UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549





FORM
10-Q





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





For the
quarterly period ended March   31, 2010


Or


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





For the
transition period from ________ to _________










Commission
File Number 333-153679











AAA PUBLIC
ADJUSTING GROUP, INC.


(EXACT
NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)





Florida
                        
                        26-0325410(State
      or other jurisdiction or incorporation ororganization)
                        
                        (I.R.S.
      Employer Identification No.)1926
      Hollywood Blvd, Suite 100 Hollywood
                        
                        33020(Address
      of principal executive offices)
                        
                        (Zip
      Code)





Registrants
telephone number, including area code: 954-894-0043





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 preceding 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 has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit and post such files).


Yes  ̈      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
the 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


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


Yes  ̈      No
x





The
registrant had 6,016,032 shares of common stock outstanding as
of  March 31, 2010










AAA
PUBLIC ADJUSTING GROUP, INC





TABLE
OF CONTENTS





MARCH
31, 2010





PageConsolidated
      Financial StatementsBalance
      Sheets
                  2Statements
      of Revenues and Expenses
                  3Statements
      of Cash Flows
                  4Notes
      to Financial Statements
                  5 -
      12









AAA
PUBLIC ADJUSTING GROUP, INC


CONSOLIDATED
BALANCE SHEETS


MARCH 31,
2010 AND DECEMBER 31, 2009





2010
                                
                                
                                2009(unaudited)AssetsCurrent
      AssetsCash
      and cash equivalents
                                
                                $
                                10,999
                                
                                
                                $
                                12,404Accounts
      receivable (net of allowance for doubtful accounts of $
    5,723
                                
                                
                                103,581
                                
                                
                                
                                84,860Total
      current assets
                                
                                
                                114,580
                                
                                
                                
                                97,264Property,
      plant, and equipment - net
                                
                                
                                67,084
                                
                                
                                
                                74,492Total
      Assets
                                
                                $
                                181,664
                                
                                
                                $
                                171,756Liabilities
      and Stockholders' EquityCurrent
      LiabilitiesNotes
      payable - current portion
                                
                                $
                                19,826
                                
                                
                                $
                                19,452Notes
      payable - related parties
                                
                                
                                2,584
                                
                                
                                
                                2,584Accounts
      payable and accrued liabilities
                                
                                
                                86,801
                                
                                
                                
                                62,527Deferred
      Compensation
                                
                                
                                25,000Accounts
      payable to insured
                                
                                
                                33,945
                                
                                
                                
                                24,591Total
      current liabilities
                                
                                
                                168,156
                                
                                
                                
                                109,154Long
      Term LiabilitiesNotes
      payable - net of current
                                
                                
                                48,162
                                
                                
                                
                                53,262Total
      long term liabilites
                                
                                
                                48,162
                                
                                
                                
                                53,262Total
      Liabilities
                                
                                
                                216,318
                                
                                
                                
                                162,416Stockholders'
      EquityPreferred
      Stock, 20,000,000 shares authorized, no shares issued
                                
                                
                                -
                                
                                
                                
                                -Common
      Stock, 50,000,000 shares authorized at $.0001 par,  6,016,032,
      shares issued and outstanding at March 31, 2010 and December 31, 2009,
      respectively
                                
                                
                                602
                                
                                
                                
                                602Additional
      paid in capital
                                
                                
                                116,456
                                
                                
                                
                                116,456Accumulated
      Deficit
                                
                                
                                (151,712
                                )
                                
                                
                                (107,718
                                )Total
      Stockholders' equity
                                
                                
                                (34,654
                                )
                                
                                
                                9,340Total
      Liabilities and Stockholders' Equity
                                
                                $
                                181,664
                                
                                
                                $
                                171,756





The
accompanying notes are an integral part of the financial
statements


- 2
-


AAA
PUBLIC ADJUSTING GROUP, INC


CONSOLIDATED
STATEMENTS OF OPERATIONS


FOR THE 3
MONTHS ENDED MARCH 31, 2010 AND, 2009


(unaudited)





