**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-KSB**




(Mark
      One)




**x**
            **ANNUAL
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934**




**For
      the fiscal year ended December 31, 2006**




**o**
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
                1934**




**For
      the transition period from ___________ to ___________**




**Commission
      file number** **333-128415**




**EASTERN
      SERVICES HOLDINGS, INC.**


(Exact
      name of registrant as specified in its charter)




**Delaware**
            **30-0284778**(State
                or other jurisdiction of incorporation or organization)
            (I.R.S.
                Employer Identification No.)**1221
                Ocean Avenue #1202**
              **Santa
                Monica, California**
            **90401**(Address
                of principal executive offices)
            (Zip
                Code)





Registrant’s
                telephone number, including area code
            **(310)
                587-0029**




Securities
                registered under Section 12(b) of the Exchange Act:Title
                of each class
            Name
                of each exchange on which registered**None**
            **None**Securities
                registered under Section 12(g) of the Exchange Act:**Common
                Stock, par value $.001**(Title
                of class)




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 o




Check
      if
      there is no disclosure of delinquent filers in response to Item 405 of
      Regulation S-B contained in this form, and no disclosure will be contained,
      to
      the best of registrant’s knowledge, in definitive proxy or information
      statements incorporated by reference in Part III of this Form 10-KSB or any
      amendment to this Form 10-KSB. o




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes x  No o





State
      issuer’s revenues for its most recent fiscal year: $81,150





Aggregate
      market value of the voting and non-voting common stock held by non-affiliates
      of
      the Company as of December 31, 2006: $3,261,745




Number
      of
      shares of the registrant’s common stock outstanding as of March 6,
      2007:  1,400,000 shares of Common Stock












**TABLE
      OF CONTENTS**








**Part
                I**Item
                1.
            Description
                of Business.Item
                2.
            Description
                of Property.Item
                3.
            Legal
                Proceedings.Item
                4.
            Submission
                of Matters to a Vote of Security Holders.**Part
                II**Item
                5.
            Market
                for Common Equity and Related Stockholder Matters.Item
                6.
            Management’s
                Discussion and Analysis or Plan of Operations.Item
                7.
            Financial
                Statements.Item
                8.
            Changes
                in and Disagreements With Accountants on Accounting and Financial
                Disclosure.Item
                8A.
            Controls
                and Procedures.Item
                8B.
            Other
                Information.**Part
                III**Item
                9.
            Directors,
                Executive Officers, Promoters and Control Persons; Compliance with
                Section
                16(a) of the Exchange Act.Item
                10.
            Executive
                Compensation.Item
                11.
            Security
                Ownership of Certain Beneficial Owners and Management and Related
                Stockholder Matters.Item
                12.
            Certain
                Relationships and Related Transactions.Item
                13.
            Exhibits.Item
                14.
            Principal
                Accountant Fees and Services.**Signatures**








*Except
      as otherwise required by the context, all references in this prospectus to
      "we",
      "us”, "our", or "Company" refer to the operations of Eastern Services, Inc., a
      Delaware corporation, and its wholly owned subsidiaries.*




**Forward-Looking
      Statements and Associated Risks**






*The
      Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for
      certain forward-looking statements. Some of the statements contained in this
      annual report of Edulink discuss future expectations, contain projections
      of our operations or financial condition or state other forward-looking
      information. Some statements contained in this annual report on Form 10-K that
      are not historical facts (including without limitation statements to the effect
      that we "believe," "expect," "anticipate," "plan," "intend," "foresee," or
      other
      similar expressions) and are forward-looking statements. These forward-looking
      statements are based on our current expectations and beliefs concerning future
      developments and their potential effects on us. There can be no assurance that
      future developments affecting us will be those anticipated by us. All comments
      concerning our expectations for future revenue and operating results are based
      on our forecasts of our plan of operation and do not include the potential
      impact of any future acquisitions or operations. These forward-looking
      statements involve significant risks and uncertainties (some of which are beyond
      our control) and assumptions. Should one or more of these risks or uncertainties
      materialize, or should any of our assumptions prove incorrect, actual results
      may vary in material respects from those projected in the forward-looking
      statements.*




**PART
      I**


Item
      1.  Description
      of Business.





