**UNITED        STATES**

**SECURITIES        AND EXCHANGE COMMISSION**

**Washington,        D.C. 20549**

**FORM        10-QSB**

| **ý**                                                                                                                                                                                                                                                                                                                                                  |   | **QUARTERLY                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT                  OF                  1934** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                     |
| **For                  the quarterly period ended May 31, 2005**                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                     |
| **o**                                                                                                                                                                                                                                                                                                                                                       |   | **TRANSITION                  REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE                  ACT**                                    |
|                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                     |
| **For                  the transition period from                                                        to                                      ** |
|                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                                                                     |
| **Commission                  file number: 33-98682**                                                                                                                                                                                                                                                                                                       |

**American        Commerce Solutions, Inc.**

| **Delaware**                                                                                                         |   | **05-0460102**                                     |
|----------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|
| (State                  or other jurisdiction of incorporation or organization)                                      |   | (IRS                  Employer Identification No.) |
|                                                                                                                 |   |                                               |
| **1400                  Chamber Dr., Bartow, Florida 33830**                                                         |
| (Address                  of principal executive offices)                                                            |
|                                                                                                                 |   |                                               |
| **(863)                  533-0326**                                                                                  |
| (Issuer’s                  telephone number)                                                                   |
|                                                                                                                 |   |                                               |
| **N/A**                                                                                                              |
| (Former                  name, former address and former fiscal year, if changed since last                  report) |

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**American        Commerce Solutions, Inc.**

**Contents**

| Part                  I - Financial Information |
|-------------------------------------------------|
|                                            |   |   |
|                                            | Item                  1. | Consolidated                  Financial Statements |
|                                            |   |   |
|                                            | Item                  2. | Management’s                  Discussion &                  Analysis |
|                                            |   |   |
|                                            | Item                  3. | Controls                  and                  Procedures |
|                                            |   |   |
| Part                  II - Other Information    |
|                                            |   |   |
|                                            | Item                  1. | Legal                  Proceedings |
|                                            |   |   |
|                                            | Item                  2. | Changes                  in Securities |
|                                            |   |   |
|                                            | Item                  3. | Defaults                  Upon Senior                  Securities |
|                                            |   |   |
|                                            | Item                  4. | Submission                  of Matters to a Vote of Security                  Holders |
|                                            |   |   |
|                                            | Item                  5. | Other                  Information |
|                                            |   |   |
|                                            | Item                  6. | Exhibits                  and Reports on Form 8-K |
|                                            |   |   |
| Signatures                                      |

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**PART        I****-        FINANCIAL INFORMATION**

**Item        1.****                 Consolidated Financial Statements**

***Consolidated        Financial Statements***

***American        Commerce Solutions, Inc. and Subsidiaries***

*As        of        May 31, 2005 and for the*

*Three        Months Ended May 31, 2005 and 2004*

*(unaudited)*

----

*(unaudited)*

**Contents**

| Consolidated                  Financial Statements: |
|-----------------------------------------------------|
|                                                |   |
|                                                | Consolidated                  Balance Sheet |
|                                                | Consolidated                  Statements of Operations |
|                                                | Consolidated                  Statements of Cash Flows |
|                                                | Notes                  to Consolidated Financial                  Statements |

