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, 2004

[_]  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 10, 2004,  there were 14,961,457  shares of common stock,  $0.01
par value, issued and outstanding.


<PAGE>


                          INDEX TO FINANCIAL STATEMENTS


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




                                      F-1

<PAGE>


                      Diversified Product Inspections, Inc.

                      Condensed Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                            MARCH 31          DECEMBER 31
                                                                              2004                2003
                                                                       ----------------------------------------
                                                                          (UNAUDITED)
<S>                                                                      <C>                 <C>
ASSETS

Current assets:
   Cash                                                                       $  400,151     $      296,409
   Accounts receivable, net of reserve for doubtful accounts
     of $35,000 in 2004 and 2003                                                 170,203            216,093
   Other receivable                                                                    -            100,000
   Current portion of deferred income taxes                                      143,485            143,485
   Prepaid expenses and other current assets                                       2,711              1,341
                                                                       ----------------------------------------
 Total current assets                                                            716,550            757,328

Property and equipment:
   Equipment, furniture and fixtures                                             331,838            306,788
   Vehicles                                                                       96,200            128,061
   Leasehold improvements                                                         22,727             22,727
                                                                       ----------------------------------------
                                                                                 450,765            457,576
   Less accumulated depreciation and amortization                                253,786            257,231
                                                                       ----------------------------------------
Net property and equipment                                                       196,979            200,345

Other assets                                                                       4,400              4,400
Deferred income taxes, less current portion                                      264,797            277,089
                                                                       ----------------------------------------
Total assets                                                                  $1,182,726         $1,239,162
                                                                       ========================================

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable and accrued expenses                                   $     108,892        $   147,963
   Accrued salaries                                                               28,177             14,445
   Deferred revenue                                                               66,667             91,667
   Current portion of notes payable                                                8,175             14,607
   Current portion of capital lease obligation                                     3,666              3,525
                                                                       ----------------------------------------
Total current liabilities                                                        215,577            272,207

Notes payable, less current portion                                               27,460             36,598
Capital lease obligation, less current portion                                     5,871              6,842
Convertible debt, net of discount of $5,000                                      295,000            295,000
                                                                       ----------------------------------------
Total liabilities                                                                543,908            610,647

Stockholders' equity:
   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                                                        (1,131,125)        (1,141,428)
                                                                       ----------------------------------------
Total stockholders' equity                                                       638,818            628,515
                                                                       ========================================
Total liabilities and stockholders' equity                                    $1,182,726         $1,239,162
                                                                       ========================================
</TABLE>

See accompanying Notes to Condensed Consolidated Financial Statements.


                                      F-2
<PAGE>

                      Diversified Product Inspections, Inc.

             Condensed Consolidated Statements of Income (Unaudited)

<TABLE>
<CAPTION>
                                                                   THREE MONTHS ENDED
                                                                        MARCH 31
                                                                2004               2003
                                                         ---------------------------------------
<S>                                                           <C>                <C>
Revenues                                                        $590,251           $566,730

Operating expenses:
   Salaries                                                      304,709            262,730
   Depreciation and amortization                                  17,000             17,619
   General and administrative                                    240,202            185,383
                                                         ---------------------------------------
 Total operating expenses                                        561,911            465,732
                                                         ---------------------------------------

 Operating income                                                 28,340            100,998

 Interest expense                                                 (5,745)            (9,747)
                                                         ---------------------------------------

Income before income taxes                                        22,595             91,251

Deferred income tax expense                                       12,292                  -
                                                         ---------------------------------------

Net income                                                      $ 10,303           $ 91,251
                                                         =======================================

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

See accompanying Notes to Condensed Consolidated Financial Statements.


                                      F-3
<PAGE>


                      Diversified Product Inspections, Inc.