We
      were
      incorporated under the laws of the State of Delaware on November 5, 2004. We
      commenced operations for the purposes of evaluating, structuring, and completing
      a merger with Eastern Services Group, Inc. On November 9, 2004, we obtained
      all
      of the outstanding stock of Eastern Services Group, Inc. from Richard Carrigan,
      the sole stockholder in consideration for the issuance of 1,000,000 shares
      of
      our common stock to Mr. Carrigan pursuant to a Stock Purchase Agreement and
      Share Exchange between Eastern Services Group, Inc. and us. Pursuant to the
      Stock Purchase Agreement and Share Exchange, Eastern Services Group, Inc. became
      our wholly owned subsidiary. The purpose for this reorganization with Eastern
      Services Group, Inc. was to obtain an operating company which we believed has
      a
      successful business plan. Until this reorganization our activities had been
      limited to actions related to our organization, and we conducted virtually
      no
      business operations.




**General**




Our
      subsidiary, Eastern Services Group, Inc., was established in the State of Nevada
      in February 1998. Through our subsidiary, we provide state and local tax
      consultation and analysis to casinos in the Las Vegas metropolitan area with
      a
      focus on assessing tax liability on real and personal property and review of
      sales and use tax. We do not provide filing services nor do we perform CPA
      services. We provide such services via telephone or in a face-to-face setting.
      Some parts of our business are cyclical in nature. Our state and local tax
      consultation service is provided on a yearly basis, while our sale and use
      tax
      revue is provided every four years. Mr. Carrigan provides the majority of
      the services however occasionally consultants are used to provide services.
      The
      company has reduced the use of consultants during this fiscal year.




We
      are a
      relatively small operator in this market. Client relationships are culminated
      from personal relationships cultivated with casino executives within the Las
      Vegas/Clark County area or through word-of-mouth recommendations. Our current
      business operations are comprised of doing work for Coast Resorts, Riverside
      Resort and Casino, and the El Cortez Hotel and Casino.




**Industry
      Overview**




Well-publicized
      issues in the past few years surrounding a number of major international
      accountancy and management consulting firms has focused the spotlight on the
      industry.





Trends
      indicate that the aftermath of firm failures and legal actions is proving
      advantageous for smaller, independent accountancy firms that can offer
      personalized services, develop and sustain long-standing, secure relationships
      with business clients, and guarantee professionalism, accuracy, and
      consistency.




Despite
      the high degree of competition, saturation is unlikely in large, growing
      metropolitan markets. New tax laws and ever-increasing populations continue
      to
      fuel the demand for professional accounting and tax services. Additionally,
      clients continue to seek the benefits of convenience options and secure
      professional relationships in the services they purchase. Complimentary services
      that afford tax benefits transform traditional tax analysis firms into more
      competitive ventures.




**Keys
      to Success**




Both
      the
      short-term and long-range success of Eastern Services Group rest in the ability
      of the Company to satisfy the market needs and remain current with industry
      trends and fluctuating customer preferences and interests.




Fundamentally,
      success lies in the following elements:




-
            Leveraging
                successful relationships with existing clients and reputation in
                the
                marketplace to develop the client base and expand service contract
                penetration among target market.




-
            Develop
                effective campaigns to maximize marketing dollars, reach target clients,
                and acquire new business, relying on client testimonial, customer
                referrals, and word-of-mouth
                promotions.




-
            Commitment
                to reinvesting profits for further growth through sound financial
                practices, effective marketing programs, and efficient business
                management.




**Services
      Offered**




We
      provide state and local tax consultation and analysis to casinos in the Las
      Vegas metropolitan area with a focus on assessing tax liability on both real
      and
      personal property and reviews of sales and use tax. We do not provide filing
      services nor do we perform CPA services.




Assessing
      Tax Liability on Real and Personal Property




Assessments
      are first conducted by real estate appraisers. For hotels and casino properties,
      assessments are accomplished by reviewing the profit and loss statements of
      our
      clients and comparing such statements with other properties that are similar
      in
      nature. Based on these “comps” or “comparable properties,” we determine what we
      believe to be the income value of the property. Based on the appraised value
      of
      the property, we negotiate via conference calls and face-to-face meetings with
      the tax assessor’s office for a reduction in tax liability for our client.




