SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[x]     Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended March 31, 2014

-OR-

[ ]     Transition Report Pursuant to Section 13 or 15(d) of the Securities And Exchange Act of 1934 for the transaction period from _________ to________

Commission File Number  000-54985

American Business Services, Inc.

 (Exact name of registrant as specified in its charter)

Colorado		84-1194104
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

6521 Ocaso Drive, Castle Pines, CO		80108
(Address of principal executive offices)		(Zip Code)

303-730-7939

 (Registrant's telephone number, including area code)

Indicate by check mark whether the issuer (1) 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 (section 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-accelerate filer, or a small reporting company as defined by Rule 12b-2 of the Exchange Act):

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Large accelerated filer        [  ]		Non-accelerated filer             [  ]
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 number of outstanding shares of the registrant's common stock, May 20, 2014:   Common Stock  -  7,030,000

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AMERICAN BUSINESS SERVICES, INC.

FORM 10-Q

For the quarterly period ended March 31, 2014

INDEX

PART 1 – FINANCIAL INFORMATION

		Page
Item 1.  Financial Statements (Unaudited)		4
Item 2.  Management's Discussion and Analysis of   Financial Condition and Results of Operations		13
Item 3.  Quantitative and Qualitative Disclosure   About Market Risk		15
Item 4.  Controls and Procedures		15

PART II – OTHER INFORMATION

Item 1.  Legal Proceedings		17
Item 1A.  Risk Factors		17
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds		17
Item 3.  Defaults upon Senior Securities		17
Item 4.  Mine Safety Disclosures		17
Item 5.  Other Information		17
Item 6.  Exhibits		17
SIGNATURES		18

3

AMERICAN BUSINESS SERVICES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

The accompanying notes are an integral part of the consolidated financial statements.

4

AMERICAN BUSINESS SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months	Three Months
	Ended	Ended
	Mar 31, 2014	Mar 31, 2013
Revenue - related party	$        3,000	$                -
Operating Expenses:
General and administrative	5,488	9,321
Total operating expenses	5,488	9,321
Income (loss) from operations	(2,488)	(9,321)
Other income (expense)
Realized gain on securities	-	8,200
Repayment of loan previously reserved
against as non-collectible	2,000	-
Other income	-	508
Interest expense	-	(1,116)
Other income (expense) net	2,000	7,592
Income (loss) before provision	(488)	(1,729)
for income taxes
Provision (credit) for income tax	-	-
Net income (loss)	$        (488)	$      (1,729)
Net income (loss) per share:
Basic and fully diluted	$       (0.00)*	$        (0.00)*
Weighted average number of
common shares outstanding:
Basic and fully diluted	7,030,000	6,785,000

* denotes a (loss) profit of less than $0.01 per share.

The accompanying notes are an integral part of the consolidated financial statements.

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AMERICAN BUSINESS SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months	Three Months
	Ended	Ended
	Mar 31, 2014	Mar 31, 2013
Cash Flows From Operating Activities:
Net income (loss)	$          (488)	$       (1,729)
Adjustments to reconcile net income (loss) to
net cash provided by (used for)
operating activities:
Repayment of loan previously reserved	(2,000)	-
against as non-collectible
Changes in operating Assets & Liabilities
Accrued payables	-	(300)
Taxes payable	-	(1,824)
Net cash provided by (used for)
operating activities	(2,488)	(3,853)
Cash Flows From Investing Activities:
Repayment of related party note receivable	2,000	-
Transfer of cash on sale of subsidiary	(3,630)	-
Sales of marketable securities	6,000	8,200
Net cash provided by (used for)
investing activities	4,370	8,200
Cash Flows From Financing Activities:
Note payable - related party - repayment	-	(11,800)
Sales of common stock	-	24,500
Net cash provided by (used for)
financing activities	-	12,700
Net Increase (Decrease) In Cash	1,882	17,047
Cash At The Beginning Of The Period	4,099	15,644
Cash At The End Of The Period	$          5,981	$        32,691
Schedule of Non-Cash Investing and Financing Activities
Liabilities  transferred with sale of subsidiary	$       12,740	$                 -
Supplemental Disclosure
Cash paid for interest	$                  -	$                 -
Cash paid for income taxes	$                  -	$                 -

The accompanying notes are an integral part of the consolidated financial statements.

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AMERICAN BUSINESS SERVICES, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

(Unaudited)

NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

American Business Services, Inc. (the “Company”), was incorporated in the State of Colorado on September 20, 1991. The Company provides merger and acquisition financial consulting services. The Company may also engage in any other business permitted by law, as designated by the Board of Directors of the Company.

Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year.

Principles of consolidation

The accompanying consolidated financial statements include the accounts of American Business Services, Inc. and its wholly owned subsidiary, American Business Services Corp. American Business Services Corp was sold to Mr. Ray, our sole officer, director and principal shareholder on March 28, 2014 for $100. All intercompany accounts and transactions have been eliminated in consolidation.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and 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.

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Net income (loss) per share

The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company’s preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.

Income tax

The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Revenue recognition

Revenue is recognized on an accrual basis after services have been performed under contract terms, the service price to the client is fixed or determinable, and collectability is reasonably assured.

Property and equipment

Property and equipment are recorded at cost and depreciated under the straight line method over each item’s useful life.

Financial Instruments

The carrying value of the Company’s financial instruments, as reported in the accompanying balance sheet, approximates fair value.

Stock based compensation

The Company accounts for employee and non-employee stock awards under ASC 718, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to non-employees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable.

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Summary of Significant Accounting Policies

Management has evaluated accounting standards and interpretations issued but not yet effective as of March 31, 2014, and does not expect such pronouncements to have a material impact on the Company’s financial position, operations, or cash flows.

NOTE 2. GOING CONCERN

The company has suffered a loss from operations and has negative cash flows from operations, and in all likelihood will be required to make significant future expenditures in connection with marketing efforts along with general administrative expenses. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions or related parties. By doing so, the Company hopes to generate sufficient capital to execute its business plan of providing financial consulting services on an ongoing basis. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.

NOTE 3. NOTES RECEIVABLE – RELATED PARTIES

The Company lends money through notes receivable on an ongoing basis to various companies related by common control. The notes are due to be repaid to the Company at various dates through December 2013. The Company recognizes no interest income on the notes. The Company has established a reserve for any loans not repaid within one year.

At December 31, 2013, the Company had $27,100 in notes receivable outstanding with a corresponding note reserve of $27,100.

At March 31, 2014, all these notes had been sold or repaid as follows:

There were three convertible promissory notes made to Centennial Growth Equities in 2007 and 2008 for a total of $25,100, which was for funds loaned to Centennial Growth Equities and was used for working capital. These notes were not arms- length transactions and were related party transactions as Mr. Ray, the president of ABS, was also a principal of Centennial Growth Equities at the time the transactions were made.

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•

A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an office and director at the time the note was made, dated January 10, 2007 in the amount of $17,000, for money that ABS loaned to Centennial Growth Equities in 2006. This note matured on December 31, 2008 and was renewed through December 31, 2013. The note has been accruing interest as of January 1, 2011 at an annual interest of 4% per annum. No interest has been paid on this note to date.

•

A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007, in the amount of $4,200, for money that ABS loaned to Centennial Growth Equities in 2007. This note matured on December 31, 2011, and was renewed through December 31, 2013. The note began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest has been paid on this note to date.

•

A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007 in the amount of $3,900 for money that ABS loaned to Centennial Growth Equities in 2008. This note matured on December 31, 2011 and was renewed through December 31, 2013. The note began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest has been paid on this note to date.

During the three months ended March 31, 2014 the Company exercised its right to convert the three notes receivable from Centennial Growth Equities, Inc. into 2,500,000 shares of its common stock. This stock was then sold to a related party for $6,000. As these notes receivable had been fully provided against in prior periods the Company recognized a gain of $6,000 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

•

A note from Original Source Music, Inc., an unaffiliated entity, dated June 1, 2010 in the amount of $2,000 for money loaned to Original Source Music by ABS in 2010. This amount was used as working capital. This amount was used as working capital. The note matures on June 28, 2013.

During the three months ended March 31, 2014 the Company received payment from Original Source Music, Inc. in the amount of $2,000 in complete satisfaction of the obligation. As this note receivable had been provided against in full in previous periods, we recognized a gain of $2,000 on repayment of this note receivable.

NOTE 4. OTHER RECEIVABLE

As of March 31, 2014 and December 31, 2013, the Company recognized a balance of $1,577 as another receivable. This represents income tax repayable from the carry back of tax losses arising in the current year to offset taxable profits arising in prior years which will generate a repayment of taxes paid in prior years.

