<PAGE>

                     U.S. Securities and Exchange Commission

                             Washington, D.C. 20549

                                   Form 10-QSB

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

For the quarterly period ended June 30, 2003

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

For the transition period from _____ to _____

Commission File number:0-25429

                      Diversified Product Inspections, Inc.
                     ---------------------------------------
                     (Exact name of small business issuer as
                            specified in its charter)

          Florida                                              65-0832025
- ---------------------------------                    -----------------------
(State of other jurisdiction of                             (IRS Employer
incorporation or organization)                             Identification No.)


                                  3 Main Street
                               Oak Ridge, TN 37830
                  --------------------------------------------
                    (Address of principal executive offices)


                                 (865) 482-8480
                           ---------------------------
                           (Issuer`s telephone number)


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

         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 August 10, 2003, there were 14,961,457  shares of common stock,
$0.01 par value, issued and outstanding.

<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM  1.   FINANCIAL  STATEMENTS




                          Index to Financial Statements




Condensed Consolidated Balance Sheets...............................F-2
Condensed Consolidated Statements of Operations.....................F-3
Condensed Consolidated Statements of Cash Flows.....................F-4
Notes to Condensed Consolidated Financial Statements................F-5









                                      F-1

<PAGE>
<TABLE>
<CAPTION>


                      Diversified Product Inspections, Inc.

                      Condensed Consolidated Balance Sheets



                                                                              June 30           December 31
                                                                                2003                2002
                                                                       ----------------------------------------
                                                                            (Unaudited)
<S>                                                                              <C>               <C>

Assets
Current assets:
   Cash                                                                       $   68,838        $   115,018
   Accounts receivable, net of reserve for
     doubtful accounts of $35,000 in 2003 and
     $39,000 in 2002                                                             313,241            259,641
   Prepaid expenses and other current assets                                       2,221              2,221
                                                                       ----------------------------------------
 Total current assets                                                            384,300            376,880

Property and equipment:
   Equipment, furniture and fixtures                                             238,723            195,279
   Vehicles                                                                       97,737             97,737
   Leasehold improvements                                                         22,727             22,727
   Construction in progress                                                       16,625                -
                                                                       ----------------------------------------
                                                                                 375,812            315,743
   Less accumulated depreciation and amortization                                224,170            189,234
                                                                       ----------------------------------------
Net property and equipment                                                       151,642            126,509

Other assets                                                                       4,400              4,400
                                                                       ----------------------------------------
Total assets                                                                 $   540,342       $    507,789
                                                                       ========================================

Liabilities and stockholders` deficit
Current liabilities:
   Lines of credit                                                           $    34,140        $    83,863
   Accounts payable and accrued expenses                                         127,669            170,190
   Accrued salaries                                                                7,820             22,561
   Advance from stockholder                                                        1,269             14,000
   Current portion of notes payable                                               15,032             17,338
   Current portion of capital lease obligation                                     3,260              3,014
                                                                       ----------------------------------------
Total current liabilities                                                        189,190            310,966

Notes payable, less current portion                                               17,806             22,648
Capital lease obligation, less current portion                                     8,693             10,368
Convertible debt, net of discount of $5,000                                      295,000            295,000
                                                                       ----------------------------------------
Total liabilities                                                                510,689            638,982

Stockholders` equity (deficit):
   Common stock, par value $0.01 per share --authorized 50,000,000 shares,
     issued and outstanding 14,961,457 shares                                    149,615            149,615
   Additional paid-in capital                                                  1,620,328          1,620,328
   Accumulated deficit                                                        (1,548,897)        (1,709,743)
   Deferred stock issuance costs                                                (191,393)          (191,393)
                                                                       ----------------------------------------
Total stockholders` equity (deficit)                                              29,653           (131,193)
                                                                       ========================================
                                                                       ----------------------------------------
Total liabilities and stockholders` equity (deficit)                         $   540,342         $  507,789
                                                                       ========================================

See accompanying Notes to Condensed Consolidated Financial Statements.

</TABLE>

                                      F-2
<PAGE>
<TABLE>
<CAPTION>


                      Diversified Product Inspections, Inc.

