                                 42,150                 94,727
                                                                              ------------------    -------------------

Net cash  provided (used) by operating activities                                         27,137               (208,099)
                                                                              ------------------    -------------------

CASH FLOW FROM INVESTING ACTIVITIES:
     Purchase of property and equipment                                                  (37,886)               (43,393)
     Other assets                                                                              0                 (4,400)
     Deposit on real property                                                                  0               (247,125)
                                                                              ------------------    -------------------

Net cash provided (used) by investing activities                                         (37,886)              (294,918)
                                                                              ------------------    -------------------

CASH FLOW FROM FINANCING ACTIVITIES:
     Shareholder advances                                                                      0                      0
     Shareholder advance repayments                                                      (13,500)                     0
     Common stock sold for cash, net                                                           0                440,660
     Proceeds of  long-term debt                                                          32,272                 42,241
     Debt payments                                                                        (2,308)                (9,595)
                                                                              ------------------    -------------------

Net cash provided by financing activities                                                 16,464                473,306
                                                                              ------------------    -------------------

Net increase (decrease) in cash and equivalents                                            5,715                (29,711)

CASH and equivalents, beginning of period                                                 20,700                 53,335
                                                                              ------------------    -------------------

CASH and equivalents, end of period                                           $           26,415    $            23,624
                                                                              ==================    ===================

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:

Interest paid in cash                                                         $            1,523    $             5,441
                                                                              ==================    ===================
</TABLE>



     The accompanying notes are an integral part of the financial statements


                                       F-5




<PAGE>






                      Diversified Product Inspections, Inc.
                   Notes to Consolidated Financial Statements
                   (Information with regard to the six months
                   ended June 30, 2000 and 1999 is unaudited)


(1) Summary of Significant Accounting Principles
      TheCompany Diversified Product  Inspections,  Inc., (the "Company"),  is a
         Florida chartered  corporation which conducts business from its offices
         in Oak Ridge, Tennessee.  The Company was incorporated on September 30,
         1991.   The  Company  is  engaged   primarily  in  the  inspection  and
         investigation  of  product  liability  claims.  All  investigators  are
         licensed in the state where they practice.

         The following  summarize the more significant  accounting and reporting
policies and practices of the Company:

         a) Use of estimates In preparing the financial  statements,  management
         is required to make estimates and assumptions  that affect the reported
         amounts of assets and  liabilities  as of the date of the statements of
         financial condition, and revenues and expenses for the year then ended.
         Actual results may differ significantly from those estimates.

         b) Net  income  (loss)  per common  share  Basic net income  (loss) per
         weighted  average  common  share is computed by dividing the net income
         (loss) by the  weighted  average  number of common  shares  outstanding
         during the period.

         c) Property and  equipment  All  property and  equipment is recorded at
         cost and depreciated over their estimated useful lives,  generally 3, 5
         or 7 years,  using the straight-line  method.  Upon sale or retirement,
         the costs and related  accumulated  depreciation  are  eliminated  from
         their respective  accounts,  and the resulting gain or loss is included
         in the results of operations.  Repairs and maintenance charges which do
         not increase  the useful lives of the assets are charged to  operations
         as  incurred.  Depreciation  expense was $7,378 and $13,424 for the six
         months ended June 30, 1999 and 2000, respectively.

         d) Cash and  equivalents  The  Company  considers  investments  with an
         initial maturity of three months or less as cash equivalents.

         e) Principles of consolidated   The  consolidated  financial statements
         include the  accounts  of Diversified Product Inspections, Inc. and its
         wholly owned subsidiary.  Inter-company  balances and transactions have
         been eliminated.

         f) Significant  acquisition   In  March 2000,  Shoe Krazy, Inc.  issued
         9,241,900  shares  of  common  stock  to  acquire  all  the  issued and
         outstanding   shares  of   the  common  stock  of  Diversified  Product
         Inspections, Inc.,    a Florida corporation, in a reverse merger, which
         was  accounted   for  as  a  reorganization   of  Diversified   Product
         Inspections, Inc.

         g) Interim financial  information The financial  statements for the six
         months  ended June 30,  2000 and 1999 are  unaudited  and  include  all
         adjustments  which in the opinion of management  are necessary for fair
         presentation,  and  such  adjustments  are of a  normal  and  recurring
         nature.  The  results for the six months are not  indicative  of a full
         year's results.

(2)      Stockholders'  Equity The Company has authorized  10,000,000  shares of
         $1.00 par value common stock.  The Company has 9,000,000 and 11,116,900
         shares of common stock issued and  outstanding at December 31, 1999 and
         June 30, 2000.


                                       F-6

<PAGE>



                      Diversified Product Inspections, Inc.
                   Notes to Consolidated Financial Statements


(2)      Stockholders'  Equity (Continued) In September 1991, the Company issued
         9,000,000  shares to its  founder for cash of $100.  Through  September
         1996,  the  three  principal  officers  and  founders  of  the  Company
         contributed  their  services to the  Company,  in the amount of $24,000
         each per year,  totaling  $72,000  per year and  $360,000  for the five
         years. The Company recorded contributed capital and expense for each of
         those years.

