SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
         --------------------------------------------------------------
                                   FORM 10-QSB
         --------------------------------------------------------------

(MarkOne)

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

                For the QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003

                          Commission File No. 001-15179

          -------------------------------------------------------------
                                H-QUOTIENT, INC.
             (Exact name of registrant as specified in its charter)
         --------------------------------------------------------------

               Virginia                                       54-1947753
               --------                                       ----------
  (State or other jurisdiction                            (I.R.S. Employer
 of Incorporation or organization)                     Identification Number)


8150 Leesburg Pike, Suite 503 Vienna, VA                        22182
--------------------------------------------------------------------------------
(Address of principal executive offices)                      (Zip Code)


          Issuer's telephone number, including area code: 703-752-0690

         Securities registered under Section 12(b) of the Exchange Act:


Title of each class                  Name of each Exchange on which registered
-------------------                  -----------------------------------------
        None                                     OTC Bulletin Board


Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the last practicable date: 34,830,413 of its $.0001 par value
common stock as of October 10, 2003.

Transitional small business disclosure format (check one)  Yes: [ ] No: [X]



                                       1
<PAGE>

                       H-QUOTIENT, INC., AND SUBSIDIARIES
              FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 2003


                                      INDEX

PART I:   FINANCIAL INFORMATION                                          Page

Item 1:  Financial Statements

Consolidated Balance Sheets as of
September 30, 2003, and December 31, 2002                                3

Consolidated Statements of Operations
For the nine month and three month periods ended
September 30, 2003 and 2002                                              4

Condensed Consolidated Statements of Cash Flows for the
nine month periods ended September 30, 2003 and 2002                     5

Notes to the Consolidated Financial Statements                           5

Item 2:  Management's Discussion and Analysis or Plan of Operation       6

Item 3:  Controls and Procedures                                         6-7

PART II: OTHER INFORMATION                                               7-8

Item 1: Legal Proceedings                                                7

Item 2: Changes in Securities                                            7-8


                                       2
<PAGE>


HoQuotient, Inc. and Subsidiary
Consolidated Balance Sheets

<TABLE>
<CAPTION>
                                                                                           September 30,        December 31,
                                                                                               2003                 2002
                                                                                           (Unaudited)            (Audited)
------------------------------------------------------------------------------------- -------------------- ---------------------
Assets

Current assets
<S>                                                                                           <C>                   <C>
     Cash                                                                                     $    260,420          $     11,503
     Investment in marketable securities                                                         2,465,276               486,540
       Accounts receivable, less allowance for doubtful accounts of $481,881 and
       $509,037, respectively                                                                    2,684,596             2,157,688
       Inventory                                                                                   371,340                    --
       Note receivable                                                                             139,869               139,869
     Prepaid expenses                                                                            2,682,340             2,629,000
------------------------------------------------------------------------------------- -------------------- ---------------------
Total current assets                                                                             8,603,841             5,424,600
Property and equipment, net                                                                         15,991                51,024
Capitalized software, net                                                                          281,805                82,171
Investment                                                                                       3,143,638             2,213,138
Other Assets                                                                                       153,981                14,878
------------------------------------------------------------------------------------- -------------------- ---------------------
Total assets                                                                                  $ 12,199,256          $  7,785,811
------------------------------------------------------------------------------------- -------------------- ---------------------

Liabilities and Shareholders' Equity

Current liabilities
     Accounts payable and accrued expenses                                                         216,251          $    361,872
     Notes payable                                                                                  62,475                62,475
     Unearned revenue                                                                               16,189                   990
------------------------------------------------------------------------------------- -------------------- ---------------------
Total current liabilities                                                                          294,915               425,337
------------------------------------------------------------------------------------- -------------------- ---------------------

