----

----

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

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

| Delaware                                                       |   | 05-0460102                              |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification Number) |

| $0.001 par value preferred stock |   | Over the Counter Bulletin Board |
|------------------------------------------------------|--------|---------------------------------|
| $0.002 par value common stock                        |   | Over the Counter Bulletin Board |

| Large accelerated filer | o | Accelerated filer              | o |
|-----------------------------------|---|-------------------------------------|---|
| Non-accelerated filer             | o | Smaller reporting company | x |

----

----

----

| Part I – Financial Information |                                                                                       |   |   |
|--------------------------------------|--------------------------------------------------------------------------------------------|--------|--------|
|                                 |                                                                                       |   |   |   |
| Item 1.                              | Financial Statements                                                                       |   |   | 3 |   |
|                                 |                                                                                       |   |   |   |   |
|                                 | Consolidated Balance Sheets                                                                |   |   | 3 |   |
|                                 |                                                                                       |   |   |   |   |
|                                 | Consolidated Statements of Operations                                                      |   |   | 4 |   |
|                                 |                                                                                       |   |   |   |   |
|                                 | Consolidated Statement of Changes in Stockholders’ Equity                            |   |   | 5 |   |
|                                 |                                                                                       |   |   |   |   |
|                                 | Consolidated Statements of Cash Flows                                                      |   |   | 6 |   |
|                                 |                                                                                       |   |   |   |   |
|                                 | Notes to Consolidated Financial Statements                                                 |   |   | 7 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 2.                              | Management’s Discussion and Analysis of Financial Condition and Results of Operation |   |   | 10 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 3.                              | Quantitative and Qualitative Disclosures About Market Risk                                 |   |   | 13 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 4T.                        | Controls and Procedures                                                                    |   |   | 13 |   |
|                                 |                                                                                       |   |   |   |
| Part II – Other Information    |                                                                                       |   |   |   |
|                                 |                                                                                       |   |   |   |   |
| Item 1.                              | Legal Proceedings                                                                          |   |   | 14 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 2.                              | Unregistered Sales of Equity Securities and Use of Proceeds                                |   |   | 14 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 3.                              | Defaults Upon Senior Securities                                                            |   |   | 14 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 4.                              | Reserved                                                                                   |   |   | 14 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 5.                              | Other Information                                                                          |   |   | 14 |   |
|                                 |                                                                                       |   |   |   |   |
| Item 6.                              | Exhibits                                                                                   |   |   | 15 |   |
|                                 |                                                                                       |   |   |   |
| Signatures                           |                                                                                       |   | 16     |   |

