UNITED STATES
                       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 period ended October 31, 2001

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

                         Commission File Number 0-23903

                              EAUTOCLAIMS.COM, INC.
                              ---------------------
               (Exact name of registrant as specified in charter)


               Nevada                               95-4583945
               ------                               ----------
  (State or other jurisdiction                    (IRS Employer
 of incorporation or organization)               Identification No.)


2708 Alt. 19 N., Suite 604, Palm Harbor, Florida                   34683
------------------------------------------------                   -----
   (Address of principal executive offices)                      (Zip Code)

          Registrant's telephone Number, including area code: (727) 781-0414

Securities registered pursuant to Section 12(b) of the Exchange Act: None

     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.

     [ X ] Yes [ ] No

     The number of shares  outstanding of the Issuer's  Common Stock,  $.001 Par
Value, as of October 31, 2001 was 13,130,707.

     Transitional Small Business Disclosure Format:

     [ ] Yes [ X ] No


<PAGE>





                                            EAUTOCLAIMS.COM, INC. AND SUBSIDIARY


                                                            INDEX TO FORM 10-QSB
--------------------------------------------------------------------------------




                                     PART I

                              FINANCIAL INFORMATION

Item 1.  Consolidated Financial Statements                                  2

   Balance Sheets                                                           3
   Statements of Operations                                                 4
   Statement of Stockholders Equity                                         5
   Statements of Cash Flows                                                 6
   Notes to Consolidated Financial Statements                               7

Item 2.  Management's Discussion and Analysis of
 Financial Condition and Results of Operations                              9

                                     PART II

                                OTHER INFORMATION

Item 1.  Legal Proceedings                                                 13

Item 2.  Changes in Securities                                             13

Item 5.  Other Information                                                 14

Item 6.  Exhibits and Reports on Form 8-K                                  14

Signatures                                                                 15



<PAGE>

                                            EAUTOCLAIMS.COM, INC. AND SUBSIDIARY

                                     PART I

                              FINANCIAL INFORMATION

ITEM 1.        FINANCIAL STATEMENTS.

The consolidated financial statements of eAutoclaims.com,  Inc. and Subsidiaries
(collectively  the  "Company")  included  herein were  prepared,  without audit,
pursuant to rules and  regulations of the  Securities  and Exchange  Commission.
Because certain information and notes normally included in financial  statements
prepared in  accordance  with  generally  accepted  accounting  principles  were
condensed or omitted  pursuant to such rules and  regulations,  these  financial
statements should be read in conjunction with the financial statements and notes
thereto included in the audited financial  statements of the Company as included
in the Company's Form 10-KSB for the year ended July 31, 2001.


                                       2
<PAGE>

<TABLE>
<CAPTION>

                                                                                         EAUTOCLAIMS.COM, INC. AND SUBSIDIARY

                                                                                                   CONSOLIDATED BALANCE SHEET
-----------------------------------------------------------------------------------------------------------------------------

                                                                                          October 31, 2001      July 31, 2001
                                                                                             (unaudited)
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                                                      <C>                <C>
ASSETS

Current Assets:
  Cash                                                                                      $   498,944          $   485,092
  Accounts receivable, less allowance for doubtful accounts
    of $60,000                                                                                1,440,758            1,208,409
  Due from related parties                                                                      162,854              154,853
  Prepaid expenses and other current assets                                                     141,914              126,693
-----------------------------------------------------------------------------------------------------------------------------
         Total current assets                                                                 2,244,470            1,975,047
Property and Equipment, net of accumulated depreciation
   of $288,593 and $231,920, respectively                                                       537,186              545,015

Goodwill, net of accumulated amortization
    of $295,730 and $241,037, respectively                                                    1,257,922            1,312,615

Other Assets                                                                                    414,313              365,000

Deferred Income Tax Asset, net of valuation
   allowance of $4,588,000 and $4,171,000 respectively                                                -                    -
-----------------------------------------------------------------------------------------------------------------------------
         Total Assets                                                                       $ 4,453,891          $ 4,197,677
=============================================================================================================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:
   Accounts payable and accrued expenses                                                    $ 3,991,270          $ 3,074,653
   Deferred software subscription revenue                                                       150,933              111,670
   Convertible debentures, net of unamortized discount of $555,551                                    -               94,449
   Loans payable - stockholders                                                                 135,000              179,000
-----------------------------------------------------------------------------------------------------------------------------
         Total current liabilities                                                            4,277,203            3,459,772