           Condensed Consolidated Statements of Operations (Unaudited)



                                                            Three months ended                      Six months ended
                                                                 June 30                                 June 30
                                                         2003                2002               2003                2002
                                                  -------------------------------------------------------------------------------
<S>                                                     <C>                   <C>                <C>                <C>

Revenues                                                $602,139           $ 522,200         $1,168,869          $  890,262

Operating expenses:
   Salaries                                              276,449             243,690            539,179             440,488
   Depreciation and amortization                          17,317              17,361             34,936              34,720
   General and administrative                            231,414             322,256            416,797             535,712
                                                  -------------------------------------------------------------------------------
 Total operating expenses                                525,180             583,307            990,912           1,010,920
                                                  -------------------------------------------------------------------------------

 Operating income (loss)                                  76,959             (61,107)           177,957            (120,658)

 Interest expense                                         (7,364)            (59,506)           (17,111)            (71,289)
                                                  -------------------------------------------------------------------------------

Net income (loss)                                       $ 69,595           $(120,613)       $   160,846           $(191,947)
                                                  ===============================================================================

 Basic and diluted earnings (loss) per common
   share                                              $        -        $     (0.01)      $       0.01          $    (0.01)
                                                  ===============================================================================


</TABLE>


See accompanying Notes to Condensed Consolidated Financial Statements.



                                      F-3




<PAGE>

<TABLE>
<CAPTION>

                      Diversified Product Inspections, Inc.

           Condensed Consolidated Statements of Cash Flows (Unaudited)




                                                                               Six months ended
                                                                                    June 30
                                                                           2003                 2002
                                                                   ------------------------------------------
<S>                                                                        <C>                 <C>


Operating activities
Net income (loss)                                                          $160,846            $(191,947)
Adjustments to reconcile net income (loss) to net cash
   provided by (used in) operating activities:
     Depreciation and amortization                                           34,936               34,720
     Interest expense on convertible debt issued at a conversion
       rate below market value                                                    -               50,205
     Changes in operating assets and liabilities:
       Accounts receivable                                                  (53,600)             (87,782)
       Prepaid expenses and other assets                                          -                 (400)
       Accounts payable and accrued expenses                                (42,521)               7,622
       Accrued salaries                                                     (14,741)                   -
                                                                   ------------------------------------------
Net cash provided by (used in) operating activities                          84,920             (187,582)

Investing activities
Purchases of property and equipment                                         (60,069)                   -

Financing activities
Payments on shareholder advance                                             (12,731)              (2,000)
Net payments on lines of credit                                             (49,723)             (40,409)
Proceeds from convertible debt                                                    -              200,000
Principal payments of notes payable   and capital
   lease obligation                                                          (8,577)             (15,192)
Proceeds from sale of common stock                                                -               25,000
                                                                   ------------------------------------------
Net cash (used in) provided by financing activities                         (71,031)             167,399
                                                                   ------------------------------------------

Net decrease in cash                                                        (46,180)             (20,183)

Cash at beginning of period                                                 115,018               46,016
                                                                   ------------------------------------------
Cash at end of period                                                      $ 68,838           $   25,833
                                                                   ==========================================



Supplemental disclosure of cash flow information

Cash paid for interest during the period                                   $ 17,111           $   21,084
                                                                   ==========================================


See accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>


                                   F-4
<PAGE>


                      Diversified Product Inspections, Inc.


        Notes to Condensed Consolidated Financial Statements (Unaudited)



1.  Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of
Diversified Products Inspections, Inc. (the "Company") have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and pursuant to the rules and
regulations of the Securities and Exchange Commission. Accordingly, they do not
include all of the information and footnotes required by accounting principles
generally accepted in the United States of America for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the three and six month periods ended June 30,
2003 are not necessarily indicative of the results that may be expected for the
year ended December 31, 2003.

The balance sheet at December 31, 2002 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by accounting principles generally accepted in the United
States of America for complete financial statements.

For further information, refer to the consolidated financial statements and
footnotes thereto included in the Company`s annual report on Form 10-KSB for the
year ended December 31, 2002.

2.       Commitments and Contingencies

The Company currently leases its office and warehouse under an agreement
classified as an operating lease. Under the terms of the lease agreement, the
Company is obligated to purchase the office and warehouse if the Company
receives $3,000,000 in proceeds from a private placement offering. The purchase
price will range from between $1,553,276 and $1,607,640, depending on the year
the purchase takes place. This purchase obligation expires on December 31, 2004.

During June 2003, the Company entered into an agreement with another company for
the development and design of certain software. At June 30, 2003, the Company
had a remaining commitment of approximately $30,000 related to this agreement.