----

| ITEM 1. | CONSOLIDATED FINANCIAL STATEMENTS |
|--------------|-----------------------------------|

|                                                                                                                                                   | May 31, 2011 |        | February 28, 2011 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|-------------|------------------------|--------|
| Assets                                                                                                                                                 |         | (unaudited) |                   |   | (audited) |   |
| Current assets:                                                                                                                                        |         |        |                   |   |   |   |
| Cash                                                                                                                                                   |         | $           | 12,716                 |   |   | $ | 29,655 |   |
| Accounts receivable, net of allowance of $0 and $0, respectively                                                                                       |         |        | 97,881                 |   |   |   | 70,839 |   |
| Accounts receivable, factored                                                                                                                          |         |        | 28,834                 |   |   |   | 13,163 |   |
| Inventories                                                                                                                                            |         |        | 212,808                |   |   |   | 213,557 |   |
| Note receivable, related party, net of unamortized discount of $0 and $0, respectively                                                                 |         |        | 1,009,792              |   |   |   | 1,009,792 |   |
| Due from related party                                                                                                                                 |         |        | 561,644                |   |   |   | 561,644 |   |
| Other receivables                                                                                                                                      |         |        | 87,137                 |   |   |   | 73,662 |   |
|                                                                                                                                                   |         |        |                   |   |   |   |   |   |
| Total current assets                                                                                                                                   |         |        | 2,010,812              |   |   |   | 1,972,312 |   |
|                                                                                                                                                   |         |        |
| Property and equipment, net of accumulated depreciation of $2,297,779 and $2,250,218, respectively                                                     |         |        | 3,025,763              |   |   |   | 3,071,599 |   |
|                                                                                                                                                   |         |        |
| Prepaid loan costs paid with common stock                                                                                                              |         |        | 5,511                  |   |   |   | 22,047 |   |
| Other assets                                                                                                                                           |         |        | 11,128                 |   |   |   | 11,128 |   |
|                                                                                                                                                   |         |        |                   |   |   |   |   |   |
|                                                                                                                                                   |         | $           | 5,053,214              |   |   | $ | 5,077,086 |   |
|                                                                                                                                                   |         |        |                   |   |   |   |   |   |
|                                                                                                                                                   |         |        |
| Liabilities and Stockholders’ Equity                                                                                                             |         |        |                   |   |   |   |   |   |
| Current liabilities:                                                                                                                                   |         |        |                   |   |   |   |   |   |
| Current portion of notes payable                                                                                                                       |         | $           | 1,305,019              |   |   | $ | 1,308,647 |   |
| Current portion of notes payable, related party                                                                                                        |         |        | 638,125                |   |   |   | 642,925 |   |
| Accounts payable; including related party balances of $91,948 and $77,812, respectively                                                                |         |        | 261,403                |   |   |   | 307,371 |   |
| Accrued expenses                                                                                                                                       |         |        | 179,172                |   |   |   | 161,195 |   |
| Accrued interest                                                                                                                                       |         |        | 435,324                |   |   |   | 411,267 |   |
|                                                                                                                                                   |         |        |                   |   |   |   |   |   |
| Total current liabilities                                                                                                                              |         |        | 2,819,043              |   |   |   | 2,831,405 |   |
|                                                                                                                                                   |         |        |                   |   |   |   |   |   |
|                                                                                                                                                   |         |        |
| Notes payable, net of current portion                                                                                                                  |         |        | 10,406                 |   |   |   | 10,406 |   |
| Due to stockholders                                                                                                                                    |         |        | 1,830,410              |   |   |   | 1,772,310 |   |
|                                                                                                                                                   |         |        |
| Total Liabilities                                                                                                                                      |         |        | 4,659,859              |   |   |   | 4,614,121 |   |
|                                                                                                                                                   |         |        |
| 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; liquidating preference $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                      |   |   |   | 3 |   |
| Common stock; $.002 par value; 350,000,000 shares authorized; 329,691,576 and 329,691,576 shares issued and outstanding, respectively                  |         |        | 659,384                |   |   |   | 659,384 |   |
| Additional paid-in capital                                                                                                                             |         |        | 19,155,574             |   |   |   | 19,155,574 |   |
| Stock subscription receivable                                                                                                                          |         |        | (10,000                | )      |   |   | (10,000 | ) |
| Treasury stock, at cost                                                                                                                                |         |        | (265,526               | )      |   |   | (265,526 | ) |
| Accumulated deficit                                                                                                                                    |         |        | (19,146,080            | )      |   |   | (19,076,470 | ) |
|                                                                                                                                                   |         |        |                   |   |   |   |   |   |
| Total stockholders’ equity                                                                                                                       |         |        | 393,355                |   |   |   | 462,965 |   |
|                                                                                                                                                   |         |        |                   |   |   |   |   |   |
|                                                                                                                                                   |         | $           | 5,053,214              |   |   | $ | 5,077,086 |   |