         In January and February  2000,  the Company sold 241,900  shares of the
         Company's common stock for $440,660 cash, net of offering costs,  under
         a Regulation D Rule 504 private placement.  This offering was completed
         through a registered broker/dealer.

(3)      Income Taxes Deferred income taxes  (benefits) are provided for certain
         income and expenses which are  recognized in different  periods for tax
         and financial reporting purposes. The Company had a net deferred income
         tax asset of $22,556  and  $69,173 at  December  31,  1999 and June 30,
         2000.  The  deferred  tax asset is composed of accruals  not  currently
         deductible.

(4)      Going Concern As shown in the accompanying  financial  statements,  the
         Company  incurred  a net  loss  totaling  $13,500  for the  year  ended
         December 31,  1999,  net loss of $264,000 for the six months ended June
         30, 2000, and reflects  stockholders' equity of approximately  $276,000
         as of March 31,  2000.  The  Company  has  entered  into a  conditional
         contract to  purchase  certain  real  estate at a price of  $1,800,000.
         These  conditions  raise  substantial  doubt as to the  ability  of the
         Company to continue as a going  concern.  The ability of the Company to
         continue as a going  concern is  dependent  upon  increasing  sales and
         obtaining additional capital and financing.  The Company has retained a
         registered broker/dealer to raise additional funds for the Company. The
         financial  statements  do not  include  any  adjustments  that might be
         necessary if the Company is unable to continue as a going concern.

(5)      Long-Term  Debt  The  Company  is  committed  to two  auto  loans  with
         remaining  balances of $4,200 and $25,600 at June 30, 2000. The Company
         makes monthly loan payments of $200 and $600 on those loans.

(6)      Commitments  The  Company  leased two  facilities  in Florida and North
         Carolina.  In addition,  the Company leases warehouse  storage space in
         Florida and  Tennessee.  The Florida  office lease is a  month-to-month
         lease at $920 per month.  The Company is  responsible  for insuring the
         premises.  The  North  Carolina  office  lease  was $900 per  month and
         expired May 1, 2000. The lease is now on a  month-to-month  basis.  The
         warehouse  storage  lease  is also  month  to  month,  and the  storage
         facility bills the Company monthly for space utilized.

         The Company is obligated under three capitalized  equipment leases with
         remaining  balances  of $8,500,  $4,300 and  $34,900 at June 30,  2000.
         Under those  leases,  the  Company is  obligated  to payments  totaling
         $10,000,  $16,000  and $22,400  for the twelve  months  ending June 30,
         2001, 2002 and 2003, respectively, and none thereafter.

         In  February,  the  Company  entered  into a  lease  on a  building  in
         Tennessee  comprised with a floor area of  approximately  30,000 square
         feet. The lease expires December 20, 2000 and the fixed minimum rent is
         $30,000  per month  (based on $12.00 per square  foot per  annum).  The
         lessee has also entered  into an  agreement  to purchase the  facility.
         Lessee and lessor  agree that  portions of the fixed  minimum  payments
         shall be applied to the purchase price under the agreement of sale that
         follows.

                                       F-7

<PAGE>



                      Diversified Product Inspections, Inc.
                   Notes to Consolidated Financial Statements


(6)  Commitments  (Continued:  If the closing and the settlement date is set for
any date within the specified periods:

         (a) December 20, 1999 and March 31,  2000,  then 100%,  or
         (b) April 1, 2000 and June 30, 2000,  then 85%, or
         (c) July 1, 2000 and September 3,   2000, then 75%, or
         (d) October  1, 2000  and  December  31,  2000,  then  50% of all fixed
             minimum  rent  payments  paid  prior to  closing  shall  be applied
             toward the purchase price.

         The Company is responsible for taxes,  maintenance and insurance of the
premises under the terms of the lease.

                                       F-8

<PAGE>



Item 2. Management's Discussion and Analysis or Plan of Operation

General

     Diversified Products Inspections,  Inc., f/k/a/ Shoe Krazy, Inc., a Florida
corporation,  (the  "Company")  was initially a  development  stage company with
limited assets or capital, with significant initial operations but no operations
or income since approximately 1995. However, in March 2000, the Company was able
to facilitate an acquisition of an operating  business.  [See:  Part II. Item 6.
Exhibits and Reports on Form 8-K - Exhibit No. 2.1]

     On  March  13,  2000,  Shoe  Krazy,   Inc.,  (the  "Company"),   a  Florida
corporation,  and  Diversified  Product  Inspections,  Inc.,("DPI"),  a  Florida
corporation,  and the  individual  holders of 100%(One  Hundred  Percent) of the
outstanding    capital   stock   of   DPI   (the   "Holders")    consummated   a
re-organization(the  "Reorganization")  pursuant to a certain Agreement and Plan
of  Reorganization  ("Agreement") of such date.  Pursuant to the Agreement,  the
Holders  tendered to the Company  100% of the issued and  outstanding  shares of
common  stock of DPI in exchange for  10,875,000  plus  additional  shares to be
issued in connection with financing.  Such shares for financing  totaled 241,900
making total  issued and  outstanding  shares  11,116,900  of the Company  after
completion of the reorganization.  Upon closing,  DPI became a subsidiary of the
Company.  The  acquisition  is being  accounted for as a  reorganization  of the
Company which subsequently  changed its name to Diversified Product Inspections,
Inc.

