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 September 30, 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 or	(I.R.S. Employer Identification No.)
organization)
1926 Hollywood Blvd, Suite 100 Hollywood	33020
(Address of principal executive offices)	(Zip Code)

Registrant’s 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 6,916,532 of Common stock outstanding as of September 30, 2010.

AAA PUBLIC ADJUSTING GROUP, INC

TABLE OF CONTENTS

SEPTEMBER 30, 2010

	Page
Consolidated Financial Statements
Balance Sheets		2
Statements of Revenues and Expenses		3 - 4
Statements of Cash Flows		5
Notes to Financial Statements		6 - 13

AAA PUBLIC ADJUSTING GROUP, INC

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2010 AND DECEMBER 31, 2009

	2010			2009
	(unaudited)
Assets
Current Assets
Cash and cash Equivalents	$	10,902		$	12,404
Accounts receivable (net of allowance for doubtful accounts of  $5,723)		132,100			84,860
Prepaid expense		2,060			-
Total current assets		145,062			97,264
Property, plant, and equipment - net		52,542			74,492
Total Assets	$	197,604		$	171,756
Liabilities and Stockholders' Equity
Current Liabilities
Notes payable - current portion	$	25,599		$	19,452
Accounts payable - related parties		2,584			2,584
Accounts payable and accrued liabilities		95,156			62,527
Deferred Compensation		75,000			-
Accounts payable to insured		35,898			24,591
Total current liabilities		234,237			109,154
Long Term Liabilities
Notes payable - net of current		37,666			53,262
Total long term liabilities		37,666			53,262
Total Liabilities		271,903			162,416
Stockholders' Equity (Deficiency)
Preferred Stock, 20,000,000 shares authorized, no shares issued		-			-
Common Stock, 50,000,000 shares authorized at $.0001 par, 6,916,532, and 6,016,032 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively.		692			602
Additional paid in capital		162,367			116,456
Stock subscription receivable		(1,500	)		-
Accumulated Deficit		(235,858	)		(107,718	)
Total Stockholders' Equity (Deficiency)		(74,299	)		9,340
Total Liabilities and Stockholders' Equity	$	197,604		$	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 9 MONTHS ENDED SEPTEMBER 30, 2010 AND, 2009

(unaudited)

	2010			2009
Revenues (net)	$	476,521		$	875,557
Operating Expenses:
Commissions to adjusters		302,561			519,200
Consulting services – other		1,275			52,770
Payroll		138,456			111,031
Other general and administrative expenses		152,242			196,427
Total operating expenses		594,534			879,428
Profit (Loss) from operations		(118,013	)		(3,871	)
Other income (expense)
Interest (expense)		(10,127	)		(5,283	)
Net Income/(Loss) Before Income Taxes		(128,140	)		(9,154	)
Provision for income tax		-			-
Net Income/(Loss)	$	(128,140	)	$	(9,154	)
Net income (loss) per common share, basic	$	(0.02	)	$	0.00
Weighted average number of common shares outstanding		6,307,441			6,016,032

The accompanying notes are an integral part of the financial statements

- 3 -

AAA PUBLIC ADJUSTING GROUP, INC

CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE 3 MONTHS ENDED SEPTEMBER 30, 2010 AND, 2009

(unaudited)

	2010			2009
Revenues (net)	$	185,957		$	298,378
Operating Expenses:
Commissions to adjusters		117,753			187,473
Consulting services - other		-			13,780
Payroll		45,637			43,803
Other general and administrative expenses		50,366			63,871
Total operating expenses		213,756			308,927
Profit (Loss) from operations		(27,799	)		(10,549	)
Other income (expense)
Interest (expense)		(5,024	)		(1,277	)
Net Income/(Loss) Before Income Taxes		(32,823	)		(11,826	)
Provision for income tax		-			-
Net Income/(Loss)	$	(32,823	)	$	(11,826	)
Net income (loss) per common share, basic	$	(0.00	)	$	(0.00	)
Weighted average number of common shares outstanding		6,816,532			6,016,032

The accompanying notes are an integral part of the financial statements

- 4 -

AAA PUBLIC ADJUSTING GROUP, INC

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE 9 MONTHS ENDED SEPTEMBER 30, 2010 AND  2009

(unaudited)