2010
                    
                    
                    2009Revenues
      (net)
                    
                    $
                    150,118
                    
                    
                    $
                    285,859Operating
      Expenses:Commissions
      to adjusters
                    
                    
                    99,165
                    
                    
                    
                    163,312Consulting
      services - other
                    
                    
                    1,275
                    
                    
                    
                    23,740Payroll
                    
                    
                    45,719
                    
                    
                    
                    39,646Other
      general and administrative expenses
                    
                    
                    46,629
                    
                    
                    
                    54,689Total
      operating expenses
                    
                    
                    192,788
                    
                    
                    
                    281,387Profit
      (Loss) from operations
                    
                    
                    (42,670
                    )
                    
                    
                    4,472Other
      income (expense)Interest
      (expense)
                    
                    
                    (1,324
                    )
                    
                    
                    (2,420
                    )Net
      Income/(Loss) Before Income Taxes
                    
                    
                    (43,994
                    )
                    
                    
                    2,052Provision
      for income tax
                    
                    
                    -
                    
                    
                    
                    -Net
      Income/(Loss)
                    
                    $
                    (43,994
                    )
                    
                    $
                    2,052Net
      income (loss) per common share, basic
                    
                    $
                    (0.01
                    )
                    
                    $
                    0.00Weighted
      average number of common shares outstanding
                    
                    
                    6,016,032
                    
                    
                    
                    6,016,032





The
accompanying notes are an integral part of the financial
statements


- 3
-


AAA
PUBLIC ADJUSTING GROUP, INC


CONSOLIDATED
STATEMENTS OF CASH FLOWS


FOR THE 3
MONTHS ENDED MARCH 31, 2010 AND  2009


(unaudited)





2010
                              
                              
                              2009Cash
      Flows From Operating Activities:Net
      Income (Loss)
                              
                              $
                              (43,994
                              )
                              
                              $
                              2,052Adjustments
      to Reconcile Net Income (Loss) to Net Cash Provided By(Used
      in) Operating Activities:Depreciation
      and amortization
                              
                              
                              7,408
                              
                              
                              
                              10,446Change
      in operating assets and liabilities:(Increase)
      Decrease in accounts receivable
                              
                              
                              (18,721
                              )
                              
                              
                              57,613Decrease
      in prepaid expenses
                              
                              
                              -
                              
                              
                              
                              2,017Increase  in
      deferred compensation
                              
                              
                              25,000
                              
                              
                              
                              -Increase
      (Decrease) in accounts payable and accrued liabilities
                              
                              
                              33,628
                              
                              
                              
                              (56,497
                              )Net
      Cash Provided  (Used In) Operating Activities
                              
                              $
                              3,321
                              
                              
                              $
                              15,631Cash
      Flows From Investing Activities:Net
      Cash Provided (Used) in Investing Activities
                              
                              
                              -
                              
                              
                              
                              -Cash
      Flows From Financing Activities:Repayment
      of notes payable
                              
                              
                              (4,726
                              )
                              
                              
                              (4,379
                              )Net
      Cash Provided (Used) in Financing Activities
                              
                              
                              (4,726
                              )
                              
                              
                              (4,379
                              )Net
      increase (decrease) in Cash and Cash Equivalents
                              
                              
                              (1,405
                              )
                              
                              
                              11,252Cash
      and Cash Equivalents at beginning of period
                              
                              
                              12,404
                              
                              
                              
                              13,867Cash
      and Cash Equivalents at end of period
                              
                              $
                              10,999
                              
                              
                              $
                              25,119Other
      Cash Flow Items:Cash
      payments for:Income
      tax
                              
                              $
                              -
                              
                              
                              $
                              -Interest
      expense
                              
                              $
                              1,324
                              
                              
                              $
                              2,420Related
      party notes payable donated to capital
                              
