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

| o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|----------------------------------------------------------------------------------------------------------------------------------------|

| Florida                                        |   | 59-3087128                         |
|------------------------------------------------|--------|------------------------------------|
| (State                of other jurisdiction of |   | (IRS                Employer       |
| incorporation                or organization)  |   | Identification                No.) |

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|                 |   |                                                                                                                                                                                                |   | PAGE   |   |
|----------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| PART I               |   | FINANCIAL                INFORMATION                                                                                                                                                                |   |   |   |   |
|                 |   |                                                                                                                                                                                                |   |   |   |   |
| Item 1               |   | Financial                Statements                                                                                                                                                                 |   |   |   |   |
|                 |   |                                                                                                                                                                                                |   |   |   |   |
|                 |   | Condensed                  Balance Sheets as of June 30, 2008 (Unaudited) and December 31,                  2007                                                                               |   |   | 3      |   |
|                 |   | Condensed                  Statements of Operations (Unaudited) for the three and six months                  ended June 30, 2008 and 2007                                                     |   |   | 4      |   |
|                 |   | Condensed                    Statements of Stockholders’ Equity for the year ended December 31, 2007                    and the six months ended June 30, 2008                    (Unaudited) |   |   | 5      |   |
|                 |   | Condensed                  Statements of Cash Flows (Unaudited) for the six months ended June                  30,                  2008 and 2007                                                   |   |   | 6      |   |
|                 |   | Notes                to Condensed Financial Statements (Unaudited)                                                                                                                                  |   |   | 7      |   |
|                 |   |                                                                                                                                                                                                |   |   |   |   |
| Item              2  |   | Management's                  Discussion and Analysis of Financial Condition and Results of                  Operation                                                                              |   |   | 9      |   |
|                 |   |                                                                                                                                                                                                |   |   |   |   |
| Item              3  |   |  Quantitative                and Qualitative Disclosures About Market Risk                                                                                                                     |   |   | 10     |   |
|                 |   |                                                                                                                                                                                                |   |   |   |   |
| Item              4T |   |  Controls                and Procedures                                                                                                                                                        |   |   | 10     |   |
|                 |   |                                                                                                                                                                                                |   |   |   |   |
| PART II              |   | OTHER                INFORMATION                                                                                                                                                                    |   |   | 11     |   |
|                 |   |                                                                                                                                                                                                |   |   |   |   |
|                 |   | SIGNATURES                                                                                                                                                                                          |   |   | 12     |   |

----

|                                                                                                                                          |   | **June                30** |          | **December                31** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------------|--------------------------------|--------|
|                                                                                                                                          |   | **2008**                   |          | **2007**                       |   |
|                                                                                                                                          |   | **(Unaudited)**            |          |                           |   |
| **Assets**                                                                                                                                    |   |                       |          |                           |   |
| Current                assets:                                                                                                                |   |                       |          |                           |   |
| Cash                                                                                                                                          |   | **$**                      | **445,403**   |                           | $      | 462,442 |   |
| Accounts                receivable, net of reserve for doubtful accounts of $30,000 in 2008                and                $50,000 in 2007 |   |                       | **206,941**   |                           |   | 276,482 |   |
| Current                portion of deferred income taxes                                                                                       |   |                       | **57,160**    |                           |   | 79,343 |   |
| Prepaid                expenses and other current assets                                                                                      |   |                       | **30,620**    |                           |   | 18,655 |   |
| Total                current assets                                                                                                           |   |                       | **740,124**   |                           |   | 836,922 |   |
|                                                                                                                                          |   |                       |          |                           |   |   |   |
| Property                and equipment:                                                                                                        |   |                       |          |                           |   |   |   |
| Land                                                                                                                                          |   |                       | **96,250**    |                           |   | 96,250 |   |
| Building                and building improvements                                                                                             |   |                       | **735,318**   |                           |   | 735,318 |   |
| Equipment,                furniture and fixtures                                                                                              |   |                       | **412,441**   |                           |   | 402,058 |   |
| Vehicles                                                                                                                                      |   |                       | **132,949**   |                           |   | 132,949 |   |
|                                                                                                                                          |   |                       | **1,376,958** |                           |   | 1,366,575 |   |
| Less                accumulated depreciation and amortization                                                                                 |   |                       | **448,036**   |                           |   | 409,700 |   |
| Net                property and equipment                                                                                                     |   |                       | **928,922**   |                           |   | 956,875 |   |
|                                                                                                                                          |   |                       |          |                           |   |   |   |
| Other                assets                                                                                                                   |   |                       | **5,000**     |                           |   | 5,000 |   |
| Deferred                income taxes, less current portion                                                                                    |   |                       | **318,791**   |                           |   | 289,667 |   |
| Total                assets                                                                                                                   |   | **$**                      | **1,992,837** |                           | $      | 2,088,464 |   |

