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 March 31, 2006

[_] 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.)

                           1059 East Tri-County Blvd.,
                            Oliver Springs, TN 37840
                  --------------------------------------------
                    (Address of principal executive offices)

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

                                 Not applicable
              -----------------------------------------------------
              (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 May 10, 2006, there were 19,911,864 shares of common stock, $0.01
par value, issued and outstanding.


<PAGE>


                              INDEX TO FORM 10-QSB
                                                                            PAGE
PART I         FINANCIAL INFORMATION

Item 1  Financial Statements

        Condensed Balance Sheets as of March 31, 2006 (Unaudited) and
           December 31, 2005                                                   3
        Condensed Statements of Operations (Unaudited) for the three
           months ended March 31, 2006 and 2005                                4
        Condensed Statements of Stockholders' (Deficit) Equity for the year
           ended December 31, 2005 and the three months ended
           March 31, 2006                                                      5
        Condensed Statements of Cash Flows (Unaudited) for the three months
           ended March 31, 2006 and 2005                                       6
        Notes to Condensed Financial Statements (Unaudited)                    7

Item 2  Management's Discussion and Analysis or Plan of Operation             10

Item 3  Controls and Procedures                                               11

PART II        OTHER INFORMATION                                              12

SIGNATURES                                                                    13

CAUTIONARY STATEMENT FOR PURPOSES OF THE "SAFE HARBOR" STATEMENT UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

      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.


                                       2
<PAGE>


                         Part I - FINANCIAL INFORMATION

Item 1. Financial Statements.

                      Diversified Product Inspections, Inc.

                            Condensed Balance Sheets

<TABLE>
<CAPTION>
                                                                March 31   December 31
                                                                  2006        2005
                                                              ------------------------
                                                              (Unaudited)
<S>                                                           <C>          <C>
Assets
Current assets:
   Cash                                                       $   221,309  $   196,893
   Accounts receivable, net of reserve for doubtful accounts
     of $25,000 in 2006 and 2005                                  264,029      279,085
   Current portion of deferred income taxes                        59,433       59,433
   Prepaid expenses and other current assets                          940          940
                                                              ------------------------
Total current assets                                              545,711      536,351

Property and equipment:
   Land                                                           150,000      150,000
   Building and building improvements                             735,318      735,318
   Equipment, furniture and fixtures                              419,271      402,771
   Vehicles                                                        71,512       71,512
                                                              ------------------------
                                                                1,376,101    1,359,601
   Less accumulated depreciation and amortization                 344,186      325,108
                                                              ------------------------
Net property and equipment                                      1,031,915    1,034,493

Other assets                                                        5,000        5,000
Deferred income taxes, less current portion                       377,713      405,586
                                                              ------------------------
Total assets                                                  $ 1,960,339  $ 1,981,430
                                                              ========================

Liabilities and stockholders' equity
Current liabilities:
   Line of credit                                             $        --  $    52,094
   Accounts payable and accrued expenses                           33,051       67,174
   Accrued salaries                                                30,329       21,103
   Deferred revenue                                               130,000      130,000
   Current portion of long-term debt                               43,179       42,496
   Current portion of capital lease obligation                      3,161        3,094
                                                              ------------------------
Total current liabilities                                         239,720      315,961

Long-term debt, less current portion                              752,427      763,097
Capital lease obligation, less current portion                      4,918        5,653
                                                              ------------------------
Total liabilities                                                 997,065    1,084,711

Stockholders' equity                                              963,274      896,719
                                                              ------------------------
Total liabilities and stockholders' equity                    $ 1,960,339  $ 1,981,430
                                                              ========================
</TABLE>

See accompanying Notes to Condensed Financial Statements.


                                       3
<PAGE>


                      Diversified Product Inspections, Inc.

                 Condensed Statements of Operations (Unaudited)

<TABLE>
<CAPTION>
                                                             Three months ended
                                                                  March 31
                                                              2006        2005
                                                          -----------------------
<S>                                                       <C>          <C>
Revenues                                                  $  591,335   $  365,405

Operating expenses:
   Salaries                                                  316,114      277,552
   Depreciation and amortization                              19,078       15,689
   General and administrative                                170,246      223,508
                                                          -----------------------
Total operating expenses                                     505,438      516,749
                                                          -----------------------

Operating income (loss)                                       85,897     (151,344)
Interest expense                                             (14,048)     (15,172)
                                                          -----------------------

Income (loss) before income taxes                             71,849     (166,516)
Deferred income tax (expense) benefit                        (27,873)      63,759
                                                          -----------------------

Net income (loss)                                         $   43,976   $ (102,757)
                                                          =======================

Basic and diluted earnings (loss) per common share        $    (0.00)  $    (0.01)
                                                          =======================
</TABLE>

See accompanying Notes to Condensed Financial Statements.


