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U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549



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Form 10-QSB



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(Mark One)

|x | Quarterly report under section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------



For the quarterly period ended: June 30, 2005



| ̈ | Transition report under section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ----------------------------------------------------------------------------------



For the transition period from  to
.



Commission File No: 33-9640-LA



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AMERICAN BUSINESS CORPORATION

(Name of Small Business in its Charter)



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|                                               |  |                       
|---------------------------------------------- |  | ----------------------
|Colorado                                       |  | 68-0133692            
|(State or Other Jurisdiction of Incorporation) |  | (IRS Employer Id. No.)



222 Grace Church
Street, Suite 300, Port Chester, NY 10573

(Address of Principal Office including Zip Code)



Issuers telephone Number: (914) 939-5081



---



Check whether the Registrant (1) has 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 ̈



APPLICABLE ONLY TO CORPORATE ISSUERS:



State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:



Common Stock, par value $.001 per share, 69,870,517 shares at June 30, 2005



Transitional Small Business Disclosure Format (Check one):    Yes ̈NO  x.



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AMERICAN BUSINESS CORPORATION

FORM 10-QSB - QUARTER ENDED JUNE 30, 2005



INDEX



|                               |  |                                                                                                       |  |   
|------------------------------ |  | ----------------------------------------------------------------------------------------------------- |  | --
|                               |  | Page                                                                                                 
|PART I - FINANCIAL INFORMATION
|                               |  |                                                                                                      
|Item 1.                        |  | Financial Statements                                                                                  |  | 2 
|                               |  | Condensed Balance Sheets at June 30, 2005 and December 31, 2004                                       |  | 3 
|                               |  | Condensed Statements of Operations for the Six Months and Three Ended June 30, 2005 and June 30, 2004 |  | 4 
|                               |  | Condensed Statement of Shareholders Impairment for the Period January 1, 2004 through June 30, 2005  |  | 5 
|                               |  | Condensed Statements of Cash Flows for the Six Months Ended June 30, 2005 and June 30, 2004           |  | 6 
|                               |  | Notes to the Condensed Financial Statements                                                           |  | 7 
|                               |  |                                                                                                      
|Item 2.                        |  | Managements Discussion and Analysis                                                                  |  | 8 
|                               |  |                                                                                                      
|Item 3.                        |  | Controls and Procedures                                                                               |  | 10
|                              
|PART II - OTHER INFORMATION   
|Item 6.                        |  | Exhibits and Reports on Form 8-K                                                                      |  | 10
|                              
|SIGNATURES                    
|                               |  | Signatures                                                                                            |  | 11
|                               |  | Exhibits                                                                                              |  | 12



PART I  FINANCIAL INFORMATION



ITEM 1. FINANCIAL STATEMENTS



The
unaudited condensed balance sheet of the Registrant as of June 30, 2005, the audited balance sheet at December 31, 2004, and the unaudited condensed statements of operations, shareholders impairment, and cash flows for the six and three month
periods ended June 30, 2005 and June 30, 2004 follow. The condensed financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented.



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AMERICAN BUSINESS CORPORATION