| **Liabilities                and stockholders’ equity**   |   |   |          |   |   |      |   |
|-----------------------------------------------------------------|--------|--------|---------------|--------|--------|-----------|--------|
| Current                liabilities:                             |   |   |          |   |   |      |   |
| Accounts                payable and accrued expenses            |   | **$**  | **56,270**    |   | $      | 74,682    |   |
| Accrued                salaries                                 |   |   | **35,701**    |   |   | 28,783    |   |
| Accrued                income taxes                             |   |   | **3,741**     |   |   | 3,741     |   |
| Accrued                settlement of lawsuit                    |   |   | **-**         |   |   | 30,000    |   |
| Deferred                revenues                                |   |   | **117,000**   |   |   | 127,000   |   |
| Capital                lease obligation                         |   |   | **-**         |   |   | 1,933     |   |
| Current                portion of long-term debt                |   |   | **48,215**    |   |   | 52,626    |   |
| Total                current liabilities                        |   |   | **260,927**   |   |   | 318,765   |   |
|                                                            |   |   |          |   |   |      |   |
| Long-term                debt, less current portion             |   |   | **690,381**   |   |   | 716,181   |   |
| Total                liabilities                                |   |   | **951,308**   |   |   | 1,034,946 |   |
|                                                            |   |   |          |   |   |      |   |
| Stockholders’                equity                       |   |   | **1,041,529** |   |   | 1,053,518 |   |
| Total                liabilities and stockholders’ equity |   | **$**  | **1,992,837** |   | $      | 2,088,464 |   |

*See      accompanying Notes to Condensed Financial Statements.*

----

|                                                                       |   | **Three                months ended** |        | **Six                months ended** |   |
|----------------------------------------------------------------------------|--------|---------------------------------------|-------------|-------------------------------------|--------|
|                                                                       |   | **June                30**            |        | **June                30**          |   |
|                                                                       |   | **2008**                              |        | **2007**                            |   | **2008** |   | **2007** |   |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |
| Revenues                                                                   |   | **$**                                 | **611,150** |                                | $      | 629,639 |   | **$** | **1,178,762** |   | $ | 1,213,004 |   |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Operating                expenses:                                         |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Salaries                                                                   |   |                                  | **359,409** |                                |   | 343,517 |   |   | **711,874** |   |   | 660,785 |   |
| Depreciation                and amortization                               |   |                                  | **19,593**  |                                |   | 17,562 |   |   | **39,736** |   |   | 36,042 |   |
| General                and administrative                                  |   |                                  | **230,894** |                                |   | 254,513 |   |   | **437,504** |   |   | 483,224 |   |
| Total                operating expenses                                    |   |                                  | **609,896** |                                |   | 615,592 |   |   | **1,189,114** |   |   | 1,180,051 |   |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Operating                income (loss)                                     |   |                                  | **1,254**   |                                |   | 14,047 |   |   | **(10,352** | **)** |   | 32,953 |   |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Other                (expense) income:                                     |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Interest                expense                                            |   |                                  | **(11,634** | **)**                               |   | (12,964 | ) |   | **(23,578** | **)** |   | (25,034 | ) |
| Rent                income                                                 |   |                                  | **7,500**   |                                |   | - |   |   | **15,000** |   |   | - |   |
| Net                other expense                                           |   |                                  | **(4,134**  | **)**                               |   | (12,964 | ) |   | **(8,578** | **)** |   | (25,034 | ) |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| (Loss)                income before income taxes                           |   |                                  | **(2,880**  | **)**                               |   | 1,083 |   |   | **(18,930** | **)** |   | 7,919 |   |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Deferred                income tax benefit (expense)                       |   |                                  | **656**     |                                |   | (274 | ) |   | **6,941** |   |   | (3,167 | ) |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Net                (loss) income                                           |   | **$**                                 | **(2,224**  | **)**                               | $      | 809 |   | **$** | **(11,989** | **)** | $ | 4,752 |   |
|                                                                       |   |                                  |        |                                |   |   |   |   |   |   |   |   |   |
| Basic                and diluted earnings (loss) earnings per common share |   | **$**                                 | **(0.00**   | **)**                               | $      | 0.00 |   | **$** | **(0.00** | **)** | $ | 0.00 |   |