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NOTE 5. FIXED ASSETS

Fixed asset values recorded at cost are as follows:

	March 31, 2014	December 31, 2012
Office Equipment	$     7,188	$     7,188
Vehicle	33,108	33,108
	40,296	40,296
Less Accumulated Depreciation	(40,296)	(40,296)
Total	$             -	$             -

NOTE 6. NOTE PAYABLE – RELATED PARTY

As of December 31, 2013, the Company owed a related party $12,000 under a note payable, repayable in full on December 31, 2014. The loan bears interest at 6% and a balance of $740 in interest had been accrued on this loan at December 31, 2013.

On March 28, 2014 this note payable along with the accrued interest was transferred to the purchaser of the subsidiary, American Business Services Corp and is consequently no longer a liability of the Company.

NOTE 7. STOCKHOLDERS’ DEFICIT

Preferred Stock

The Company is authorized to issue 10,000,000 shares of preferred stock with a par value of $0.001 per share.

No shares of preferred stock were issued and outstanding during the three months ended March 31, 2014.

Common Stock

The Company is authorized to issue 90,000,000 shares of preferred stock with a par value of $0.001 per share.

No shares of common stock were issued during the three months ended March 31, 2014.

As of March 31, 2014 there were 7,030,000 shares of common stock issued and outstanding.

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Additional Paid in Capital

During the three months ended March 31, 2014 the Company exercised its right to convert the three notes receivable from Centennial Growth Equities, Inc. into 2,500,000 shares of its common stock. This stock was then sold to a related party for $6,000. As these notes receivable had been fully provided against in prior periods, the Company recognized a gain of $6,000 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

During the three months ended March 31, 2014 we sold our subsidiary, American Business Services Corp, for $100 to a related party. As the subsidiary had net liabilities of $9,010 at the date of the sale we recognized a gain of $9,110 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

NOTE 8. OTHER INCOME

During the three months ended March 31, 2014 the Company received payment from Original Source Music, Inc. in the amount of $2,000 in complete satisfaction of an outstanding note receivable. As this note receivable had been provided against in full in previous periods, we recognized a gain of $2,000 on repayment of this note receivable.

NOTE 9. SALE OF SUBSIDIARY

On March 28, 2014 we sold our wholly owned subsidiary, American Business Services Corp, to a related party for $100. The subsidiary had assets of $3,730, liabilities of $12,740 and total net liabilities of ($9,010). Consequently the Company recognized a gain of $9,110 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

NOTE 10. SUBSEQUENT EVENTS

In accordance with ASC 855-10, “Subsequent Events” the Company has analyzed its operations subsequent to March 31, 2014 to the date these financial statements were available to be issued on May 19, 2014 and has determined that it does not have any material subsequent events to disclose in these financial statements.

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

Trends and Uncertainties.

We are currently not aware of any trends that are reasonably likely to have a material impact on our liquidity.  The company may never become profitable if it does not obtain sufficient funds or obtain alternate financing to complete our new business plan.

At March 31, 2014, all these notes had been sold or repaid as follows:

There were three convertible promissory notes made to Centennial Growth Equities in 2007 and 2008 for a total of $25,100, which was for funds loaned to Centennial Growth Equities and was used for working capital. These notes were not arms- length transactions and were related party transactions as Mr. Ray, the president of ABS, was also a principal of Centennial Growth Equities at the time the transactions were made.

•

A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an office and director at the time the note was made, dated January 10, 2007 in the amount of $17,000, for money that ABS loaned to Centennial Growth Equities in 2006. This note matured on December 31, 2008 and was renewed through December 31, 2013. The note has been accruing interest as of January 1, 2011 at an annual interest of 4% per annum. No interest has been paid on this note to date.

•

A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007, in the amount of $4,200, for money that ABS loaned to Centennial Growth Equities in 2007. This note matured on December 31, 2011, and was renewed through December 31, 2013. The note began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest has been paid on this note to date.

•

A note from Centennial Growth Equities, Inc. a company controlled by Mr. Ray, an officer and director at the time the note was made, dated January 10, 2007 in the amount of $3,900 for money that ABS loaned to Centennial Growth Equities in 2008. This note matured on December 31, 2011 and was renewed through December 31, 2013. The note began accruing interest as of January 1, 2012 at a rate of 4% per annum. No interest has been paid on this note to date.

During the three months ended March 31, 2014 the Company exercised its right to convert the three notes receivable from Centennial Growth Equities, Inc. into 2,500,000 shares of its common stock. This stock was then sold to a related party for $6,000. As these notes receivable had been fully provided against in prior periods the Company recognized a gain of $6,000 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

13

•

A note from Original Source Music, Inc., an unaffiliated entity, dated June 1, 2010 in the amount of $2,000 for money loaned to Original Source Music by ABS in 2010. This amount was used as working capital. This amount was used as working capital. The note matures on June 28, 2013.