For
      personal property, we look at property tax returns and review how such property
      is classified vis-à-vis long-term versus short-term assets. If our review
      reveals that certain assets were misclassified, we make the necessary
      adjustments to the appropriate class. To the extent that such reclassification
      results in reduction in tax liability for our clients, we share equally in
      such
      reduction.




Review
      of Sales and Use Taxes




In
      addition to services related to tax liability on real and personal property,
      we
      review sales and use tax liability. The State of Nevada audits casinos and
      other
      properties every four years for sales tax “deficiencies” in the amount of sales
      and use tax paid by such property. In order to determine if a deficiency exists,
      the State reviews a sample from one of the previous four years. If the State
      determines that based on the sample the property is deficient in its sales
      and
      use tax payments, the State calculates the sales and use tax deficiency for
      all
      for years by extrapolating data from that sample. Properties then must pay
      the
      amount by which their sales and use tax amounts were deficient.







We
      assist
      clients in obtaining a reduction in this deficiency amount. We accomplish this
      by reviewing every line item for each of the previous four years. By reviewing
      every line item, as opposed to taking a small sample, we hope to show that
      the
      sample itself used by the State was not accurate or that it does not accurately
      reflect all four years. Thus, if we can show the sample was flawed in such
      a way
      that it overestimated sales and use tax liability, we can obtain a reduction
      in
      the deficiency amount. In addition, we review properties’ accounting practices
      to identify items that were improperly accounted for and should not have been
      included in determining a property’s sales and use tax liability. Thus, if we
      can show that a client was over-inclusive with respect to items used to
      determine sales and use tax liability, we can achieve a reduction in the
      deficiency amount.




**How
      We Generate Revenues from Our Services**




We
      generate revenue when we achieve a reduction in the property tax value for
      our
      clients. Our revenue derives from the spread between the original assessment
      by
      the State and the adjusted assessment we determine based on our review.
      Typically, we ask for 50% of such savings. Thus, our revenues are proportionally
      related to the amount of savings we achieve for our clients. We consider audits
      which result in savings for our clients to be “successful audits.”




**Target
      Market**




Our
      target customers are hotel casino properties in the gaming industry throughout
      Nevada. The Company has ongoing engagements with Coast Resorts, Riverside Resort
      and Casino, and the El Cortez Hotel and Casino as well as new clients such
      as
      Netfaze. Such ongoing engagements involve education of our clients’ in-house
      accountants on changes in the State laws and accounting practices as well as
      ensuring that items are being classified appropriately. Even though services
      may
      be provided to these clients, if we cannot show savings, no revenues for our
      company may be generated. Eastern also offers its services to other businesses
      such as Netfaze.




We
      also
      plan on expanding our services to properties outside of Nevada. Specifically,
      we
      believe that we can provide similar services to casinos in California. Both
      Ahkee Rahman and Richard Carrigan are pursuing opportunities in California.
      In
      order to expand to this market, we plan to offer our services on the same
      contingent basis on which we currently operate. We hope that because our fees
      are contingent on our ability to reduce tax liability, potential new clients
      will be willing to engage us.





**Pricing**




We
      believe we have developed an effective pricing model. Approximately 95% of
      the
      majority of contracts is contingent upon the tax savings incurred as a result
      of
      services rendered by us. Typically, we receive 50% of the tax savings resulting
      directly from the assessment and analysis provided. The remaining 5% of the
      total contract is a flat or hourly fee to address provisional administrative
      functions associated with the project.




This
      model translates directly into a more competitively priced but higher quality,
      comprehensive service that develops new market opportunities in the targeted
      geographic region. Additionally, with an initially narrow geographic focus,
      we
      can build a specific niche market and develop a stronger reputation through
      specialization in the industry.




**Competition**




We
      are
      not aware of small, niche players similar to ourselves that focus solely on
      this
      aspect of the casino industry. However, Deloitte & Touche USA LLP provides a
      similar service as part of its comprehensive income audit.




**Subsidiaries**




We
      have
      one wholly owned subsidiary, Eastern Services Group, Inc., a Nevada
      company.




**Employees**




As
      of
      December 31, 2006, we had one employee and our wholly owned subsidiary has
      one
      employee.











**Patents
      and Trademarks**




We
      do not
      own, either legally or beneficially, any patent or trademark.




