UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES  EXCHANGE ACT
      OF 1934

      For Quarterly Period Ended March 31, 2008

                                       or

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
      OF 1934

      For the Transition period from _______________ to ______________


                         Commission File Number: 1-14244


                    ENVIRONMENTAL SERVICE PROFESSIONALS, INC.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


             NEVADA                                  84-1214736
-----------------------------------     ---------------------------------------
 (State or other jurisdiction of        (I.R.S. Employer Identification No.)
  incorporation or organization)

    1111 EAST TAHQUITZ CANYON WAY, SUITE 110, PALM SPRINGS, CALIFORNIA 92262
--------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

                                 (760) 327-5284
--------------------------------------------------------------------------------
               Registrant's telephone number, including area code

--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during the  proceeding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                          Yes[_X_]                        No[__]

     Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated  filer, a non-accelerated  filer, or a smaller reporting company.
See definitions of "large accelerated  filer,"  "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer           [___]     Accelerated filer              [___]
Non-accelerated filer             [___]     Smaller reporting company      [_X_]
(Do not check if a smaller
 reporting company)

     Indicate  by check mark  whether  the  Registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act).

                          Yes[__]                         No[_X_]

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock as of the latest practicable date.

     As of March 31, 2008 the number of shares  outstanding of the  registrant's
class of common stock was 18,655,697.


<PAGE>


                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S>                                                                                                                              <C>
PART I - FINANCIAL INFORMATION.....................................................................................................3

   ITEM 1.      FINANCIAL STATEMENTS...............................................................................................3

                CONDENSED CONSOLIDATED BALANCE SHEETS AT MARCH 31, 2008 (UNAUDITED) AND DECEMBER 31, 2007..........................3

                UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2008 AND
                MARCH 31, 2007.....................................................................................................4

                UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2008 AND
                MARCH 31, 2007.....................................................................................................5

                NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.....................................................6

   ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.............................10

   ITEM 4T.     CONTROLS AND PROCEDURES...........................................................................................12

PART II - OTHER INFORMATION.......................................................................................................13

   ITEM 1.      LEGAL PROCEEDINGS.................................................................................................13

   ITEM 1A.     RISK FACTORS......................................................................................................13

   ITEM 2.      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.......................................................14

   ITEM 3.      DEFAULTS UPON SENIOR SECURITIES...................................................................................14

   ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS...............................................................14

   ITEM 5.      OTHER INFORMATION.................................................................................................14

   ITEM 6.      EXHIBITS..........................................................................................................14

SIGNATURES........................................................................................................................15
</TABLE>



<PAGE>
PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
                               ENVIRONMENTAL SERVICE PROFESSIONALS, INC. AND SUBSIDIARIES
                                          Condensed Consolidated Balance Sheets

-----------------------------------------------------------------------------------------------------------------------

                                                         ASSETS
                                                                                UNAUDITED
                                                                                  AS OF                     AS OF
                                                                                MARCH 31,                DECEMBER 31,
                                                                                  2008                      2007
                                                                            ------------------       ------------------

      CURRENT ASSETS
<S>                                                                         <C>                      <C>
       Cash & cash equivalents                                              $               -        $               -
       Accounts receivable                                                            135,864                  138,180
       receivable - other                                                               9,993                    9,868
       Prepaid expense                                                                      -                  926,254
                                                                            ------------------       ------------------

      TOTAL CURRENT ASSETS                                                            145,857                1,074,301

      NET PROPERTY & EQUIPMENT                                                         68,413                   72,972

      OTHER ASSETS
       Deposits                                                                         2,120                    2,120
       Net - association membership list                                              632,750                  639,852
                                                                            ------------------       ------------------

      TOTAL OTHER ASSETS                                                              634,870                  641,972
                                                                            ------------------       ------------------

            TOTAL ASSETS                                                    $         849,140        $       1,789,245
                                                                            ==================       ==================

                                           LIABILITIES & STOCKHOLDERS' EQUITY

      CURRENT LIABILITIES
       Accounts payable                                                     $       1,318,404        $       1,308,814
       Bank overdraft                                                                 326,626                  336,369
       Line of credit                                                                 221,858                  220,417
       Accrued liabilities                                                            144,502                  144,502
       Taxes payable                                                                       23                        -
       Loans payable                                                                2,427,765                1,947,746
       Loans payable  - related party                                                  19,639                   22,900
                                                                            ------------------       ------------------

      TOTAL CURRENT LIABILITIES                                                     4,458,817                3,980,748

      LONG-TERM LIABILITIES
       Unsecured 10% Loan payable                                                   1,243,934                1,243,934
                                                                            ------------------       ------------------

      TOTAL LONG-TERM LIABILITIES                                                   1,243,934                1,243,934
                                                                            ------------------       ------------------