----

*(unaudited)*

| **Assets**                                                                                                                                                                                                         |   |             |            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------------|
| Current                  assets:                                                                                                                                                                                   |   |             |            |
| Cash                                                                                                                                                                                                               |   | $                | 37,219          |   |
| Accounts                  receivable, net of allowance of $4,612                                                                                                                                                   |   | 74,905           |            |
| Accounts                  receivable, factored                                                                                                                                                                     |   | 50,427           |            |
| Inventory                                                                                                                                                                                                          |   | 151,372          |            |
| Other                  receivables                                                                                                                                                                                 |   | 113,049          |            |
| Other                  current assets                                                                                                                                                                              |   | 102,897          |            |
| Total                  current assets                                                                                                                                                                              |   | 529,869          |            |
|                                                                                                                                                                                                               |   |             |            |
| Property                  and equipment, net of depreciation of $1,625,142                                                                                                                                         |   | 5,422,209        |            |
|                                                                                                                                                                                                               |   |             |            |
| Other                  assets:                                                                                                                                                                                     |   |             |            |
| Prepaid                  loan costs                                                                                                                                                                                |   | 5,864            |            |
| Intangible                  assets, net of accumulated amortization                                                                                                                                                |   | 127,722          |            |
| Real                  property held for resale                                                                                                                                                                     |   | 243,150          |            |
| Total                  other assets                                                                                                                                                                                |   | 376,736          |            |
|                                                                                                                                                                                                               |   | $                | 6,328,814       |   |
|                                                                                                                                                                                                               |   |             |            |
| **Liabilities                  and Stockholders’ Equity**                                                                                                                                                    |   |             |            |
| Current                  liabilities:                                                                                                                                                                              |   |             |            |
| Checks                  drawn in excess of bank balance                                                                                                                                                            | $      | $                | 1,896           |   |
|                            Current                portion of notes payable                                                                             |   |             | 1,157,143  |   |
| Current                  portion of notes payable, related parties                                                                                                                                                 |   |             | 379,048         |   |
| Accounts                  payable                                                                                                                                                                                  |   | 249,247          |            |
| Accrued                  expenses                                                                                                                                                                                  |   | 323,080          |            |
| Accrued                  interest                                                                                                                                                                                  |   | 137,085          |            |
| Due                  to stockholders                                                                                                                                                                               |   | 349,660          |            |
| Deferred                  revenue                                                                                                                                                                                  |   | 26,212           |            |
| Total                  current liabilities                                                                                                                                                                         |   | 2,623,371        |            |
|                                                                                                                                                                                                               |   |             |            |
| Notes                  payable, related parties, net of current portion                                                                                                                                            |   | 18,106           |            |
|                                                                                                                                                                                                               |   |             |            |
| Stockholders’                  equity:                                                                                                                                                                       |   |             |            |
| Preferred                  stock, total authorized 5,000,000 shares:                                                                                                                                               |   |             |            |
| Series                  A; cumulative and convertible; $.001 par value;600                  shares authorized; 102 shares issued and outstanding;                  liquidatingpreference                  $376,125 |   |             |            |
| Series                  B; cumulative and convertible; $.001 par value;3,950                  shares authorized; 3,944 shares issued and outstanding;liquidating                  preference $3,944,617            |   | 3                |            |
| Common                  stock; $.002 par value; 350,000,000 shares authorized; 221,922,415                  shares                  issued; 221,400,415                  shares outstanding                        |   | 443,846          |            |
|                   Additional                  paid-in capital                                                                                                                                            |   | 18,739,396  |            |
| Note                  receivable for exercise of options                                                                                                                                                           |   | (34,000)         |            |
| Stock                  subscription receivable                                                                                                                                                                     |   | (10,000          | )               |
| Treasury                  stock, at cost                                                                                                                                                                           |   | (265,526         | )               |
| Accumulated                  deficit                                                                                                                                                                               |   | (15,132,085      | )               |
| Loan                  costs from issuance of common stock                                                                                                                                                          |   | (54,297          | )               |
| Total                  stockholders’ equity                                                                                                                                                                  |   | 3,687,337        |            |
|                                                                                                                                                                                                               |   | $                | 6,328,814       |   |

*The        accompanying notes are an integral part of the consolidated financial        statements.*

