SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549


                                   FORM 10-QSB


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

               For the Quarterly Period ended: September 30, 2003


                         Commission file number 33-49797

                               eTOTALSOURCE, INC.
                               ------------------
        (Exact name of small business issuer as specified in its charter)


                            PREMIUM ENTERPRISES, INC.
                            -------------------------
                           (Former name of Registrant)


         Colorado                                84-1066959
         --------                                ----------
(State or other jurisdiction of                  (I.R.S. Employer incorporation
or organization)                                 Identification No.)


                    1510 Poole Boulevard, Yuba City, CA 95993
               ---------------------------------------------------
                     Address of principal executive offices)

                                 (530) 751-9615
                                 --------------
                           (Issuer's telephone number)


Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 during the past 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 [_]

As of September 30, 2003, 19,254,207 shares of common stock were outstanding.

Transitional Small Business Disclosure Format: Yes [_]  No [X]


<PAGE>



                          PART I--FINANCIAL INFORMATION

Item 1. Financial Statements.

         For financial information, please see the financial statements and the
notes thereto, attached hereto and incorporated herein by this reference.

     The financial statements have been prepared by eTotalSource, Inc. without
audit pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted as allowed by such rules and
regulations, and management believes that the disclosures are adequate to make
the information presented not misleading. These financial statements include all
of the adjustments which, in the opinion of management, are necessary to a fair
presentation of financial position and results of operations. All such
adjustments are of a normal and recurring nature. These financial statements
should be read in conjunction with the audited financial statements at December
31, 2002, included in the Company's Form 10-KSB.



<PAGE>

                            PREMIUM ENTERPRISES, INC.

                              FINANCIAL STATEMENTS

                                  JUNE 30, 2003
                                   (UNAUDITED)



<PAGE>

                            Premium Enterprises, Inc.
                   Consolidated Condensed Financial Statements
                                Table of Contents

                                                                            PAGE

Consolidated Condensed Financial Statements

              Balance Sheet                                                  F-1

              Statement of Operations                                        F-2

              Statement of Cash Flows                                        F-3

              Statement of Stockholders' Equity (Deficit)                    F-4

              Notes to Condensed Financial Statements                        F-5

<PAGE>

                               eTotalSource, Inc.
                      (Formerly Premium Enterprises, Inc.)
                   Consolidated Condensed Financial Statements

                                Table of Contents

                                                                         PAGE

Consolidated Condensed Financial Statements

              Balance Sheet                                               F-1

              Statement of Operations                                     F-2

              Statement of Cash Flows                                     F-3

              Statement of Stockholders' Equity (Deficit)                 F-4

              Notes to Condensed Financial Statements                     F-5

<PAGE>

<TABLE>
<CAPTION>

                       eTotalSource, Inc.
                      (Formerly Premium Enterprises, Inc.)
              Consolidated Condensed Balance Sheet
                                                                                                     Sept 30, 03       Dec 31, 02
ASSETS                                                                                               (Unaudited)
                                                                                                   ----------------  ---------------
<S>                                                                                                <C>               <C>
Current Assets
Cash                                                                                                      $ 57,946         $ 50,326
Accounts receivable                                                                                              -            7,764
Other current assets                                                                                             -           40,358
                                                                                                   ----------------  ---------------
Total Current Assets                                                                                        57,946           98,448
                                                                                                   ----------------  ---------------
Property & Equipment
Equipment                                                                                                   93,961           98,821
Building and land                                                                                                -          900,000
                                                                                                   ----------------  ---------------
                                                                                                            93,961          998,821
   Less accumulated depreciation                                                                           (52,838)         (91,540)
                                                                                                   ----------------  ---------------
                                                                                                            41,123          907,281
                                                                                                   ----------------  ---------------
Other Assets
Patents applications and trademarks, less $10,388 and $7,363 accumulated amortization                       29,950           32,975
Deposits                                                                                                     3,962            3,976
                                                                                                   ----------------  ---------------
                                                                                                            33,912           36,951
                                                                                                   ----------------  ---------------
Total Assets                                                                                             $ 132,981      $ 1,042,680
                                                                                                   ================  ===============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities

Convertible notes payable                                                                                $ 352,500        $ 575,000
Other notes payable                                                                                        897,000          243,743
Current maturities of mortgages payable                                                                          -          814,501
Judgements payable                                                                                         204,788          209,787
Accounts payable                                                                                           292,559          315,586
Accrued compensation payable                                                                               691,983          625,937
Accrued interest payable                                                                                   277,946          290,550
Other accrued liabilities                                                                                      423           12,293
Deferred revenue                                                                                           123,750          157,500
                                                                                                   ----------------  ---------------
Total Current Liabilities                                                                                2,840,948        3,244,897