	2010			2009
Cash Flows From Operating Activities:
Net Income (Loss)	$	(128,140	)	$	(9,154	)
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By (Used in) Operating Activities:
Depreciation		21,950			23,427
Issuance of restricted common stock for services		6,000
Change in operating assets and liabilities:
(Increase) Decrease in accounts receivable		(47,240	)		84,144
(Increase) Decrease in prepaid expenses		(2,060	)		6,667
Increase  in deferred compensation		75,000			.
Increase (Decrease) in accounts payable and accrued liabilities		46,937			(79,649	)
Net Cash Provided  (Used In) Operating Activities		(27,553	)		25,435
Cash Flows From Investing Activities:
Net Cash Provided (Used) in Investing Activities		-			-
Cash Flows From Financing Activities:
Repayment of notes payable		(24,449	)		(13,390	)
Proceeds from sale of common stock		35,500			-
Proceeds from notes payable		15,000			-
Net Cash Provided (Used) in Financing Activities		26,051			(13,390	)
Net increase (decrease) in Cash and Cash Equivalents		(1,502	)		12,045
Cash and Cash Equivalents at beginning of period		12,404			13,867
Cash and Cash Equivalents at end of period	$	10,902		$	25,912
Other Cash Flow Items:
Cash payments for:
Income tax	$	-		$	-
Interest expense	$	3,803		$	5,283
Related party notes payable donated to capital	$	-		$	25,000

The accompanying notes are an integral part of the financial statements

- 5 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 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 nine months ended September 30, 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.

- 6 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 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 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 September 30, 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.

- 7 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 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 nine months ended September 30, 2010 and 2009 were $ 7,865 and $ 20,514 respectively.

NOTE 2 - GOING CONCERN

As shown in the accompanying financial statements, the Company incurred a net loss for the nine months ended September 30 2010 of $ 128,140, a $ 37,157 net loss for the year ending December 31, 2009, and cumulative losses since inception are $235,858.  The Company has a working capital deficit at September 30, 2010 of $ 89,175.  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.

- 8 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 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 September 30, 2010 and December 31, 2009:

	September 30,		Dec. 31,
	2010		2009
Office furniture & equipment	$	26,270	$	26,270
Computer equipment		14,729		14,729
Leasehold improvements		2,469		2,469
Vehicles		125,167		125,167
Total equipment		168,635		168,635
Less accumulated depreciation		116,093		94,143
Net Property and Equipment	$	52,542	$	74,492

Depreciation expense for the nine months ended September 30, 2010 and 2009 was $ 21,950 and $ 23,427 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	$	3,180
2011		4,240
	$	7,420

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 nine months ended September 30, 2010 and 2009 was $ 11,752 and $ 26,262, respectively.

- 9 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2010

NOTE 5 - NOTES PAYABLE

Notes payable consist of the following:	2010
Note payable to an investor, payable on demand (due  March 14, 2011) interest at 16% plus $5,000	$	5,000
Notes payable to financial institutions in monthly  installments of $ 517 including interest at 9.79% to maturity on February 1, 2012.  The note is collateralized by an automobile		8,176
Notes payable to financial institutions in monthly  installments of $ 740 including interest at 7.74% to maturity on May 13, 2014.  The note is collateralized by an automobile		27,730
Notes payable to financial institutions in monthly  installments of $ 759 including interest at 6.1% to  maturity on May 1, 2013.  The note is collateralized by an automobile		22,359
Total Notes Payable	$	63,265

The future scheduled payments of notes payable are:

2010	$	10,004
2011		20,996
2012		17,304
2013		12,047
2014		2,914
	$	63,265

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.

- 10 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 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 September 30, 2010 and December 31, 2009 were:

	September 30,			December 31,
	2010			2009
Total funds receivable - Net	$	132,100		$	84,860
Payable to insured		(35,897	)		(24,591	)
Payable to adjusting agents		(60,781	)		(15,180	)
Net	$	35,422		$	45,089

Allowances for doubtful accounts for the periods ended September 30, 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 September 1, 2009 was contributed to capital, by the president of the company, during the quarter ending September 30, 2009.

On May 19, 2010, 250,000 shares of restricted common stock were sold for $8,500 cash and a $1,500 of subscription receivable. On May 27, 2010, 150,000 shares of restricted common stock were issued for $6,000 of services regarding insurance leads and marketing and expired September 30, 2010. On June 15, 2010, 250,000 shares of restricted common stock were sold for $12,000. On July 27, 2010, 250,000 shares of restricted common stock were sold for $15,000.

NOTE 9 - DEFERRED COMPENSATION

Commencing in the first quarter 2010, the officer’s salary is being deferred until there is sufficient working capital. Deferred compensation at September 30, 2010 was $ 75,000.

NOTE 10 -  EXPENSE RECOVERY

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

- 11 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 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 September 30, 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	4
Offsetting Valuation Adjustment	(38	)
Effective income tax rate	0	%

As of September 30, 2010, the Company had a net operating loss carry forward for income tax reporting purposes of approximately $230,000 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 - SHARE BASED PAYMENTS FOR CONSULTING SERVICES

During the second quarter ending June 30, 2010, the Company issued 150,000 shares of restricted common stock for consulting services.  The estimated value of the consulting services is $ 6,000.  The consulting service contract expired on September 30, 2010..

NOTE 13 -  SUBSEQUENT EVENTS

In May 2009, the FASB issued SFAS No. 165, (ASC 855) “Subsequent Events” which offers assistance to the established general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued.  This guidance requires disclosure of the date through which events subsequent to the Balance Sheet date have been evaluated and whether that date represents the date the financial statements were issued or available to be issued. Subsequent events have been evaluated thru November 15, 2010, the date financial statements were available to be issued.