                              $
                              -
                              
                              
                              $
                              25,000





The
accompanying notes are an integral part of the financial
statements


- 4
-


AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





NOTE
      1 -
              SUMMARY OF SIGNIFICANT
      ACCOUNTING POLICIES





Organization





AAA
Public Adjusting Group, Inc was incorporated on October 05, 2007 in the state of
Florida.  AAA Public Adjusting Group, Inc was formerly Florida Claims
Consultants, LLC formed on March 3, 2004 in the state of Florida.  On
October 22, 2007, AAA Public Adjusting Group, Inc consummated an agreement with
Florida Claims Consultants, LLC, pursuant to which Florida Claims Consultants,
LLC, exchanged all of its Members’ interest for 4,000,000 shares of common stock
of AAA Public Adjusting Group, Inc.  The Company has accounted for the
transaction as a combination of entities under common control and accordingly,
recorded the merger at historical cost.  The consolidated, historical
financial statements have been appropriately re-stated.





The
operation’s of the Company is to facilitate insurance claims by insured parties
by representation on their behalf with the insurance companies.





Basis
of Accounting





The books
and records of the Company are maintained on the accrual basis of accounting
which recognizes revenues when earned, regardless of when received and expenses
when incurred, regardless of when paid, which is in accordance with generally
accepted accounting principles.





The
accompanying unaudited consolidated financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information. As such, not all of the information and footnotes required by
generally accepted accounting principles for complete financial statements have
been presented.  These consolidated financial statements should be
read in conjunction with the financial statements and related footnotes for the
year  ended on December 31, 2009. In the opinion of management, all
adjustments considered necessary for a fair presentation have been included and
such  adjustments are of a normal recurring nature.  The
results of operations for three months ended March 31, 2010 are not necessarily
indicative of the results for the full fiscal year ended December 31
2010.





Principles
of Consolidation





The
consolidated financial statements include the accounts of AAA Public Adjusting
Group, Inc. and its wholly owned subsidiary Florida Claims Consultants,
LLC.  All inter-company transactions and balances have been eliminated
in the consolidated financial statements.




- 5
-


AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





NOTE
      1 -
              SUMMARY OF SIGNIFICANT
      ACCOUNTING POLICIES -
Continued





Net
loss per share





Net
income per share is computed by dividing the net income by the weighted average
number of shares outstanding during the period.  Net income per share,
diluted, is not presented as no potentially dilutive securities are
outstanding.





Income
Taxes




Income
taxes are accounted for under the asset and liability method as stipulated by
Accounting Standards Codification (“ASC”) 740 formerly Statement of Financial
Accounting Standards (”SFAS”) No. 109, “Accounting for Income Taxes”.
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases and operating loss and tax credit carry forwards. Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled. Under ASC 740, the effect on deferred tax assets and
liabilities or a change in tax rate is recognized in income in the period that
includes the enactment date. Deferred tax assets are reduced to estimated
amounts to be realized by the use of a valuation allowance. A valuation
allowance is applied is applied when in management’s view it is more likely than
not (50%) that such deferred tax will not be utilized.





Effective
January 1, 2009, the Company adopted certain provisions under ASC Topic 740,
Income Taxes, (“ASC 740”), which provide interpretative guidance for the
financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. Effective with the Company’s adoption of
these provisions, interest related to the unrecognized tax benefits is
recognized in the financial statements as a component of income taxes. The
Adoption of ASC 740 did not have an impact on the Company’s financial position
and results of operations.





In the
unlikely event that an uncertain tax position exists in which the Company could
incur income taxes, the Company would evaluate whether there is a probability
that the uncertain tax position taken would be sustained upon examination by the
taxing authorities. Reserves for uncertain tax positions would be recorded if
the Company determined it is probable that a position would not be sustained
upon examination or if payment would have to be made to a taxing authority and
the amount is reasonably estimate. As of March 31, 2010, the Company does not
believe it has any uncertain tax positions that would result in the Company
having a liability to the taxing authorities. The Company’s tax returns are
subject to examination by the federal and state tax authorities for the years
ended 2006 through 2009.