3.    Income Tax Provision

Due to the Company`s net operating loss carry-forwards, no provision for income
taxes is required for the three and six months ended June 30, 2003.



                                      F-5



<PAGE>


                      Diversified Product Inspections, Inc.


  Notes to Condensed Consolidated Financial Statements (continued) (Unaudited)



4.       Earnings (Loss) Per Share Data

Basic earnings (loss) per share assumes no dilution and is computed by dividing
loss available to common stockholders by the weighted average number of common
stock outstanding during each period. Diluted earnings per share reflect, in
periods in which they have a dilutive effect, the effect of common shares
issuable upon the exercise of stock options or warrants, using the treasury
stock method of computing such effects and contingent shares, or conversion of
convertible debt.

The following table sets forth the computation of basic and diluted earnings
(loss) per share for the periods indicated:

<TABLE>
<CAPTION>



                                                    Three months ended                    Six months ended
                                                         June 30                               June 30
                                                 2003                2002              2003               2002
                                          ----------------------------------------------------------------------------
<S>                                               <C>                  <C>               <C>               <C>

Basic:
   Net income (loss)                        $       69,595       $    (120,613)     $     160,846     $    (191,947)
   Average shares outstanding                   14,961,457          14,784,127         14,961,457        14,578,071
                                          ----------------------------------------------------------------------------
   Basic earnings (loss) per share          $            -      $        (0.01)    $         0.01    $        (0.01)
                                          ============================================================================

Diluted:
   Net income (loss)                        $       69,595      $     (120,613)    $      160,846    $     (191,947)
   Add interest on convertible debt                  1,500                   -              3,000                 -
                                          ----------------------------------------------------------------------------
                                            $       71,095      $     (120,613)    $      163,846    $     (191,947)
                                          ============================================================================

   Average shares outstanding                   14,961,457          14,784,127         14,961,457        14,578,071
   Effect  of  dilutive  stock  options -
     based on
     treasury stock method                         133,333                   -            133,333                 -
   Assumed conversion of 6% convertible
     debt                                          191,358                   -            191,358                 -
                                          ----------------------------------------------------------------------------
   Total                                        15,286,148          14,784,127         15,286,148        14,578,071
                                          ============================================================================
   Diluted earnings (loss) per share        $            -      $        (0.01)    $         0.01    $        (0.01)
                                          ============================================================================



</TABLE>

                                      F-6

<PAGE>


Item 2. Management`s Discussion and Analysis of Results of Operations

Introduction

     This Quarterly Report on Form 10-QSB for the period ended June 30, 2003
should be read in conjunction with our unaudited financial statements included
as part of this Form 10-QSB Report. This report contains forward-looking
statements which are described and defined below.

General

We  specialize  in  conducting  investigations and laboratory analysis of a wide
variety  of  products to determine the cause and origin of product failures. Our
primary customers consist of national insurance companies that are interested in
subrogating  claims  to  recover losses. Subrogation is a legal principle, which
provides  that,  to  the  extent  an  insurer  has  paid for a loss, the insurer
receives  the  policyholder`s  right to recover from any third party that caused
the  loss. We have accumulated a large database of known defective products that
includes  photos  and other documentation that are used in their investigations.
Additionally,  we  provide  for the storage of evidence and derive revenues from
the  secure  storage  of  materials.

On  June  26, 2002, we changed our fiscal year end from the last day in February
to  December 31. We changed our fiscal year to conform to the fiscal year of our
subsidiary,  Diversified  Product  Investigations,  Inc.


<PAGE>
Financial  Position

The  primary change in our financial position between December 31, 2002 and June
30,  2003  was the successful reduction of our lines of credit balances, account
payable and accrued expenses and our advance from a stockholder by approximately
$127,000.  This  was facilitated by our year-to-date net income and related cash
flow.  Additionally,  during the second quarter of 2003, we purchased additional
computer  equipment  and  contracted  for  the development and design of certain
software  with  a  total  cost  of  approximately  $46,000.  At  June  30, 2003,
approximately  one-third  of  this  software  development and design process was
complete, and accordingly, we have recorded $16,625 as construction in progress.