            TOTAL LIABILITIES                                                       5,702,751                5,224,682

      STOCKHOLDERS' EQUITY

       Common stock, (par value $.001 per share, 100,000,000 shares
         authorized: 22,008,375 and 21,783,375 shares issued and outstanding
         as of March 31, 2008 and December 31, 2007, respectively)                     22,008                   21,783
       Paid-in capital                                                             20,600,824               20,568,299
       Retained earnings                                                          (25,476,443)             (24,025,519)
                                                                            ------------------       ------------------

      TOTAL STOCKHOLDERS' EQUITY                                                   (4,853,611)              (3,435,437)
                                                                            ------------------       ------------------
              TOTAL LIABILITIES &
                         STOCKHOLDERS' EQUITY                               $         849,140        $       1,789,245
                                                                            ==================       ==================

                             See Notes to the Condensed Consolidated Financial Statements

</TABLE>
                                                        3
<PAGE>
<TABLE>
<CAPTION>
                ENVIRONMENTAL SERVICE PROFESSIONALS, INC. AND SUBSIDIARIES
                 Unaudited Condensed Consolidated Statement of Operations
-------------------------------------------------------------------------------------------

                                                    THREE MONTHS           THREE MONTHS
                                                        ENDED                  ENDED
                                                      MARCH 31,              MARCH 31,
                                                        2008                   2007
                                                 --------------------   --------------------

    REVENUES
<S>                                              <C>                    <C>
     Income                                      $            65,092    $           245,717
                                                 --------------------   --------------------

    NET REVENUE                                               65,092                245,717

    COST OF GOODS SOLD
     Cost of Goods Sold                                       16,310                 27,333
                                                 --------------------   --------------------

    TOTAL COST OF GOODS SOLD                                  16,310                 27,333
                                                 --------------------   --------------------

    GROSS PROFIT                                              48,782                218,384

    OPERATING EXPENSES
     Depreciation                                             11,660                  6,071
     Finance fee                                             959,863                  8,233
     Consulting fee                                           42,481                625,035
     General and administrative                              353,539                711,403
                                                 --------------------   --------------------

    TOTAL OPERATING EXPENSES                               1,367,543              1,350,742
                                                 --------------------   --------------------

    LOSS FROM OPERATIONS                                  (1,318,761)            (1,132,358)

    OTHER INCOME (EXPENSES)
     Interest expense                                       (129,009)               (18,600)
     Other income                                                  -                  6,013
     Other expenses                                           (3,154)                     -
                                                 --------------------   --------------------

    TOTAL OTHER INCOME (EXPENSES)                           (132,163)               (12,587)
                                                 --------------------   --------------------

    NET INCOME (LOSS)                            $        (1,450,924)   $        (1,144,945)
                                                 ====================   ====================

     BASIC EARNING (LOSS) PER SHARE              $             (0.07)   $             (0.08)
                                                 --------------------   --------------------

    WEIGHTED AVERAGE NUMBER OF
      COMMON SHARES - BASIC AND DILUTED                   21,847,386             14,010,502
                                                 ====================   ====================



                    See Notes to the Condensed Consolidated Financial Statements
</TABLE>


                                                   4
<PAGE>
<TABLE>
<CAPTION>
              ENVIRONMENTAL SERVICE PROFESSIONALS, INC. AND SUBSIDIARIES
               Unaudited Condensed Consolidated Statement of Cash Flows
------------------------------------------------------------------------------------------------------------------

                                                                        THREE MONTHS          THREE MONTHS
                                                                            ENDED                ENDED
                                                                          MARCH 31,            MARCH 31,
                                                                            2008                  2007
                                                                      ------------------    -----------------

   CASH FLOWS FROM OPERATING ACTIVITIES

<S>                                                                   <C>                   <C>
   Net income (loss)                                                  $      (1,450,924)    $     (1,144,945)

   Adjustments to reconcile net loss to net cash
    provided by (used in) operating activities:
    Depreciation & amortization                                                  11,660                6,071
    Common stock                                                                      -              131,250
    Finance fee                                                                 926,254              122,745
   Changes in operating assets and liabilities:
   (Increase) decrease in accounts receivable                                     2,315             (186,901)
   (Increase) decrease in other receivable                                         (125)                  50
   (Increase) decrease in prepaid expenses                                            -                2,087
   (Increase) decrease in accounts payable and accrued expenses                   9,590              388,867
   (Increase) decrease in bank overdraft                                         (9,743)                   -
   (Increase) decrease in taxes payable                                              23                   45
                                                                      ------------------    -----------------

     NET CASH USED BY OPERATING ACTIVITIES                                     (510,950)            (680,731)


   CASH FLOWS FROM INVESTING ACTIVITIES

     NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES                              -                    -