- 6
-




AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





Use
of Estimates




The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.




Cash
and equivalents




The
Company considers all highly liquid instruments with an original maturity of
three months or less to be cash equivalents.




Revenue
Recognition




The
Company recognizes revenues when fees due to the company are reasonably assured
to be collected from our client (the insured) or by the insured’s insurance
carrier and not before. Collectability is not ensured until receipt of our
fee.




Fair
Value of Financial Instruments




The
Company’s financial instruments include cash, accounts receivable, and accounts
payable. Due to the short-term nature of these instruments, the fair value of
these instruments approximates their recorded value.




Advertising




Advertising
costs, which are included in selling, general and administrative expenses, are
expensed as costs are incurred. Advertising expenses for the three months ended
March 31, 2010 and 2009 were $ 1,190 and $ 1,945 respectively.




NOTE
2 - GOING CONCERN




As shown
in the accompanying financial statements, the Company incurred a net loss for
the three months ended March 31, 2010 of $ 43,994, a $ 37,157 net loss for the
year ending December 31, 2009 and cumulative losses since inception are
$151,712. The Company has a working capital deficit at March 31, 2010 of
$53,576. There is no guarantee whether the Company will be able to generate
enough revenue and/or raise capital to support its operations. This raises
substantial doubt about the Company’s ability to continue as a going concern.
Management states that they are confident that they can improve operations and
raise the appropriate funds to grow their underlying business. The financial
statements do not include any adjustments that might result from the outcome of
these uncertainties.




- 7
-


AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





NOTE
      3 -
              PROPERTY AND
      EQUIPMENT





Property
and equipment are recorded at cost.  Expenditures for major additions
and improvements are capitalized and minor replacements, maintenance, and
repairs are charged to expense as incurred.  When property and
equipment are retired or otherwise disposed of, the cost and accumulated
depreciation are removed from the accounts and any resulting gain or loss is
included in the results of operations for the respective
periods.  Depreciation is computed over the estimated useful lives of
the related asset (from 5 - 7 years) using the straight-line method for
financial statement purposes.





The
following is a summary of property and equipment at March 31, 2010 and December
31, 2009:




March 31,
                          
                          
                          Dec. 31,2010
                          
                          
                          2009Office
      furniture & equipment
                          
                          $
                          26,270
                          
                          
                          $
                          26,270Computer
      equipment
                          
                          
                          14,729
                          
                          
                          
                          14,729Leasehold
      improvements
                          
                          
                          2,469
                          
                          
                          
                          2,469Vehicles
                          
                          
                          125,167
                          
                          
                          
                          125,167Total
      equipment
                          
                          
                          168,635
                          
                          
                          
                          168,635Less
      accumulated depreciation
                          
                          
                          101,551
                          
                          
                          
                          94,143Net
      Property and Equipment
                          
                          $
                          67,084
                          
                          
                          $
                          74,492





Depreciation
expense for the three months ended March 31, 2010 and 2009 was $ 7,408 and $
10,446 respectively.




NOTE
      4 -
            LEASE
      COMMITMENTS





The
Company leases its new office in Hollywood, Florida pursuant to a lease
commencing from May 1, 2010 through April 30, 2011 at a minimum annual rent of $
12,720 (payable monthly) inclusive of related sale taxes and utilities. The
remaining lease obligations are:


2010
                      
                      $
                      8,4802011
                      
                      
                      4,24012,720




The
Company had leased for $ 1,000 a month, an apartment and storage facility from
an officer and a major stockholder of the company under a lease commencing
January 01, 2009 through December 31, 2010.  This lease was cancelled
on July 1, 2009 and no future rents or penalties are due.