*                                                                             *

*             *

----

Consolidated        Statements of Operations

*(unaudited)*

|                                                                  |   | **Three                  Months Ended****May                  31,** |     |        |   |
|-----------------------------------------------------------------------|--------|---------------------------------------------------------------------|----------|-------------|--------|
|                                                                  |   | **2005**                                                            |     | **2004**    |   |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Net                  sales                                            |   | $                                                                   | 654,899  |        | $      | 652,346 |   |   |   |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Cost                  of goods sold                                   |   | 459,221                                                             |     | 422,452     |   |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Gross                  profit                                         |   | 195,678                                                             |     | 229,894     |   |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Selling,                  general and administrative expenses         |   | 543,571                                                             |     | 554,832     |   |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Loss                  from operations                                 |   | (347,893                                                            | )        | (324,938    | )      |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Other                  income (expense)                               |   | 16,195                                                              |     | 18,982      |   |   |   |   |   |
| Derecognition                  of liabilities                         |   | 78,290                                                              |     |        |   |   |   |   |   |
| Interest                  expense                                     |   | (36,727                                                             | )        | (35,554     | )      |   |   |   |   |
| Total                  other income (expense)                         |   | 57,758                                                              |     | (16,572     | )      |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Net                  loss                                             |   | $                                                                   | (290,135 | )           | $      | (341,510 | ) |   |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Net                  loss per common share                            |   | $                                                                   | (.00     | )           | $      | (.00 | ) |   |   |   |   |   |   |
|                                                                  |   |                                                                |     |        |   |   |   |   |   |
| Weighted                  average number of common shares outstanding |   | _202,885,147                                                        |     | 146,411,041 |   |   |   |   |   |

*The        accompanying notes are an integral part of the consolidated financial        statements*

----

Consolidated        Statements of Cash Flows

*(unaudited)*

|                                                                                                                                                     |   | **Three                  Months Ended****May                  31,** |     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|----------|
|                                                                                                                                                     |   | **2005**                                                            |     | **2004** |   |
| **Operating                  activities:**                                                                                                               |   |                                                                |     |   |   |
| Net                  loss                                                                                                                                |   | $                                                                   | (290,135 | ) | $ | (341,510 | ) |
| Adjustments                  to reconcile net loss to net cash used by operating                  activities:                                            |   |                                                                |     |   |   |
| Depreciation                  and amortization                                                                                                           |   | 108,741                                                             |     | 95,793 |   |
| Options                  issued to consultants and employees                                                                                             |   | 15,000                                                              | 2        | 30,600 |   |
| Gain                  on write down of debt                                                                                                              |   | (35,000)                                                            |     |   |   |
| Increase                  in allowance for doubtful accounts                                                                                             |   | (1,979)                                                             |     |   |   |
| Decrease                  (increase) in:                                                                                                                 |   |                                                                |     |   |   |
| Accounts                  receivables                                                                                                                    |   | 9,933                                                               |     | 36,925 |   |
| Inventory                                                                                                                                                |   | (10,065)                                                            |     | (12,116 | ) |
| Other                  receivables and other assets                                                                                                      |   | 167,210                                                             |     | 36,066 |   |
| Increase                  (decrease) in:                                                                                                                 |   |                                                                |     |   |   |
| Accounts                  payable and accrued expenses                                                                                                   |   | 9,446                                                               |     | 61,353 |   |
| Deferred                  income                                                                                                                         |   | 8,593                                                               |     | 14,435 |   |
| Total                  adjustments                                                                                                                       |   | 271,879                                                             |     | 263,056 |   |
| Net                  cash used by operating activities                                                                                                   |   | (18,256)                                                            |     | (78,454) |   |
|                                                                                                                                                     |   |                                                                |     |   |   |
| **Investing                  activities:**                                                                                                               |   |                                                                |     |   |   |
| Decrease                  (increase) in other receivables                                                                                                |   |                                                                |     | (24,949) |   |
| Acquisition                  of property and equipment                                                                                                   |   | (4,347                                                              | )        | (54,331) |   |
| Net                  cash (used) by investing activities                                                                                                 |   | (4,347                                                              | )        | (79,280) |   |
|                                                                                                                                                     |   |                                                                |     |   |   |
| **Financing                  activities:**                                                                                                               |   |                                                                |     |   |   |
| Increase                  in checks drawn in excess of bank balance                                                                                      |   | 1,896                                                               |     | 15,918 |   |
|  (Decrease)                  increase in due from factor                                                                                            |   | (17,476)                                                            |     | 8,974 |   |
| Proceeds                  from notes payable and long-term debt                                                                                          |   | 40,000                                                              |     | 20,500 |   |
| Principal                  payments on notes payable and capital leases                                                                                  |   | (88,618                                                             | )        | (85,647 | ) |
| Increase                  in advances from stockholders                                                                                             |   | 27,950                                                              |     | 27,950 |   |
| Exercise                  of stock options and warrants                                                                                                  |   | 32,564                                                              |     | 136,969 |   |
| Net                  cash (used) provided by financing activities                                                                                        |   | (3,684)                                                             |     | 124,664 |   |
|                                                                                                                                                     |   |                                                                |     |   |   |
| **Net                  decrease in cash**                                                                                                                |   | (26,287                                                             | ))))     | (33,070 | ) |
|                                                                                                                                                     |   |                                                                |     |   |   |
| **Cash,                  beginning of period**                                                                                                           |   | 63,506                                                              |     | 79,363 |   |
|                                                                                                                                                     |   |                                                                |     |   |   |
| **Cash,                  end of period**                                                                                                                 |   | $                                                                   | 37,219   |   | $ | 46,293 |   |
|                                                                                                                                                     |   |                                                                |     |   |   |
| **Supplemental                  disclosures of cash flow information and noncash investing and                  financing                  activities:** |   |                                                                |     |   |   |
| Cash                  paid during the period for interest                                                                                                |   | $                                                                   | 87,852   |   | $ | 25,361 |   |

