<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 March 31, 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 May 13, 2003, there were 14,961,457 shares of common stock,
$0.01 par value, issued and outstanding.

<PAGE>
<TABLE>
<CAPTION>


                         PART I - FINANCIAL INFORMATION

ITEM  1.   FINANCIAL  STATEMENTS





                          Index to Financial Statements



<S>                                                                   <C>
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
</TABLE>

                                      F-1

<PAGE>

<TABLE>
<CAPTION>

                      Diversified Product Inspections, Inc.

                      Condensed Consolidated Balance Sheets



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

Assets
Current assets:
   Cash                                                                       $   79,768        $   115,018
   Accounts receivable, net of reserve for
     doubtful accounts of $39,000 in 2003 and 2002
                                                                                 281,444            259,641
   Prepaid expenses and other current assets                                       3,221              2,221
                                                                       ----------------------------------------
 Total current assets                                                            364,433            376,880

Property and equipment:
   Equipment, furniture and fixtures                                             200,020            195,279
   Vehicles                                                                       97,737             97,737
   Leasehold improvements                                                         22,727             22,727
                                                                        ----------------------------------------
                                                                                 320,484            315,743
   Less accumulated depreciation and amortization                                206,853            189,234
                                                                       ----------------------------------------
Net property and equipment                                                       113,631            126,509

Other assets                                                                       4,400              4,400
                                                                       ----------------------------------------
Total assets                                                                  $  482,464       $    507,789
                                                                       ========================================

Liabilities and stockholders' deficit
Current liabilities:
   Lines of credit                                                            $   46,122        $    83,863
   Accounts payable and accrued expenses                                         117,572            170,190
   Accrued salaries                                                                8,262             22,561
   Advance from stockholder                                                        6,019             14,000
   Current portion of notes payable                                               16,463             17,338
   Current portion of capital lease obligation                                     3,135              3,014
                                                                       ----------------------------------------
Total current liabilities                                                        197,573            310,966

Notes payable, less current portion                                               20,273             22,648
Capital lease obligation, less current portion                                     9,560             10,368
Convertible debt, net of discount of $5,000                                      295,000            295,000
                                                                       ----------------------------------------
Total liabilities                                                                522,406            638,982

Stockholders' 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                                                        (1,618,492)        (1,709,743)
   Deferred stock issuance costs                                                (191,393)          (191,393)
                                                                       ----------------------------------------
Total stockholders' deficit                                                      (39,942)          (131,193)
                                                                       ----------------------------------------
Total liabilities and stockholders' deficit                                   $  482,464         $  507,789
                                                                       ========================================

See accompanying Notes to Condensed Consolidated Financial Statements.

                                      F-2
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                      Diversified Product Inspections, Inc.

           Condensed Consolidated Statements of Operations (Unaudited)

                                                                                  Three months ended
                                                                                       March 31
                                                                               2003               2002
                                                                        ---------------------------------------
<S>                                                                            <C>                 <C>

Revenues                                                                      $566,730           $368,062

Operating expenses:
   Salaries                                                                    262,730            196,798
   Depreciation and amortization                                                17,619             17,359
   General and administrative                                                  185,383            213,455
                                                                        ---------------------------------------
 Total operating expenses                                                      465,732            427,612
                                                                        ---------------------------------------

 Operating income (loss)                                                       100,998            (59,550)

 Interest expense                                                               (9,747)           (11,783)
                                                                        ---------------------------------------

Net income (loss)                                                             $ 91,251           $(71,333)
                                                                        =======================================

 Basic and diluted earnings (loss) per common share                         $    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)




                                                                              Three months ended
                                                                                   March 31
                                                                           2003                 2002
                                                                   ------------------------------------------
<S>                                                                         <C>                 <C>

Operating activities
Net income (loss)                                                          $ 91,251             $(71,334)
Adjustments to reconcile net income (loss) to net cash
   provided by (used in) operating activities:
     Depreciation and amortization                                           17,619               17,359
     Changes in operating assets and liabilities:
       Accounts receivable                                                  (21,803)             (44,771)
       Prepaid expenses and other assets                                     (1,000)                   -
       Accounts payable and accrued expenses                                (52,618)              44,665
       Accrued salaries                                                     (14,299)                   -
                                                                   ------------------------------------------
Net cash provided by (used in) operating activities                          19,150              (54,081)

Investing activities
Purchases of property and equipment                                          (4,741)                   -

Financing activities
Payment on shareholder advance                                               (7,981)                   -
Net (payments) proceeds from lines of credit                                (37,741)               7,413
Principal payments of notes payable   and capital
   lease obligation                                                          (3,937)              (7,584)
Proceeds from sale of common stock                                                -               25,000
                                                                   ------------------------------------------
Net cash (used in) provided by financing activities                         (49,659)              24,829
                                                                   ------------------------------------------

Net decrease in cash                                                        (35,250)             (29,252)

Cash at beginning of period                                                 115,018               46,016
                                                                   ------------------------------------------
Cash at end of period                                                      $ 79,768             $ 16,764
                                                                   ==========================================

Supplemental disclosure of cash flow information

Cash paid for interest during the period                                   $  9,747             $ 11,783
                                                                   ==========================================


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 month period ended March 31, 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.