CONDENSED BALANCE SHEETS



|                                                                                                          |  |                           |             |   |                   |   |             |  
|--------------------------------------------------------------------------------------------------------- |  | ------------------------- | ----------- | - | ----------------- | - | ----------- | -
|                                                                                                          |  | June 30, 2005 [unaudited] |             |   | December 31, 2004 |  
|Assets                                                                                                    |  |                           |             |   |                   |   |             |  
|Current assets                                                                                           |  |                           |             |   |                   |   |             |  
|Cash                                                                                                      |  | $                         | 3,986       |   |                   | $ | 6,845       |  
|                                                                                                          |  |                           |             |   |                   |   |             |  
|Total current assets                                                                                      |  |                           | 3,986       |   |                   |   | 6,845       |  
|Equipment, net                                                                                            |  |                           | 18,216      |   |                   |   | 20,493      |  
|                                                                                                          |  |                           |             |   |                   |   |             |  
|Total Assets                                                                                              |  | $                         | 22,202      |   |                   | $ | 27,338      |  
|                                                                                                          |  |                           |             |   |                   |   |             |  
|Liabilities and Shareholders Impairment                                                                  |  |                           |             |   |                   |   |             |  
|Current Liabilities                                                                                       |  |                           |             |   |                   |   |             |  
|Accrued expenses                                                                                          |  | $                         | 380,564     |   |                   | $ | 320,564     |  
|Accrued interest                                                                                          |  |                           | 3,273,268   |   |                   |   | 3,273,268   |  
|Due to related parties                                                                                    |  |                           | 3,843,090   |   |                   |   | 3,641,375   |  
|Loans payable                                                                                             |  |                           | 2,518,000   |   |                   |   | 2,518,000   |  
|Convertible debentures                                                                                    |  |                           | 3,793,460   |   |                   |   | 3,793,460   |  
|Net liabilities of discontinued operations                                                                |  |                           | 4,440,657   |   |                   |   | 4,440,657   |  
|                                                                                                          |  |                           |             |   |                   |   |             |  
|Total Current Liabilities                                                                                 |  |                           | 18,249,039  |   |                   |   | 17,997,324  |  
|                                                                                                          |  |                           |             |   |                   |   |             |  
|Commitments and contingencies                                                                             |  |                           |             |   |                   |   |             |  
|Shareholders Impairment                                                                                  |  |                           |             |   |                   |   |             |  
|Preferred stock, no par value; (10,000,000 shares authorized)                                             |  |                           |             |   |                   |   |             |  
|Series A (90,000 shares issued and outstanding)                                                           |  |                           | 76          |   |                   |   | 76          |  
|Series B (2,000 shares issued and outstanding)                                                            |  |                           | 2,000,000   |   |                   |   | 2,000,000   |  
|Series C (450,000 shares issued and outstanding)                                                          |  |                           | 135,000     |   |                   |   | 135,000     |  
|Series D (950 shares issued and outstanding)                                                              |  |                           | 950,000     |   |                   |   | 950,000     |  
|Series E (2,300 shares issued and outstanding)                                                            |  |                           | 2,300,000   |   |                   |   | 2,300,000   |  
|Common stock, par value $.001 per share; 500,000,000 authorized, 69,870,517 shares issued and outstanding |  |                           | 69,870      |   |                   |   | 69,870      |  
|Additional paid-in capital                                                                                |  |                           | 14,872,987  |   |                   |   | 14,872,987  |  
|Accumulated deficit                                                                                       |  |                           | (38,554,770 | ) |                   |   | (38,297,919 | )
|                                                                                                          |  |                           |             |   |                   |   |             |  
|Total Shareholders Impairment                                                                            |  |                           | (18,226,837 | ) |                   |   | (17,969,986 | )
|                                                                                                          |  |                           |             |   |                   |   |             |  
|Total Liabilities and Shareholders Impairment                                                            |  | $                         | 22,202      |   |                   | $ | 27,338      |  
|                                                                                                          |  |                           |             |   |                   |   |             |  



See notes to condensed
financial statements.



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AMERICAN BUSINESS CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

[Unaudited]



|                                                     |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  
|---------------------------------------------------- |  | ------------------------- | ---------- | - | --------------------------- | - | ---------- | ---- |  | - | ---------- | - |  | - | ---------- | -
|                                                     |  | Six Months Ended June 30, |            |   | Three Months Ended June 30, |  
|                                                     |  | 2005                      |            |   | 2004                        |   |            | 2005 |  |   | 2004       |  
|Revenues                                             |  | $                         |           |   |                             | $ |           |      |  | $ |           |   |  | $ |           |  
|                                                     |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  
|Operating Expenses:                                  |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  
|Depreciation and amortization                        |  |                           | 2,277      |   |                             |   | 2,500      |      |  |   | 1,139      |   |  |   | 2,500      |  
|Interest expense                                     |  |                           | 61,715     |   |                             |   | 58,147     |      |  |   | 31,087     |   |  |   | 29,290     |  
|Administrative expenses                              |  |                           | 192,859    |   |                             |   | 354,037    |      |  |   | 110,866    |   |  |   | 262,975    |  
|                                                     |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  
|Total operating expenses                             |  |                           | 256,851    |   |                             |   | 414,684    |      |  |   | 143,092    |   |  |   | 294,765    |  
|                                                     |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  
|Net loss                                             |  | $                         | (256,851   | ) |                             | $ | (414,684   | )    |  | $ | (143,092   | ) |  | $ | (294,765   | )
|                                                     |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  
|Net loss per common share - basic and fully-diluted  |  | $                         | (0.00      | ) |                             | $ | (0.00      | )    |  | $ | (0.00      | ) |  | $ | (0.00      | )
|                                                     |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  
|Weighted average number of common shares outstanding |  |                           | 69,870,517 |   |                             |   | 62,299,093 |      |  |   | 69,870,517 |   |  |   | 68,245,524 |  
|                                                     |  |                           |            |   |                             |   |            |      |  |   |            |   |  |   |            |  



See notes to condensed
financial statements.