     Simultaneously with the closing of the Reorganization, the then officer and
director of the Company tendered his resignation in accordance with the terms of
the  Agreement.  John Van Zyll,  Ann M. Furlong,  Marvin Stacy,  Scott Tracy and
David Dowell were elected to serve on the Board of Directors of the Company (the
"Board").  The Board  subsequently  appointed  John Van Zyll as  Chairman of the
Board,  President and Chief Executive Officer; Ann M. Furlong as Chief Financial
Officer, Secretary and Treasurer; and Marvin Stacy as Chief Operating Officer of
the Company.

Plan of Operation

     Over the next twelve months the Company will focus its efforts on marketing
its newly acquired primary business, Subrogation Recovery. This business entails
the  determination  of the  "Origin  and  Cause"  of  property  damages  and the
identification  of the defective  product which caused such loss.  The Company's
proprietary Origin and Cause data on over 300,000 products enables it to quickly
identify  a  manufacturer  of a  defective  product  which it can sell to market
participants in the Insurance Industry at cost-effective  levels.  [See: Item 5.
Other Information. Description of Company]

     The Company  changed its fiscal year end to December 31 to conform with the
fiscal year end for its subsidiary.





<PAGE>



Results of Operations for the Six Months Ended June 30, 2000 and 1999

Financial Condition, Capital Resources and Liquidity

         At June 30, 2000, the Company had assets totaling $521,506 and $528,798
in  liabilities.  The Company has $23,624 in working  capital on hand as of June
30, 2000. A discussion of the Company's financial  condition,  capital resources
and liquidity as of June 30, 1999 would not be material due to its developmental
stage status and recent reorganization.

         It is the Company's intention to raise up to $5,000,000 in cash through
the sale of additional  equity  capital  pursuant to a Regulation D, 506 Private
Placement  Offering,  however,  the  can  be no  assurance  that  they  will  be
successful in their  efforts.  The ability of the Company to continue as a going
concern is dependent upon the availability of obtaining additional capital.

Net Operating Losses

         The Company has incurred a net  operating  loss of $264,000 for the six
months ended June 30, 2000.

Year 2000 Compliance

         The Company did not  experience  any  material  negative  impact to its
operations  as a result of the Year 2000  calendar  change.  The Company did not
experience  any  material  impact  to its  financial  condition  as a result  of
becoming  Year 2000  compliant.  The Company  does not  anticipate  any material
disruption in its operations in the future as a result of the Year 2000 calendar
change.

Forward-Looking Statements

         This Form  10-QSB  includes  "forward-looking  statements"  within  the
meaning of Section 27A of the  Securities  Act of 1933, as amended,  and Section
21E of the Securities  Exchange Act of 1934, as amended.  All statements,  other
than  statements of historical  facts,  included or incorporated by reference in
this Form 10-QSB which  address  activities,  events or  developments  which the
Company expects or anticipates  will or may occur in the future,  including such
things as future capital expenditures (including the amount and nature thereof),
finding suitable merger or acquisition  candidates,  expansion and growth of the
Company's  business and operations,  and other such matters are  forward-looking
statements.  These statements are based on certain assumptions and analyses made
by the  Company in light of its  experience  and its  perception  of  historical
trends,  current  conditions and expected  future  developments as well as other
factors it believes  are  appropriate  in the  circumstances.  However,  whether
actual results or developments will conform with the Company's  expectations and
predictions is subject to a number of risks and uncertainties,  general economic
market and business  conditions;  the business  opportunities  (or lack thereof)
that  may be  presented  to and  pursued  by the  Company;  changes  in  laws or
regulation;  and other  factors,  most of which are  beyond  the  control of the
Company.  Consequently,  all of the forward-looking statements made in this Form
10-QSB are qualified by these cautionary statements and there can be no



<PAGE>



assurance  that the actual  results or  developments  anticipated by the Company
will be realized  or, even if  substantially  realized,  that they will have the
expected consequence to or effects on the Company or its business or operations.
The  Company   assumes  no  obligations  to  update  any  such   forward-looking
statements.


PART II

Item 1. Legal Proceedings.

         The Company knows of no legal  proceedings to which it is a party or to
which any of its  property  is the  subject  which are  pending,  threatened  or
contemplated or any unsatisfied judgments against the Company.