Shareholders' equity
     Preferred stock, 10,000,000 shares authorized,
       100 shares issued and outstanding                                                                --                    --
     Common stock, $.0001 par value, 90,000,000 shares authorized, 33,618,366 and
       28,588,454 shares issued and outstanding at September 30, 2003 and
       December 31, 2002, respectively                                                               3,361                 2,859
     Additional paid-in capital                                                                 15,893,640            14,841,065
     Subscriptions receivable                                                                     (269,845)              (52,385)
     Accumulated deficit                                                                        (3,722,815)           (7,431,065)
------------------------------------------------------------------------------------- -------------------- ---------------------
Total shareholders' equity                                                                      11,904,341             7,360,474
------------------------------------------------------------------------------------- -------------------- ---------------------
Total liabilities and shareholders' equity                                                    $ 12,199,256          $  7,785,811
------------------------------------------------------------------------------------- -------------------- ---------------------
</TABLE>


           See accompanying Notes to Unaudited Condensed Consolidated
                             Financial Statements.




                                       3
<PAGE>

HoQuotient, Inc. and Subsidiary
Consolidated Statements of Operations (Unaudited)

<TABLE>
<CAPTION>
                                                             Nine Months Ended                    Three Months Ended
                                                                September 30                          September 30
                                                          2003               2002               2003               2002
-----------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>                <C>                <C>
Revenues                                             $  3,069,645       $  1,869,477       $  1,410,873       $  1,121,670
-----------------------------------------------------------------------------------------------------------------------------

Operating expenses                                        449,599            211,709            131,372             62,993
-----------------------------------------------------------------------------------------------------------------------------

Income from operations                                  2,620,046          1,657,768          1,279,501          1,058,677
-----------------------------------------------------------------------------------------------------------------------------

Other income (expenses)
     Interest expense                                      (6,408)           (11,856)            (2,136)            (4,068)
     Unrealized gain on securities                      1,095,248                 --            571,759                 --
     Realized gain (loss) on sale of securities              (636)            86,040                 --
     Interest income                                           --             25,802                 --              7,651

Total other income (expense)                            1,088,204             99,986            569,623              3,583
-----------------------------------------------------------------------------------------------------------------------------

Income before provision for income taxes                3,708,250          1,757,754          1,849,124          1,062,260

Provision for income taxes                                     --                 --                 --                 --
-----------------------------------------------------------------------------------------------------------------------------


Net income                                           $  3,708,250       $  1,757,754       $  1,849,124       $  1,062,260
-----------------------------------------------------------------------------------------------------------------------------

Net income per common share
     Basic:                                          $        .13       $        .07       $        .06       $       0.04
     Diluted:                                        $        .13       $        .07       $        .06       $       0.04

Weighted average common shares Basic                   29,269,542         26,370,380         30,558,209         26,540,305
-----------------------------------------------------------------------------------------------------------------------------
Diluted                                                29,607,551         26,982,025         30,932,102         27,123,400
</TABLE>


                                       4
<PAGE>


HoQuotient, Inc. and Subsidiary
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended September 30, 2003


<TABLE>
<CAPTION>
                                                                                           2003              2002
Nine Months Ended September 30                                                          (Unaudited)      (Unaudited)
---------------------------------------------------------------------------------------------------------------------
<S>                                                                                        <C>           <C>
Net cash provided (used) in operating activities                                           $104,417      $(82,720)
---------------------------------------------------------------------------------------------------------------------

Net cash provided in investing activities                                                        --        51,159
---------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------
Net cash provided by financing activities                                                   144,500        53,900
---------------------------------------------------------------------------------------------------------------------

Net (decrease) in cash                                                                      248,917        22,339

Cash at beginning of period                                                                  11,503         5,616
---------------------------------------------------------------------------------------------------------------------

Cash at end of period                                                                      $260,420      $ 27,955
---------------------------------------------------------------------------------------------------------------------
</TABLE>




                                       5
<PAGE>

H-Quotient, Inc., and Subsidiary
Notes to the Unaudited Condensed Consolidated Financial Statements

1. Organization - H-Quotient, Inc. (the "Company"), was incorporated in the
Commonwealth of Virginia on May 12, 1999 as a wholly-owned subsidiary of
Integrated Healthcare Systems, Inc. ("IHS"). On June 14, 1999, IHS executed a
downstream merger with H-Quotient, Inc. in which all the issued and outstanding
shares of common stock of IHS were exchanged for an equal number of shares of
the $.0001 par value common stock of the Company. The Company develops, markets,
installs and maintains integrated hardware and software systems to private and
public healthcare facilities throughout the United States.

