<PAGE>


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

                                   FORM 10-QSB

        (MARK ONE)

             {X}  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended December 31, 2003

             { } TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
                                  EXCHANGE ACT

                For the transition period from     to

                         Commission file number: 0-14807

                        AMERICAN CLAIMS EVALUATION, INC.
        (Exact name of small business issuer as specified in its charter)

                    New York                           11-2601199
         (State or other jurisdiction of            (I.R.S. Employer
         incorporation or organization)            Identification No.)

                   One Jericho Plaza, Jericho, New York 11753
                    (Address of principal executive offices)

                                 (516) 938-8000
                           (Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by Section
$13 or 15(d) of the Exchange Act 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 February 6, 2004, there were 4,259,800 shares of the issuer's common
stock, $.01 par value, outstanding.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]


                                       1
<PAGE>

                        AMERICAN CLAIMS EVALUATION, INC.

                                      INDEX

                                                                        Page No.
                                                                       ---------
PART I  - FINANCIAL INFORMATION

Item 1.   Financial Statements

          Consolidated Balance Sheets as of December 31, 2003
               (unaudited) and March 31, 2003                               3

          Consolidated Statements of Operations for the
               three months and nine months ended
               December 31, 2003 and 2002 (unaudited)                       4

          Consolidated Statements of Cash Flows for the nine months
               ended December 31, 2003 and 2002 (unaudited)                 5

          Notes to Consolidated Financial Statements (unaudited)          6 - 7

Item 2.   Management's Discussion and Analysis or Plan of Operation       8 - 9

Item 3.   Controls and Procedures                                           10

PART II - OTHER INFORMATION

Item 4.   Submission of Matters to a Vote of Security Holders               11

Item 6.   Exhibits and Reports on Form 8-K                                  11

SIGNATURES                                                                  12



                                       2
<PAGE>

                     PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

                 AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY

                      Consolidated Balance Sheets
<TABLE>
<CAPTION>

                                                                              Dec. 31, 2003        Mar. 31, 2003
                                                                                -----------          -----------
                                                                               (Unaudited)
                                                        Assets
                                                        ------
<S>                                                                             <C>                    <C>
Current assets:
       Cash and cash equivalents                                                $ 6,889,591            7,179,340
       Accounts receivable, net                                                     102,730              101,597
       Prepaid expenses                                                              21,382               35,526
       Prepaid and recoverable income taxes                                           1,272                8,736
       Deferred income taxes                                                              -                2,527
                                                                                -----------            ---------
            Total current assets                                                  7,014,975            7,327,726

Property and equipment, net                                                          64,079               87,297
                                                                                -----------            ---------
            Total assets                                                        $ 7,079,054            7,415,023
                                                                                ===========            =========

                                         Liabilities and Stockholders' Equity
                                         ------------------------------------
Current liabilities:
       Accounts payable                                                         $    14,278               14,852
       Accrued expenses                                                              73,686               85,200
                                                                                -----------            ---------
            Total current liabilities                                                87,964              100,052
                                                                                -----------            ---------
Stockholders' equity:
       Common stock, $.01 par value.  Authorized
            10,000,000 shares; issued 4,450,000
            shares; outstanding 4,259,800 shares                                     44,500               44,500
       Additional paid-in capital                                                 3,515,699            3,515,699
       Retained earnings                                                          3,748,032            4,071,913
                                                                                -----------            ---------
                                                                                  7,308,231            7,632,112
       Treasury stock, at cost                                                     (317,141)            (317,141)
                                                                                -----------            ---------
            Total stockholders' equity                                            6,991,090            7,314,971
                                                                                -----------            ---------
            Total liabilities and stockholders' equity                          $ 7,079,054            7,415,023
                                                                                ===========            =========
</TABLE>

See accompanying notes to consolidated financial statements.


                                       3
<PAGE>

                 AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY

                      Consolidated Statements of Operations

                                   (Unaudited)

<TABLE>
<CAPTION>
                                             Three months ended                 Nine months ended
                                       ---------------------------         ---------------------------
                                         Dec. 31,          Dec. 31,          Dec. 31,          Dec. 31,
                                           2003              2002              2003              2002
                                       ---------         ---------         ---------         ---------

<S>                                    <C>                 <C>               <C>               <C>
Revenues                               $ 285,708           293,276           900,072           905,741
Cost of services                         137,753           141,799           428,225           436,043
                                       ---------         ---------         ---------         ---------
     Gross margin                        147,955           151,477           471,847           469,698