Item 2. Changes in Securities and Use of Proceeds

         None

Item 3. Defaults in Senior Securities

         None

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

         On May 19, 2000, the  Company's security holders approved the Amendment
to its Articles  changing the Company name to Diversified  Product  Inspections,
Inc., from Shoe Krazy, Inc. filed May 19, 2000.

         On May 19, 2000, the Company's  security holders approved the Amendment
to the Articles of its newly acquired  subsidiary changing the subsidiary's name
to  Diversified  Product   Investigations,   Inc.,  from  Diversified   Products
Inspections, Inc.


Item 5. Other Information

         Description of the Company's Subsidiary

         The   Company   maintains  a   web   page  at:  http://www.dpi-inc.com.
Diversified Product Inspection,  Inc.  specializes in conducting  investigations
and  laboratory  analysis of a wide variety of products to determine  the "cause
and origin" of failures. The Company's primary customers are insurance companies
that are interested in subrogating claims to recover losses.


<PAGE>





         The insurance  industry is one of the largest  business  enterprises in
the  United  States.  Insurance  claims  paid  by  the  industry  in  1998  were
approximately  $150 billion and  estimated to be $180 billion in 1999.  In 1998,
depending upon the insurance  company,  only 1% to 5% of claims were subrogated.
It is estimated that the subrogation potential could be $10-15 billion annually,
based on the industry  internal goals of 7-10%.  DPI's clients have been able to
subrogate as high as 68% of submitted claims.

         Diversified   Product   Inspections,   Inc.  is  the   inspiration   of
entrepreneur John Van Zyll. After many years of experience in home construction,
and employment as a Customer  Service  Manager for several large  developers and
homebuilders,  Mr. Van Zyll  recognized the  opportunity  and need for a service
that would help protect  consumers and assist them in making informed  decisions
regarding home or appliance purchases.

         During the course of home  investigations,  the  Company  noted a large
number of  defective  products  not  necessarily  related to home  construction.
Because the home inspection  industry is saturated and highly  competitive,  DPI
sought to  differentiate  itself from its  competitors by adding product failure
investigations,  as an additional  service.  The Company  quickly  realized that
there was tremendous  demand for this type of service by the insurance  industry
and has since been able /to  establish  itself as a  specialist  in this rapidly
growing  field.  DPI has developed a sustainable  competitive  advantage in this
lucrative niche market through the creation of a proprietary database.

         DPI began to accumulate a database of known defective products,  and in
1994   began   concentrating,   almost   exclusively,   on   defective   product
investigations  for the insurance  subrogation field. DPI now has a computerized
database  with key  identifiers  of over  300,000  products,  a library  of over
100,000  photos and  documentation,  plus  hundreds of videos.  To the Company's
knowledge,  there is no other company in the US that possesses such an extensive
database,  or is capable of providing the  cost-effective  range of services and
experience that DPI can offer its clients.

         DPI has  enjoyed  steady  growth  in  customer  base over its nine year
history.  The Company currently provides  investigative  services for over 1,900
insurance   adjusters  in  more  than  40  states.  The  Company  employs  eight
state-licensed Private Investigators who are trained and certified as "Cause and
Origin"  investigators,  and six lab  technicians.  DPI also offers  pre-failure
evaluations of structures, building materials and appliances.

         Since its formation, DPI has also experienced steady growth in revenues
and profits.  This growth has been realized without any outside funding and only
a limited marketing campaign. The Company also operates a rapidly growing "Small
Item Mail-in  Program"  and "Large Item Ship-In  Program" to extend its services
throughout the country.

         Until December 1999, the Company was expanding using its own resources.
In June 1999,  the Company  established a satellite  office in Salisbury,  North
Carolina. In August 1999, the Company signed a lease for land and building for a
new headquarters and laboratory to be located in Oakridge, TN.



<PAGE>



         Customers

        DPI's primary clients are insurance companies:

Allstate Insurance                                Amica Insurance

Appalachian Claim Services                        Bankers Insurance

Bankers Security                                  Bausley & Associates

C.J.W. Associates                                 Claim Solutions Services, Inc.

C.N.A. Insurance                                  C.S.A.A

Crawford and Company                              Curley & Associates

Elliot Claims Service, Inc.                       Farmers Insurance

Fire & Arson Investigation Consultants, Inc.      Fire Service Restoration

Fireman's Fund Insurant                           First Floridian (Travelers)

Florida Farm Bureau                               Frontier Adjusters

Grotefeld & Denenberg, L.L.C.                     Hartford Insurance

Inspire Insurance Solutions                       Kentucky National Insurance

Langham & Associates                              Liberty Mutual

McDonald, Tinker, Skaer                           Morrison, Mahoney & Miller

Nationwide Insurance                              Nationwide Mutual

Northfield Associates                             Post & Schell, P.C.