**Legal
      Proceedings**




There
      are
      no legal actions pending against us, or our wholly own subsidiary, or of which
      our property, or the property of our wholly owned subsidiary, is subject nor
      to
      our knowledge are any such proceedings contemplated.





**Item
      2.**  **Description
      of Property.**




Our
      primary office consists of office space located within Ms. Akhee’s home at
      1221 Ocean Avenue, #1202, Santa Monica, California 90401. We use such space
      for
      no charge from Ms. Akhee, and we currently have no written agreement with
      Ms. Akhee, our sole officer and director. Currently, we believe that this
      space is sufficient and adequate to operate our current business; however,
      if we
      expand our business to a significant degree, we will have to find a larger
      space. Our principal business operations are conducted at 7695 Desperado St.
      Las
      Vegas, NV 89131. Such location is the private residence of Mr. Carrigan.
      Mr. Carrigan owns this property and we use such space free of charge from
      him.





**Item
      3.**  **Legal
      Proceedings.**





Neither
      the Company nor any of its subsidiaries is a party to any pending or threatened
      legal proceedings.





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





None.





**PART
      II**





**Item
      5.**  **Market
      for Common Equity and Related Stockholder Matters.**




**Market
      Information**





Our
      Common Stock is currently quoted on the OTCBB under the symbol “ESVH” and has
      been trading since January 19, 2007. There is a limited trading market for
      our
      Common Stock. The stock was not trading during the fiscal year ended December
      31, 2006




**Holders**





As
      of
      March 6, 2007 in accordance with our transfer agent records, we had 42 record
      holders of our Common Stock, holding 1,400,000 shares.





**Dividends**





Holders
      of our common stock are entitled to receive dividends if, as and when declared
      by the Board of Directors out of funds legally available therefore. We have
      never declared or paid any dividends on our common stock. We intend to retain
      any future earnings for use in the operation and expansion of our business.
      Consequently, we do not anticipate paying any cash dividends on our common
      stock
      to our stockholders for the foreseeable future.





**Recent
      Sales of Unregistered Securities**




None.





**Item
      6.**  **Management’s
      Discussion and Analysis or Plan of Operations.**





*The
      following discussion contains forward-looking statements within the meaning
      of
      Section 27A of the Securities Act of 1933 and Section 21E of the Securities
      Exchange Act of 1934 relating to future events or our future performance. Actual
      results may materially differ from those projected in the forward-looking
      statements as a result of certain risks and uncertainties set forth in this
      prospectus. Although management believes that the assumptions made and
      expectations reflected in the forward-looking statements are reasonable, there
      is no assurance that the underlying assumptions will, in fact, prove to be
      correct or that actual results will not be different from expectations expressed
      in this report.*




**Plan
      of Operations**





We
      were
      incorporated under the laws of the State of Delaware on November 5, 2004. On
      November 9, 2004, pursuant to a Stock Purchase Agreement and Share Exchange,
      Eastern Services Group, Inc. became our wholly owned subsidiary. The purpose
      for
      this reorganization with Eastern Services Group, Inc. was to obtain an operating
      company which we believed has a successful business plan. Until this
      reorganization our activities had been limited to actions related to our
      organization, and we conducted virtually no business operations.




Our
      subsidiary, Eastern Services Group, Inc. (“ESG”), was established in the State
      of Nevada in February 1998. Through our subsidiary, we provide state and local
      tax consultation and analysis to casinos in the Las Vegas metropolitan area.
      We
      do not provide filing services nor do we perform CPA services. We provide
      consulting services based on risk assessment via telephone or in a face-to-face
      setting.




The
      core
      services suite provided by Eastern Services Group, Inc. is traditional tax
      analysis, preparation, and business consulting services to clients operating
      casinos in the Las Vegas, Nevada metropolitan area. ESG, Inc. concentrates
      on
      analysis of sales and use taxes, real property taxes, and personal property
      tax.
      At competitive prices, Eastern Services Group works with clients to minimize
      tax
      exposure and ensure that each filing adheres to all areas of local and state
      laws. With the highest degree of integrity, ESG, Inc., conducts preliminary
      interviews with clients to ensure a comprehensive analysis and assessment of
      tax
      liability with respect to the specific jurisdiction is provided.