----

|                                                   |    | Three Months Ended May 31, |                |
|--------------------------------------------------------|--------------|---------------------------------|---------------------|
|                                                   |    | 2011                            |                |   | 2010 |   |
| Net sales                                              |    | $                               | 677,586             |    |   | $ | 655,314 |    |
|                                                   |         |                            |
| Cost of goods sold                                     |    |                            | 326,946             |    |   |   | 321,491 |    |
|                                                   |         |                            |
| Gross profit                                           |    |                            | 350,640             |    |   |   | 333,823 |    |
|                                                   |         |                            |
| Selling, general and administrative expenses           |    |                            | 378,388             |    |   |   | 377,772 |    |
|                                                   |         |                            |
| Loss from operations                                   |    |                            | (27,748             | )  |   |   | (43,949 | )  |
| Other income (expense):                                |    |                            |                |   |   |   |   |   |
| Interest expense                                       |    |                            | (43,594             | )  |   |   | (47,771 | )  |
|                                                   |         |                            |                |   |   |   |   |   |
| Interest income                                        |    |                            | 1,732               |    |   |   | 26,685 |    |
|                                                   |         |                            |
| Total other (expense)                                  |    |                            | (41,862             | )  |   |   | (21,086 | )  |
|                                                   |         |                            |
| Loss from continuing operations before income tax      |    | $                               | (69,610             | )  |   | $ | (65,035 | )  |
|                                                   |         |                            |
| Income taxes                                           |    |                            | —   |    |   |   | —   |    |
|                                                   |         |                            |
| Net loss available to common stockholders              |    |                            | (69,610             | )  |   |   | (65,035 | )  |
|                                                   |         |                            |
| Net loss per common share from continuing operations   |    | $                               | (0.00               | )  |   | $ | (0.00 | )  |
|                                                   |    |                            |                |   |   |   |   |   |
| Net loss per common share from discontinued operations |    | $                               | (0.00               | )  |   | $ | (0.00 | )  |
|                                                   |         |                            |
| Weighted average number of common shares outstanding   |    |                            | 329,169,576         |    |   |   | 283,396,566 |    |

----

|                            |   | Common Stock |        |   | Preferred Stock |   |
|---------------------------------|--------|--------------|-------------|--------|-----------------|--------|
|                            |   | Shares       |        | Amount |            |   | Shares |   | Amount |   |
| Balance, February 28, 2011 |   |         | 329,691,576 |   |            | $      | 659,384 |   |   |   | 3,944 |   |   | $ | 3 |   |
|                            |   |         |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                        |   |         |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |         |        |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Balance, May 31, 2011           |   |         | 329,691,576 |   |            | $      | 659,384 |   |   |   | 3,944 |   |   | $ | 3 |   |

| Additional Paid-In Capital |       | Accumulated Deficit |   | Treasury Stock |        | Total  |   |
|----------------------------|------------|---------------------|--------|----------------|-------------|--------|--------|
| $                          | 19,155,574 |                |   | $              | (19,076,470 | )      |   | $ | (265,526 | ) |   | $ | 462,965 |   |
|                       |       |                |   |           |        |
|                       |       |                |   |           | (69,610     | )      |   |   |   |   |   |   | (69,610 | ) |
|                       |       |                |   |           |        |   |   |   |   |   |   |   |   |   |
| $                          | 19,155,574 |                |   | $              | (19,146,080 | )      |   | $ | (265,526 | ) |   | $ | 393,355 |   |