Professional Public Adjuster, Inc.                Property JUA Services


Prudential Insurance                              Purofirst Midsouth Insurance

Reliance Insurance                                Rebublic Insurance

Residential Warranty                              Rimkus Consulting

Safeco Insurance                                  Schaeffer Engineering

Scottsdale Insurance                              SCS & Associates

Selective Insurance                               Servpro, Inc.

Shepard, Filburn & Goodblatt, PA                  Southern Family Insurance

State Farm Insurance                              T.I.G. Insurance

The Johnson Group                                 Totura & Company

Travelers Insurance                               United Pacific Insurance

USAA Insurance                                    Westfield Companies

Zurich American


Overview

         Insurance  claims in the United  States are  hundreds  of  millions  of
dollars  every year.  A vast  majority of these claims are the result of product
failures caused by defective products.  Until DPI entered this market, depending
upon  the  insurance  company,  only  1%  to  5%  of  claims  were  successfully
subrogated.  Through the use of DPI's proprietary database,  the Company is able
to  investigate  the "cause and origin" of losses and provide their clients with
information  enabling  them to  cost-effectively  subrogate  almost 70% of their
claims.




<PAGE>



         Subrogation is a legal principle, which provides that, to the extent an
insurer has paid for a loss,  theinsurer  receives the  policyholder's  right to
recover from any third party that caused the loss.

         Until  recently,  Insurance  companies  have not  aggressively  pursued
subrogation.  There are many  reasons  for this  lack of  effort  in this  area.
Liability  can be  difficult to prove.  Product  failure  investigations  can be
expensive,  especially if conducted by an engineering lab.  Proximate cause must
be  demonstrated  through a preponderance  of the evidence.  The product and its
manufacturer must be positively  identified.  Because of the high cost and other
factors,  many insurance companies only pursue subrogation claims over a certain
amount.

         Competitive  Advantage:  DPI provides the  Insurance  Industry with the
industry's  first  cost-  effective  investigative  service.  DPI has a staff of
professional  investigators  and  laboratory  analysts,  who are supported by an
extensive proprietary product database. DPI's database is unique to the industry
and enables DPI to quickly identify the manufacturer of a defective  product and
offer its investigative  services at cost-effective  levels.  DPI enjoys a clear
and sustainable competitive advantage as a result of this proprietary database.

         Proprietary  Database:  The Company's  Proprietary Database contains an
extensive listing of product identifiers,  and known defects and failures.  This
computerized  database  contains key  identifiers of over 300,000  products.  In
addition, DPI possesses a library of over 100,000 photos and documentation, plus
hundreds of videos.  This  database is the result of 9 years of research  and is
frequently  updated.  Any competitor entering the field would have to create its
own database from scratch, an undertaking of great time and cost.

Products and Services for the Insurance Industry

         The  primary  business of DPI is the  determination  of the "Origin and
Cause" of property damages and the  identification of the defective product that
caused the loss.  DPI finds  itself in a unique  position  of being a pioneer in
what is a growing  and  increasingly  important  field -  Subrogation  Recovery.
Demand  for  these  services  should  grow  as the  percentage  of  successfully
subrogated claims increases.  Currently, the insurance industry's internal goals
are to  successfully  subrogate  7% of claims.  Product  identification  after a
failure  (especially  fire)  has been one of the  main  reasons  for the lack of
successful  subrogation.  DPI's  laboratory  has a 97%  success  rate in product
identification.  Insurance  companies  and  adjusters  using DPI's  service have
consistently   been  able  to  successfully   subrogate  in  excess  of  68%  of
investigated claims. This is an improvement of 66% over the industry average and
at a fraction of the cost of conventional engineering firms. After the deduction
of DPI's reasonable fees,  these  subrogation  recoveries are pure profit to the
insurance company.

         Defective Product Investigations

         DPI  performs  professional  forensic  investigations  to identify  the
products and  materials  involved in a claim loss and determine the cause of the
failure.  DPI  employs   state-licensed  Private  Investigators  who  have  been
certified in "Origin and Cause" analysis. It is the determination of "Origin and
Cause" that is the basis for successful subrogation of a claim. The client mails
small items to DPI, or investigations can be carried out on site, as in the case
of fire and arson  investigations.  DPI or insurance  company  personnel recover
shippable items from the site. The items are appropriately  packaged and shipped
to  the  DPI  Laboratory.  Crucial  to  the  legal  process  of  subrogation  is
maintenance of the "chain of evidence." DPI maintains secure facilities and has


<PAGE>



personnel who are trained in the procedures for properly  handling,  storing and
cataloging of evidence.

Small Item Mail-In Program

         The "Small Item  Mail-In  Program"  is a benchmark  result of the great
success  that DPI has been able to achieve in the state of  California.  In just
one Allstate  Insurance Company claims offices near Bakersfield,  the client was
able to successfully  recover over $4 million in subrogated  claims. As a result
of this overwhelming success, Allstate Insurance Company. has instructed all its
adjusters in Northern  California to submit all of their  defective  products to
DPI. Items are placed in the pre-addressed,  pre-paid Fed-Ex box or envelope and
submitted to DPI for  identification  and  analysis.  DPI performs  this task at
their lab and submits a report to the insurance  adjuster.  The item is retained
in secure storage as evidence until the claim is closed.