*The        accompanying notes are an integral part of the consolidated financial        statements.*

----

Notes        to        Consolidated Financial Statements

* *

*(unaudited)*

**1.                Background Information**

**2.                Stock Based Compensation**

|                                                                                                                                                                                         |   | **Three                  Months Ended** |     |                                 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|--------------------------------------|--------|
|                                                                                                                                                                                         |   | **May                  31,****2005**    |     | **May                  31,****2004** |   |   |   |   |   |
| Net                  loss, as reported                                                                                                                                                       |   | $                                       | (290,135 | )                                    | $      | (341,510 | ) |   |   |   |   |   |   |
|                                                                                                                                                                                         |   |                                    |     |                                 |   |   |   |   |   |
| Deduct:                   Additional stock based employee compensation expense determined                  under fair value based methods for all awards, net of                  taxes |   | (0                                      | )        | (0                                   | )      |   |   |   |   |
|                                                                                                                                                                                         |   |                                    |     |                                 |   |   |   |   |   |
| Pro                  forma net loss                                                                                                                                                          |   | $                                       | (290,135 | )                                    | $      | (341,510 | ) |   |   |   |   |   |   |
|                                                                                                                                                                                         |   |                                    |     |                                 |   |   |   |   |   |
| Net                  loss per share:                                                                                                                                                         |   |                                    |     |                                 |   |   |   |   |   |
| As                  reported                                                                                                                                                                 |   | $                                       | (.0      | 0)                                   | $      | (.00 | ) |   |   |   |   |   |   |
| Pro                  forma                                                                                                                                                                   |   | $                                       | (.0      | 0)                                   | $      | (.00 | ) |   |   |   |   |   |   |