----

|                                                                                              |         | Three Months Ended May 31, |                |
|---------------------------------------------------------------------------------------------------|--------------|----------------------------|---------------------|
|                                                                                              |    | 2011                       |                |   | 2010 |   |
| Operating activities:                                                                             |    |                       |                |   |   |   |   |   |
| Net loss                                                                                          |    | $                          | (69,610             | )  |   | $ | (65,035 | ) |
| Adjustments to reconcile net loss to net cash used by operating activities:                       |    |                       |                |   |   |   |   |   |
| Depreciation and amortization                                                                     |    |                       | 47,561              |    |   |   | 48,287 |    |
| Amortization of loan costs                                                                        |    |                       | 16,536              |    |   |   | 15,963 |    |
| Amortization of discount on notes receivable                                                      |    |                       | —   |   |   |   | (20,708 | )  |
| Decrease (increase) in allowance for doubtful accounts                                            |    |                       | —   |    |   |   | 6,682 |   |
| (Increase) decrease in:                                                                           |    |                       |                |   |   |   |   |   |
| Accounts receivables                                                                              |    |                       | (27,042             | )  |   |   | (23,585 | )  |
| Inventories                                                                                       |    |                       | 749                 |   |   |   | 13,853 |   |
| Other assets                                                                                      |    |                       | —   |    |   |   | 2,618 |    |
| Increase (decrease) in:                                                                           |    |                       |                |   |   |   |   |   |
| Accounts payable and accrued expenses                                                             |    |                       | 2,165               |    |   |   | (7,882 | )  |
| Deferred income                                                                                   |    |                       | —   |   |   |   | (14,097 | ) |
|                                                                                              |    |                       |                |   |   |   |   |   |
|                                                                                              |         |                       |
| Net cash used by operating activities                                                             |    |                       | (29,641             | ) |   |   | (43,904 | ) |
|                                                                                              |    |                       |                |   |   |   |   |   |
|                                                                                              |         |                       |
| Investing activities:                                                                             |    |                       |                |   |   |   |   |   |
| (Increase) decrease in other receivables                                                          |    |                       | (13,475             | ) |   |   | (12,258 | )  |
| Acquisition of property and equipment                                                             |    |                       | (1,725         | ) |   |   | —   |   |
|                                                                                              |         |                       |
| Net cash used by investing activities                                                             |    |                       | (15,200             | ) |   |   | (12,258 | ) |
|                                                                                              |    |                       |                |   |   |   |   |   |
|                                                                                              |         |                       |
| Financing activities:                                                                             |    |                       |                |   |   |   |   |   |
| (Increase) decrease in due from factor                                                            |    |                       | (15,671             | ) |   |   | 5,000 |   |
| Proceeds from notes payable and long-term debt                                                    |    |                       | 30,100              |    |   |   | 11,625 |    |
| Principal payments on notes payable                                                               |    |                       | (44,627             | ) |   |   | (10,962 | ) |
| Increase in due to stockholders                                                                   |    |                       | 58,100              |    |   |   | 58,100 |    |
|                                                                                              |    |                       |                |   |   |   |   |   |
| Net cash provided by financing activities                                                         |    |                       | 27,902              |    |   |   | 63,763 |    |
|                                                                                              |    |                       |                |   |   |   |   |   |
|                                                                                              |         |                       |
| Net (decrease) increase in cash                                                                   |    |                       | (16,939             | )  |   |   | 7,601 |   |
|                                                                                              |         |                       |
| Cash, beginning of period                                                                         |    |                       | 29,655              |    |   |   | 10,289 |    |
|                                                                                              |    |                       |                |   |   |   |   |   |
| Cash, end of period                                                                               |    | $                          | 12,716              |    |   | $ | 17,890 |    |
|                                                                                              |    |                       |                |   |   |   |   |   |
|                                                                                              |         |                       |
| Supplemental disclosures of cash flow information and noncash investing and financing activities: |    |                       |                |   |   |   |   |   |
| Cash paid during the period for interest                                                          |    | $                          | 38,112              |    |   | $ | 7,567 |    |

----

----

|              | May 31, 2011 |   | May 31, 2010 |   |
|-------------------|-------------------|--------|-------------------|--------|
| Work-in process   |              | $      | 8,673             |   |   | $ | 9,041 |   |
| Finished goods    |              |   | 204,135           |   |   |   | 179,271 |   |
| Raw materials     |              |   | —           |   |   |   | — |   |
| Total inventories |              | $      | 212,808           |   |   | $ | 188,312 |   |