Stockholders' Equity:
  Convertible  preferred stock - $.001 par value;  authorized  5,000,000 shares,
   issued and outstanding 520 shares
   aggregate liquidation preference of $2,600,000                                                     1                    1
  Common stock - $.001 par value; authorized 50,000,000 shares, issued
   and outstanding 13,130,707 shares and 11,711,877 shares respectively                          13,131               11,712
  Additional paid-in capital                                                                 17,287,800           16,051,679
  Accumulated deficit                                                                       (17,124,244)         (15,325,487)
-----------------------------------------------------------------------------------------------------------------------------
         Stockholders' equity                                                                   176,688              737,905
-----------------------------------------------------------------------------------------------------------------------------
         Total Liabilities and Stockholders' Equity                                         $ 4,453,891          $ 4,197,677
=============================================================================================================================
</TABLE>

See Notes to Consolidated Financial Statements

                                       3
<PAGE>

<TABLE>
<CAPTION>


                                                                                               EAUTOCLAIMS.COM, INC. AND SUBSIDIARY

                                                                                               CONSOLIDATED STATEMENT OF OPERATIONS
-----------------------------------------------------------------------------------------------------------------------------------

                                                                                               Three-month           Three-month
                                                                                               Period ended          Period ended
                                                                                             October 31, 2001      October 31, 2000
-----------------------------------------------------------------------------------------------------------------------------------
                                                                                               (unaudited)            (unaudited)
<S>                                                                                         <C>                     <C>
Revenue:
  Collision repairs management                                                               $  6,624,155             $  1,311,896
  Glass repairs                                                                                   426,049                  543,682
  Fleet repairs management                                                                        321,474                  234,924
  Fees and other revenue                                                                          319,243                  128,765
-----------------------------------------------------------------------------------------------------------------------------------
Total revenue                                                                                   7,690,921                2,219,267
-----------------------------------------------------------------------------------------------------------------------------------

Expenses:
  Claims processing charges                                                                     6,493,842                1,769,742
  Selling, general and administrative                                                           1,868,491                1,348,496
  Depreciation and amortization                                                                   111,365                   91,082
  Amortization of beneficial conversion feature on convertible debentures and fair                555,551
  value of warrants issued in connection with debentures
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses                                                                                  9,029,249                3,209,320
-----------------------------------------------------------------------------------------------------------------------------------
Net loss                                                                                       (1,338,328)                (990,053)
Less:  Preferred stock dividends                                                                  (52,429)                 (16,153)
       Deduction relating to Series A Convertible Preferred Stock                                (408,000)              (1,916,382)

-----------------------------------------------------------------------------------------------------------------------------------
Net loss applicable to common stock                                                          $ (1,798,757)            $ (2,922,588)
===================================================================================================================================
Loss per common share - basic and diluted                                                    $      (0.15)            $      (0.26)
===================================================================================================================================

Weighted-average number of common shares outstanding - basic and diluted                       12,257,787               11,133,179
===================================================================================================================================
</TABLE>

See Notes to Consolidated Financial Statements

                                       4
<PAGE>
<TABLE>
<CAPTION>


                                                                                               EAUTOCLAIMS.COM, INC. AND SUBSIDIARY

                                                                                     CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
------------------------------------------------------------------------------------------------------------------------------------
     Three month period ended October 31, 2001
                                                                                           Additional
                                              Preferred Stock          Common Stock        Paid-in      Accumulated  Stockholders'
                                            Shares      Amount       Shares     Amount     Capital        Deficit       Equity
------------------------------------------------------------------------------------------------------------------------------------

<S>                                        <C>        <C>       <C>           <C>       <C>           <C>          <C>
Balance at July 31, 2001                      520        $ 1       11,711,877  $11,712   $16,051,679   $(15,325,487) $  737,905


     Issuance of common stock
      in conjunction with lease                                        97,927       98        92,933                     93,031