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AMERICAN BUSINESS CORPORATION

CONDENSED STATEMENT OF SHAREHOLDERS IMPAIRMENT



|                          |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         |  |                           |         |     |                     |     |   |                                |  |       |  |   |           |  |            |   |  |   |        |   |  |   |            |   |  |   |             |   |  |   |             |  
|------------------------- |  | ------------------------ | - |  | ------------------------ | ---- | ------------------------ | --- | ------------------------ | --- | ------------------------ | --------- | ------------ | ------- |  | ------------------------- | ------- | --- | ------------------- | --- | - | ------------------------------ |  | ----- |  | - | --------- |  | ---------- | - |  | - | ------ | - |  | - | ---------- | - |  | - | ----------- | - |  | - | ----------- | -
|                          |  | Preferred Stock Series A |   |  | Preferred Stock Series B |      | Preferred Stock Series C |     | Preferred Stock Series D |     | Preferred Stock Series E |           | Common Stock |         |  | Additional Paid-InCapital |         |     | Accumulated Deficit |     |   | Total Shareholders Impairment | 
|                          |  | Shs                      |   |  | Amt                      |      |                          | Shs |                          | Amt |                          | Shs       |              | Amt     |  | Shs                       |         | Amt |                     | Shs |   | Amt                            |  | Shs   |  |   | Amt       |  |            |   | 
|Balance, January 1, 2004  |  | 990,000                  |   |  | $                        | 762  |                          |     | 2,000                    |     | $                        | 2,000,000 |              | 450,000 |  | $                         | 135,000 |     | 950                 |     | $ | 950,000                        |  | 2,300 |  | $ | 2,300,000 |  | 54,370,517 |   |  | $ |       |   |  | $ | 14,538,201 |   |  | $ | (37,320,521 | ) |  | $ | (17,342,188 | )
|                          |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         | 
|Shares converted          |  | (900,000                 | ) |  |                          | (686 | )                        |     |                         |     |                          |          |              |        |  |                           |        |     |                    |     |   |                               |  |      |  |   |          |  | 9,000,000  |   |  |   | 9,000  |   |  |   | (8,314     | ) |  |   |            |   |  |   |            |  
|Shares for services       |  |                         |   |  |                          |     |                          |     |                         |     |                          |          |              |        |  |                           |        |     |                    |     |   |                               |  |      |  |   |          |  | 3,500,000  |   |  |   | 3,500  |   |  |   | 129,000    |   |  |   |            |   |  |   | 132,500     |  
|Shares as deposit         |  |                         |   |  |                          |     |                          |     |                         |     |                          |          |              |        |  |                           |        |     |                    |     |   |                               |  |      |  |   |          |  | 5,000,000  |   |  |   | 5,000  |   |  |   | 145,000    |   |  |   |            |   |  |   | 150,000     |  
|Deposit cancelled         |  |                         |   |  |                          |     |                          |     |                         |     |                          |          |              |        |  |                           |        |     |                    |     |   |                               |  |      |  |   |          |  | (5,000,000 | ) |  |   | (5,000 | ) |  |   | (145,000   | ) |  |   |            |   |  |   | (150,000    | )
|Rent contributed          |  |                         |   |  |                          |     |                          |     |                         |     |                          |          |              |        |  |                           |        |     |                    |     |   |                               |  |      |  |   |          |  |           |   |  |   |       |   |  |   | 9,600      |   |  |   |            |   |  |   | 9,600       |  
|Net loss                  |  |                         |   |  |                          |     |                          |     |                         |     |                          |          |              |        |  |                           |        |     |                    |     |   |                               |  |      |  |   |          |  |           |   |  |   |       |   |  |   |           |   |  |   | (977,398    | ) |  |   | (977,398    | )
|                          |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         |  |                           |         |     |                     |     |   |                                |  |       |  |   |           |  |            |   |  |   |        |   |  |   |            |   |  |   |             |   |  |   |             |  
|Balance December 31, 2004 |  | 90,000                   |   |  | $                        | 76   |                          |     | 2,000                    |     | $                        | 2,000,000 |              | 450,000 |  | $                         | 135,000 |     | 950                 |     | $ | 950,000                        |  | 2,300 |  | $ | 2,300,000 |  | 69,870,517 |   |  | $ | 69,870 |   |  | $ | 14,872,987 |   |  | $ | (38,297,919 | ) |  | $ | (17,969,986 | )
|                          |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         | 
|[unaudited]               |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         |  |                           |         |     |                     |     |   |                                |  |       |  |   |           |  |            |   |  |   |        |   |  |   |            |   |  |   |             |   |  |   |             |  
|                          |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         | 
|Net loss                  |  |                         |   |  |                          |     |                          |     |                         |     |                          |          |              |        |  |                           |        |     |                    |     |   |                               |  |      |  |   |          |  |           |   |  |   |       |   |  |   |           |   |  |   | (256,851    | ) |  |   | (256,851    | )
|                          |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         |  |                           |         |     |                     |     |   |                                |  |       |  |   |           |  |            |   |  |   |        |   |  |   |            |   |  |   |             |   |  |   |             |  
|Balance, June 30, 2005    |  | 90,000                   |   |  | $                        | 76   |                          |     | 2,000                    |     | $                        | 2,000,000 |              | 450,000 |  | $                         | 135,000 |     | 950                 |     | $ | 950,000                        |  | 2,300 |  | $ | 2,300,000 |  | 69,870,517 |   |  | $ | 69,870 |   |  | $ | 14,872,987 |   |  | $ | (38,554,770 | ) |  | $ | (18,226,837 | )
|                          |  |                          |   |  |                          |      |                          |     |                          |     |                          |           |              |         |  |                           |         |     |                     |     |   |                                |  |       |  |   |           |  |            |   |  |   |        |   |  |   |            |   |  |   |             |   |  |   |             |  