----

|                                                    |   | Manufacturing |      |   | Other (a) |   |      | TotalContinuingOperations |   |
|---------------------------------------------------------|--------|---------------|-----------|--------|-----------|--------|-----------|---------------------------|--------|
|                                                    |   |          |      |   |      |   |      |                      |   |
| Revenue                                                 |   | $             | 677,586   |   |      |   |      |                      | $      | 677,586 |   |
| Interest expense                                        |   | $             | 30,782    |   |      |   | 12,812    |                      |   |   | 43,594 |   |
| Depreciation                                            |   | $             | 47,561    |   |      |   |      |                      |   |   | 47,561 |   |
| Net income (loss)                                       |   | $             | 59,060    |   |      |   | (128,670  | )                    |   |   | (69,610 | )  |
| Property and equipment, net of accumulated depreciation |   | $             | 3,025,763 |   |      |   |      |                      |   |   | 3,025,763 |   |
| Segment assets                                          |   | $             | 3,653,742 |   |      |   | 1,399,472 |                      |   |   | 5,053,214 |   |

|                                                    |   | Manufacturing |      |   | Other (a) |   |     | Total  |   |
|---------------------------------------------------------|--------|---------------|-----------|--------|-----------|--------|----------|--------|--------|
|                                                    |   |          |      |   |      |   |     |   |   |
| Revenue                                                 |   | $             | 655,314   |   |      |   |     |   | $      | 655,314 |   |
| Interest expense                                        |   | $             | 35,311    |   |      | $      | 12,460   |   |   | $ | 47,771 |   |
| Depreciation                                            |   | $             | 48,287    |   |      | $      |     |   |   | $ | 48,287 |   |
| Net income                                              |   | $             | 60,529    |   |      | $      | (125,564 | )      |   | $ | (65,035 | ) |
| Property and equipment, net of accumulated depreciation |   | $             | 3,211,667 |   |      | $      |     |   |   | $ | 3,211,667 |   |

| (a) | The “other” segment is mainly related to the holding company expenses and general overhead, as well as the stock based compensation awards. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS |
|--------------|--------------------------------------------|

----

----

----

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|--------------|------------------------------------------------------------|

| ITEM 4(T). | CONTROLS AND PROCEDURES |
|-----------------|-------------------------|

----

| ITEM 1. | LEGAL PROCEEDINGS |
|--------------|-------------------|

| ITEM 1A. | RISK FACTORS |
|---------------|--------------|

| ITEM 2.  | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|--------------------|-------------------------------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|--------------|---------------------------------|

| ITEM 4.  | RESERVED |
|--------------------|----------|

| ITEM 5. | OTHER MATTERS |
|--------------|---------------|

----

| ITEM 6. | EXHIBITS AND REPORTS ON FORM 8-K |
|--------------|----------------------------------|

|  IncorporatedDocuments |    |  SEC Exhibit Reference                                                                                                                            |    |  SequentiallyNumbered |
|-----------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|----------------------------|
|                        |         |                                                                                                                                                   |
| 31.1                        |    | Certification of the Chief Financial Officer                                                                                                           |    |                       |
|                        |         |                                                                                                                                                   |
| 31.2                        |    | Certification of the Chief Executive Officer                                                                                                           |    |                       |
|                        |         |                                                                                                                                                   |
| 32.1                        |    | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbaenes-Oxley Act of 2002 of the Chief Financial Officer |    |                       |
|                        |         |                                                                                                                                                   |
| 32.2                        |    | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbaenes-Oxley Act of 2002 of the Chief Executive Officer |    |                       |

----

|                | AMERICAN COMMERCE SOLUTIONS, INC. |                                                 |
|---------------------|-----------------------------------|------------------------------------------------------|
|                |                              |                                                 |   |
| Date: July 12, 2011 | By:                               | /s/  Daniel L. Hefner                      |   |
|                |                              | Daniel L. Hefner, President                          |   |
|                |                              |                                                 |   |
| Date: July 12, 2011 | By:                               | /s/   Frank D. Puissegur              |   |
|                |                              | Frank D. Puissegur, CFO and Chief Accounting Officer |   |

----