Rent
expense for the three months ended March 31, 2010 and 2009 was $ 7,452 and $
8,958, respectively.


- 8
-


AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





NOTE
      5 -
              NOTES
      PAYABLE


Notes
      payable consist of the following:
                                      
                                      2010Notes
      payable to financial institutions in monthlyinstallments
      of $ 517 including interest at 9.79% tomaturity
      on February 1, 2012.  The note is collateralizedby
      an automobile
                                      
                                      $
                                      10,802Notes
      payable to financial institutions in monthlyinstallments
      of $ 740 including interest at 7.74% tomaturity
      on May 13, 2014.  The note is collateralizedby
      an automobile
                                      
                                      
                                      31,024Notes
      payable to financial institutions in monthlyinstallments
      of $ 759 including interest at 6.1% tomaturity
      on May 1, 2013.  The note is collateralizedby
      an automobile
                                      
                                      
                                      26,162Total
      Notes Payable
                                      
                                      $
                                      67,988





The
future scheduled payments of notes payable are:





2010
                    
                    $
                    14,7272011
                    
                    
                    20,9962012
                    
                    
                    17,3042013
                    
                    
                    12,0472014
                    
                    
                    2,914$
                    67,988





NOTE
      6 -
            CONCENTRATION OF
      RISK





The
Company did not have funds in excess of the $ 250,000 Federal Deposit Insurance
Corporation’s (FDIC) insured limits. The company has funds on deposit with a
major bank and does not believe that there is a concentration of risk factor.
There is no concentration of risk regarding accounts receivable, as any single
receivable is not material and there are offsetting related
payables.


- 9
-


AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





NOTE
      7 -
            ACCOUNTS RECEIVABLE
      and OFFSETTING PAYABLES





Accounts
receivable reflects net funds due the company for its services and gross funds
due the company and which are offset by any funds due to the insured. These
“net” receivables are offset by related commission payments to adjusting agents.
The insured clients and adjusting agents are not paid until the company has
received appropriate compensation. Related balances at March 31, 2010 and
December 31, 2009 were:





March 31,
                    
                    
                    December 31,2010
                    
                    
                    2009Total
      funds receivable
                    
                    $
                    103,581
                    
                    
                    $
                    84,860Payable
      to insured
                    
                    
                    (33,945
                    )
                    
                    
                    (24,591
                    )Payable
      to adjusting agents
                    
                    
                    (43,570
                    )
                    
                    
                    (15,180
                    )Net
                    
                    $
                    26,066
                    
                    
                    $
                    45,089





Allowances
for doubtful accounts for the periods ended March 31, 2010 and December 31 was $
5,723.This allowance is net of offsetting payables to insured clients, adjusting
agents and related expenses.





NOTE
      8 -
            CAPITAL
      TRANSACTIONS





A $25,000
unsecured promissory note, bearing interest at 12% and due on or before June 1,
2009 was contributed to capital, by the president of the company, during the
quarter ending March 31, 2009.





NOTE
      9 -
            DEFERRED
      COMPENSATION





Commencing
in the first quarter 2010, the officer’s salary is being deferred until there is
sufficient working capital.





NOTE
      10 -
            EXPENSE
      RECOVERY





The
company is reimbursed by officers for use of company vehicles.


- 10
-


AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





NOTE
      11 -
            INCOME
      TAXES





Prior to
the merger in October, 2007, the Company was taxed as a limited liability
company.  As such, income taxes and loss benefits were recognized
individually by the limited liability members.