           Condensed Consolidated Statements of Cash Flows (Unaudited)

<TABLE>
<CAPTION>
                                                                              THREE MONTHS ENDED
                                                                                   MARCH 31
                                                                           2004                 2003
                                                                   ------------------------------------------
<S>                                                                     <C>                 <C>
OPERATING ACTIVITIES
Net income                                                                 $ 10,303             $ 91,251
Adjustments to reconcile net income to net cash provided by
   operating activities:
     Depreciation and amortization                                           17,000               17,619
     Deferred tax expense                                                    12,292                    -
     Loss on sale of vehicles                                                   916                    -
     Changes in operating assets and liabilities:
       Accounts receivable                                                  145,890              (21,803)
       Prepaid expenses and other assets                                     (1,370)              (1,000)
       Accounts payable and accrued expenses                                (48,458)             (52,618)
       Accrued salaries                                                      13,732              (14,299)
       Deferred revenue                                                     (25,000)                   -
                                                                   ------------------------------------------
Net cash provided by operating activities                                   125,305               19,150

INVESTING ACTIVITIES
Proceeds from sale of vehicles                                               10,500                    -
Purchases of property and equipment                                         (15,663)              (4,741)
                                                                   ------------------------------------------
Net cash used in investing activities                                        (5,163)              (4,741)

FINANCING ACTIVITIES
Payment on shareholder advance                                                    -               (7,981)
Net payments on lines of credit                                                   -              (37,741)
Principal payments on notes payable and capital
   lease obligation                                                         (16,400)              (3,937)
                                                                   ------------------------------------------
Net cash used in financing activities                                       (16,400)             (49,659)
                                                                   ------------------------------------------

Net increase (decrease) in cash                                             103,742              (35,250)

Cash at beginning of period                                                 296,409              115,018
                                                                   ------------------------------------------
Cash at end of period                                                      $400,151             $ 79,768
                                                                   ==========================================
</TABLE>


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Accounts payable at March 31, 2004 includes $9,387 used to purchase equipment.

See accompanying Notes to Condensed Consolidated Financial Statements.


                                      F-4
<PAGE>

                      Diversified Product Inspections, Inc.

        Notes to Condensed Consolidated Financial Statements (Unaudited)

                                 March 31, 2004


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, 2004 are
not  necessarily  indicative  of the results  that may be expected  for the year
ended December 31, 2004.

The  balance  sheet at  December  31,  2003 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, 2003.

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 for  $1,607,640 if the
Company receives $3,000,000 in proceeds from a private placement offering.  This
purchase obligation expires on December 31, 2004.

3.       INCOME TAX PROVISION

No provision for income taxes was required for the three-months  ended March 31,
2003 due to the use of net operating  loss  carryforwards  for which the benefit
had not previously been recorded.

4.       EMPLOYEE STOCK OPTIONS

The Company  accounts for its stock options under the intrinsic  value method in
accordance with Accounting Principles Board Opinion No. 25, Accounting for Stock
Issued to  Employees,  ("APB")  and  related  interpretations.  The  Company has
adopted the  disclosure-only  provisions of the Financial  Accounting  Standards
Board ("FASB") Statement No. 123, Accounting for Stock-Based  Compensation ("FAS
123")  as  amended  by  FASB  Statement  No.  148,  Accounting  for  Stock-Based
Compensation - Transition and Disclosure ("FAS 148").  Under APB 25, because the
exercise price of the Company's  employee  stock  options,  which were issued in
2002,  is equal to or greater than the market price of the  underlying  stock on
the grant date, no compensation expense is generally recognized.


                                      F-5
<PAGE>


                      Diversified Product Inspections, Inc.

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


4.       EMPLOYEE STOCK OPTIONS (CONTINUED)

Pro forma  information  regarding  net  income,  as  presented  below,  has been
determined as if the Company had accounted for its employee  stock options under
the fair value method of FAS 123.