   CASH FLOWS FROM FINANCING ACTIVITIES

    Line of credit                                                                1,442                 (628)
    Proceeds from stock issuances                                                32,750               64,200
    Increase in loan payable                                                    480,019               65,000
    Increase in loan payable - related party                                     (3,261)                   -
    Proceeds from long-term liabilities                                               -              295,018
                                                                      ------------------    -----------------

      NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES                       510,950              423,590
                                                                      ------------------    -----------------

      NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS                              -             (257,141)

      CASH AT BEGINNING OF PERIOD                                                     -              302,943

      CASH AT OCTOBER 11, 2006 OF SUBSIDIARY                                          -              (24,936)
                                                                      ------------------    -----------------

      CASH AT END OF PERIOD                                           $               -     $         20,866
                                                                      ==================    =================


   SUPPLEMENTAL DISCLOSURES OF CASH FLOW
   INFORMATION:

   Interest paid                                                      $         129,009     $         18,600
                                                                      ==================    =================

   Income taxes paid                                                  $               -     $              -
                                                                      ==================    =================


                           See Notes to the Condensed Consolidated Financial Statements
</TABLE>

                                                     5
<PAGE>
           ENVIRONMENTAL SERVICE PROFESSIONALS, INC. AND SUBSIDIARIES
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              AS OF MARCH 31, 2008


NOTE 1 - CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The accompanying March 31, 2008 condensed consolidated financial statements have
been prepared by the Company  without audit.  In the opinion of management,  all
adjustments  (which  include  only normal  recurring  adjustments)  necessary to
present fairly the financial  position,  results of operations and cash flows at
March 31, 2008 and for all periods presented have been made.

Certain  information  and footnote  disclosures  normally  included in financial
statements prepared in accordance with accounting  principles generally accepted
in the United States of America have been condensed or omitted.  It is suggested
that these condensed  consolidated  financial  statements be read in conjunction
with the  consolidated  financial  statements and notes thereto  included in the
Company's  December  31, 2007 audited  consolidated  financial  statements.  The
results of  operations  for the three months period ended March 31, 2008 are not
necessarily indicative of the operating results for the full years.


NOTE 2 - GOING CONCERN

The Company's  condensed  consolidated  financial  statements are prepared using
generally accepted accounting  principles  applicable to a going concern,  which
contemplates  the  realization  of assets and  liquidation of liabilities in the
normal course of business.  The accompanying  condensed  consolidated  financial
statements do not include any  adjustments  relating to the  recoverability  and
classification  of  liabilities  that  might  result  from the  outcome  of this
uncertainty.  It is management's  intention to seek  additional  operating funds
through operations,  and debt or equity offerings.  Management has yet to decide
what type of offering the Company will use or how much capital will be raised by
the Company.  There is no  guarantee  that the Company will be able to raise any
capital through any type of offerings.


NOTE 3 - ORGANIZATION AND DESCRIPTION OF BUSINESS

Environmental Service  Professionals,  Inc. ("ESP" or the "Company") is a Nevada
corporation  headquartered in Southern California.  Management believes that ESP
is the first company in the moisture  inspection  industry  vertical to become a
publicly traded company.

Since 2006 ESP has  embarked on a strategy to acquire  businesses  dealing  with
environmental  issues and  resolving  environmentally  sensitive  problems.  The
Company has completed four  acquisitions  and is in various stages of discussion
with  additional  companies that management  believes are a good  philosophical,
operational  and  economic  fit  with  the  Company.  Of the  current  companies
targeted, management anticipates that some will be freestanding subsidiaries and
others will be absorbed into existing operations.

ESP  offers  various  inspection  services  for  addressing  mold  and  moisture
intrusion  that can have an acute or chronic  negative  impact on the indoor air
quality of commercial and residential buildings.

                                       6
<PAGE>

           ENVIRONMENTAL SERVICE PROFESSIONALS, INC. AND SUBSIDIARIES
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              AS OF MARCH 31, 2008


NOTE 3 - ORGANIZATION AND DESCRIPTION OF BUSINESS - CONTINUED

Environmental   Safeguard   Professionals,   Inc.,  a  wholly  owned  subsidiary
("Safeguard"), has developed a standardized training, certification, inspection,
and results reporting  analysis program which forms the foundation of a suite of
services  that  together  comprise the Certified  Environmental  Home  Inspector
("CEHI") program. Management believes that business unit will provide the annual
subscription-based  moisture  maintenance  and energy use awareness  programs to
both residential and commercial clients.

National  Professional  Services,  Inc., a wholly owned subsidiary  ("NPS"),  is
currently a conglomerate of seven  individual  associations and maintains annual
paying  members.  The focus of this business unit is to establish cross training
on CEHI Programs and to provide information concerning residential environmental
issues,  establish  training for  underwriters,  loan officers and appraisers to
educate these groups about CEHI inspection  protocols.  These training  programs
for  insurance  companies,   underwriters,  loss  control  and  risk  management
personnel  educate  and  emphasize  the  benefits of using a CEHI on the initial
inspection and then establishing annual inspections.