**3.                Going Concern**

----

**4.                Basis of Presentation**

**5.                Accounts Receivable, Factored**

**6.                Common Stock and Stock Options**

**7.               Segment Information**

----

|                                                                     |   | **Manufacturing** |      | **Fiberglass** |   | **Other** |   | **Total** |
|--------------------------------------------------------------------------|--------|-------------------|-----------|----------------|--------|-----------|--------|-----------|
|                                                                     |   |              |      |           |   |      |   |      |
| Revenue                                                                  |   | $                 | 556,934   |           | $      | 97,965    |   |      |   | $ | 654,899 |
|                                                                     |   |              |      |           |   |      |   |      |
| Interest                  expense, net                                   |   | $                 | 27,050    |           | $      | 0         |   | $         | 9,677 |   | $ | 36,727 |
|                                                                     |   |              |      |           |   |      |   |      |
| Depreciation                  and amortization                           |   | $                 | 74,002    |           | $      | 34,566    |   | $         | 173 |   | $ | 108,741 |
|                                                                     |   |              |      |           |   |      |   |      |
| Net                  (loss)                                              |   | $                 | (62,560)  |           | $      | (72,520)  |   | $         | (155,055) |   | $ | (290,135) |
|                                                                     |   |              |      |           |   |      |   |      |
| Property                  and equipment, net of accumulated depreciation |   | $                 | 4,563,895 |           | $      | 856,014   |   | $         | 2,300 |   | $ | 5,422,209 |
|                                                                     |   |              |      |           |   |      |   |      |
| Segment                  assets                                          |   | $                 | 5,137,046 |           | $      | 1,049,883 |   | $         | 141,885 |   | $ | 6,328,814 |

|                                                                     |   | **Manufacturing** |      | **Fiberglass** |   | **Other** |   | **Total** |      |
|--------------------------------------------------------------------------|--------|-------------------|-----------|----------------|--------|-----------|--------|-----------|-----------|
|                                                                     |   |              |      |           |   |      |   |      |      |
| Revenue                                                                  |   | $                 | 535,564   |           | $      | 116,782   |   |  0   |      | $ | 652,346 |   |
|                                                                     |   |              |      |           |   |      |   |      |      |
| Interest                  expense                                        |   | $                 | 24,994    |           | $      | 0         |   | $         | 10,560    |   | $ | 35,554 |   |
|                                                                     |   |              |      |           |   |      |   |      |      |
| Depreciation                  and amortization                           |   | $                 | 81,629    |           | $      | 13,991    |   | $         | 173       |   | $ | 95,793 |   |
|                                                                     |   |              |      |           |   |      |   |      |      |
| Net                  (loss)                                              |   | $                 | (63,959)  |           | $      | (41,411)  |   | $         | (236,140) |   | $ | (341,510) |   |
|                                                                     |   |              |      |           |   |      |   |      |      |
| Property                  and equipment, net of accumulated depreciation |   | $                 | 4,950,074 |           | $      | 174,011   |   | $         | 2,990     |   | $ | 5,127,075 |   |
|                                                                     |   |              |      |           |   |      |   |      |      |
| Segment                  assets                                          |   | $                 | 5,542,456 |           | $      | 388,106   |   | $         | 364,632   |   | $ | 6,295,194 |   |

ITEM        2. MANAGEMENT'S DISCUSSION &        ANALYSIS

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**COMPARISON        OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MAY 31, 2005 AND        2004.**

----

**Seasonality**

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ITEM        3. CONTROLS AND PROCEDURES

| 31.1 | Certification                  of the Chief Financial Officer dated July 15,                  2005 |
|------|----------------------------------------------------------------------------------------------------|

LEGAL PROCEEDINGS

CHANGES IN SECURITIES

ITEM        3. DEFAULTS UPON SENIOR        SECURITIES

SUBMISSION OF MATTERS        TO A VOTE OF SECURITY        HOLDERS

OTHER MATTERS

EXHIBITS AND REPORTS ON FORM 8-K

**AMERICAN        COMMERCE SOLUTIONS, INC.**

|                                            |                                                   |                                       |
|-------------------------------------------------|--------------------------------------------------------|--------------------------------------------|
|                                            | **American                  Commerce Solutions, Inc.** |
|                                       |                                              |                                  |
| Date: July                  15, 2005  | By:                                          | /s/ Daniel                  L. Hefner |
|                                            | Daniel                  L. Hefner                      |
|                                            | Title: President                                  |

|                                          |                                                |                                       |
|-----------------------------------------------|-----------------------------------------------------|--------------------------------------------|
|                                          | **American                Commerce Solutions, Inc** |
|                                     |                                           |                                  |
| Date: July                15, 2005  | By:                                       | /s/ Frank                D. Puissegur |
|                                          | Frank                D. Puissegur                   |
|                                          | Title: Accounting                Officer       |

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