For
financial statement purposes for the periods ending March 31, 2010, and December
31, 2009  the reported provision for income taxes differs from the
amount computed by applying the statutory U.S. Federal income tax rate of 34% to
the loss before income taxes as follows:





Federal
      income taxes at statutory rate
                    
                    
                    34
                    %State
      tax rate, net of federal income tax
                    
                    
                    4Offsetting
      Valuation Adjustment
                    
                    
                    (38
                    )Effective
      income tax rate
                    
                    
                    0
                    %





As of
March 31, 2010, the Company had a net operating loss carry forward for income
tax reporting purposes of approximately $ 200,000 that may be offset against
future taxable income through 2024. Current tax laws limit the amount of loss
available to be offset against future taxable income when a substantial change
in ownership occurs. No tax asset has been reported in the financial statements,
due to the uncertainty that there is a 50% or greater chance the carry-forwards
will expire unused. Accordingly, the potential tax benefits of the loss carry
forwards are offset by a valuation allowance of the same
amount.





NOTE
      12 -
            NEW ACCOUNTING
      PRONOUNCEMENTS





A.
            ACCOUNTING STANDARDS
      CODIFICATION




The
Financial Accounting Standards Board (FASB) issued Accounting Standards
Codification (ASC) 105-10 in June 2009, to be effective September 15, 2009. This
establishes the ASC codification as the single source of authoritative
nongovernmental Generally Accepted Accounting Principles (GAAP).  All
existing accounting standards are superseded as described in FASB Accounting Standards
Codification (SFAS) No. 168, aside from those issued by the SEC. All
other accounting literature not included in the Codification is
non-authoritative. Adoption of this Codification as of September 30, 2009,
which is reflected in our disclosures and references to accounting standards,
had no change to our financial position or results of
operations.


- 11
-


AAA
PUBLIC ADJUSTING GROUP, INC


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS


MARCH
31, 2010





NOTE
      12 -
            NEW ACCOUNTING
      PRONOUNCEMENTS (cont’d)





B
            REVENUE
      RECOGNITION




The
Financial Accounting Standard Board (FASB) in October 2009 issued Account
Standards Update (ASU) 2009-13 Revenue Recognition (Topic 605). This update
provides guidance for revenue recognition consideration in multiple-deliverable
contractual arrangements. The update requires that a vendor determine its best
estimate of selling price in a manner that is consistent with that used to
determine the price to sell the deliverable on a standalone basis. This update
will be effective after June 15, 2010, and early adoption is
permitted.





The
Company has implemented this update effective for the years beginning January 1,
2010 and does not believe that it would have a material impact on the financial
statement for the year ending December 31, 2009.




C
            STOCKHOLDER
      DISTRIBUTION




In
January 2010 FASB issued ASU “Equity” (Topic 505), accounting for distributions
to shareholders with components of stock and cash.  This amendment
affects entities that declare dividends to shareholders that may be paid in cash
or shares at the election of the shareholders with a potential limitation in the
total amount of cash that all shareholders can elect to receive in the
aggregate. The Company does believe that implementation of this FASB would have
a material effect on the financial statements.


- 12
-


Item
2.  Management’s Discussion and Analysis of Financial Condition and
Results of Operations.





Business
Overview





Our
companyis licensed
by the Florida Department of Insurance as “public insurance adjusters.” A public
insurance adjuster is an authority on loss adjustments that property owners can
retain to assist in preparing, filing, and adjusting their insurance
claims.





We are
operated by claims professionals handling all types of insurance claims. AAA is
committed to representing the client interest in evaluating and presenting a
claim to the insurance company responsible for payment.





Our
business is dedicated to representing clients interests by maximizing and
expediting their financial recovery and to make sure policy provisions are fully
adhered to. Insurance companies have the benefit of their claims representatives
estimating property damage, the property owner needs an advocate to ensure
proper payment is made.





We
believe the current economic environment will not materially or adversely affect
our business. Our current cash position along with cash flow from continuing
operations will be adequate to sustain operations into the foreseeable
future.





Results
of Operations – Three Months Ended March 31, 2010





Revenue





For the
three months ended March 31, 2010 revenue was $150,118 compared with $285,859
for the three months ended March 31, 2009. This decrease of $135,741 or
approximately 48% is due to the diminishing number of hurricane related
claims.