     Issuance of common stock
      for services                                                     94,381       94        40,495                     40,589

     Issuance of common stock
      upon exercise of options                                        192,000      192         1,728                      1,920

     Issuance of common stock
      for amounts due to shareholders                                  91,667       92        43,908                     44,000

     Accrued dividend on
      preferred stock                                                                                       (52,429)    (52,429)

     Issuance of common stock
      upon conversion of debentures                                   942,855      943       649,057                    650,000

     Recognition of beneficial conversion
      feature of convertible preferred stock                                                 408,000       (408,000)        -

     Net loss                                                                                            (1,338,328) (1,338,328)

------------------------------------------------------------------------------------------------------------------------------------
Balance at October 31, 2001                   520        $ 1       13,130,707  $13,131   $17,287,800   $(17,124,244) $  176,688
====================================================================================================================================
</TABLE>


See Notes to Consolidated Financial Statements

                                       5
<PAGE>

<TABLE>
<CAPTION>

                                                                                    EAUTOCLAIMS.COM, INC. AND SUBSIDIARY

                                                                                    CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------------------------------------------------------------------------------------------

                                                                                    Three-month           Three-month
                                                                                    Period ended          Period ended
                                                                                  October 31, 2001      October 31, 2000
------------------------------------------------------------------------------------------------------------------------
                                                                                     (unaudited)          (unaudited)


<S>                                                                                <C>                    <C>
Cash flows from operating activities:
  Net loss                                                                          $ (1,338,328)            $ (990,053)
  Adjustments to reconcile net loss to net cash used in operating activities:
    Depreciation and amortization                                                        111,365                 91,082
    Amortization of discount on debentures                                               555,551
    Common stock issued for services                                                      40,589                 98,420
    Common stock issued for rent and option to purchase facility                          43,659
    Common stock to be issued for services                                                                       28,240
    Increase in allowance for doubtful accounts                                                                  30,000
    Changes in operating assets and liabilities net of acquisition:
      Increase in accounts receivable                                                   (232,349)              (242,318)
      (Increase) decrease in due from related parties                                     (8,001)                51,066
      (Increase) decrease  in prepaid expenses and other current assets                   34,151                (33,130)
      Increase in other assets                                                           (49,313)                (2,179)
      Increase in accounts payable and accrued expenses                                  864,188                447,598
      Increase in deferred software subscription revenue                                  39,263
------------------------------------------------------------------------------------------------------------------------
           Net cash provided by (used in) operating activities                            60,775               (521,274)
------------------------------------------------------------------------------------------------------------------------

Cash flows from investing activity:
  Purchases of property and equipment                                                    (48,843)              (107,777)
------------------------------------------------------------------------------------------------------------------------
           Cash used in investing activity                                               (48,843)              (107,777)
------------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities:
  Net proceeds from issuance of preferred stock                                                                 659,944
  Proceeds from exercise of stock options                                                  1,920                      -
  Issuance of compensatory stock options                                                                            280
  Principal payments on stockholder loans                                                                       (27,200)
------------------------------------------------------------------------------------------------------------------------
           Cash provided by financing activities                                           1,920                633,024
------------------------------------------------------------------------------------------------------------------------
Net increase in cash                                                                      13,852                  3,973

Cash at beginning of period                                                              485,092                239,979
------------------------------------------------------------------------------------------------------------------------

Cash  at end of period                                                              $    498,944             $  243,952
========================================================================================================================


Supplemental disclosure of cash flow information:

  Cash paid during the period for interest                                          $     19,664             $    2,394
========================================================================================================================


Supplemental disclosure of noncash investing and financing activities:

  Conversion of debentures to common stock                                          $    650,000
========================================================================================================================
  Issuance of common stock for amounts due to shareholders                          $     44,000
========================================================================================================================
  Issuance of stock for payment of rent                                             $     49,372
========================================================================================================================
</TABLE>

See Notes to Consolidated Financial Statements

                                       6
<PAGE>


                                            EAUTOCLAIMS.COM, INC. AND SUBSIDIARY

                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

Note 1 - Basis of presentation
------------------------------

The  accompanying   unaudited  consolidated  financial  statements  contain  all
adjustments (consisting only of those of a normal recurring nature) necessary to
present fairly the financial position of  eAutoclaims.com,  Inc. and it's wholly
owned  subsidiary as of October 31, 2001 and its results of  operations  and its
cash flows for the three-month period ended October 31, 2001 and the three-month
period ended October 31, 2000.  Results of operations for the three-month period
ended October 31, 2001 are not necessarily indicative of the results that may be
expected for the year ending July 31, 2002.