         The minimum  fee for these  services is  $175.00.  Fire  damaged  items
(accounting for 30-40% of the items submitted) incur a minimum additional charge
of 1 log hour @ $75.00 per hour. Currently,  DPI is receiving  approximately 100
items per week at an  average  of $200 for each item  submitted.  This has grown
from 40 items per week in January.  With growth of 15% per month, the Small Item
Mail-In Program is projected to produce approximately $3.3 million in revenue in
Year 2000 and gross profits of approximately  $2.7 million.  (These  projections
include storage revenue for the 8,565 items currently in storage)

Large Item Ship-In Program

         DPI also has a program to handle large items, including  refrigerators,
air conditioning units, stoves, dishwashers,  etc. These larger items are either
picked  up by DPI,  within a range of 150  miles  of one of  their  offices,  or
shipped directly by the client.  Items picked up by DPI are billed for log hours
for the driving,  handling and laboratory analysis.  Items shipped by the client
are shipped prepaid and billed for the inspection fee and monthly storage.

         Revenue  streams are  generated  from the log hours billed and from the
secure storage of the items until the case is settled.  Storage is typically $60
per year per  item.  The  average  investigation  is  $255.00  plus 1 log hour @
$75.00,  not including the travel time. DPI is currently  receiving 10 items per
week under  this  program.  Growth has been  averaging  5%  increase  per month.
Revenues  for the  year  2000 are  projected  at  $217,270  with  gross  profits
projected at $182,400 for the 12 month period.

Satellite Office/Outsource Program

         As part of DPI's future  expansion plans, the Company intends to open 4
additional  satellite  Office/Labs  in New  York,  Texas  and  North  and  South
California.   This   will   give   DPI  6   satellite   locations   and  a  main
headquarter/laboratory  in Oakridge,  TN. The company is also training outsource
personnel to service any location where the insurance industry needs the service
and is capable of generating a minimum of 10 inspection/evidence collections per
week.  These  individuals  will  be  paid on a per  investigation  basis  and be
responsible  for their own offices and  expenses.  The Company plans to train 30
outsource personnel during Year 2000.

         The Outsource  scenario was used for the financial  projections for the
Satellite/Outsource  program.  When the number of inspections per week exceed 80
per week, it may be more profitable


<PAGE>



to operate an Office/Lab.  The Company intends to revue the break-even scenarios
in order to determine whether to expand beyond the 7 physical locations.

         DPI also  provides for the storage of evidence and derives  income from
the safe storage of materials. DPI is practiced in the maintenance of the "Chain
of  Custody"  of  evidence,   which  is  critical  to  successfully  bringing  a
subrogation case to court. The statute of limitations for filing litigation is 3
years. Due to the crowded court dockets, the average item remains in storage for
2 years.

         Storage is an  additional  revenue  stream for DPI as the  Company  can
perform this service more securely and efficiently than the insurance  companies
can  themselves.  Currently,  DPI has over 8,600  items in secure  storage at an
average rate of $40.00 per annum.

         Revenue from storage is included in the financial  projections  for the
Small Item Mail-in Program,  Satellite/Outsource  Program and Large Item Ship-in
Programs. The mark-up on storage is substantial.

Indoor Air Quality Analysis

         DPI provides  in-depth indoor air quality  analysis and is a pioneer in
identifying airborne contamination and determining the causes of sick buildings.
DPI has designed proprietary measuring instruments capable of detecting airborne
chemical  contaminants  in structures.  DPI also utilizes state  laboratories to
supplement their own lab.

         These contaminants are potential health threats and come from a variety
of  sources  within  modern  buildings  including  air  conditioners,   heaters,
refrigerators and materials used in the construction of the building. DPI is one
of a handful of  companies  in the country  that is capable of  identifying  the
contaminants involved and the origin and cause within the structure.

         The most  dangerous  and most common cause of indoor air  contamination
comes from  leaking  refrigerants  contacting a heat source that can convert the
freon into deadly  phosgene gas (mustard  gas). The presence of this reaction is
frequently  evidenced by carbon sooting.  Almost all air  conditioners  and many
refrigerators  leak  freon.  There are many  sources  of heat in the home  (heat
strips, pilot lights, electric range and oven, toasters, etc.) which are capable
of converting the freon into phosgene gas.

         DPI has conducted a nationwide  study on the  prevalence of phosgene in
the home.  The Company has identified  phosgene as the cause of numerous  severe
health and  respiratory  problems that have even  resulted in death.  The Geneva
Convention  outlaws the production of phosgene,  and its presence can only occur
through the accidental  conversion of freon.  DPI has been able to  conclusively
identify  phosgene from freon leaks as the origin and cause of contamination and
subsequent health problems of the occupants.