See notes to condensed
financial statements.



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AMERICAN BUSINESS CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS



|                                                                           |  |                           |          |   |             |   |          |  
|-------------------------------------------------------------------------- |  | ------------------------- | -------- | - | ----------- | - | -------- | -
|                                                                           |  | Six Months Ended June 30, |         
|                                                                           |  | 2005                      |          |   | 2004        |  
|                                                                           |  | [unaudited]               |          |   | [unaudited] |  
|Cash flows from operating activities -                                     |  |                           |          |   |             |   |          |  
|Net loss                                                                   |  | $                         | (256,851 | ) |             | $ | (414,684 | )
|Adjustments to reconcile net loss to net cash used by operating activities |  |                           |          |   |             |   |          |  
|Depreciation and amortization expense                                      |  |                           | 2,277    |   |             |   | 2,500    |  
|Issuance of common shares for services                                     |  |                           |         |   |             |   | 132,500  |  
|Increase in liabilities                                                    |  |                           |          |   |             |   |          |  
|Accrued expenses                                                           |  |                           | 60,000   |   |             |   | 15,221   |  
|Accrued interest  related party                                           |  |                           | 61,715   |   |             |   | 58,147   |  
|                                                                           |  |                           |          |   |             |   |          |  
|Net cash used by operating activities                                      |  |                           | (132,859 | ) |             |   | (206,316 | )
|                                                                           |  |                           |          |   |             |   |          |  
|Cash flows from financing activities -                                     |  |                           |          |   |             |   |          |  
|Net proceeds from related parties                                          |  |                           | 140,000  |   |             |   | 275,981  |  
|                                                                           |  |                           |          |   |             |   |          |  
|Net cash provided by financing activities                                  |  |                           | 140,000  |   |             |   | 275,981  |  
|                                                                           |  |                           |          |   |             |   |          |  
|Net change in cash                                                         |  |                           | (2,859   | ) |             |   | 69,665   |  
|Cash at beginning of period                                                |  |                           | 6,845    |   |             |   |         |  
|                                                                           |  |                           |          |   |             |   |          |  
|Cash at end of period                                                      |  | $                         | 3,986    |   |             | $ | 69,665   |  
|                                                                           |  |                           |          |   |             |   |          |  
|SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES       |  |                           |          |   |             |   |          |  
|                                                                           |  |                          
|Accrued interest reclassified to Convertible Note due to related parties   |  | $                         | 61,715   |   |             | $ | 58,147   |  
|                                                                           |  |                           |          |   |             |   |          |  



See notes to condensed
financial statements.



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AMERICAN BUSINESS CORPORATION

NOTES TO THE CONDENSED FINANCIAL STATEMENTS



Note 1 - Basis of Presentation



The interim financial statements included herein are presented in accordance with United
States generally accepted accounting principles and have been prepared by the Registrant, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). Certain information and footnote
disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Registrant believes that the disclosures
are adequate to make the information presented not misleading.