Note 2 - Per share calculations
-------------------------------

Basic loss per share is  computed  as net loss  divided by the  weighted-average
number of common  shares  outstanding  for the  period.  Diluted  loss per share
reflects the potential  dilution  that could occur from common  shares  issuable
through  stock-based  compensation  including  stock options,  restricted  stock
awards,  warrants and convertible  securities.  Potential common shares have not
been included in diluted loss per share since the effect would be anti-dilutive.

Note 3 - Equity Transactions
----------------------------

On July 31, 2001, 100 shares of preferred stock were redeemable at the Company's
option at 120% of face value,  plus accrued  dividends by August 15, 2001. Since
the Company did not redeem the preferred  stock,  its terms became  identical to
the Company's other preferred stock. An increase to accumulated  deficit and the
net loss available to common  shareholders  of $100,000 was recorded  during the
year ended July 31, 2001 and $408,000 has been recorded  during the  three-month
period ended October 31, 2001 representing the beneficial conversion feature.

On September 20, 2001, two  shareholders  and officers of the Company  converted
$44,000 of debt owed to them by the Company into 91,667 shares of common stock.

During the  three-month  period ended  October 31, 2001  $650,000 of  debentures
which were issued in June and July of 2001 were converted into 942,855 shares of
common stock in accordance with the debenture agreements. During the three-month
period  ended  October  31,  2001  the  Company  charged  operations   $389,400,
representing the amortization of the beneficial  conversion feature attributable
to the debentures and $166,151  representing  the amortization of the fair value
of the warrants attached to the debentures.

During the  three-month  period ended October 31, 2001, the Company entered into
an agreement for the lease of a new office facility that called for the issuance
of 97,927 shares of common stock for the first three months rent and a five year
purchase  option  of  the  property  at  a  pre-established  price.  During  the
three-month period ended October 31, 2001, $43,659 was charged to operations for
the stock issued relating to the purchase  option.  The $49,372  associated with
the rent was recorded as prepaid rent and will be charged to  operations  as the
rent expense is incurred.

During the three-month  period ended October 31, 2001, the Company issued 83,741
shares of common stock in exchange for $35,589 of legal services.

During the  three-month  period  ended  October 31,  2001,  the  Company  issued
additional  options to employees and members of the Company's Board of Directors

                                       7
<PAGE>

                                            EAUTOCLAIMS.COM, INC. AND SUBSIDIARY

                                      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------


to purchase  506,000  shares of common  stock where the  exercise  prices of the
options  are equal to or greater  than the fair  market  value of the  Company's
common  stock on the date of each  grant.  Additionally,  during the three month
period ended October 31, 2001 options to purchase  44,400 shares of common stock
issued to former employees were canceled.

During the three-month  period ended October 31, 2001, the Company issued 10,640
shares of common stock to four  directors in exchange  for their  services.  The
Company charged operations  $5,000,  which was equal to the fair market value of
the shares when earned.

On October 1, 2001 the Company  entered into a contract with a public  relations
consultant for services.  This agreement  calls for the Company to issue options
to purchase 21,429 shares of stock on November 1, 2001.

Note 4 - Additional information
-------------------------------

The Company's  records and the records of its transfer agent differ with respect
to the number of outstanding shares of the Company's common stock.  According to
the  transfer  agent,  the  number  of shares of  common  stock  outstanding  is
approximately  31,500  shares  greater  than  the  13,130,707  indicated  by the
Company's  records.  The Company believes that its records are correct and is in
the  process of  resolving  this  difference.  The number of shares  outstanding
reflected in the Company's  financial  statements do not include these shares or
any adjustment that might be necessary to resolve this difference.