NOTE 4 - NOTES PAYABLE & LONG TERM LIABILITIES

Notes payable as of March 31, 2008 consist of the following:

                                                    MARCH 31, 2008
--------------------------------------------- -------------------------------

Unsecured loans, with annual interest of 8%.
                                                      $ 2,427,765

Unsecured notes, with annual interest of 10%.           1,243,934
--------------------------------------------- -------------------------------

                                                      $ 3,671,699
============================================= ===============================




                                       7
<PAGE>

           ENVIRONMENTAL SERVICE PROFESSIONALS, INC. AND SUBSIDIARIES
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              AS OF MARCH 31, 2008


NOTE 5  - BASIC INCOME / (LOSS) PER COMMON SHARE

Basic gain (loss) per common  share has been  calculated  based on the  weighted
average number of shares of common stock outstanding during the period.
<TABLE>
<CAPTION>

                                              MARCH 31, 2008              MARCH 31, 2007
                                         -------------------------- --------------------------

<S>                                            <C>                         <C>
NET INCOME (LOSS) FROM OPERATIONS              $(1,450,924)                $ (1,144,945)

Basic income / (loss) per share
                                               $     (0.07)                $      (0.08)
                                         ========================== ==========================

Weighted average number of shares
outstanding                                     21,847,386                   14,010,502
                                         ========================== ==========================
</TABLE>


NOTE 6  - SUBSEQUENT EVENTS

On April 8, 2008 the Company  entered  into a short term loan for  $50,000.  The
loan  bears  simple  interest  at a rate  of 5% per  annum  and is  payable  all
principal and accrued but unpaid  interest on or before June 8, 2008. The lender
received  400,000  shares of common  stock and  1,000,000  warrants  to purchase
1,000,000  shares of the Company's  common stock, of which 500,000  warrants are
exercisable  at an exercise price of $0.17 per share and expire on April 8, 2011
and 500,000 warrants are exercisable at an exercise price of $0.25 per share and
expire on April 8, 2011.

On April 28,  2008 the  Company  issued  23,000,000  shares  of common  stock to
certain key executives.

Effective  May 1, 2008,  Environmental  Service  Professionals,  Inc.,  a Nevada
corporation  (the "Company" or the "Borrower")  entered into a Loan and Security
Agreement  (the  "Agreement")  with Siena  Investment  Resources,  LLC, a Nevada
limited  liability  company  (the  "Lender").  Pursuant  to  the  terms  of  the
Agreement, the Lender agreed to make a loan to the Borrower in the principal sum
of up  to  ten  million  dollars  ($10,000,000)  to be  evidenced  by a  secured
convertible  promissory note. Each Note will bear interest at the simple rate of
10% per annum.  Interest will be pre-payable in advance for each year after each
Closing and thereafter on each  anniversary date of each Closing during the term
of a Note,  unless and to the extent that Note is converted  into the Borrower's
equity securities. Any interest not paid when due will be added to the principal
and will  thereafter  bear like interest as the principal of the Note.  Unless a
Note is earlier  converted into equity securities of the Borrower as provided in
the Note,  on April 30,  2011 (the  "Maturity  Date"),  the  entire  outstanding
principal balance of the Note, all accrued and unpaid interest thereon,  if any,
and all other monetary obligations will be due and payable by the Company to the
Lender.

The Lender will have the right at any time until the Maturity Date, provided the
Lender gives the  Borrower  written  notice of the Lender's  election to convert
prior to any  prepayment  of a Note by the Borrower  with respect to  converting
that  portion of the Note  covered  by the  prepayment,  to  convert  all or any
portion of up to 20% of the  outstanding  principal  and accrued  interest  (the
"Conversion Amount"), into such number of fully paid and nonassessable shares of
the Borrower's  common stock as is determined by dividing the Conversion  Amount

                                       8
<PAGE>

           ENVIRONMENTAL SERVICE PROFESSIONALS, INC. AND SUBSIDIARIES
            NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              AS OF MARCH 31, 2008

NOTE 6  - SUBSEQUENT EVENTS - CONTINUED

by  fifty-eight  cents  ($0.58).  For each share of  Borrower's  common stock so
issued upon  conversion,  the Borrower  will also issue to Lender one warrant to
purchase  one  additional  share of the  Borrower's  common stock for a purchase
price of  $0.75  per  share  for a period  of three  years  from the date of the
issuance of the warrant.

On May 1, 2008 the Company entered into a short term loan for $25,000.  The loan
is payable all  principal  and a flat fee of 10% on or before June 1, 2008.  The
lender received  150,000 shares of common stock and 150,000 warrants to purchase
150,000  shares  of the  Company's  common  stock  which are  exercisable  at an
exercise price of $0.58 per share and expire on May 1, 2011.