Selling, general, and
     administrative expenses             293,616           268,531           863,218           814,237
                                       ---------         ---------         ---------         ---------

     Operating loss                     (145,661)         (117,054)         (391,371)         (344,539)

Interest income                           23,525            34,562            72,490           113,573
                                       ---------         ---------         ---------         ---------
     Loss before income tax
        expense (benefit)               (122,136)          (82,492)         (318,881)         (230,966)

Income tax expense (benefit)               1,000             1,000             5,000           (35,000)
                                       ---------         ---------         ---------         ---------

     Net loss                          $(123,136)          (83,492)         (323,881)         (195,966)
                                       =========         =========         =========         =========

Loss per share - basic                 $   (0.03)            (0.02)            (0.08)            (0.05)
                                       =========         =========         =========         =========
Loss per share - diluted               $   (0.03)            (0.02)            (0.08)            (0.05)
                                       =========         =========         =========         =========

Weighted average shares - basic        4,259,800         4,259,800         4,259,800         4,259,800
                                       =========         =========         =========         =========
Weighted average shares - diluted      4,259,800         4,259,800         4,259,800         4,259,800
                                       =========         =========         =========         =========
</TABLE>


See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

                 AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY

                      Consolidated Statements of Cash Flows

                                   (Unaudited)
<TABLE>
<CAPTION>
                                                              Nine months ended
                                                       -----------------------------
                                                        Dec. 31,           Dec. 31,
                                                          2003               2002
                                                       ----------          ---------
<S>                                                     <C>                 <C>
Cash flows from operating activities:
     Net loss                                          $ (323,881)          (195,966)
                                                       ----------          ---------
     Adjustments to reconcile net loss to net
            cash used in operating activities:
        Depreciation                                       25,010             25,925
        Deferred income taxes                               2,527                  -
        Changes in assets and liabilities:
            Accounts receivable                            (1,133)             9,213
            Prepaid expenses                               14,144             14,135
            Prepaid and recoverable income taxes            7,464             49,800
            Accounts payable                                 (574)           (27,329)
            Accrued expenses                              (11,514)             7,585
                                                       ----------          ---------
                                                           35,924             79,329
                                                       ----------          ---------
            Net cash used in operating activities        (287,957)          (116,637)
                                                       ----------          ---------
Cash flows from investing activities:
     Capital expenditures                                  (1,792)                 -
                                                       ----------          ---------
            Net cash used in investing activities          (1,792)                 -
                                                       ----------          ---------
Cash flows from financing activities:
     Purchase of treasury stock                                 -            (18,924)
                                                       ----------          ---------
            Net cash used in financing activities               -            (18,924)
                                                       ----------          ---------
Net decrease in cash and cash equivalents                (289,749)          (135,561)

Cash and cash equivalents at beginning of period        7,179,340          7,440,897
                                                       ----------          ---------
Cash and cash equivalents at end of period             $6,889,591          7,305,336
                                                       ==========          =========
Supplemental disclosure of cash flow information:
     Income taxes paid                                 $    3,877              1,058
                                                       ==========          =========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       5
<PAGE>

                 AMERICAN CLAIMS EVALUATION, INC. AND SUBSIDIARY

                   Notes to Consolidated Financial Statements

                                  (Unaudited)

General

The accompanying unaudited consolidated financial statements and footnotes have
been condensed and therefore do not contain all disclosures required by
accounting principles generally accepted in the United States of America. In the
opinion of management, the information furnished reflects all adjustments,
consisting of normal recurring adjustments, necessary to present fairly the
consolidated financial position, results of operations and cash flows for the
interim periods. Interim periods are not necessarily indicative of results for a
full year.

These consolidated financial statements should be read in conjunction with the
audited consolidated financial statements of the Company for the fiscal year
ended March 31, 2003 and the notes thereto contained in the Company's Annual
Report on Form 10-KSB, as filed with the Securities and Exchange Commission.

Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per
share for the three months and nine months ended December 31, 2003 and 2002:

<TABLE>
<CAPTION>
                                                       Three months ended               Nine months ended
                                                   --------------------------       -------------------------
                                                    12/31/03        12/31/02         12/31/03        12/31/02
                                                   ----------      ----------       ----------     ----------
<S>                                                <C>              <C>              <C>            <C>
Numerator:
     Net loss                                      $(123,136)       (83,492)         (323,881)      (195,966)
Denominator:
     Denominator for basic loss per share
        - weighted average shares                   4,259,800      4,259,800         4,259,800      4,259,800
     Effect of dilutive securities:
        Stock options                                       -              -                 -              -
                                                   ----------     ----------        ----------     ----------
     Denominator for diluted
        loss per share                              4,259,800      4,259,800         4,259,800      4,259,800
                                                   ==========     ==========        ==========     ==========
Basic loss per share                                $  (0.03)         (0.02)            (0.08)         (0.05)
                                                   ==========     ==========        ==========     ==========
Diluted loss per share                              $  (0.03)         (0.02)            (0.08)         (0.05)
                                                   ==========     ==========        ==========     ==========
</TABLE>

Potentially dilutive common stock equivalents consisting of employee stock
options to purchase 1,508,500 and 1,488,500 shares for the three months ended
December 31, 2003 and 2002, respectively, and 1,455,167 and 1,489,833 shares for
the nine months ended December 31, 2003 and 2002, respectively, were not
included in the diluted loss per share calculations because their effect would
have been anti-dilutive.

                                       6
<PAGE>

Stock Option Plans

The Company has adopted the "disclosure only" provisions of Statement of
Financial Accounting Standards ("SFAS") No. 123, Accounting for Stock-Based
Compensation, and will continue to use the intrinsic value-based method of
accounting prescribed by Accounting Principles Board Opinion No. 25, Accounting
for Stock Issued to Employees. Accordingly, no compensation expense has been
recognized for the Company's stock option plans as the exercise price of the
Company's stock option grants equaled or exceeded the fair value of the
Company's common stock at the date of grant. Had compensation expense for the
Company's stock option plans been determined based on the fair value at the
grant date for awards during the three and nine months ended December 31, 2003
and 2002 consistent with the provisions of SFAS No. 148, Accounting for
Stock-Based Compensation - Transition and Disclosure, and SFAS No. 123, the
Company's net loss and loss per share would have been increased to the pro forma
amounts indicated below:

<TABLE>
<CAPTION>
                                                              Three months ended              Nine months ended
                                                           ------------------------        -------------------------
                                                            12/31/03       12/31/02         12/31/03       12/31/02
                                                           ----------      --------        ----------     ----------
<S>                                                        <C>             <C>              <C>            <C>
Numerator:
     Net loss                                              $(123,136)       (83,492)         (323,881)      (195,966)
Deduct:  Total stock-based employee
     compensation expense determined under
     fair value method for options granted                   (32,492)      (152,707)          (97,477)      (458,121)
                                                           ---------      ---------         ---------       --------
Pro forma net loss                                         $(155,628)      (236,199)         (421,358)      (654,087)
                                                           =========      =========         =========      =========
Net loss per share:
     Basic and diluted - as reported                       $   (0.03)         (0.02)            (0.08)         (0.05)
                                                           =========      =========         =========      =========
     Basic and diluted - pro forma                         $   (0.04)         (0.06)            (0.10)         (0.15)
                                                           =========      =========         =========      =========
</TABLE>

The Financial Accounting Standards Board ("FASB") recently indicated that it
will eventually require stock-based employee compensation to be recorded as a
charge to earnings. We will monitor the FASB's progress on the issuance of a new
standard and its impact on our consolidated financial statements.


                                       7
<PAGE>

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

Critical Accounting Policies

The Company makes estimates and assumptions in the preparation of its
consolidated financial statements in conformity with accounting principles
generally accepted in the United States of America. Actual results could differ
significantly from those estimates under different assumptions and conditions.
The Company does not consider any of its accounting policies to be critical. Our
significant accounting policies are described in Note 1 to the audited
consolidated financial statements included in our annual report for the year
ended March 31, 2003. The accounting policies used in preparing our interim
condensed consolidated financial statements are the same as those described in
our annual report.

Results of Operations - Three Months and Nine Months ended December 31, 2003 and
2002

Revenues for the quarterly period ended December 31, 2003 were $285,708 as
compared with the $293,276 reported for the three month period ended December
31, 2002. This represents a decrease of approximately 2.6%. Revenues for the
nine month period ended December 31, 2003 were approximately 1% lower than
revenues during the corresponding period in the prior year.

Cost of services as a percentage of revenues for the three and nine month
periods ended December 31, 2003 were 48.2% and 47.6%, respectively. These
percentages were marginally lower than the 48.4% and 48.1% of revenues during
the comparable periods ended December 31, 2002, respectively.