- 12 -

AAA PUBLIC ADJUSTING GROUP, INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2010

NOTE 14 - 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.

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 does not believe that implementation of this FASB would have a material effect on the financial statements.

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.

- 13 -

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’s interest in evaluating and presenting a claim to the insurance company responsible for payment.

Our business is dedicated to representing client 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 – Nine Months Ended September 30, 2010

Revenue

For the nine months ended September 30, 2010 revenue was $476,521 compared with $875,577 for the nine months ended September 30, 2009. This decrease of $399,056 or approximately 45% is primarily due to a reduction of hurricane related claims.

Commission to Adjusters

Commission expenses for adjusters for the nine months ended September 30, 2010 was $302,561 or approximately 63% of revenue compared with $519,200 or approximately 59% of revenue for nine months ended September 30, 2009. This decrease is due to the reduction in revenues from hurricane related claims.

Consulting Services

Consulting expense for the nine months ended September 30, 2010 was $1,275 compared to $52,770 for the nine months ended September 30, 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 nine months ended September 30, 2010 was $138,456 compared to $111,031 for the nine months ended September 30, 2009. The increase is due to salary provision to one officer starting January 1, 2010.  This salary has been deferred until such time as there is sufficient working capital.

Other General and Administration Expenses

For the nine months ended September 30, 2010 other general and administration expenses were $152,242 compared to $196,427 for the nine months ended September 30, 2009. This decrease of $44,185 resulted from cost reductions in advertising, rent, consulting, auto, and other expenses.

Net Income

The net loss for the nine months ended September 30, 2010 was ($128,140) compared with a loss of ($9,154) for the nine months ended September 30, 2009. This decrease is due to lower revenues, and higher payroll expenses partially offset by decreases in commissions paid to adjusters, consulting services, and other general and administrative expenses.

Results of Operations – Three Months Ended September 30, 2010

Revenue

For the three months ended September 30, 2010 revenue was $185,957 compared with $298,378 for the three months ended September 30, 2009. This decrease of $112,421 or approximately 38% is due to a reduction of hurricane related claims.

Commission to Adjusters

Commission expenses for adjusters for the three months ended September 30, 2010 was $117,753 or approximately 63% of revenue compared with $187,473 or approximately 63% of revenue for three months ended September 30, 2009. This decrease is due to the reduction in revenues from hurricane related claims.

Consulting Services

Consulting expense for the three months ended September 30, 2010 was $0 compared to $13,780 for the three months ended September 30, 2009. We have completely reduced the outsourcing for the Orlando market electing to handle these operations in house.

Payroll

Payroll expense for the three months ended September 30, 2010 was $45,637 compared to $43,803 for the three months ended September 30, 2009.

Other General and Administration Expenses

For the three months ended September 30, 2010 other general and administration expenses were $50,366 compared to $63,871 for the three months ended September 30, 2009. This decrease of $13,505 resulted from cost reductions in advertising, rent, consulting, auto, and other expenses.

Net Income

The net loss for the three months ended September 30, 2010 was ($32,823) compared with a loss of ($11,826) for the three months ended September 30, 2009. This decrease is due to lower revenues partially offset by lower payroll expenses, decreases in commissions paid to adjusters, consulting services, and other general and administrative expenses.

Liquidity and Capital Resources

On September 30, 2010, the Company had $10,902 in available cash, a decrease of $1,502 from December 31, 2009. Net cash provided by operating activities decreased $50,870 due to lower revenues.  Net cash used in financing activities increased $47,295 due to repayment of car notes and sales of securities.

On May 3, 2010 the Company issued a demand, promissory note to an investor for $15,000.  The note will be repaid in the amount of $20,000 together with 16% interest on any unpaid balance. The demand for repayment shall not be made before September 14, 2010.  On August 2, 2010, $10,000 was repaid. Subsequent renegotiation of the note extended the payoff period to March 14, 2011 by a $5,000.00 fee.

We anticipate that the finalization of negotiations for additional funding from several different investment sources as well as our growing in-house marketing strategies, which were recently implemented, will result in 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

The company has made three unregistered sales of securities as follows:

1.	150,000 shares to Discount Leads, Inc. for $6,000 in services
2.	250,000 shares to Shawn Zaremski for $15,000
3.	250,000 shares to Cornick Capital Inc. for $10,000 ($8,500 in cash $1,500 in receivables)
4.	250,000 shares to Liane Hassan for $12,000
5.	500 shares to Marc Houser for a marketing seminar

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

Exhibit 31.1 Certification of the Principal Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1 Certification of the Principal Executive Officer and Chief Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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: November 15, 2010	AAA Public Adjusting Group, Inc.
	By:	/s/ Frederick Antonelli
	Principal Executive Officer and Chief Financial Officer, Director (Principal Executive Officer and Principal Financial and Accounting Officer)