                                                   THREE MONTHS ENDED
                                                        MARCH 31
                                                2004                2003
                                         ---------------------------------------
Basic:
   Net income, as reported                 $       10,303      $       91,251
   Employee compensation, net of tax                6,465               6,465
                                         ---------------------------------------
   Total                                   $        3,838      $       84,786
                                         =======================================

 Earnings per share:
   Basic, as reported                      $         0.00      $         0.01
                                         =======================================
   Diluted, as reported                    $         0.00      $         0.01
                                         =======================================
   Basic, pro forma                        $         0.00      $         0.01
                                         =======================================
   Diluted, pro forma                      $         0.00      $         0.01
                                         =======================================

5.       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.
The following table sets forth the computation of basic and diluted earnings per
share for the periods indicated:

<TABLE>
<CAPTION>
                                                                 THREE MONTHS ENDED
                                                                      MARCH 31
                                                               2004                2003
                                                        ---------------------------------------
<S>                                                       <C>                 <C>
Basic:
   Net income                                             $       10,303      $       91,251
   Average shares outstanding                                 14,961,457          14,961,457
                                                        ---------------------------------------
   Basic earnings per share                               $         0.00      $         0.01
                                                        =======================================

Diluted:
   Net income                                             $       10,303      $       91,251
   Add interest on convertible debt                                2,700               1,500
                                                        ---------------------------------------
   Total                                                  $       13,003      $       92,751
                                                        =======================================

   Average shares outstanding                                 14,961,457          14,961,457
   Effect of dilutive stock options - based on
     treasury stock method                                     2,980,417              41,667
   Assumed conversion of 6% convertible debt                   1,992,022             123,457
                                                        ---------------------------------------
   Total                                                      19,933,896          15,126,581
                                                        =======================================
   Diluted earnings per share                             $        0.00       $         0.01
                                                        =======================================
</TABLE>


                                      F-6
<PAGE>


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

Introduction

This Quarterly  Report on Form 10-QSB for the period ended March 31, 2004 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 these  investigations.
Additionally,  we provide  for the  storage  of  evidence  collected  during the
investigation, until it is requested by the customer to be disposed.

Financial Position

Our net accounts  receivable  has  decreased by  approximately  $46,000  between
December  31, 2003 and March 31, 2004,  primarily as a result of our  successful
efforts in collecting past due amounts.  Additionally,  we collected $100,000 in
other  receivable  during the first  quarter of 2004.  We  purchased  additional
computer and other equipment with a total cost of  approximately  $25,000.  As a
result of our net income and related  positive  cash flows for the  quarter,  we
have  continued  our  successful  efforts to reduce our notes  payable,  capital
leases and accounts payable balances.  Accordingly, these amounts have decreased
by approximately $55,000 since December 31, 2003.

Statement of Income

Our revenues for the three-months  ended March 31, 2004 increased by 4% compared
to the same period in 2003  primarily due to use agreement  revenues.  Our total
operating  expenses  increased for the three-months  ended March 31, 2004 by 21%
compared to the same  period in 2003.  The  primary  reason for the  increase in
operating   expenses   was   continuing   salaries   and  related   general  and
administrative  expenses that increased in the third quarter of 2003 in response
to a significant  increase in business  volume during that period.  As a result,
net income for the three-months ended March 31, 2004 has decreased approximately
$81,000 compared to the same periods in 2003.


                                      F-7
<PAGE>


Liquidity and Capital Resources

As previously discussed,  cash flow results for the three-months ended March 31,
2004  were  sufficient  to  fund  operating  costs  and to  reduce  our  current
liabilities.

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

                       DISCLOSURE CONTROLS AND PROCEDURES

The Company's  Chief  Executive  Officer/ Chief  Financial  Officer 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 and its consolidated  subsidiaries 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 COMPANY'S  INTERNAL  CONTROLS OR IN OTHER
FACTORS THAT COULD SIGNIFICANTLY AFFECT INTERNAL CONTROLS SUBSEQUENT TO THE DATE
OF THE CEO'S AND CFO'S MOST RECENT EVALUATION.


                                      F-8
<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, 2004.

Item 3. Defaults in Senior Securities

      None

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

      None.

Item 5. Other Information

      None

Item 6. Exhibits and Reports on Form 8-K

(a)   Exhibits

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

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


(b)   The Company did not file a Report on Form 8-K for the first  quarter ended
      March 31, 2004.


<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 7, 2004           /s/ John Van Zyll
                           ------------------------------------------
                           John Van Zyll
                           President, Chief Executive Officer and Chairman
                           (Principal Executive Officer and
                            Principal Accounting Officer)