During the three months ended March 31, 2014 the Company received payment from Original Source Music, Inc. in the amount of $2,000 in complete satisfaction of the obligation. As this note receivable had been provided against in full in previous periods, we recognized a gain of $2,000 on repayment of this note receivable.

On March 28, 2014 we sold our wholly owned subsidiary, American Business Services Corp, to a related party for $100. The subsidiary had assets of $3,730, liabilities of $12,740 and total net liabilities of ($9,010). Consequently the Company recognized a gain of $9,110 on the sale. As the sale was to a related party, the gain on sale has been recognized in additional paid in capital.

We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

General and administrative expenses will continue to increase as we implement sales and marketing initiatives.

Liquidity and Capital Resources

Operating activities

For the three months ended March 31, 2014, we had a net loss of $488.  We wrote back a non-cash provision of $2,000 on a loan previously reserved against as non-collectible, resulting in net cash used by operating activities of $2,488 for the three months ended March 31, 2014.

For the three months ended March 31, 2013, we had a net loss of $1,729.  We had accrued payables of $300 and taxes payable of $1,824.  As a result, we had net cash used for operating activities of $3,853 for the three months ended March 31, 2013.

Investing activities

For the three months ended March 31, 2014, we received a repayment of related party note receivables of $2,000.  We transferred $3,630 on a sale of our subsidiary.  We received $6,000 from the sales of marketable securities.  As a result, we had net cash provided by investing activities of $4,370 for the three months ended March 31, 2014.

For the three months ended March 31, 2013, we received $8,200 from the sales of marketable securities.  As a result, we had net cash provided by investing activities of $8,200 for the three months ended March 31, 2013.

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Financing activities

For the three months ended March 31, 2014, we did not pursue any financing activities.

For the three months ended March 31, 2013, we repaid $11,800 in notes payable to a related party.  We also received $24,500 from the sale of common stock.  As a result, we had net cash provided by financing activities of $12,700 for the three months ended March 31, 2013.

Results of Operations

For the three months ended March 31, 2014, we received related party revenues of $3,000.  We paid general and administrative expenses of $5,488.  We received $2,000 from the repayment of a loan previously reserved against as a non-collectible.  As a result, we had a net loss of $488 for the three months ended March 31, 2014.

Comparatively, for the three months ended March 31, 2013, we did not receive any revenues.  We paid general and administrative expenses of $9,321.  We realized a gain on securities of $8,200 and other income of $508.  We accrued interest expenses of $1,116.  As a result, we had a net loss of $1,729 for the three months ended March 31, 2013.

The $1,241 decrease in net loss is a primarily a result of greatly decreased general and administrative expenses.  For the three months ended March 31, 2014, we had a $3,833, or 41.1%, decrease in general and administrative expenses.  We decreased our expenses by focusing on our current consulting clients.

We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.  If we are unable to raise funds for the above purposes, it is uncertain if we will be able to continue as a going operation.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Not applicable for smaller reporting companies.

Item 4.  Controls and Procedures

During the period ended March 31, 2014, there were no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

15

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our chief executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended, as of March 31, 2014.  Based on this evaluation, our chief executive officer and principal financial officers have concluded such controls and procedures to be effective as of March 31, 2014 to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms and to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

16

PART II – OTHER INFORMATION

Item 1.   Legal Proceedings

None

Item 1A.  Risk Factors  

Not applicable for smaller reporting companies

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

None

Item 3.   Defaults Upon Senior Securities.

None

Item 4.   Mine Safety Disclosures

Not Applicable

Item 5.   Other Information

None

Item 6.   Exhibits

Exhibit 31* - Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32* - Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS**   XBRL Instance Document

101.SCH**   XBRL Taxonomy Extension Schema Document

101.CAL**   XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF**    XBRL Taxonomy Extension Definition Linkbase Document

101.LAB**   XBRL Taxonomy Extension Label Linkbase Document

101.PRE**   XBRL Taxonomy Extension Presentation Linkbase Document

*  Filed herewith

**XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

17

SIGNATURES

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

Dated: May 20, 2014

American Business Services, Inc.

By:

/s/Phil E. Ray

Phil E. Ray

Chief Executive Officer

Chief Financial Officer

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