Commission
to Adjusters





Commission
expenses for adjusters for the three months ended March 31, 2010, was $99,165 or
approximately 66% of revenue compared with $163,312 or 57% of revenue, for three
months ended March 31, 2009. This change is due to the increased percentage of
total claims that are self-generated by the adjusters and therefore paid at a
higher commission rate than claims generated through company
marketing.





Consulting
Services





Consulting
expense for the three months ended March 31, 2010 was $1,275 compared to $23,740
for the three months ended March 31, 2009. In an effort to cut expenses we have
drastically reduced the outsourcing for the Orlando market electing to handle
these operations in house.





Payroll





Payroll
expense for the three months ended March 31, 2010 was $45,719 compared to
$39,646 for the three months ended March 31, 2009. It should be noted that these
figures include new salaries for officers that have been deferred until such
time as there is sufficient working capital.





Other
General and Administration Expenses





For the
three months ended March 31, 2010 other general and administration expenses were
$46,629 compared to $ 54,689 for the three months ended March 31, 2009. This
decrease of $8,060 or approximately 15% was mainly attributed to various cost
reductions including officer


reimbursement
for the cost of company vehicles.





Net
Income





The net
income (loss) for the three months ended March 31, 2010 was $(43,994) compared
with $2,052 for the three months ended March 31, 2009. This change is due to
decreased revenue and higher commissions paid to adjusters.





Liquidity
and Capital Resources





At March
31 2010, the company had $10,999 in available cash, a decrease of $1,408 from
December 31, 2009. Net cash provided by operating activities was $3,321 due to
the new deferred salaries for officers and higher accrued liabilities owed to
accountants. Net cash used in financing activities were $4,726 due to repayment
of car notes.





We
anticipate that due to the upcoming Hurricane season and the projected increase
in weather related property claims, combined with new in-house marketing
strategies, currently under development, our existing cash and projected cash
flows will be sufficient to support our operations for at least the next twelve
months.





Item
3.  Quantitative and Qualitative Disclosures about Market
Risk





Not
Applicable





Item
4.  Controls and Procedures.





As
required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), the Company carried out an evaluation under the
supervision of Frederick Antonelli, the Company’s Principal Executive Officer
and Chief Financial Officer (the “Reviewing Officers”), of the effectiveness of
the Company's disclosure controls and procedures as of the end of the period
covered by this Quarterly Report on Form 10-Q. Based on that evaluation,
the Reviewing Officers concluded that our disclosure controls and procedures are
effective in ensuring that information required to be disclosed by us in the
reports we file or submit under the 1934 Act is recorded, processed, summarized
and reported within the time periods specified in the SEC's rules and
forms.





There
have been no changes in internal control over financial reporting that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting during the period covered by this
report.





Part
II





Item
1. Legal Proceedings





None





Item
1.a.





Not
Applicable





Item
2.  Unregistered Sales of Equity Securities and Use of
Proceeds





None





Item
3.  Defaults upon Senior Securities





None





Item
4.  Submission of Matters to a Vote of Security Holders





None





Item
5.Other
Information





BOARD
APPOINTMENTS AND RESIGNATIONS





On February 16, 2010, Kevin Monahan, resigned as the Company's
Chief Financial Officer.





Item
6. Exhibits





31.1
            Certification
      by Frederick Antonelli, Chief Executive Officer, furnished pursuant to
      section 302 of the Sarbanes-Oxley
Act


32.1
            Certification
      by Frederick Antonelli, Chief Executive Officer, furnished pursuant to
      section 906 of the Sarbanes-Oxley
Act





SIGNATURES





In
accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.





Date: May
      21, 2010
                  AAA
      Public Adjusting Group, Inc.By:
                  /s/
      Frederick AntonelliPrincipal
      Executive Officer and Chief FinancialOfficer,
      Director(Principal
      Executive Officer and Principal Financialand
      Accounting
Officer)