On May 6, 2008 the Company entered into a short term loan for $22,000.  The loan
is payable all  principal  and a flat fee of 5% on or before  June 6, 2008.  The
lender  received  50,000  warrants to purchase  50,000  shares of the  Company's
common stock which are  exercisable  at an exercise price of $0.58 per share and
expire on May 6, 2011.

The other  bridge  loan is  payable  all  principal  and a flat fee of 10% on or
before May 31, 2008.




















                                        9


<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

CAUTIONARY STATEMENTS

         This   Form   10-Q   contains    financial    projections   and   other
"forward-looking  statements," as that term is used in federal  securities laws,
about  Environmental  Service  Professionals,   Inc.'s  ("our,"  "ESP,"  or  the
"Company")  financial  condition,  results of  operations  and  business.  These
statements  include,  among  others,  statements  concerning  the  potential for
revenues and expenses and other  matters that are not  historical  facts.  These
statements  may be made  expressly in this Form 10-Q. You can find many of these
statements by looking for words such as  "believes,"  "expects,"  "anticipates,"
"estimates,"   or   similar   expressions   used  in  this  Form   10-Q.   These
forward-looking  statements  are  subject  to  numerous  assumptions,  risks and
uncertainties  that may cause the  Company's  actual  results  to be  materially
different from any future  results  expressed or implied by the Company in those
statements.  The most  important  facts  that could  prevent  the  Company  from
achieving its stated goals include, but are not limited to, the following:

                  (a)      Volatility or decline of the Company's stock price;
                  (b)      Potential fluctuation in quarterly results;
                  (c)      Failure of the Company to earn revenues or profits;
                  (d)      Inadequate   capital  and   inability  to  raise  the
                           additional  capital or obtain the financing needed to
                           implement its business plans;
                  (e)      Inadequate capital to continue business;
                  (f)      Absence  of demand  for the  Company's  products  and
                           services;
                  (g)      Rapid and significant changes in markets;
                  (h)      Litigation  with or legal claims and  allegations  by
                           outside parties against ESP and its subsidiaries;
                  (i)      Insufficient revenues to cover operating costs;
                  (j)      Default by the Company on short-term bridge loans and
                           other  indebtedness  incurred by the Company due to a
                           lack of capital or cash flow to service and repay the
                           debt; and
                  (k)      Additional  dilution  incurred as the Company  issues
                           more of its capital stock to finance acquisitions and
                           operations.

         Because the statements are subject to risks and  uncertainties,  actual
results  may  differ   materially   from  those  expressed  or  implied  by  the
forward-looking statements. The Company cautions you not to place undue reliance
on the  statements,  which  speak  only as of the date of this  Form  10-Q.  The
cautionary  statements  contained  or  referred  to in this  section  should  be
considered in connection  with any  subsequent  written or oral  forward-looking
statements  that the Company or persons  acting on its behalf might  issue.  The
Company  does not  undertake  any  obligation  to  review or  confirm  analysts'
expectations  or  estimates  or  to  release   publicly  any  revisions  to  any
forward-looking  statements to reflect events or circumstances after the date of
this Form 10-Q or to reflect the occurrence of unanticipated events.

         The  following  discussion  should  be read  in  conjunction  with  our
condensed  consolidated  financial statements and notes to those statements.  In
addition to historical information,  the following discussion and other parts of
this quarterly  report contain  forward-looking  information that involves risks
and uncertainties.

OVERVIEW

         Environmental  Service   Professionals,   Inc.  ("We,"  "ESP,"  or  the
"Company")  is  a  Nevada  corporation  headquartered  in  Southern  California.
Management  believes  that ESP is the first  company in the moisture  inspection
industry vertical to become a publicly-traded company.

         Since 2006 ESP has embarked on a strategy to acquire businesses dealing
with environmental issues and resolving  environmentally sensitive problems. The
Company has completed four  acquisitions  and is in various stages of discussion
with  additional  companies that management  believes are a good  philosophical,
operational  and  economic  fit  with  the  Company.  Of the  current  companies
targeted,  management  anticipates that some will be free-standing  subsidiaries
and others will be absorbed into existing operations.

         ESP offers various inspection services for addressing mold and moisture
intrusion  that can have an acute or chronic  negative  impact on the indoor air
quality of commercial and residential buildings.

                                       10
<PAGE>

         Environmental Safeguard Professionals,  Inc., a wholly owned subsidiary
("Safeguard"), has developed a standardized training, certification, inspection,
and results reporting  analysis program which forms the foundation of a suite of
services  that  together  comprise the Certified  Environmental  Home  Inspector
("CEHI") program. Management believes that business unit will provide the annual
subscription-based  moisture  maintenance  and energy use awareness  programs to
both residential and commercial clients.