Through
      in-depth evaluation and assessment, ESG, Inc. makes significant recommendations
      to clients to ensure local and state levied taxes are accurate, accounting
      and
      tax filing procedures afford viable tax savings, and records and accounts are
      correctly maintained to prevent unnecessary audits.




ESG,
      Inc.
      has developed an effective pricing model. Approximately 95% of the majority
      of
      contracts is contingent upon the tax savings incurred as a result of services
      rendered by ESG. Typically, ESG receives 50% of the tax savings resulting
      directly from the assessment and analysis provided. The remaining 5% of the
      total contract is a flat or hourly fee to address provisional administrative
      functions associated with the project.




Market
      Trends




With
      real
      estate audits on the decline, property audits are increasing due to the
      renovations of hotel casinos trying to maintain market share in the gaming
      industry. This gives us the opportunity for audits based on the new assets
      purchased. For example, as properties spend on capital improvements such as
      carpets, restaurants, décor, and infrastructure, the overall value of the
      property is increased. Also, when casinos are sold or merge, the value of the
      properties surrounding such casinos increase as well. When property increases
      in
      value, the owner of such property is required to pay additional tax. As a means
      to limit additional tax exposure, casinos seek our services to help them
      identify ways in which they can limit such increases in taxes. Thus, when hotel
      casinos make improvements, they seek our services to help reduce their tax
      liability.




In
      2005,
      the State of Nevada imposed a cap on the amount of taxes that a property would
      have to pay if the property increased in value. In 2005, the cap was set at
      8%.
      The cap was instituted as temporary relief for business and residential markets.
      The cap rate effectively limited the amount of real estate tax liability that
      a
      casino could incur.











Because
      real estate tax liability was capped, casinos were less inclined to seek tax
      burden relief. Therefore, in 2005, the cap limited our revenue streams because
      of the decrease in demand.





Although
      the 8% cap limited the revenue stream for all periods during the year ended
      2005, the State of Nevada may adjust the cap during the year ending 2006. At
      this point we cannot determine what cap rate may be applied by the State of
      Nevada or whether there will be a cap rate in the future.




A
      lower
      cap rate means clients will be less inclined to seek our services and therefore
      our revenues would decrease. However, a higher cap rate, or the elimination
      of
      the cap rate altogether, would result in greater demand for our services because
      clients would have more incentive to seek tax burden relief. An increase in
      demand for our services could result in an increase in revenue.




Key
      Metrics




We
      generate revenue when we achieve a reduction in the property tax value of our
      clients. Our revenue derives from the spread between the original assessment
      by
      the State and the adjusted assessment we determine based on our audit.
      Typically, we ask for 50% of such savings. Thus, our revenues are proportionally
      related to the amount of savings we achieve for our clients. We consider audits
      which result in savings for our clients to be “successful audits.”




We
      focus
      on the bottom line profits of the company and cost of achieving them, as well
      as
      cost of obtaining new clients. Operating performance is measured by maintaining
      relationships with our existing clients and ensuring that we save them money.
      Our strength and weakness is dependant upon overall real estate values in the
      gaming industry as well as the rate of mergers and acquisitions that may drive
      up the value of existing entities. Therefore when real estate values and the
      level of mergers and acquisitions activities rise, our business stands to gain
      as well thereby increasing revenue. When those indicators fall, demand for
      our
      services falls as well.




**Critical
      Accounting Policies**




Our
      discussion and analysis of results of operations and financial condition are
      based upon our consolidated financial statements, which have been prepared
      in
      accordance with accounting principles generally accepted in the United States
      of
      America. The preparation of these consolidated financial statements requires
      us
      to make estimates and judgments that affect the reported amounts of assets,
      liabilities, revenues and expenses, and related disclosure of contingent assets
      and liabilities. We base our estimates on historical experience and on various
      other assumptions that are believed to be reasonable under the circumstances,
      the results of which form the basis for making judgments about the carrying
      values of assets and liabilities that are not readily apparent from other
      sources. Actual results may differ from these estimates under different
      assumptions or conditions.




The
      Company considered the quality and variability of information regarding the
      financial condition and operating performance that may have changed in the
      past
      and future that may have a material effect and has quantified them where
      possible. Specifically the Company considers risk of variability with changes
      in
      contract which may affect the recognition of income and also the possibility
      of
      changes in the tax code which may affect the long term rates of
      return.