                                       4
<PAGE>


                      Diversified Product Inspections, Inc.

            Condensed Statements of Stockholders' Equity (Unaudited)

<TABLE>
<CAPTION>
                                                       Number of
                                                        Shares                  Additional                      Total
                                                      Issued and     Common      Paid-in      Accumulated   Stockholders'
                                                      Outstanding     Stock      Capital        Deficit        Equity
                                                      -------------------------------------------------------------------

<S>                                                   <C>         <C>          <C>          <C>             <C>
Balance at January 1, 2005                            19,135,314  $   191,353  $ 1,915,136  $  (1,163,019)  $     943,470
   Stock issued for services                             499,507        4,995       43,442             --          48,437
   Net loss for 2005                                          --           --           --        (95,188)        (95,188)
                                                      -------------------------------------------------------------------
Balance at December 31, 2005                          19,634,821      196,348    1,958,578     (1,258,207)        896,719
   Stock issued for services                             277,043        2,770       19,809             --          22,579
   Net income for three months ended March 31, 2006           --           --           --         43,976          43,976
                                                      -------------------------------------------------------------------
Balance at March 31, 2006                             19,911,864  $   199,118  $ 1,978,387  $  (1,214,231)  $     963,274
                                                      ===================================================================
</TABLE>

See accompanying Notes to Condensed Financial Statements.


                                       5
<PAGE>


                      Diversified Product Inspections, Inc.

                 Condensed Statements of Cash Flows (Unaudited)

<TABLE>
<CAPTION>
                                                                    Three months ended
                                                                         March 31
                                                                     2006        2005
                                                                 -----------------------

Operating activities
<S>                                                              <C>          <C>
Net income (loss)                                                $   43,976   $ (102,757)
Adjustments to reconcile net income (loss) to net cash provided
   by (used in) operating activities:
     Depreciation and amortization                                   19,078       15,689
     Deferred tax expense (benefit)                                  27,873      (63,759)
     Loss on disposal of assets                                          --          284
     Services paid with stock                                        22,579           --
     Changes in operating assets and liabilities:
       Accounts receivable                                           15,056       24,963
       Prepaid expenses and other assets                                 --         (947)
       Accounts payable and accrued expenses                        (34,123)      52,992
       Accrued salaries                                               9,226      (10,024)
                                                                 -----------------------
Net cash provided by (used in) operating activities                 103,665      (83,559)

Investing Activities
Purchases of property and equipment                                 (16,500)     (80,486)

Financing Activities
Principal payments on line of credit                                (52,094)          --
Principal payments on long-term debt and capital
   lease obligation                                                 (10,655)      (2,243)
                                                                 -----------------------
Net cash used in financing activities                               (62,749)      (2,243)
                                                                 -----------------------

Net increase (decrease) in cash                                      24,416     (166,288)

Cash at beginning of period                                         196,893      328,048
                                                                 -----------------------
Cash at end of period                                            $  221,309   $  161,760
                                                                 =======================

Supplemental disclosure of cash flow information

Cash paid for interest during the period                         $   14,048   $   10,907
                                                                 =======================
</TABLE>

See accompanying Notes to Condensed Financial Statements.


                                       6
<PAGE>


                      Diversified Product Inspections, Inc.

               Notes to Condensed Financial Statements (Unaudited)

                                 March 31, 2006


1.  Basis of Presentation

The accompanying unaudited condensed 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-month period ended March 31, 2006 are not necessarily
indicative of the results that may be expected for the year ended December 31,
2006.

The balance sheet at December 31, 2005 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 financial statements and footnotes thereto
included in the Company's annual report on Form 10-KSB for the year ended
December 31, 2005.