Mortgage Payable, less current maturities                                                                        -          419,545

Commitments and Contingencies                                                                                    -                -

Total Liabilities                                                                                        2,840,948        3,664,442
                                                                                                   ----------------  ---------------
Stockholders' Equity (Deficit)
Common stock; no par value; 20 million shares authorized,
  19,254,207 shares issued and outstanding                                                               2,225,346        1,381,311
Accumulated (deficit)                                                                                   (4,933,314)      (4,003,073)
                                                                                                   ----------------  ---------------
Total Stockholders' Equity                                                                              (2,707,968)      (2,621,762)
                                                                                                   ----------------  ---------------
Total Liabilities and Stockholders' Equity (Deficit)                                                     $ 132,981      $ 1,042,680
                                                                                                   ================  ===============
</TABLE>

                            See accompanying notes.

                                      F-1

<PAGE>

<TABLE>
<CAPTION>

                               eTotalSource, Inc.
                      (Formerly Premium Enterprises, Inc.)
                 Consolidated Condensed Statement of Operations
                                   (Unaudited)

                                                      Three Months Ended September 30,   Nine Months Ended Sept 30,
                                                                   2003            2002             2003             2002
                                                        ----------------  -------------- ----------------  ---------------
<S>                                                     <C>               <C>            <C>               <C>

Revenues                                                       $ 34,757       $ 105,188        $ 180,957        $ 173,589

General and Administrative Expenses                             178,797         218,191          533,708          766,449
                                                        ----------------  -------------- ----------------  ---------------
Operating Income (Loss)                                        (144,040)       (113,003)        (352,750)        (592,860)

Other Income (Expense)
Gain on sale of building                                              -               -          205,705                -
Interest expense                                                (91,504)        (43,285)        (406,975)        (173,073)
Rental income (loss)                                               (108)            974              352            8,654
Other                                                             1,335            (711)        (376,572)          (1,269)
                                                        ----------------  -------------- ----------------  ---------------
Total Other Income (Expense)                                    (90,278)        (43,022)        (577,490)        (165,688)
                                                        ----------------  -------------- ----------------  ---------------
Net (Loss)                                                   $ (234,317)     $ (156,025)      $ (930,240)      $ (758,548)
                                                        ================  ============== ================  ===============

Basic and Diluted (Loss) per Share                              $ (0.01)        $ (0.01)         $ (0.05)         $ (0.04)
                                                        ================  ============== ================  ===============

Weighted Average Common Shares Outstanding                   19,254,207      17,143,199       18,379,667       17,069,387
                                                        ================  ============== ================  ===============
</TABLE>





                            See accompanying notes.

                                      F-2

<PAGE>

<TABLE>
<CAPTION>

                               eTotalSource, Inc.
                      (Formerly Premium Enterprises, Inc.)
                 Consolidated Condensed Statement of Cash Flows
                                   (Unaudited)