*See      accompanying Notes to Condensed Financial Statements.*

----

|                                                       |   | **Number                of****Shares****Issued                and****Outstanding** |           |   **Common****Stock** |   | **Additional****Paid-in****Capital** |   |  **Accumulated****Deficit** |          | **Total****Stockholders’****Equity** |   |
|------------------------------------------------------------|--------|------------------------------------------------------------------------------------|----------------|---------------------------------|--------|--------------------------------------|--------|----------------------------------|---------------|--------------------------------------------|--------|
|                                                       |   |                                                                               |           |                            |   |                                 |   |                             |          |                                       |   |
| Balance                at January 1, 2007                  |   |                                                                               | 20,180,867     |                            | $      | 201,808                              |   | $                                | 1,997,836     |                                       | $      | (1,190,876 | ) | $ | 1,008,768 |   |
| Retired                stock                               |   |                                                                               | (75,000        | )                               |   | (750                                 | )      |                             | 750           |                                       |   | - |   |   | - |   |
| Net                income for 2007                         |   |                                                                               | -              |                            |   | -                                    |   |                             | -             |                                       |   | 44,750 |   |   | 44,750 |   |
| Balance                at December 31, 2007                |   |                                                                               | 20,105,867     |                            |   | 201,058                              |   |                             | 1,998,586     |                                       |   | (1,146,126 | ) |   | 1,053,518 |   |
| Net                loss for six months ended June 30, 2008 |   |                                                                               | **-**          |                            |   | **-**                                |   |                             | **-**         |                                       |   | **(11,989** | **)** |   | **(11,989** | **)** |
| Balance                at June 30, 2008                    |   |                                                                               | **20,105,867** |                            | **$**  | **201,058**                          |   | **$**                            | **1,998,586** |                                       | **$**  | **(1,158,115** | **)** | **$** | **1,041,529** |   |