The
      Company considers the following historical trends and future trends of the
      company as well as risks that are present within the industry. The company
      believes that unless the current 8% Cap is lifted, the downward trend may
      continue. If tax legislation changes to relieve the cap, the company’s services
      may be in more demand.




We
      provide property tax analysis and sales and use tax analysis to the casino
      industry. Revenues are recognized when the contingency requirements of the
      company service contracts are fulfilled in a manner which leads to savings
      to
      the customer.







**Results
      from Operations**




**Results
        from Operations**
 
 Fiscal
        Year Ended December 31, 2006 Compared To the Fiscal Year Ended December 31,
        2005
 
 Revenues
 
 Revenues
        decreased from $110,946 for the year ended December 31, 2005 to $81,150 to
        the
        year ended December 31, 2006, a decrease of $29,796 or 26%. The decrease
        is
        primarily due to a reduction in demand for our services based the State of
        Nevada’s cap of 8% on the tax liability for casino properties. As discussed
        above, in 2005, the State of Nevada imposed a cap of 8% on the amount of
        taxes
        that a property would have to pay if the property increased in value. The
        cap
        effectively limited the amount of real estate tax liability that a casino
        could
        incur.




Because
        real estate tax liability was capped, casinos were less inclined to seek
        tax
        burden relief. Therefore, in 2005 the cap resulted in a decrease in demand
        for
        our services and our revenue declined accordingly.
 
 Total
        Expenses
 
 Cost
        of
        revenue increased from $69,635 for the year ended December 31, 2005 to $76,657
        for the year ended December 31, 2006, an increase of $7022 or 10%. Because
        of
        the reduction in demand for our services, the salary was decreased, however,
        the
        payments to consultants increased more than the salary decrease.
 
 General
        and administrative expense includes office expenses, travel and entertainment,
        and professional fees. For the year ended December 31, 2006 general and
        administrative expense was $93,095 compared to $43,018 in general and
        administrative expense for the same period in 2005, an increase of approximately
        $50,077 or 116%. $44,000 of increase was a result of legal fees for collection
        of bad debt. The remainder of the increase was payroll taxes increased travel
        expense.
 
 Net
        Income
 
 We
        had a
        net loss of $90,275 for the year ended December 31, 2006 to a net loss of
        $1,280
        for the year ended December 31, 2005. For the year ended December 31, 2006,
        interest expense was $672 compared to $0 for the prior year, and we also
        incurred an increase in tax expense by $1001 to $1001 from $0 the prior
        year.


**Liquidity
      and Capital Resources**




We
        have
        historically satisfied our cash requirements through revenues, short term
        financings, and issuance of common stock for cash. We anticipate that cash
        requirements will continue to increase as we continue to expend resources
        to
        build infrastructure, develop a business plan and establish a marketing network,
        customer support and administrative organizations. As of December 31, 2006,
        we
        had cash of $43,825.
 
 We
        anticipate that we will need $115,000 to cover budgeted operating expenditures
        and offering expenses for the next twelve months from the date of this
        prospectus. The Company is operating at a net loss of $90,275 as of December
        31,
        2006, therefore our cash reserves, plus contractually committed capital is
        not
        sufficient to fund our planned business operations for a period of the next
        twelve months.
 
 In
        the
        interim, we will continue to pursue additional capital investment. Current
        assets as of December 31, 2006 were $48, 025, which consisted entirely of
        cash.
        Total current liabilities as of December 31, 2006 were $111,855 which consisted
        of a loan payable on an automobile of $1,354, which is the only loan the
        company
        has currently and an account payable of $110,501. The loan was entered on
        May
        14, 2002 for an auto/truck in the amount of $20,000 for a 5 year period with
        a
        variable interest rate. During the year 2005 the rate averaged 5.5% and payments
        are $375 per month. There were no terms on the shareholder loan which was
        retired and we expect to retire the auto loan during the year 2006.











Because
        our current assets are not sufficient to cover our current liabilities, we
        expect to be able to continue operations for at least the next twelve months
        only if we continue to generate significant revenues. However, there is risk
        if
        the company does not generate significant revenues that it will not be able
        to
        cover its costs. The company’s major stockholder will fund any shortfalls in
        capital and additional expenses in the form of accounting and legal fees
        for the
        company to become a reporting company. We will also need to seek both private
        and public equity markets to support our ongoing operations
 
 We
        have
        financed our growth and cash requirements through operations, related party
        debt
        and small private placements of equity.
 