         National  Professional  Services,   Inc.,  a  wholly-owned   subsidiary
("NPS"),  is  currently a  conglomerate  of seven  individual  associations  and
maintains annual paying members. The focus of this business unit is to establish
cross-training   on  CEHI  Programs  and  to  provide   information   concerning
residential  environmental  issues,  establish  training for underwriters,  loan
officers and appraisers to educate these groups about CEHI inspection protocols.
These training programs for insurance companies,  underwriters, loss control and
risk management  personnel educate and emphasize the benefits of using a CEHI on
the initial inspection and then establishing annual inspections.

         Safeguard had minimal  revenues  during the first quarter of 2008 as it
was focused on  conducting  final beta  testing of its on-line work flow systems
and waiting for  approval of  appropriate  insurance  policy  coverage  for home
inspections.  Once these  objectives were achieved,  Safeguard  performed a soft
launch of the CEHI program  during the last week in March 2008 and a full launch
on April 1, 2008. Since this time Management believes that Safeguard has met its
projected revenue.

         As a trade association membership management company, NPS relies on its
annual membership dues for revenue. Each membership organization has a unique 12
month  membership  cycle with the first  membership  cycle  commencing in April.
Accordingly,  NPS does not earn a material  amount of  revenue  until the second
quarter of each calendar year. NPS spent the first quarter of 2008 producing and
delivering  required  monthly  industry  and  informational  updates to existing
members.  NPS vetted and consolidated its existing membership list and solicited
new potential  members in preparation to begin mailing out its annual membership
dues in April. NPS has increased its membership list to 10,003 for 2008.

CRITICAL ACCOUNTING POLICIES

         The  discussion and analysis of the Company's  financial  condition and
results  of  operations  are based  upon the  Company's  consolidated  financial
statements,  which have been prepared in accordance with  accounting  principles
generally  accepted in the United States of America.  The  preparation  of these
financial  statements  requires the Company to make estimates and judgments that
affect the reported amounts of assets,  liabilities,  revenues and expenses, and
related  disclosure of contingent  assets and liabilities.  On an ongoing basis,
the Company  evaluates  its  estimates,  including  those  related to bad debts,
intangible assets, income taxes, and contingencies and litigation, among others.
The Company bases its estimates on  historical  experience  and on various other
assumptions  that it  believes to be  reasonable  under the  circumstances,  the
results of which form the basis for making  judgments  about the carrying values
of assets and  liabilities  that are not readily  apparent  from other  sources.
Actual results may differ from these estimates  under  different  assumptions or
conditions. The Company believes that the following critical accounting policies
affect its more  significant  judgments and estimates used in the preparation of
its consolidated financial statements: discontinued operations, use of estimates
and impairment of long-lived assets.  These accounting policies are discussed in
"ITEM 6  --MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND
RESULTS OF OPERATION"  contained in the  Company's  Annual Report on Form 10-KSB
for the fiscal  year ended  December  31,  2007,  as well as in the notes to the
December 31, 2007  consolidated  financial  statements.  There have not been any
significant  changes to these  accounting  policies  since they were  previously
reported at December 31, 2007.

RESULTS OF  OPERATIONS  FOR THE THREE MONTHS ENDED MARCH 31, 2008 AS COMPARED TO
THREE MONTHS ENDED MARCH 31, 2007

         REVENUE

         Total  revenue for the first three  months  period ended March 31, 2008
decreased by $180,625 from $245,717 in the  three-month  period ending March 31,
2007 to $65,092 for the three  months  ended March 31,  2008.  This  decrease in
revenue  was a  result  of the  delayed  launching  of the CEHI  program.  It is
anticipated  over the second quarter of 2008 that the  subsidiary  Environmental
Safeguard Professionals, Inc. ("Safeguard") will continue to increase the number
of approved vendors that will be certified to deliver inspection  services under
the CEHI program, and that the subsidiary National Professionals  Services, Inc.
("NPS") will invoice and collect the annual 2008 membership dues and continue to
increase new memberships in each of its associations.

                                       11
<PAGE>

         OPERATING EXPENSES

         Operating expenses increased by $16,800,  up from $1,350,742 during the
three-month  period  ended March 31, 2007,  to  $1,367,542  for the  three-month
period ended March 31, 2008. This increase in operating  expenses was the result
of increased financing fees from the prior period.  Expenses for the period that
related to stock  issuances  were:  finance fee $959,863 and  consulting  fee of
$42,481.

         NET LOSS

         Net loss increased by $305,979 for the  three-month  period ended March
31, 2008.  This  increase in net loss was the result of an increase in financing
fees and interest expense.  Stock issuance related expenses for the three months
ended March 31, 2008 were  $32,750.  Currently  operating  costs exceed  revenue
because sales are not yet  sufficient.  We cannot assure when or if revenue will
exceed operating costs.

LIQUIDITY AND CAPITAL RESOURCES

         The  Company had net cash of $0 at March 31,  2008,  as compared to net
cash of $20,866 at March 31, 2007.