Statement  of  Operations

Primarily due to our continued marketing efforts, we have successfully increased
our  revenues  for  the three and six months ended June 30, 2003 by 15% and 30%,
respectively,  compared  to  the  same  periods  in  2002.  Additionally,  while
attaining this growth, our total operating expenses have decreased for the three
and  six months ended June 30, 2003 compared to 2002. The primary reason for the
decrease  in  operating  expenses  was  related  to  a  decrease  in general and
administrative  expenses  despite  an  increase  in  salaries expense as we have
increased  our number of employees. As a result of our efforts, we have produced
net  income  for the three and six months ended June 30, 2003 compared to losses
in  the  same  periods  in  2002.

Liquidity  and  Capital  Resources

Prior  to  2003,  the  Company's  operations  had been funded primarily from the
issuance  of  its  common  stock for cash and proceeds from convertible debt. As
previously  discussed,  cash  flow  from operations for the three and six months
ended June 30, 2003 were sufficient to fund operations and to reduce our current
liabilities.


<PAGE>

We are not aware of any material trend, event or capital commitment, which would
potentially  adversely affect our liquidity. In the event such a trend develops,
we  believe  that  we  will  have  sufficient funds available to satisfy working
capital  needs through lines of credit and the funds expected from equity sales.

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 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.

Item 3.  Controls  And  Procedures

Management  continuously  evaluates  our  internal  controls  and procedures and
believes  that such controls and procedures are effective. There were no changes
in  the  Company`s  internal  controls  or  in  other  factors  that  could have
significantly  affected  those  controls subsequent to the date of the Company`s
most  recent  evaluation.

<PAGE>
                                     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

No  shares  of  the Company`s common stock were issued by the Company during the
three  month  period  ended June 30, 2003.

Item 3. Defaults in Senior Securities

         None

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

         None.

<PAGE>

Item 5. Other Information


       None

Item 6. Exhibits and Reports on Form 8-K

(a)  Exhibits

31.1 Certification  of  the  Chief Executive Officer and Chief Financial Officer
     Pursuant  to 18 U.S.C. Section 1350, Adopted Pursuant to Section 906 of the
     Sarbanes-Oxley  Act  of  2002.



(b)  The Company did not file a Report on Form 8-K  for the second  quarter
     ended June 30, 2003.



<PAGE>

                                   SIGNATURES


     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                             Diversified Product Inspections, Inc.
                                      (Registrant)


Date: August 10, 2003       /s/ John Van Zyll
                           ------------------------------------------
                           John Van Zyll
                           President, Chief Executive Officer and Chairman
                           (Principal Executive Officer and
                            Principal Accounting Officer)


<PAGE>




                            CERTIFICATION PURSUANT TO
                            -------------------------
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
                  ---------------------------------------------

     I,  John Van-Zyll,  certify  that:

     1.     I  have  reviewed  this  quarterly report on Form 10-QSB of
Diversified Product Inspections,  Inc.

     2.     Based  on  my  knowledge, this quarterly report does not contain any
untrue  statement  of a material fact or omit to state a material fact necessary
to  make  the  statements  made,  in light of the circumstances under which such
statements  were made, not misleading with respect to the period covered by this
quarterly  report;

     3.     Based on my knowledge, the financial statements, and other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report;

     4.     The registrant`s other certifying officers and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a-14  and  15d-14)  for  the  registrant  and  we  have:

     a) designed such disclosure controls and procedures to ensure that material
information  relating  to  the  registrant, is made known to us by others within
those entities, particularly during the period in which this quarterly report is
being  prepared;

     b)  evaluated the effectiveness of the registrant`s disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

     c)  presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

     5.     The  registrant`s  other  certifying  officers and I have disclosed,
based  on our most recent evaluation, to the registrant`s auditors and the audit
committee  of  registrant`s  board  of  directors  (or  persons  performing  the
equivalent  function):

     a)  all  significant  deficiencies  in  the design or operation of internal
controls  which  could  adversely  affect  the  registrant`s  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant`s  auditors  any  material  weaknesses  in  internal  controls;  and

     b)  any  fraud,  whether or not material, that involves management or other
employees who have a significant role in the registrant`s internal controls; and

     6.     The  registrant`s  other certifying officers and I have indicated in
this  quarterly report whether or not there were significant changes in internal
controls  or  in other factors that could significantly affect internal controls
subsequent  to  the date of our most recent evaluation, including any corrective
actions  with  regard  to  significant  deficiencies  and  material  weaknesses.

Date: August 10, 2003



                         /s/ John Van-Zyll
                         ______________________________________
                         By: John Van-Zyll
                         Chief Executive Officer/Chief Financial Officer



<PAGE>




<PAGE>