                                       8
<PAGE>


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

The  statements  contained  in this Report on Form  10-QSB,  that are not purely
historical, are forward-looking information and statements within the meaning of
Section 27A of the  Securities  Act of 1933 and  Section  21E of the  Securities
Exchange Act of 1934.  These  include  statements  regarding  our  expectations,
intentions,   or  strategies   regarding  future  matters.  All  forward-looking
statements included in this document are based on information available to us on
the date hereof.  It is important to note that our actual  results  could differ
materially from those projected in such forward-looking  statements contained in
this Form 10-QSB. The forward-looking  statements  contained herein are based on
current expectations that involve numerous risks and uncertainties.  Assumptions
relating to the foregoing involve judgments  regarding,  among other things, our
ability to secure  financing  or  investment  for capital  expenditures,  future
economic and competitive market conditions,  and future business decisions.  All
these  matters are difficult or  impossible  to predict  accurately  and many of
which may be beyond  our  control.  Although  we  believe  that the  assumptions
underlying our forward-looking statements are reasonable, any of the assumptions
could  be  inaccurate  and,  therefore,  there  can  be no  assurance  that  the
forward-looking  statements  included  in this  form  10-QSB  will  prove  to be
accurate.


GENERAL

We  provide  Internet  based  collision  claims   administration   services  for
automobile insurance companies.  Our business strategy is to use the Internet to
streamline  and lower the  overall  costs of  automobile  repairs and the claims
adjustment  expenses of our clients.  We believe that our proprietary  web-based
software  products and services make the  management  of collision  repairs more
efficient by facilitating the gathering and distribution of information required
in the automobile repair process.

eAutoclaims  controls  the vehicle  repair  process  from the  reporting  of the
accident  through  the  satisfactory  repair of damage.  We bring  together  and
coordinate the activities of the insurance company, its insured, and the various
parties involved in evaluating a claim,  negotiating the cost of the repair, and
performing  necessary repair  services.  We have contracted with over 3,100 body
shops throughout the United States to repair vehicles.  These shops, referred to
as our "provider  network," provide us 10% to 15% discount on the vehicle repair
because of the volume of repairs we provide to them. Because we audit every line
of every repair  estimate and because we share a portion of the volume  discount
with our  customer,  we are able to lower the  average  cost  being  paid by our
customer.

We have just  announced  the release of our new product  line -  eJusterSuiteTM.
eJusterSuite expands our potential customer base as well as provides significant
new features to our current  customer base. The  Bricks-to-Clicks  product is an
outsourcing  solution that requires eAuto  personnel to audit and coordinate the
vehicle repair. The new eJusterSuite allows the outsourcing  solution as well as
provides for a true  application  service  provider (ASP)  solution  whereby the
insurance company can use our technology  independent of our personnel.  The ASP
solution allows us to market our product to the largest insurance companies that
already have the staff to process and control the claims  process,  while paying
us a fee for every  transaction  that is run through  our system.  The ASP model
will provide margin without the associated personnel and operating costs.

eJusterSuite  also provides  significant  new features to our current  customers
because it builds in service  partners that can provide the needed services such
as car rental,  tow trucks and accident  reporting by only clicking an Icon that
is added to the screen of the  customer's  desk top in the current  system.  The
system automatically provides the service partner the information already in our
system via the Internet.  The service partner will  systematically  provided the
requested services and pay us a fee for each assignment they receive through our
system.  This  process  significantly  reduces the  customers'  time and cost to
process  claims as well as reduces the number of mistakes that occur in a manual
process. In most cases it also reduces the cost of the service partner to obtain

                                       9
<PAGE>

and process the  transaction,  even after paying our transaction fee. This added
revenue would provide  additional  margin without the  additional  personnel and
operating  costs.  Since this product was not released  until after  October 31,
2001 there are no related revenues in the attached quarter financial statements.