These
statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. The Registrants operating results for the six and
three month periods ended June 30, 2005, and 2004 are not necessarily indicative of the results that may be or were expected for the years ended December 31, 2005, and 2004. It is suggested that these interim financial statements be read in
conjunction with the audited financial statements and notes thereto of the Registrant included in its Form 10-KSB for the period ended December 31, 2004.



Note 2 - Related Party Transactions



As previously reported, and by virtue of (i) a 6% secured convertible promissory note due to Brentwood Capital Corp., an affiliated privately owned New York merchant
banking corporation (Brentwood), dated September 27, 2002, in the aggregate amount of $2,103,582, including principal and accrued interest through June 30, 2005, which is convertible into 210,358,161 shares of the Registrants
Common Stock, $.001 par value per share; and (ii) Brentwoods record ownership of 1,435,000 shares of the Registrants common stock, Brentwood is the holder of 65% of the Registrants total capitalization. The Registrant may be deemed
to be controlled by Brentwood.



Similarly, and as previously reported, Midwest
Merger Management, LLC, a Kentucky limited liability company and its affiliated entities (Midwest) is the record owner of 12,459,800 shares of the Registrants common stock, 90,000 shares of Series A preferred stock which assuming
conversion are the equivalent of 900,000 common shares, and 450,000 shares of Series C preferred stock which are convertible into 45,000,000 common shares, for an aggregate of 15% of the Registrants common stock and equivalents. Accordingly,
the Registrant may be deemed to be controlled by Midwest. During the six month period ended June 30, 2005, and in connection with its ongoing support of the Registrant, Midwest contributed an aggregate of $150,000 to the Registrant to fund its
activities.



At June 30, 2005, the aggregate indebtedness to related parties
was $3,843,090. The Registrant intends to settle its aggregate obligations to Midwest and Brentwood in the course of its planned reorganization to a business development company.



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Note 3  Per Share Results



The common share equivalents associated with the Registrants issued and outstanding convertible notes and Preferred Stock were not
included in computing per share results as their effects were anti-dilutive.



Note 4  Income Taxes (Benefits)



At December 31, 2002,
the Registrant had available approximately $23,000,000 of net operating loss carry-forward, which expires between December 31, 2008 and December 31, 2021, that may be used to reduce future taxable income. As utilization of this carry-forward is less
than certain, its potential tax benefit to the Registrant of approximately $8,000,000 is fully reserved.



Note 5  Going Concern



The
Registrants condensed consolidated financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.



As shown in the accompanying financial statements, the Registrant had negative working
capital at June 30, 2005, of $18,245,053. In addition, the Registrant has incurred an accumulated deficit of $(38,554,770) through June 30, 2005. The Registrant is dependent upon the efforts of Midwest and Brentwood to raise proceeds for its
continued survival. The Registrants ability to continue to receive this level of support from Midwest and Brentwood is uncertain. The condensed consolidated financial statements do not include any adjustments that might be necessary if the
Registrant is unable to continue as a going concern.



Item 2. Managements Discussion and Analysis



The following discussion contains forward-looking statements regarding the Registrant, its business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause
the Registrants actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that may affect such forward-looking statements include, without
limitation, the Registrants ability to resolve the affairs of its creditors and other investors; or to locate and thereafter negotiate and consummate a business combination with a profitable privately owned company.



When used in this discussion, words such as believes, anticipates,
expects, intends, and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of this report. The Registrant undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are
urged to carefully review and consider the various disclosures made by us in this report and other reports filed with the SEC that attempt to advise interested parties of the risks and factors that may affect the Registrants business.



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Six Month Periods Ended June 30, 2005 and 2004:



Revenues - As a direct result of the Registrants inability to continue its failing freight transportation services
beyond November 2000, the Registrant had no revenues during either the six month period ended June 30, 2005 (6M05) or the six month period ended June 30, 2004 (6M04). The Registrant continues working through the restructure
of its debt and the mitigation of outstanding litigation.



Expenses and
Income Taxes - General and administrative expenses for 6M05 were $256,851 compared to $414,684 for 6M04. This decrease is consistent with the Registrants strategy of redirecting its focus toward becoming a candidate to acquire or merge
with a profitable, privately-held business operation. Accordingly, the Registrants recurring administrative expenses include: (i) professional fees (legal and accounting) associated with the resolution of the Registrants affairs with its
former creditors and investors, and the maintenance of its reporting requirements and good standing, (ii) interest on its outstanding convertible note due to Brentwood (commencing on October 1, 2003), (iii) other ancillary expenses, and (iv) the
payment of minimum franchise taxes.