2. Basis of Presentation - The consolidated financial statements of the Company
include the accounts of its wholly owned subsidiary, Quotient Capital
Corporation. All significant inter-company balances and transactions have been
eliminated in consolidation.

The Consolidated Balance Sheets as of September 30, 2003 and 2002, the
Consolidated Statement of Operations for the three-month periods ended September
30, 2003 and 2002, and the Consolidated Statement of Cash Flows for the
three-month periods ended September 30, 2003 and 2002, have been prepared
without audit. In the opinion of management, all adjustments necessary to
present fairly the financial position as of September 30, 2003 and 2002, and
results of operations and cash flows for the three month period ended September
30, 2003 and 2002, and for all periods then ended, have been recorded. All
adjustments recorded were of a normal recurring nature.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these consolidated
financial statements be read in conjunction with the financial statements and
notes thereto for the year ended December 31, 2002, included in the Company's
Annual Report on Form 10KSB for the year ended December 31, 2002.

The results of operations for the three-month period ended September 30, 2003,
are not necessarily indicative of results anticipated for the full year.




                                       6
<PAGE>

Item 2: Management's Discussion or Plan of Operation

Results of Operations

Three Months Ended September 30, 2003, Compared with Three Months Ended
September 30, 2002:

Revenues for the three months ended September 30, 2003, increased to $1,410,873
compared to $1,121,670 for the three months ended September 30, 2002. The
increase of $289,203 was a result of increased sales. Including other income,
revenues for the three months ended September 30, 2003, increased to $1,980,496
compared to $1,128,836 for the three months ended September 30, 2002. The
increase in other income was primarily derived from appreciation in the
company's securities portfolio. Quarterly dividends of $.01 per share were
authorized for shareholders of record on July 31, 2003 and on October 31, 2003.

Expenses

Interest expense for the three months ended September 30, 2003, was $2,136
compared to $4,068 for the three months ended September 30, 2002. The negligible
difference is attributed to the continuity of notes payable.

The unrealized gain on securities for the three months ended September 30, 2003,
was $571,759 as compared to $-0- for the three months ended September 30, 2002.
The difference resulted from an increase in the market value of the securities
portfolio.

Net profit for the three months ended September 30, 2003, was $1,849,124 or $.06
per share compared to $1,062,260 or $.04 per share for the three months ended
September 30, 2002.

Liquidity and Capital Resources

We funded our operations and working capital needs through profits, payments
received from customers, and the exercise of warrants.

Working capital at September 30, 2003, was $8,308,926 as compared to $6,916,277
at September 30, 2002. The improvement by $1,293,649 resulted primarily from
operations and investments.

Cash and cash equivalents at September 30, 2003, were $260,420 as compared to
$15,218 on September 30, 2002.
During the quarter ended September 30, 2003, we generated -0- from investing
activities as compared to $55,930 for the quarter ended September 30, 2002.

During the quarter ended September 30, 2003, we used net cash of $144,500 from
financing activities as compared to $51,900 for the quarter ended September 30,
2002. This was the result of the exercise of warrants.

During the quarter ended September 30, 2003, we issued stock with a value of
$282,728 for software development activities that represent non-cash investing
and financing activities. There were no such activities in the quarter ended
September 30, 2002.

During the quarter ended September 30, 2003, we issued stock with a value of
$144,500 warrant redemptions. There were no such activities in the quarter ended
September 30, 2002.



                                       7
<PAGE>

Item 3:  Controls and Procedures

(a)  Evaluation of disclosure controls and procedures.

     Under  the  supervision  and  with  the  participation  of our  management,
     including our principal  executive officer and principal financial officer,
     we conducted an evaluation of our disclosure  controls and  procedures,  as
     such term is defined under Rule 13a-14(c)  promulgated under the Securities
     Exchange Act of 1934, as amended (the  "Exchange  Act"),  within 90 days of
     the filing date of this report.  Based on their  evaluation,  our principal
     executive  officer and  principal  accounting  officer  concluded  that the
     Company's disclosure controls and procedures are effective.