2.  Employee Stock Options

Prior to January 1, 2006, the Company accounted for its stock options under the
recognition and measurement provisions of APB Opinion No. 25, Accounting for
Stock Issued to Employees, and related Interpretations, as permitted by
Financial Accounting Standards Board ("FASB") Statement No. 123, Accounting for
Stock-Based Compensation ("FAS 123"). Effective January 1, 2006, the Company
adopted the fair value recognition provisions of FASB Statement No. 123(R),
Share-Based Payment ("FAS 123(R)"), using the modified-prospective-transition
method. Under that transition method, compensation costs to be recognized
effective January 1, 2006 are to include: (a) compensation cost for all
share-based payments granted prior to, but not yet vested as of January 1, 2006,
based on the grant date fair value estimated in accordance with the original
provisions of FAS 123, and (b) compensation cost for all share-based payments
granted subsequent to January 1, 2006, based on the grant-date fair value
estimated in accordance with the provisions of FAS 123(R). Results for prior
periods have not been restated.


                                       7
<PAGE>


                      Diversified Product Inspections, Inc.

               Notes to Condensed Financial Statements (Unaudited)

2.  Employee Stock Options (continued)

As a result of adopting FAS 123(R) there was no material effect on the Company's
income before taxes and net income for the three months ended March 31, 2006.
Had the Company elected to adopt the fair value recognition provisions of FAS
123(R) at January 1, 2005, pro forma net loss and loss per share would be as
follows for the three months ended March 31, 2005:

       Basic:
         Net loss, as reported                       $(102,757)
         Employee compensation, net of tax               6,465
                                                 ---------------
         Total                                    $   (109,222)
                                                 ===============
       Loss per share:
         Basic, as reported                        $    (0.01)
                                                 ===============
         Diluted, as reported                      $    (0.01)
                                                 ===============
         Basic, pro forma                          $    (0.01)
                                                 ===============
         Diluted, pro forma                        $    (0.01)
                                                 ===============

3.  Commitments and Contingencies

During 2005, the Company relocated its office and warehouse from a leased
facility to its new facility. Concurrently, the Company began negotiating for an
early termination of its lease agreement, which originally expired on December
31, 2005 and provided for monthly payments of $18,125. Management believes the
Company has satisfied separate termination arrangements made with the lessor and
suspended lease payments beginning in April 2005. Subsequently, the lessor filed
a lawsuit against the Company claiming breach of contract. A reasonable estimate
of any possible future liability related to this lawsuit is not presently
determinable, and accordingly, the Company has not recorded a liability related
to this matter.

4.  Earnings per Share

Basic earnings per share assumes no dilution and is computed by dividing income
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.


                                       8
<PAGE>


                      Diversified Product Inspections, Inc.

               Notes to Condensed Financial Statements (Unaudited)

4.   Earnings per Share (continued)

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

                                                     Nine months ended March 31
                                                         2006           2005
                                                    ---------------------------
Basic:
  Net income (loss)                                 $     43,976   $   (102,757)
  Average shares outstanding                          19,704,082     19,135,134
                                                    ---------------------------
  Basic earnings (loss) per share                   $      (0.00)  $      (0.01)
                                                    ===========================
Diluted:
  Net income (loss)                                 $     43,976   $   (102,757)
                                                    ===========================

  Average shares outstanding                          19,704,082     19,135,134
  Effect of dilutive stock options - based
     on treasury stock method                                 --      1,655,602
                                                    ---------------------------
  Total                                               19,704,082     20,790,736
                                                    ===========================

  Diluted earnings (loss) per share                 $      (0.00)  $      (0.01)
                                                    ===========================

5.   Line of Credit

During the quarter ended March 31, 2006, the Company repaid its revolving line
of credit. At March 31, 2006, the Company had $100,000 available under this
agreement.


                                       9
<PAGE>


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

Introduction

This Quarterly Report on Form 10-QSB for the period ended March 31, 2006, 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
pursuing claims to which they have become subrogated. 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 our
clients' investigations. Additionally, we provide for the storage of evidence
collected during an investigation, until our customer requests that it be
disposed.

Results of Operations

Three Months Ended March 31, 2006 Compared to Three Months Ended March 31, 2005

Our revenues increased from $365,405 for the three-months ended March 31, 2005
to $591,335 for the three months ended March 31, 2006, or by approximately
61.8%. This increase reflects the continuance of increased sales levels we
experienced in the third and fourth quarters of 2005 and our move to a new
office and warehouse location during the first quarter of 2005 that caused us to
miss inspection services during the location transition and created inspection
backlogs as we orientated to our new facilities.

Our total operating expenses for the three months ended March 31, 2006 were
$505,438, a decrease of $11,311, or approximately 2.2% compared to the same
period in 2005. Salary expense increased by $38,562, or approximately 13.9%
primarily due to additional personnel to support our increased revenue levels in
2006. General and administrative expenses decreased by $53,262 or approximately
23.8% primarily as a result of the elimination of rent expense associated with
our previous office and warehouse facilities.