Net Income (Loss) 
Accordingly, the Registrant experienced a net loss of $256,851 for 6M05 compared to a net loss of $414,684 for 6M04. When related to the weighted average number of common shares outstanding during 6M05 and 6M04 per share loss results were $0.00 and
$0.00, respectively.



Quarters Ended June 30, 2005 and 2004:



Revenue - As a direct result of the Registrants inability to continue its
failing freight transportation services beyond November 2000, the Registrant had no revenues during either the second quarter June 30, 2005 (2Q05) or the second quarter ended June 30, 2004 (2Q04). The Registrant continues
working through the restructure of its debt and the mitigation of outstanding litigation.



Expenses and Income Taxes - General and administrative expenses for 2Q05 were $143,092 compared to $294,765 for 2Q04. This decrease is consistent with the Registrants strategy of redirecting its focus
toward becoming a candidate to acquire or merge with a profitable, privately-held business operation. Accordingly, the Registrants recurring administrative expenses include: (i) professional fees (legal and accounting) associated with the
resolution of the Registrants affairs with its former creditors and investors, and the maintenance of its reporting requirements and good standing, (ii) interest on its outstanding convertible note due to Brentwood (commencing on October 1,
2003), (iii) other ancillary expenses, and (iv) the payment of minimum franchise taxes.



Net Income (Loss)  Accordingly, the Registrant experienced a net loss of $143,092 for 2Q05 compared to a net loss of $294,765 for 2Q04. When related to the weighted average common shares outstanding during each period, per
share results were $0.00 and $0.00, for 2Q05 and 2Q04, respectively.



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Liquidity and Capital Resources



The Registrant does not have any permanent capital resources. Consistent with the inability to continue its failing freight transportation
services business beyond November 2000, and its subsequent disposition in connection with arranging the funding of the GE Credit Corp. settlement in September 2002, the Registrants principal activity has been centered in resolving the
remaining claims of its former creditors so it may seek a business combination. In this connection, Midwest and Brentwood have agreed to provide Registrant with reasonable legal, accounting and administrative resources to resolve its affairs and
conduct its search for a business combination candidate.



Accordingly, the
Registrant is entirely dependent upon: (i) Midwest providing the Registrant with certain advisory services in connection with the resolution of its affairs on favorable terms; (ii) the willingness of Brentwood to provide the Registrant with certain
office and administrative facilities and to fund virtually all of the Registrants settlements with its creditors; and (iii) the Registrants successfully implementing a business combination with a profitable operating company. There can
be no assurances that Midwest will be successful in resolving all or substantially all of Registrants affairs, that Brentwood will fund any further settlements, or that the combined efforts of Midwest and Brentwood will lead to a successful
business combination.



Item 3. Controls and Procedures



(a) Evaluation
of Disclosure Controls and Procedures



The Registrant maintains controls
and procedures designed to ensure that information required to be disclosed in the reports that the Registrant files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time
periods specified in the rules and forms of the Securities and Exchange Commission. Based upon their evaluation of those controls and procedures performed within 90 days of the filing date of this report, the Chief Executive and Chief Financial
officers of the Registrant concluded that the Registrants disclosure controls and procedures were adequate.



(b) Changes in Internal Controls



The Registrant made no significant changes in its internal controls or in other factors that could significantly affect these controls subsequent to the date of the
evaluation of those controls by the Chief Executive and Chief Financial officers.



PART II  OTHER INFORMATION



Item 6. Exhibits and Reports on Form 8-K



31.1 - Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002



32.1  Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



Reports on Form 8-K:



None



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SIGNATURES



In accordance with Section 13 or 15(d) of the
Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                              |  |                                     
|----------------------------- |  | ------------------------------------
|American Business Corporation
|                              | 
|By:                           |  | /s/ Anthony R. Russo                
|                              |  | Chief Executive Officer and Director
|                              | 
|By:                           |  | /s/ Anthony R. Russo                
|                              |  | Chief Financial Officer             
|                             
|Dated: August 12, 2005       



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EXHIBIT INDEX



|            |  |                                                                        
|----------- |  | -----------------------------------------------------------------------
|Exhibit No. |  | Description                                                            
|31.1        |  | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|            | 
|32.1        |  | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002



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