         Due to the high frequency and  potentially  deadly effects of phosgene,
DPI has developed and is seeking to patent a device that  neutralizes  the freon
before it can be converted to phosgene. DPI is planning to market this device as
an  inexpensive  retrofit  to  existing  systems  and is seeking an  appropriate
licensing agreement.




<PAGE>



Structure Evaluations and Consumer Product Evaluations

         Home  Evaluations  and Consumer  Product are not to be confused  with a
home  inspection.  Home  inspections  are typically  performed as a pre-purchase
inspection that concentrates on the current  functionality of items in the home.
The  Consumer  Product  and Home  Evaluation  reports on the  failure  rates and
recalls of the products used in the home. The difference is significant.

         Structure   Evaluations  are  performed  on-site  by  a  qualified  DPI
investigator.  In addition to  reporting  on the  current  functionality  of the
structure and appliances (roof,  siding,  heating and cooling system,  etc), DPI
goes further and identifies the manufacturers of the various building  materials
and appliances.  The client is also informed of known failure rates, defects and
hazards, recalls and current or pending legal proceedings. As an example, a home
inspection  would report that the siding on the home is in good  condition if it
is painted and shows no obvious signs of decay. DPI's inspection would report on
the type of siding and  whether or not that siding was the subject of high rates
of  failure,  or the  subject of a recall.  DPI would also  report to the client
whether  the  siding  was the  subject  of a  class  action  settlement  and the
procedures for making a claim. (i.e.
Louisiana Pacific siding case)

         Consumer  Product  Evaluations are a survey of common items in the home
for the purpose of identifying  products that are the subject of a recall or are
known to have a history of failure.  DPI's  evaluation  informs the  consumer of
current  working  status of the product,  the risks and failure rates of various
products, recalls, current legal proceeding and remedies.

         DPI is  planning  to offer the  Consumer  Products  Evaluation,  on the
Company  website.  Consumers will be offered an opportunity to evaluate a single
product  or an entire  household.  Package  deals will be  available  which will
include a 1-year subscription to the company newsletter, the "Investigator." The
"Investigator"  keeps  consumers  informed of current product recalls and safety
tips for the home.  The Company  intends to provide this  services for a nominal
fee or no- charge.  The Company  believes  that  revenue can be derived from the
database that is being accumulated under this program.

         Database  Marketability - The Consumer Product Evaluation  database may
be marketable to several different  clients.  The database will include consumer
buying habits,  which is of value to  manufactures  and retailers.  The database
will also contain the location of products that may present potential  liability
for manufacturers, which is valuable to manufacturers and insurance companies.

Additional Services

Full Engineering Services - DPI is able to provide clients with full engineering
services including mechanical and electrical engineering

1.   Metallurgist  Services - the DPI lab is equipped to perform a full range of
     metallurgical  services  capable of  analyzing  submitted  items for design
     load, metal fatigue, hairline cracking, etc.

2.   Training  Seminars - DPI  investigators are also trained as instructors and
     are  licensed in most states due to  reciprocity  agreements.  DPI has been
     approached by the states of California, Texas, Virginia, N. Carolina and S.
     Carolina to conduct  licensing  seminars for insurance  adjusters.  Each of
     these states has a requirement that adjusters receive  additional  training
     each year.


<PAGE>



Manufacturer Defective Product Notifications

         DPI provides  manufacturers with a service that assists those companies
in locating products that are subject to recall. It is inevitable that a certain
number of  defective  products  will slip  through  the  manufacturer's  quality
control  inspections  and make their way into the  marketplace.  These defective
products,  once  identified,  are  a  source  of  potential  liability  for  the
manufacturer.

         Manufactures are often eager to locate and replace  defective  products
before the product  fails and causes high  damages.  If the average  damages are
relatively high, the  manufacture,  in many cases, is willing to pay a reward or
bounty for  information  that will assist them in locating the product  prior to
failure.

         This is where DPI's database of consumer  profiles will come into play.
(See:  Consumer  Product  Evaluations).  DPI plans to  maintain a website  where
consumers can receive a home evaluation  online.  The consumer may pay a nominal
fee to enter all household  appliances,  mechanical devices,  lawn equipment and
materials  of and around the house into the  computer.  The  computer  will then
compare the profile to the database of known defective  products.  DPI will then
inform the consumer and the  manufacturer of the location of the product so that
a replacement can be scheduled.

The Nature and Extent of the Company's Facilities

         The Issuer conducts its business in approximately 30,000 square feet of
office and warehouse space located at 3 Main Street, Oakridge, Tennessee.

Names of the Chief Executive Officers and Members of the Board of Directors

         Directors and Executive Officers

         The following table includes the names,  positions held and ages of our
executive  officers and  directors.  All directors  serve for one year and until
their successors are elected and qualify.  Officers are elected by the Board and
their terms of office are, except as otherwise  stated in employment  contracts,
at the discretion of the Board.