3.    Income Tax Provision

Due to the Company's net operating loss carry-forwards, no provision for income
taxes is required for the three months ended March 31, 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
                                                                March 31
                                                        2003                2002
                                                 ---------------------------------------
<S>                                                      <C>                <C>

Basic:
   Net income (loss)                               $       91,251      $      (71,333)
   Average shares outstanding                          14,961,457          14,309,281
                                                 ---------------------------------------
   Basic earnings (loss) per share                 $         0.01      $        (0.01)
                                                 =======================================

Diluted:
   Net income (loss)                               $       91,251      $      (71,334)
   Add interest on convertible debt                         1,500                   -
                                                 ---------------------------------------
   Total                                           $       92,751      $      (71,334)
                                                 =======================================

   Average shares outstanding                          14,961,457          14,309,281
   Effect of dilutive stock options - based on
     treasury stock method                                 41,667                   -
   Assumed conversion of 6% convertible debt              123,457                   -
                                                 ---------------------------------------
   Total                                               15,126,581          14,309,281
                                                 =======================================
   Diluted earnings (loss) per share               $         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 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>
Results of Operations  for the Three Month Period Ended March 31, 2003

Financial Position

The  only  significant change in our balance sheet between December 31, 2002 and
March  31,  2003  was  the  successful reduction of our line of credit balances,
accounts  payable  and  accrued  expenses  by  approximately  $90,000.  This was
facilitated  by  our  first  quarter  net  income  and  related  cash  flow.

Statement  of  Operations

Primarily due to our marketing efforts, we have successfully increased our first
quarter revenues by almost $200,000, or 54%, between 2003 and 2002.
Additionally, while attaining this growth, our total operating expenses have
increased by only approximately $38,000 or 9%.  The primary increase in our
operating expenses was related to salaries as we have increased our number of
employees.  During this same period, we have successfully managed our general
and administrative expense resulting in a decrease in these expenses by almost
$30,000.  As a result of our efforts, our first quarter 2003 net income was
$91,251

Liquidity and Capital Resources

Prior  to  the  first  quarter of 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  results for the first
quarter  period  of  2003  were sufficient to fund operating costs and allow the
reduction  of  our  line  of  credit  balances,  accounts  payable,  and accrued
expenses.

The  Company  anticipates  that  revenues will continue to be generated from the
investigative and analysis services and that such revenues will fund the current
level  of  operations. Provided that revenues continue and/or additional funding
is secured, the Company believes that it can continue to meet its capital needs.
There  can be no assurance that the Company will be successful in these efforts.

<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  March 31, 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

(b)  The Company did not file a Report on Form 8-K  for the first  quarter
     ended March 31, 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: May 13, 2003       /s/ John Van Zyll
                           ------------------------------------------
                           John Van Zyll
                           President, Chief Executive Officer and Chairman
                           (Principal Executive Officer and
                            Principal Accounting Officer)
<PAGE>

                           CERTIFICATIONS PURSUANT TO
                             18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002






In connection with the Quarterly Report of Diversified Product Inspections, Inc.
(the  "Company")  on  Form  10-QSB  for the period ending March 31, 2003, as
filed  with  the  Securities  and  Exchange  Commission  on the date hereof (the
"Report"),  the undersigned, Chief Executive Officer and Chief Financial Officer
of  the  Company,  certifies,  pursuant  to  18  U.S.C. Section 1350, as adopted
pursuant  to  Section  906  of  the  Sarbanes-Oxley  Act  of  2002,  that:

(1)  The Report fully complies with the requirements of section 3(a) or 15(d) of
     the  Securities  and  Exchange  Act  of  1934;  and

(2)  The  information  contained  in the Report fairly presents, in all material
     respects, the financial condition and results of operations of the Company.



                         /s/ John Van-Zyll
                         ____________________________________________
                         By: John Van-Zyll
                         Chief Executive Officer/Chief Financial Officer
                         May 13, 2003


<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: May 13, 2003



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




<PAGE>