For our outsourcing customers,  we approve all repair shops for inclusion in our
network and determine which repair shop will ultimately perform the repairs.  We
receive a discount,  ranging from 10% to 15%,  from repair  facilities  that are
members of our provider network.  The revenues generated from the vehicle repair
facilities  through our provider network accounts for 96% of the revenue for the
three-months  ended October 31, 2001. We are paid on a per claims basis from our
insurance and fleet company customers for each claim that we process through our
system.  These fees vary from $10 to $60 per claim  depending  upon the level of
service required.  For the three-month  period ended October 31, 2001, 4% of the
revenue has been received from claims processing fees and other income.


RESULTS OF OPERATIONS

FOR THE  THREE-MONTH  PERIOD ENDED OCTOBER 31, 2001 COMPARED TO THE  THREE-MONTH
PERIOD ENDED OCTOBER 31, 2000.

REVENUE

Total revenue for the three-month  period ended October 31, 2001 was $7,690,921,
which  consists of  $6,624,155  in collision  repairs  management  for insurance
companies,  $426,049 in glass repairs, $321,474 in fleet repairs management, and
$319,243  in other  revenue  and fees.  Revenues  increased  $5,471,654  or 247%
compared to  three-month  period ended  October 31, 2000 with total  revenues of
$2,219,267.  This  increase  is  primarily  the  result of  growth  in  revenues
attributed to our core collision repairs management business.  Collision repairs
management  revenues  increased  405% from  $1,311,896 in the three months ended
October 31, 2000 to  $6,624,155  for the three  months  ended  October 31, 2001.
During the  three-month  period ended  October 31,  2001,  we derived 26% of our
revenues from one customer.  We have terminated the agreement with this customer
for breach of contract.  The loss of this customer has been  mitigated  with the
addition  of a  larger  customer.  We  have  entered  into  a  five-year  Claims
Management  Service and License  Agreement with Royal Indemnity Company (Royal &
SunAlliance),  which is ranked in the top 25  automobile  property  and casualty
insurance  companies in revenue in the United States. In the three-months  ended
October 31, 2001 this new customer accounted for 51% of our revenue.

EXPENSES

Claims processing charges for the three-month period ended October 31, 2001 were
$6,493,842,  or 85% of revenues  which  increased 5% from 80% of revenues in the
three-month  period ended  October 31, 2000.  This  increase is caused by volume
discounts  extended  to our largest  customers  that  caused  claims  processing
charges as a percentage of collision repairs management  revenues to increase in
the period ended October 31, 2001. Claims  processing  charges include the costs
of collision  repairs paid by eAutoclaims to its collision  repair shop network.
We expect  margins on claims  repairs to remain low in the near future as we use
favorable  pricing as a means to obtain  increased  market  share.  However,  we
expect our margins as a whole to increase by supplementing our collision repairs
management  revenues with new complimentary  higher margin product lines such as
eJusterSuite  and click fees  associated  with  uploading  information  from our
network.Claims processing charges increased $4,724,100, or 267%, from $1,769,742
in the period ended October 31, 2000.

                                       10
<PAGE>


We are  dependent  upon our third party  collision  repair  shops for  insurance
claims  repairs.  eAutoclaims  currently  includes  over 3,100  repair  vendors'
facilities in its network for insurance claims repairs.  We  electronically  and
manually audit  individual  claims  processes to their  completion  using remote
digital  photographs  transmitted over the Internet.  However, if the quality of
service provided by a collision repair shop falls below a satisfactory  standard
leading  to poor  customer  service,  this  could  have a harmful  effect on our
business. We control our service requirements by continually monitoring customer
service  levels and  providing  staff  inspections  of our network shops and, if
required, establish similar relationships with other collision repair shops.

Selling,  general and  administrative  expenses for the three-month period ended
October 31, 2001 were $1,868,491 or 24% of revenue compared to $1,348,496 or 61%
of revenue for the same  period of 2000.  Selling,  general  and  administrative
expenses have decreased  significantly as a percentage of revenues when compared
to the  three-month  period ended  October 31, 2000 which is  attributed  to our
substantial  revenue  growth  and the  economies  of  scale  realized  from  our
established   infrastructure.   Selling,  general  and  administrative  expenses
consisted of salaries and other personnel related expenses,  facilities  related
expenses,  legal and other  professional  fees,  advertising  costs,  and travel
expenses. Selling, general and administrative expenses included non-cash charges
of $84,248 for the three-month  period ended October 31, 2001.  Non-cash charges
include  $43,659 of stock issued to purchase an option to buy an office facility
and  $40,589 of stock to pay board of  director  and  professional  fees.  Other
non-cash  charges include $555,551  amortization of debenture  discount that was
converted  into common stock.  During the  three-month  period ended October 31,
2001 we incurred payroll related expenses of $1,272,669 compared to $637,006 for
the three-months ended October 31, 2000, or a 100% increase.