                                                                      Three Months Ended Sept 30,     Nine Months Ended Sept 30,
                                                                             2003            2002             2003             2002
                                                                  ----------------  -------------- ----------------  ---------------
<S>                                                               <C>               <C>            <C>               <C>
Cash Flows From (Used in) Operating Activities:
Net (loss)                                                             $ (234,317)     $ (156,025)        (930,240)        (758,548)
Depreciation and amortization                                               5,154          10,733           25,491           32,035
Gain on sale of building                                                        -               -         (205,705)               -
Loss of retirement of assets                                                    -             711            2,891            1,547
Stock issued for services                                                       -               -          375,300                -
Stock issued for accrued interest                                               -               -           10,670                -
Stock options and warrants issued for services                             15,151           9,226           44,959           25,760
Stock warrants issued in lieu of interest                                  60,329          (9,198)         263,106           32,660
Changes in assets and liabilities:
Decrease (increase) in accounts receivable                                 39,043           3,847            7,764              700
Decrease (increase) in other current assets                                     -          (1,755)          40,358           (3,657)
Increase (decrease) in payables, credit cards and accrued liabilities        (477)        146,205           13,544          504,532
Increase (decrease) in deferred revenue                                   (11,250)        (11,250)         (33,750)         (33,750)
                                                                  ----------------  -------------- ----------------  ---------------
Net Cash (Used in) Operating Activities                                  (126,367)         (7,505)        (385,612)        (198,722)
                                                                  ----------------  -------------- ----------------  ---------------
Cash Flows From (Used in) Investing Activities:
Net proceeds from sale of building                                              -               -          142,596                -
Purchase of equipment                                                      (1,419)              -           (2,237)            (322)
(Increase) in patents applications and trademarks                               -            (562)               -           (9,469)
Decrease (increase) in deposits                                                 -               -               14            3,909
                                                                  ----------------  -------------- ----------------  ---------------
Net Cash (Used in) Investing Activities                                    (1,419)           (562)         140,374           (5,881)
                                                                  ----------------  -------------- ----------------  ---------------
Cash Flows From (Used in) Financing Activies:
Payments on Notes Payable                                                (102,500)              -         (102,500)               -
Proceeds from issuance of notes payable                                   250,000           9,274          360,000           62,939
Payments on mortgages payable                                                   -          (2,566)          (4,642)          (7,813)
Proceeds from sale of stock                                                     -               -                -          150,000
                                                                  ----------------  -------------- ----------------  ---------------
Net Cash From Financing Activities                                        147,500           6,709          252,858          205,126
                                                                  ----------------  -------------- ----------------  ---------------
Increase (decrease) in Cash and Cash Equivalents                           19,714          (1,359)           7,619              523

Cash and Cash Equivalents - Beginning of Period                            38,232           2,223           50,326              341
                                                                  ----------------  -------------- ----------------  ---------------
Cash and Cash Equivalents - End of Period                                $ 57,946           $ 864         $ 57,946            $ 864
                                                                  ================  ============== ================  ===============
</TABLE>


                            See accompanying notes.

                                      F-3

<PAGE>

<TABLE>
<CAPTION>


                                               eTotalSource, Inc.
                                      (Formerly Premium Enterprises, Inc.)
                            Consolidated Statement of Stockholders' Equity (Deficit)
                                                   (Unaudited)


                                                             Common Stock                       Accumulated
                                                                Shares            Amount         (Deficit)            Total
                                                        ----------------  ----------------- -----------------  -----------------
<S>                                                     <C>               <C>               <C>                <C>
 December 31, 2002                                           17,565,151        $ 1,381,311      $ (4,003,073)      $ (2,621,762)

      Stock issued for services ($.35 per share)              1,200,000            372,000                              372,000

      Stock issued for Interest ($.11 per share)                 30,000              3,300                                3,300

      Conversion of promissory notes                            459,056            160,670                              160,670

      Options and warrants issued to
          consultants and lenders                                                  308,065                              308,065

       Net (loss)                                                                                   (930,240)          (930,240)
                                                        ----------------  ----------------- -----------------  -----------------
September 30, 2003                                           19,254,207        $ 2,225,346      $ (4,933,313)      $ (2,707,967)
                                                        ================  ================= =================  =================
</TABLE>




                            See accompanying notes.

                                      F-4

<PAGE>

eTotalSource, Inc.
(Formerly Premium Enterprises, Inc.)
Notes to Consolidated Condensed Financial Statements

Note A - Basis of Presentation

The accompanying unaudited consolidated condensed financial statements of
eTotalSource, Inc. (formerly Premium Enterprises, Inc. - the "Company" or
"eTotalSource") were prepared in accordance with generally accepted accounting
principles for interim financial information and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.

In the opinion of Management, all adjustments considered necessary for a fair
presentation of the results of operations and financial condition for the
periods presented have been included. Such adjustments are of a normal recurring
nature. The results of operations for the three and nine month periods ended
September 30, 2003, are not necessarily indicative of the results of operations
that can be expected for the fiscal year ending December 31, 2003. For further
information, refer to the Company's audited financial statements and footnotes
thereto included in Item 7 of Form 10-KT filed by eTotalSource on April 16,
2003.

There is substantial doubt about the ability of the Company to continue as a
going concern as disclosed in the notes to the December 31, 2002 financial
statements filed by the Company on Form 10-KT. Those conditions continued during
the third quarter of 2003: operating losses and liquidity shortages, including
default conditions on certain notes payable and judgments payable to creditors.
As of September 30, 2003, current liabilities exceed current assets by
approximately $2.8 million.