     There have been no significant  changes (including  corrective actions with
     regard to significant  deficiencies or material weaknesses) in our internal
     controls or in other factors that could significantly affect these controls
     subsequent to the date of the evaluation referenced in the above paragraph.

     See certification pursuant to Sarbanes-Oxley Act of 2002 attached.

(b)  Changes in internal controls. None.

(c)  Asset-Backed Issuers. None.

PART II:  OTHER INFORMATION

Item 1: Legal Proceedings

A suit with a previous customer is ongoing, and a $340,000 reserve has been
allocated. No liability has been recognized because of the contingent nature of
a default judgment rendered due to legal counsel error. The Company expects to
prevail and recover the reserve and all other amounts due from the customer.

Other suits arising in the ordinary course of business are pending against the
Company. Management believes the ultimate outcome of these actions will not
result in a material adverse effect on its consolidated financial position,
results of operations or cash flows.

Item 2: Changes in Securities

In January, 2003, warrants were exercised for 342,796 shares of common stock
that are subject to restrictions under Rule 144 of the Securities Act of 1933 in
exchange for $78,559 in cash.

In the three month period ended March 31, 2003, the Company issued 211,011
shares of its common stock to shareholders of record as of July 31, 2000 and
August 31, 2000, respectively, who submitted proof of ownership of the Company's
common stock as of those dates in accordance with the terms and conditions
announced on July 12, 2000 and July 31, 2000 in a stock distribution program.

In the three month period ended March 31, 2003, the Company issued 1,047,142
shares of its common stock subject to restrictions under Rule 144 of the
Securities Act of 1933 in exchange for $282,728 of LabQuotient development. The
price was based upon the market price of the stock at the date of the
transaction.

In January 2003, the Company issued 600,000 options pursuant to the acquisition
of IntelliServices, Inc., exercisable at 50,000 per month until December 31,
2003, for $738,000. In February 2003, the Company issued 2,613,461 options
subject to restrictions under Rule 144 of the Securities Act of 1933 pursuant to
the acquisition of IntelliServices, Inc., exercisable until December 31, 2005,
for $3,214,557. The option price of the stock is $1.23 per share.

In March 2003, the Company issued 1,200,000 warrants exercisable until December
31, 2003, as follows: $360,000 in cash for common stock in exchange for
1,200,000 shares of H-Quotient, Inc., common stock at $.30 per share which are
subject to restrictions under Rule 144 of the Securities Act of 1933. No
compensation expense was associated with the issuance of the warrants because of
their insignificant value.

In the three month period ended June 30, 2003, the Company issued 10,000 shares
of its common stock to shareholders of record as of July 31, 2000 and August 31,
2000, respectively, who submitted proof of ownership of the Company's common
stock as of those dates in accordance with the terms and conditions announced on
July 12, 2000, and July 31, 2000, in a stock distribution program.



                                       8
<PAGE>

In the three month period ended June 30, 2003, the Company issued 1,237,800
shares of its common stock in warrant exercises subject to restrictions under
Rule 144 of the Securities Act of 1933 in exchange for $371,340.

In the three month period ended June 30, 2003, the Company issued 361,000 shares
of its common stock subject to restrictions under Rule 144 of the Securities Act
of 1933 in exchange for investments.

In the three month period ended June 30, 2003, the Company issued 120,000 shares
of its common stock subject to restrictions under Rule 144 of the Securities Act
of 1933 in exchange for contract services of $36,000.

In the three month period ended September 30, 2003, the Company issued 2,063,409
shares of its common stock in exchange for warrant exercises and 45,000 shares
in exchange for contractor compensation. An additional 885,677 shares subject to
restrictions under Rule 144 of the Securities Act of 1933 were issued for the
exercise of a warrant.


SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  Report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

Date: November 19, 2003.

H-QUOTIENT, INC.

By: /s/ Douglas A. Cohn
    ------------------------------------------------
    Chairman of the Board, Chief Executive Officer,
    President and Chief Financial Officer