Depreciation  and  amortization  was $111,365 for the  three-month  period ended
October  31,  2001.  The  Depreciation  of  fixed  assets  represented  $56,673.
Amortization expense of $54,692 reflects the amortization of goodwill associated
with our Premier Express Acquisition.

In addition to the non-cash debenture items described above, interest expense of
$15,757  and  interest  income of $8,729 is  included  in  selling,  general and
administrative  expenses  for the  three-month  period  ended  October 31, 2001.
Interest expense related  primarily to interest on shareholder loans and capital
leases and interest income  resulted  primarily form interest earned on our cash
reserves.

NET LOSS

We recorded a net loss of $1,338,328  for the  three-month  period ended October
31, 2001. Our net loss increased by $348,275 or 35% from the three-month  period
ended  October 31, 2000.  Included in the  Company's  October 31, 2001 loss were
non-cash  charges of $639,799  which  includes  $555,551 of  debenture  discount
amortization.  Non-cash charges also include $43,659 of stock issued to purchase
an  option  to buy an  office  facility  and  $40,589  of stock to pay  board of
director and  professional  fees. This loss represents a $198,768  decrease from
the  $1,537,096  loss for the  three-months  ended July 31, 2001. It is expected
that we will  break-even  between  the second and third  quarter of this  fiscal
year,  however  there  are no  assurances  that we  will  be  able to meet  this
objective or obtain future profitability.


LIQUIDITY AND CAPITAL RESOURCES

At October 31, 2001, we had cash of $498,944,  a $13,852  increase over July 31,
2001, and a working capital deficiency of $2,032,733.  The primary source of our
working capital during the  three-month  period ended October 31, 2001, was from
cash flow generated by operations.  However,  there is no assurance that we will
be able to continue to provide cash through operations.

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<PAGE>


Convertible  debentures,  totaling  $650,000  were  converted  into equity as of
September  30,  2001.  We are also  working  on  additional  equity  funding  of
approximately  $2,000,000.  If we are unable to obtain this funding, we will not
be able to add the sales  personnel to increase our growth as rapidly as we have
planned.  In such event, we believe that our current cash resources,  along with
working capital from operations will be sufficient to fund our business at least
through the year ended July 31, 2002. There is no assurance that we will be able
to obtain this funding.

We believe that,  assuming that this funding closes,  the net proceeds from this
funding,  together with cash  generated from  operations,  will be sufficient to
meet our anticipated cash needs for working capital and capital expenditures for
the next 18 months  and will allow us to  continue  the rapid  expansion  of our
business.  However,  we may need to raise  additional  funds as we pursue  other
business or technology  acquisitions or experience  operating losses that exceed
our  current  expectations.  We cannot  assure you that we will be able to raise
such funds or such funds will be available to us on favorable terms. If we raise
additional  funds through the issuance of our equity for debt  securities,  such
securities  may have rights,  preferences  or privileges  senior to those of the
rights  of our  Common  Stock and our  stockholders  may  experience  additional
dilution.

We are currently restricted from raising other additional debt or equity without
the consent of the holders of our Series A Preferred  Stock.  Thomson  Kernaghan
has exclusive rights to provide any future equity line financing for two years.

eAutoclaims'  operations  provided  cash of $60,775 for the  three-month  period
ended October 31, 2001,  and  management  expects a  significant  source of cash
during the upcoming fiscal quarter as it funds its operating  businesses.  There
is no assurance we will  continue to sustain our growth.  Our business has grown
significantly  since our inception.  We believe that our current cash resources,
access to capital and cash flow from  operations  will be  sufficient to sustain
our   operations   through  at  least  July  31,  2002.   This   estimate  is  a
forward-looking statement that involves risks and uncertainties. The actual time
period  may differ  materially  from that  indicated  as a result of a number of
factors so that we cannot assure that our cash  resources will be sufficient for
anticipated   or   unanticipated   working   capital  and  capital   expenditure
requirements  for this period.  In order to sustain our growth,  we will require
substantial  additional  capital.  If we  raise  additional  funds  through  the
issuance of our  securities,  these  securities may have rights,  preferences or
privileges  senior  to those  of our  Common  Stock,  and our  stockholders  may
experience additional dilution to their equity ownership.