         During the three months ended March 31, 2008, the Company used $510,950
of cash for  operating  activities,  as compared  to  $680,731  during the three
months  ended March 31,  2007.  The  decrease  in the use of cash for  operating
activities  was a result of  restructuring  and  optimizing  the  administration
support after  amalgamating the acquisitions  made during the previous period. A
portion of the funds were used to enhance  the CEHI  program  on-line  work flow
system and expand the  national  call center to support the April 2008 launch of
the Certified Environmental Home Inspection Program (CEHI).

         Cash  provided by  financing  activities  relating  to the  issuance of
promissory  notes and shares of common stock during the three months ended March
31, 2008 was  $510,949,  as compared to $423,590  during the three  months ended
March 31, 2007. Since January 1, 2006, our capital needs have primarily been met
from the proceeds of private  placements,  bridge loans and, to a lesser extent,
sales.

         The Company will have additional capital  requirements  during 2008 and
2009.  If we are unable to satisfy  our cash  requirements  through  product and
service sales, we will attempt to raise  additional  capital through the sale of
our common stock.

         We cannot  assure  that the  Company  will have  sufficient  capital to
finance  our  growth  and  business  operations  or that  such  capital  will be
available  on  terms  that  are  favorable  to us or at  all.  We are  currently
incurring  operating  deficits that are expected to continue for the foreseeable
future.

ITEM 4T.   CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

         We maintain  disclosure  controls and  procedures  that are designed to
ensure that  information  required to be  disclosed  by the Company is recorded,
processed,  summarized,  and reported  within the time periods  specified in the
rules and forms of the Securities and Exchange Commission.

         Our management,  under the direction of our Chief Executive Officer and
Principal  Financial Officer,  has evaluated the effectiveness of the design and
operation of our  disclosure  controls and procedures (as such terms are defined
in Rules  13a-15(e) and 15d-15(e)  under the Exchange Act) as of March 31, 2008.
As part of such evaluation,  management  considered the matters  discussed below
relating to internal control over financial reporting.  Based on this evaluation
our management,  including the Company's  Chief Executive  Officer and Principal
Financial  Officer,  has concluded  that the Company's  disclosure  controls and
procedures were effective as of March 31, 2008.

INTERNAL CONTROL OVER FINANCIAL REPORTING

         The Company's Chief Executive Officer and Principal  Financial Officer,
is responsible for establishing and maintaining  adequate  internal control over


                                       12
<PAGE>

financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). ESP's
internal  control  over  financial  reporting  is a process  designed to provide
reasonable  assurance  regarding the reliability of financial  reporting and the
preparation  of  financial   statements  for  external  purposes  of  accounting
principles  generally  accepted in the United  States.  Because of its  inherent
limitations, internal control over financial reporting may not prevent or detect
misstatements.  Therefore,  even those  systems  determined  to be effective can
provide only reasonable assurance of achieving their control objectives.

         UPDATE FOR CHANGES IN INTERNAL CONTROL OVER FINANCIAL  REPORTING DURING
FIRST QUARTER 2008.

         The  following  are  changes in our  internal  control  over  financial
reporting during the first quarter of fiscal 2008 that have materially affected,
or are  reasonably  likely  to  materially  affect  our  internal  control  over
financial reporting:

         o        Improved tracking, reconciliation and communication procedures
                  for  reporting.  This  improvement  was made to improve  ESP's
                  methodology for identifying all necessary  disclosures related
                  to non-cash equity transactions to address a material weakness
                  identified  by the Company's  auditors  during the fiscal year
                  ended December 31, 2007.

         o        Hiring of additional human resources. We hired a controller in
                  the first quarter of 2008 to ensure that the controls in place
                  were formally  documented,  properly monitored,  and regularly
                  tested to ensure their proper implementation and effectiveness
                  of improving the financial reporting process.

         REMEDIATION OF PREVIOUS MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES

         Prior to the first quarter of 2008, the Company's  auditors  determined
that, as of the end of prior periods,  ESP's  methodology  for  identifying  all
necessary  disclosures  related to non-cash equity  transactions could lead to a
material  misstatement  of net income (loss).  In order to address this material
weakness,  management  hired  a  controller  to  ensure  improved  tracking  and
reconciliation procedures for the recording of non-cash equity transactions. The
controller is responsible  for recording all non-cash  equity  transactions in a
single  secure  database,  communicating  on a weekly  basis with the  Principle
Accounting  Officer and reconciling these  transactions with the Company's stock
transfer agent on a monthly basis.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

         Other than as  described  above in this item,  there were no changes in
the Company's internal control over financial reporting identified in connection
with the evaluation of it that occurred  during the quarter ended March 31, 2008
that  materially  affected or are  reasonably  likely to  materially  affect the
Company's internal control over financial reporting.


PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

JOHN COOLEY V. PACIFIC ENVIRONMENTAL SAMPLING, INC. ETC., ET AL.

         On April 4, 2008, a hearing regarding  plaintiff Cooley's third amended
complaint  was held before the Court and the  Company was granted all  submitted
demurrers and Motions to Strike. On April 25, 2008, plaintiff Cooley submitted a
fourth  amended  complaint.  A tentative  hearing  date has been set for May 30,
2008. As of the date of this report,  ESP and its affiliates  cannot predict the
outcome of this  case.  ESP and its  affiliates  believe  they have  meritorious
defenses and are vigorously  defending the action.  For  additional  information
regarding this legal proceeding,  see the Company's Annual Report on Form 10-KSB
for the fiscal year ended December 31, 2007.

ITEM 1A.-RISK FACTORS

         WE DID NOT TIMELY FILE WITH THE SEC OUR FORM 10-KSB FOR THE FISCAL YEAR
ENDED  DECEMBER 31, 2007. AS A RESULT OF THIS DELAYED  FILING,  WE ARE CURRENTLY
INELIGIBLE   TO  USE  FORM  S-3  TO   REGISTER   SECURITIES   WITH  THE  SEC  IN
CAPITAL-RAISING  TRANSACTIONS,  WHICH MAY  ADVERSELY  AFFECT  OUR COST OF FUTURE
CAPITAL.

                                       13
<PAGE>

         We did not timely file with the SEC our Form 10-KSB for the fiscal year
ended December 31, 2007.  Although the filing of this  Quarterly  Report on Form
10-Q will bring us current in our filings with the SEC,  because our Form 10-KSB
was not filed  within the  deadline  promulgated  by the SEC, the filing was not
timely under applicable SEC rules. As a result of the delayed filing of our Form
10-KSB, we are ineligible to use a "short form"  registration  statement on Form
S-3 to  register  securities  for sale by us or for  resale  by  other  security
holders,  in  capital  raising  transactions,  until we have  timely  filed  all
periodic  reports  under  the  Securities  Exchange  Act of 1934 for at least 12
calendar months.  In the meantime,  for capital raising  transactions,  we would
need to use Form  S-1 to  register  securities  with  the  SEC,  or  issue  such
securities in a private  placement,  which could increase the time and resources
required to raise capital during this period.

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

         Between  February 2008 and March 2008,  the Company  entered into three
bridge loans totaling $225,000.  Two of the bridge loans bear simple interest at
a rate of 12% per annum and are  payable  all  principal  and accrued but unpaid
interest  on or before  May 31,  2008.  The other  bridge  loan is  payable  all
principal and a flat fee of 10% on or before May 31, 2008. In  conjunction  with
these bridge loans,  the Company  issued to the three lenders a total of 225,000
shares of common stock and 600,000  warrants to purchase  600,000  shares of the
Company's common stock, of which 300,000 warrants are exercisable at an exercise
price of $0.17 per share and expire on February  19, 2011,  50,000  warrants are
exercisable  at an  exercise  price of $0.17 per  share and  expire on March 17,
2011,  100,000  warrants are exercisable at an exercise price of $0.58 per share
and expire on February 19, 2011,  50,000 warrants are exercisable at an exercise
price of $0.58 per share and expire on March 17, 2011 and 100,000  warrants  are
exercisable  at an  exercise  price of $0.75 per  share and  expire on March 17,
2011.  As of March 31, 2008,  none of the warrants had been  exercised.  The net
proceeds of the bridge loans were utilized for business acquisitions and general
working capital purposes.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not Applicable

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         Not Applicable

ITEM 5.  OTHER INFORMATION

         Not Applicable

ITEM 6.  EXHIBITS


         EXHIBIT           DESCRIPTION

         31.1               Section 302 Certification of Chief Executive Officer
         31.2               Section 302 Certification of Chief Financial Officer
         32.1               Section 906 Certification of Chief Executive Officer
         32.2               Section 906 Certification of Chief Financial Officer



                                       14
<PAGE>



                                   SIGNATURES

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


                               ENVIRONMENTAL SERVICE PROFESSIONALS, INC.


Dated:  May 20, 2008           By:  /s/ Edward L. Torres
                                    --------------------------------------------
                                      Edward L. Torres,  Chairman of the Board,
                                      Chief Executive Officer (Principal
                                      Executive Officer), President, and
                                      Acting Chief Financial Officer
                                      (Principal Financial Officer)


Dated:  May 20, 2008           By:  /s/ Lyle Watkins
                                    --------------------------------------------
                                      Lyle Watkins, Director



Dated:  May 20, 2008           By:  /s/ Robert August
                                    --------------------------------------------
                                      Robert August, Director



Dated:  May 20, 2008           By:  /s/ Leroy Moyer
                                    --------------------------------------------
                                      Leroy Moyer, Director












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