NAME                    POSITION
-------------        ---------------------------
John Van Zyll        President, Chairman, Chief Executive Officer and Director
Marvin Stacy         Chief Operating Officer and Director
Dean Madden          Chief Financial Officer,  Treasurer and Director
Ann Furlong          Secretary, Director
David Dowell         Director

John Van Zyll,  President  Chairman of the Board,  Chief  Executive  Officer and
Director.  Entrepreneur and founder of Diversified Product Inspections,  Mr. Van
Zyll has over 10 years of construction  and  investigation  experience.  He is a
member of the Southern  Building  Code Congress  International  and the National
Fire Protection  Association and is a licensed  Private  Investigator.  He holds
certificates  from the National  Association of  Investigative  Specialists with
specialties in Insurance  Claim  Investigation  and Advanced Fire  Investigation
Techniques.  Mr. Van Zyll is considered an expert in the field of  investigation
and  subrogation  by the insurance  industry and has conducted over 100 training
seminars and trained over 1900 insurance adjusters.


<PAGE>

Marvin Stacy, Chief Operating Officer, Director,. Mr. Stacy has over 40 years of
experience in all aspects of electrical and mechanical  engineering  and design.
Mr. Stacy is also gifted as an investigator and is responsible for the operation
of  the  laboratory.  He has  designed  custom  testing  equipment  and  designs
solutions for manufacturers to correct design flaws and shortcomings.

Dean Madden,  Chief  Financial  Officer,  Treasurer and Director.  Mr. Madden is
serving as the Company's interim CFO. Mr. Madden has over 33 years of experience
in all aspects of  accounting.  Mr. Madden served as CFO and Director of GMAC of
Canada from  1983-1988.  Mr. Madden has worked in various  accounting  positions
throughout  his career,  specializing  in auditing,  taxes,  and  preparation of
financial statements.

Ann M.  Furlong,  Secretary  and  Director.  Ms.  Furlong  has  over 29 years of
experience  as a  professional  manager  and the owner and  founder  of  several
successful   businesses.   Ms.  Furlong  has  provided  the  administrative  and
organizational expertise that has greatly contributed to DPI's success since its
founding  in  1991,  including  the  compilation  of the  company's  proprietary
database.

David  Dowell,  Esquire,  Director.  Mr.  Dowell  was  awarded a B.S.  degree in
Business  from Indiana  University  in 1985 and a degree in Juris  Prudence from
Indiana  University  School of Law in 1988.  Upon  graduation,  Mr.  Dowell  was
admitted  to the  Indiana  Bar and was  retained by Coopers and Lybrand as a tax
associate.  He moved to  Florida  in 1990 and  became  law  clerk  for the Fifth
Circuit Court in Lake County.  In 1992, Mr. Dowell opened a private practice and
specializes in Corporate Law and Bankruptcy


Item 6.                    Exhibits and Reports on Form 8-K

(a)  The exhibits  required to be filed herewith by Item 601 of Regulation  S-B,
     as described in the following index of exhibits, are incorporated herein by
     reference, as follows:

<TABLE>
<S>               <C>
Exhibit No.       Description
-----------       -------------------------------------------------------
2.1          *

3(i).1            Articles of Incorporation filed October 17, 1994(1)

3(i).2            Articles of Amendment (filed with original 10SB)(1)

3(i).3            Articles of Amendment changing the Company name to Diversified
                  Product Inspections, Inc., from Shoe Krazy, Inc. filed May 19, 2000.

3(i).4            Articles of Amendment changing the Company's newly acquired
                  subsidiary's name to Diversified Product Investigations, Inc., from
                  Diversified Product Inspections, Inc. filed May 19, 2000.

3(ii).1           By-laws (1)

10.1              Conditional Lease/Purchase Agreement(2)

27           *    Financial Data Schedule
</TABLE>
-----------------------------------

(1)  Incorporated herein by reference to the Company's Registration Statement on
     Form 10-SB.
(2)  Incorporated herein by reference to the Company's

*    Filed herewith

(b)  See Form 8-KA filed on or about May 22, 2000 and attached hereto as Exhibit
     No. 2.1.








<PAGE>




                                                    SIGNATURES
                                                    ----------

         In  accordance  with  Section  13 or 15(d)  of the  Exchange  Act,  the
registrant  caused  this  report to be signed on its behalf by the  undersigned,
thereunto duly authorized.


                                             Shoe Krazy, Inc.



Date: August 14, 2000       BY: /s/  John Van Zyll
                           -------------------------------
                             John Van Zyll, President


In  accordance  with the Exchange  Act, this report has been signed below by the
following  persons on behalf of the  registrant and in the capacities and on the
dates indicated.

         Date               Signature                             Title

Date: August 14, 2000       BY: /s/  John Van Zyll
                            ------------------------------
                            John Van Zyll                         President