We will need capital to implement our business objectives. We cannot provide any
assurance  that we  will  be  successful  in  raising  such  capital,  and  such
undertakings are difficult to complete.  Although  management is optimistic that
we will be successful in obtaining future financing,  there is no assurance that
such financing will be available.

Our  principle  commitments  at October  31, 2001  consist of monthly  operating
rental payments, compensation of employees and accounts and notes payable.

INFLATION

We believe that the impact of inflation  and changing  prices on our  operations
since the commencement of our operations has been negligible.

SEASONALITY

eAutoclaims does not deem its revenues to be seasonal.


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<PAGE>


PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The  Company is subject to a lawsuits  and claims  arising out of the conduct of
its business.  Management  believes that the probable resolution of such matters
will not materially affect the financial position, results of operations or cash
flows of the Company.

On or about  October  23,  2000,  we  received  a demand  letter  from a website
developer for $135,000 alleging breach of contract. Our management believes that
we are entitled to a refund of $15,000.  A complaint  has been filed in Pinellas
County  Circuit Court  regarding  this  dispute.  It is too early to predict the
ultimate  outcome  of this  dispute.  Management  believes  we have  meritorious
defenses to this  action.  We believe  that there are no other claims or actions
pending or threatened against us, the ultimate disposition of which would have a
material adverse effect on us.

We believe  that  there are no other  claims or  actions  pending or  threatened
against us, the  ultimate  disposition  of which  would have a material  adverse
effect on us.


ITEM 2. CHANGE IN SECURITIES AND USE OF PROCEEDS.

On September 20, 2001, two  shareholders  and officers of the Company  converted
$44,000 of debt owed to them by eAutoclaims to 91,667 shares of stock.

During the  three-month  period ended  October 31, 2001,  $650,000 of debentures
were issued in June and July of 2001 were  converted to 942,855 shares of common
stock in accordance with the debenture agreements.

During the  three-month  period ended October 31, 2001, the Company entered into
an agreement for the lease of a new office facility that called for the issuance
of  97,927  shares  of stock for the  first  three  months  rent and a five year
purchase  option  of  the  property  at  a  pre-established  price.  During  the
three-month period ended October 31, 2001, $43,659 was charged to operations for
the stock issued  relating to the  purchase  option.  At October 31,  2001,  the
remaining shares have not been earned.

During the three-month  period ended October 31, 2001, the Company issued 83,741
shares of common stock in exchange for $35,589 of legal services.

During the  three-month  period  ended  October 31,  2001,  the  Company  issued
additional  options to employees and members of the Company's Board of Directors
to purchase  506,000  shares of common  stock where the  exercise  prices of the
options  are equal to or greater  than the fair  market  value of the  Company's
common stock on the date of each grant. Additionally, options to purchase 44,400
shares of common stock were canceled.

During the three-month  period ended October 31, 2001, the Company issued 10,640
shares of common stock to four  directors in exchange  for their  services.  The
Company charged operations  $5,000,  which was equal to the fair market value of
the shares when earned.

On October  1, the  Company  entered  into a  contract  with a public  relations
consultant for services.  This agreement  calls for the Company to issue options
to purchase 21,429 shares of stock on November 1, 2001.

                                       13
<PAGE>


ITEM 5. OTHER INFORMATION

None


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

None


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<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 on its
behalf by the undersigned, thereunto duly authorized.



Date:   December 12, 2001           By:      /s/ Eric Seidel
                                    --------------------------------------
                                    Eric Seidel, Chief Executive Officer


                                    By:      /s/ Scott Moore
                                    --------------------------------------
                                    Scott Moore, Chief Financial Officer


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