*See      accompanying Notes to Condensed Financial Statements.*

----

|                                                                                                                                            |   | **Six                months ended****June                30** |        |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|-------------|
|                                                                                                                                            |   | **2008**                                                      |        | **2007** |   |
|                                                                                                                                            |   |                                                          |        |   |   |
| **Operating                activities**                                                                                                         |   |                                                          |        |   |   |
| Net                (loss) income                                                                                                                |   | **$**                                                         | **(11,989** | **)** | $ | 4,752 |   |
| Adjustments                to reconcile net (loss) income to net cash provided by (used in)                operating                activities: |   |                                                          |        |   |   |   |   |
| Depreciation                and amortization                                                                                                    |   |                                                          | **39,736**  |   |   | 36,042 |   |
| Deferred                income tax (benefit) expense                                                                                            |   |                                                          | **(6,941**  | **)** |   | 3,167 |   |
| Provision                for bad debts                                                                                                          |   |                                                          | **(20,000** | **)** |   | - |   |
| Changes                in operating assets and liabilities:                                                                                     |   |                                                          |        |   |   |   |   |
| Accounts                receivable                                                                                                              |   |                                                          | **89,541**  |   |   | (50,154 | ) |
| Prepaid                expenses and other assets                                                                                                |   |                                                          | **(11,965** | **)** |   | (13,086 | ) |
| Accounts                payable and accrued expenses                                                                                            |   |                                                          | **(18,412** | **)** |   | 3,680 |   |
| Accrued                salaries                                                                                                                 |   |                                                          | **6,918**   |   |   | 1,854 |   |
| Accrued                settlement of lawsuit                                                                                                    |   |                                                          | **(30,000** | **)** |   | - |   |
| Deferred                revenues                                                                                                                |   |                                                          | **(10,000** | **)** |   | (6,666 | ) |
| Net                cash provided by (used in) operating activities                                                                              |   |                                                          | **26,888**  |   |   | (20,411 | ) |
|                                                                                                                                            |   |                                                          |        |   |   |   |   |
| **Investing                activities**                                                                                                         |   |                                                          |        |   |   |   |   |
| Purchases                of equipment                                                                                                           |   |                                                          | **(11,783** | **)** |   | (16,901 | ) |
|                                                                                                                                            |   |                                                          |        |   |   |   |   |
| **Financing                activities**                                                                                                         |   |                                                          |        |   |   |   |   |
| Principal                payments on long-term debt and capital lease obligation                                                                |   |                                                          | **(32,144** | **)** |   | (23,351 | ) |
|                                                                                                                                            |   |                                                          |        |   |   |   |   |
| Net                change in cash                                                                                                               |   |                                                          | **(17,039** | **)** |   | (60,663 | ) |
|                                                                                                                                            |   |                                                          |        |   |   |   |   |
| Cash                at beginning of period                                                                                                      |   |                                                          | **462,442** |   |   | 331,793 |   |
| Cash                at end of period                                                                                                            |   | **$**                                                         | **445,403** |   | $ | 271,130 |   |

*See      accompanying Notes to Condensed Financial Statements.*

----

**1.      Basis of Presentation**

**2.      Recent Accounting Pronouncements**

*Fair      Value Measurements*
*Effective      Date of FASB Statement No. 157*

*The      Fair Value Option for Financial Assets and Financial Liabilities—Including an      Amendment of FASB Statement No. 115*

----

**3.**
**Contingencies**

**4.      Earnings per Share**

|                                                       |   | **Three                months ended** |           | **Six                months ended** |   |
|------------------------------------------------------------|--------|---------------------------------------|----------------|-------------------------------------|--------|
|                                                       |   | **June                30**            |           | **June                30**          |   |
|                                                       |   | **2008**                              |           | **2007**                            |   | **2008** |   | **2007** |   |
| Basic                and diluted:                          |   |                                  |           |                                |   |   |   |   |   |
| Net                (loss) income                           |   | **$**                                 | **(2,224**     | **)**                               | $      | 809 |   | **$** | **(11,989** | **)** | $ | 4,752 |   |
| Average                shares outstanding                  |   |                                  | **20,105,867** |                                |   | 20,180,867 |   |   | **20,105,867** |   |   | 20,180,867 |   |
| Basic                and diluted (loss) earnings per share |   | **$**                                 | **(0.00**      | **)**                               | $      | 0.00 |   | **$** | **(0.00** | **)** | $ | 0.00 |   |

----

----

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| 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                  |                                                                                                                                                                                  |                                             |
|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|
|                  | Diversified                Product Inspections, Inc.(Registrant)                                                                                                                      |
|             |                                                                                                                                                                             |                                        |
| Date: August 13, 2008 |                                                                                                                                                                                  | /s/ John              Van              Zyll |
|                  | John                Van ZyllPresident,                Chief Executive Officer and Chairman(Principal                Executive Officer andPrincipal                Accounting Officer) |
|                  |                                                                                                                                                                                       |

----