Selling, general and administrative expenses increased to $293,616 and $863,218
for the three and nine months ended December 31, 2003, respectively, from
$268,531 and $814,237 for the three months and nine months ended December 31,
2002, respectively. The increase in selling, general and administrative expenses
was caused by an increase in professional fees and increased expenditures
relating to the Company's search for a suitable acquisition.

Interest income for the three and nine months ended December 31, 2003 was
$23,525 and $72,490, respectively, which was considerably lower than the $34,562
and $113,573 recognized during the three and nine month periods ended December
31, 2002, respectively. These decreases were the result of the continued
decreases in prevailing market interest rates.

Management evaluates the realizability of the deferred tax assets and the need
for additional valuation allowances quarterly. Income tax expense for the nine
months ended December 31, 2003 of $5,000 differs from the income tax benefit
derived from applying the statutory rate principally due to an increase in the
valuation allowance against deferred tax assets. The Company believes it is more
likely than not that the deferred tax assets will not be realized.


                                       8
<PAGE>

Liquidity and Capital Resources

At December 31, 2003, the Company had working capital of $6,927,011 as compared
to working capital of $7,227,674 at March 31, 2003. The Company believes that it
has sufficient cash resources and working capital to meet its present cash
requirements.

During the nine months ended December 31, 2003, net cash used in operations of
$287,957 consisted principally of a net loss of $323,881.

At December 31, 2003, the Company had minimum lease payments due under
noncancelable operating leases, exclusive of future escalation charges, of
$24,250 for the remainder of fiscal 2004 and $53,000 and $13,000 for the fiscal
years ending 2005 and 2006, respectively.

The Company continues its review of strategic alternatives for maximizing
shareholder value. Potential acquisitions will be evaluated based on their
merits within the Company's current line of business, as well as other fields.

Market Risk

The Company is exposed to market risk related to changes in interest rates. Most
of the Company's cash and cash equivalents are invested in commercial paper at
variable rates of interest. If there were an adverse change in interest rates of
10%, the expected effect on net income related to our consolidated financial
instruments would be immaterial. However, there can be no assurances that
interest rates will not significantly affect its results of operations.

Forward Looking Statements

Except for the historical information contained herein, the matters discussed in
this report on Form 10-QSB may contain forward-looking statements that involve
risks and uncertainties. The Company's actual results may differ materially from
the results discussed in the forward-looking statements. Factors that might
cause such a difference include, but are not limited to, general economic and
market conditions, the potential loss or termination of existing clients and
contracts and the ability of the Company to successfully identify and thereafter
consummate one or more acquisitions.


                                       9
<PAGE>

ITEM 3.  CONTROLS AND PROCEDURES.

(a)  Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure the reliability of the
financial statements and other disclosures included in this report. Within the
90 days prior to the filing of this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of the Company's
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based
upon that evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that the Company's disclosure controls and procedures are effective in
timely alerting them to material information required to be included in the
Company's periodic Securities and Exchange Commission filings.

(b)  Changes in Internal Controls

There have been no significant changes in the Company's internal controls or in
other factors that could significantly affect these controls subsequent to the
date the Company carried out its evaluation.


                                       10
<PAGE>

                           PART II - OTHER INFORMATION


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

         (a)      Annual Meeting of Shareholders, October 7, 2003

         (b)      Directors to serve one year terms:

                      Gary Gelman
                      Edward M. Elkin, M.D.
                      Peter Gutmann

         (c)      Election of Directors

                      Gary Gelman               4,448,392 for   15,480 withheld
                      Edward M. Elkin, M.D.     4,448,392 for   15,480 withheld
                      Peter Gutmann             4,448,392 for   15,480 withheld

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

         (a)      Exhibit 31.1 Rule 13a-14(a)/15d-14(a) Certification

                  Exhibit 31.2   Rule 13a-14(a)/15d-14(a) Certification

                  Exhibit 32.1   Section 1350 Certification

                  Exhibit 32.2   Section 1350 Certification

         (b)      The following report on Form 8-K was filed during the quarter
                  ended December 31, 2003:

                  On November 12, 2003, a Form 8-K was filed by the Company
                  under "Item 9. Regulation FD Disclosure."


                                       11
<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.


                                       AMERICAN CLAIMS EVALUATION, INC.



Date: February 9, 2004                 By: /s/ Gary Gelman
                                           ---------------
                                           Gary Gelman
                                           Chairman of the Board,
                                           President and Chief Executive Officer


Date: February 9, 2004                 By: /s/ Gary J. Knauer
                                           -----------------------------------
                                           Gary J. Knauer
                                           Chief Financial Officer, Treasurer


                                       12