As a result of the increase in our revenues and, to a lesser extent, the
decrease in our operating expenses, our net loss of $102,757 for the three
months ended March 31, 2005 improved by $146,733 to a net income of $43,976 for
the three months ended March 31, 2006.

Financial Position

Our net accounts receivable decreased by $15,056, or 5.4%, between December 31,
2005 and March 31, 2006, primarily due to timing of collections on related
accounts receivable. Our accounts payable and accrued expenses decreased by
$34,123, or 50.8%, between December 31, 2005 and March 31, 2006, primarily due
to timing of payments on related liabilities. Purchases of property and
equipment totaling $16,500 in 2006 consist mainly of furniture and equipment. As
a result of these items combined with our year to date net income, our cash
balance has increased by approximately $24,000 between December 31, 2005 and
March 31, 2006.


                                       10
<PAGE>


Liquidity and Capital Resources

During the quarter ended March 31, 2006, we repaid our revolving line of credit.
At March 31, 2006, we had $100,000 available under this agreement. We anticipate
that our internal cash flow, supplemented by our revolving credit agreement,
will be sufficient to fund operations for the next 12 months.

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.

Critical Accounting Policies

The preparation of financial statements and related disclosures requires
management to make judgments, assumptions and estimates that affect the amounts
in the financial statements and accompanying notes. Item 6. Management's
Discussion and Analysis or Plan of Operation contained in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 2005 describes these
critical accounting policies.

Item 3.  Controls and Procedures.

DISCLOSURE CONTROLS AND PROCEDURES

The Company's Chief Executive Officer is also its Chief Accounting Officer and
Chief Financial Officer. He is primarily responsible for the accuracy of the
financial information that is presented in this Quarterly Report on Form 10-QSB.
He has, within 90 days of the filing date of this Quarterly Report, evaluated
the Company's disclosure controls and procedures, as defined in the rules of the
SEC, and has determined that such controls and procedures were effective in
ensuring that material information relating to the Company was made known to him
during the period covered by this Quarterly Report.

INTERNAL CONTROLS

To meet his responsibility for financial reporting, the CEO/CFO has established
internal controls and procedures which he believes are adequate to provide
reasonable assurance that the Company's assets are protected from loss.

There were no significant changes in the Company's internal controls or in other
factors that could significantly affect internal controls subsequent to the date
of the CEO/CFO's most recent evaluation.


                                       11
<PAGE>


                           Part II - OTHER INFORMATION

Item 1. Legal Proceedings.

On August 23, 2005, Oak Ridge City Center, LLC, the lessor of our former
corporate headquarters located at 3 East Main Street, Oak Ridge, Tennessee,
commenced a lawsuit against the Company in the General Sessions Court in
Anderson County, Tennessee. The basis of the lawsuit is an alleged breach of a
commercial lease agreement dated December 19, 2000. The plaintiff is seeking
damages in the principal amount of $281,048.04, plus any applicable interest,
costs and attorney fees. Management believes the Company has satisfied separate
termination arrangements made with the lessor and suspended lease payments
beginning in April 2005. The trial in this cause is presently scheduled to be
held in June 2006. A reasonable estimate of any possible future liability
related to this lawsuit is not presently determinable, and accordingly, the
Company has not recorded on its balance sheet as of December 31, 2005 or March
31, 2006, a liability related to this matter.

Except for the foregoing, 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. Unregistered Sales of Equity Securities and Use of Proceeds.

During the quarter ended March 31, 2006, the Company issued an aggregate of
277,043 shares of its Common Stock to an employee for services performed this
period. The issuance was exempt from the registration requirements under the
Securities Act of 1933, as amended (the "Act") by virtue of an exemption
provided under Section 4(2) of the Act for transactions not involving a public
offering.

Item 3. Defaults Upon Senior Securities

      None

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

      None.

Item 5. Other Information

      None

Item 6. Exhibits.

      31.1 Certification of Chief Financial Officer pursuant to Section 302 of
      Sarbanes-Oxley Act.

      32.1 Certification of Chief Executive Officer pursuant to 18 U.S.C.
      Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley Act.


                                       12
<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: May 11, 2006              /s/ John Van Zyll
                                -----------------------------------------------
                                John Van Zyll
                                President, Chief Executive Officer and Chairman
                                (Principal Executive Officer and
                                Principal Accounting Officer)


                                       13