Note B - Notes Payable

On March 24, 2003, the Company borrowed $60,000 from an unrelated individual on
a short-term basis requiring repayment, including interest at 15%, from May
through July 2003. The promissory note is secured by a UCC filing on a Company
contract. In addition, as a financing incentive the lender received warrants to
purchase common stock at 50% of the quoted market price per share up to a total
aggregate value of $9,000. The value of these warrants is being amortized over
the term of the loan.

On April 15, 2003, the Company borrowed $50,000 from an unrelated individual.
The promissory note is due in June 2003, carries a stated interest rate of 10%
per annum and can be extended for an additional 30 days. As additional
consideration, the note holder received warrants to purchase 50,000 shares of
common stock at $.50 per share for two years. The value of these warrants is
being amortized over the term of the loan.

In May 2003, convertible notes payable totaling $150,000 notes payable and
related accrued interest of $10,670 was converted into 306,914 shares of common
stock.

                                      F-5

<PAGE>


On June 12, 2003, the company borrowed $40,000 from an unrelated individual. The
promissory note is due in January 2004, with interest at 15%.

On August 8, 2003, the Company borrowed $250,000 from an unrelated trust. The
promissory note carries a stated interest rate of 10% per annum. This note is a
revolving credit obligation and eTotalSource can repay and borrow up to the
amount of the note. As additional consideration, the note holder will receive,
on August 8, 2004, 100,000 shares of eTotalSource common stock. The approximate
value of the shares ($8,900) is being accrued ratably over the twelve month
period.


Note C - Events Subsequent to September 30, 2003

On June 17, 2003, the shareholders voted to amend the articles of incorporation
to change the name of the Company to eTotalSource, Inc. and for a one-for-four
reverse split of its common stock. As of November 3, 2003, the stock split had
not taken place.







                                      F-6

<PAGE>


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

Liquidity and Capital Resources

At September 30, 2003, eTotalSource, Inc. (formerly Premium Enterprises, Inc. -
the "Company") had $57,946 in current assets with which to conduct operations.
There can be no assurance that the Company will be able to complete its business
plan and to exploit fully any business opportunity that management may be able
to locate on behalf of the Company. Accordingly, the Company will need to seek
additional financing through loans, the sale and issuance of additional debt
and/or equity securities, or other financing arrangements. The Company does not
intend to pay dividends in the foreseeable future. There was no significant
change in working capital during this quarter.

On June 9, 2003, the Company sold its building and land to a current note holder
for $1,050,000. As a result of this transaction, the following notes were paid:
$243,885 plus accrued interest; $428,919 plus additional interest and prepayment
penalty; $234,600 and $40,000. Also, unpaid property tax was paid and other
miscellaneous monies owed to the note holders above. As a result of this
transaction, the Company received net proceeds totaling $141,940 and recognized
a gain on the sale of $205,705.

Results of Operations for the Quarter Ended September 30, 2003 Compared to the
quarter Ended September 30, 2002

The Company recognized a loss for the three-month period ended September 30,
2003 in the amount of $(234,317), $(.01) per share, as compared with a loss of
$(156,025), $(.01) per share for the corresponding period ended September 30,
2002. In the first nine months of the fiscal year, the Company recognized a loss
in the amount of $(930,240), $(.05) per share, as compared to $(758,548), $(.04)
per share, for the corresponding nine month period ended September 30, 2002.

Revenues for the three-months ended September 30, 2003 were $34,757 versus
$105,188 for the corresponding 2002 period, representing a 66.9% decrease. The
decrease was attributable to a decrease in sales of software. Revenues for the
first nine months of the fiscal year ended September 30, 2003 were $180,957
versus $173,589 for the corresponding 2002 period, representing a 4.2% increase.
The increase was attributable to Post-Production projects from the U.S.
Department of Defense ("DOD").

Operating expenses for the three-month period ended September 30, 2003 were
$178,797 as compared with $218,191 for the comparable 2002 period, a decrease of
$39,394. The decrease was primarily due to a reduction in employees. Payroll
expenses for the three-month period ended September 30, 2003 were $31,697 less
than the comparable 2002 period. Operating expenses for the first nine months of

<PAGE>

the fiscal year ended September 30, 2003 were $533,708 as compared with $766,449
for the comparable 2002 period, a decrease of $232,741. The decrease was
primarily due to a reduction in employees.

Interest expense for the three-month period ended September 30, 2003 was $91,504
as compared with $43,285 for the corresponding 2002 period, as the result of
increased indebtedness to finance operations and amortization of the fair value
of warrants issued and common stock to be issued as incentives to lenders.
Similarly, interest expense for the first nine months of the fiscal year ended
September 30, 2003 increased to $406,975 as compared with $173,073 for 2002.

Results of Operations for the Nine Month Period Ended September 30, 2003
Compared to Same Period in 2002

The Company had revenues in the period of $180,957 in 2003 compared to $173,589
in 2002. The company incurred general and administrative expenses of $533,708 in
2003 compared to $766,449 in 2002.  The company had an extraordinary gain of
$205,705 in 2003 in the period on the sale of a building.  The Company had
interest expense of $406,975 in 2003 compared to $173,073 in 2002.  Rental
income was $352 in 2003 and $8,654 in 2002.  Other expenses involving marketing
services were incurred totalling $376,872 in 2003 compared to $1,269 in such
expenses in 2002.  the total net loss was ($930,240) in 2003 and ($165,688) in
2002.  The net loss per share for the period was ($.05) in 2003 compared to
($.04) in 2002.

The Company expects that the trend of operating losses will continue until
additional revenues can be generated, and operating expenses adjusted to a more
reasonable ratio to revenues.

Analysis of Financial Condition

There is substantial doubt about the ability of the Company to continue as a
going concern as disclosed in the notes to the December 31, 2002 financial
statements filed by the Company on Form 10-KT. Those conditions continued during
the third quarter of 2003: operating losses and liquidity shortages, including
default conditions on certain notes payable and judgments payable to creditors.
As of September 30, 2003, current liabilities exceed current assets by
approximately $2.8 million.

Management continues to meet operating deficits primarily through short-term
borrowings and is attempting to utilize other debt and non-dilutive equity
financing alternatives to sustain operations. Whether such financing will be
available as needed and the ultimate form of such financing is uncertain and the
effects of this uncertainty could ultimately lead to bankruptcy.

Contractual Obligations and Commercial Commitments
As of September 30, 2003, the following written obligations were outstanding:

<TABLE>
<CAPTION>

                                                           Payments Due by Period
                                Less than                                               After
Contractual Obligations          1 year          2-3 years     4-5 years              5 years            Total
-----------------------       ------------    ------------    ------------   ---------------    ---------------
<S>                           <C>             <C>             <C>            <C>                <C>

Short Term Debt                $ 1,249,500          $ .00           $ .00             $ .00      $ 1,249,500
                              ------------    ------------    ------------   ---------------    ---------------

Total contractual cash
obligations                    $ 1,249,500           $ .00           $ .00             $ .00     $ 1,249,500
                              ============    ============    ============   ===============     ==============
</TABLE>


<PAGE>

Effective with the sale of its building and land on June 9, 2003, the Company
began leasing its corporate offices in Yuba City, California on a month to month
basis with no expiration date. Monthly payments under the lease are
approximately $3,010.

Revenue Recognition
The Company recognizes revenue in accordance with Statement of Position No.97-2
"Software Revenue Recognition" issued by the Accounting Standards Executive
Committee of the AICPA. Revenues are recorded net of an allowance for estimated
returns and collectibility at the time of billing.

Product revenue is derived primarily from the sale of self-produced training
multimedia and related off-the-shelf software products. The Company recognizes
revenue from sales of these products at the time of shipment to customers.
Service revenue is primarily derived from production of videos for others and is
recognized upon customer acceptance.

Deferred revenue includes payments received for product licenses covering future
periods and advances on service contracts that have not yet been fulfilled.

Item 3.  Controls and Procedures

The management of the Company has evaluated the effectiveness of the issuer's
disclosure controls and procedures as of a date within 90 days prior to the
filing date of the report (evaluation date) and have concluded that the
disclosure controls and procedures are adequate and effective based upon their
evaluation as of the evaluation date.

There were no significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of the most
recent evaluation of such, including any corrective actions with regard to
significant deficiencies and material weaknesses.


                           PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

        None.

Item 2.  Changes in Securities

        None.

Item 3.  Defaults Upon Senior Securities

        None.

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

        None.

Item 5.  Other Information

        None.

Item 6.   Exhibits and Reports on Form 8-K

        a.  Exhibits:  Sarbanes-Oxley 31.1, 31.2, 32.1, and 32.2

        b.  Reports on Form 8-K:  8-K filed on 7/17/03



<PAGE>



                                   SIGNATURES

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


                                        eTotalSource, Inc.
                                       (formerly Premium Enterprises, Inc.)
                                       (Registrant)

Dated:  11/13/2003                     /s/ Terry L. Eilers
                                       ----------------------------------------
                                       Terry L. Eilers
                                       President and Director