 By
        becoming a publicly reporting company, we expect an increase in our audit,
        accounting, and legal fees. As a fully reporting company pursuant to the
        Securities Exchange Act of 1934, we will be required to file quarterly, annual,
        and other periodic reports. As such, we will require the assistance of our
        legal
        counsel to prepare and file such reports and our independent auditors to
        prepare
        or review financial statements in connection with such reports. In addition,
        we
        will retain an EDGAR service to submit such filings to the Securities and
        Exchange Commission. We anticipate the approximate costs of being a publicly
        reporting company to be the following per quarter (or about $24,000 per
        year):




Legal:
            $2,500Accounting:
            $2,500Filings:
            $1,000





**Recent
      Accounting Pronouncements**




In
      May
      2005, the FASB issued SFAS 154, Accounting Changes and Error Corrections. This
      Statement replaces APB Opinion No. 20, Accounting Changes, and FASB Statement
      No. 3, Reporting Accounting Changes in Interim Financial Statements, and changes
      the requirements for the accounting for and reporting of a change in accounting
      principle. This Statement applies to all voluntary changes in accounting
      principle. It also applies to changes required by an accounting pronouncement
      in
      the unusual instance that the pronouncement does not include specific transition
      provisions. SFAS 154 also requires that a change in depreciation, amortization
      or depletion method for long-lived, nonfinancial assets be accounted for as
      a
      change in accounting estimate affected by a change in accounting principle.
      This
      Statement is effective in fiscal years beginning after December 15, 2005. The
      Company has not yet determined the effect of implementing this
      standard.




SFAS
      155,
      Accounting for Certain Hybrid Financial Instruments and SFAS 156, Accounting
      for
      Servicing of Financial Assets were recently issued. SFAS 155 and 156 have no
      current applicability to the Company and have no effect on the financial
      statements.





**Off-Balance
      Sheet Arrangements**





We
      do not
      have any off-balance sheet arrangements, financings, or other relationships
      with
      unconsolidated entities or other persons, also known as “special purpose
      entities” (SPEs).





**Item
      7.**  **Financial
      Statements.**













**EASTERN
        SERVICES HOLDINGS, INC.**
 
 
 
 **CONSOLIDATED
        FINANCIAL STATEMENTS**
 
 
 
 
 
 
 
 **AS
        OF DECEMBER 31, 2006 AND 2005**
 
 
 
 
    
  **EASTERN
        SERVICES HOLDINGS, INC.**
 
 
 
 Consolidated
        Financial Statements Table of Contents
 
 
 
 
  FINANCIAL
                  STATEMENTS
              PageIndependent
                  Auditors Report
              1Balance
                  Sheet
              2Statement
                  of Operations
              3Statement
                  of members capital
              4Cash
                  Flow Statement
              5Notes
                  to the Financial Statements
              6-8
 
 
 
 
 
 
 
  
 
 REPORT
        OF
        INDEPENDENT REGISTERED PUBLIC ACCOUNTANTING FIRM
 
 
 
 The
        Board
        of Directors and Shareholders
 Eastern
        Services Holdings, Inc.
 
  To
        the
        board of directors and stockholders:
 
 We
        have audited the accompanying balance sheet of Eastern Services Holdings,
        Inc.
        as of December 31, 2006 and 2005 and the related statements of operations,
        stockholder’s equity and cash flows for the twelve months ending December 31,
        2006 and 2005. These financial statements are the responsibility of the
        Company’s management. Our responsibility is to express an opinion on these
        financial statements based on the audit.
  We
        conducted the audit in accordance with the standards of the Public Company
        Accounting Oversight Board (United States). These standards require that
        we plan
        and perform the audit to obtain reasonable assurance about whether the financial
        statements are free of material misstatement. An audit includes examining,
        on a
        test basis, evidence supporting the amounts and disclosures in the financial
        statements. An audit also includes assessing the accounting principles used
        and
        significant estimates made by management, as well as evaluating the overall
        financial statement presentation. We believe that the audit provides a
        reasonable basis for our opinion.
 
 In
        our opinion, the financial statements referred to above present fairly, in
        all
        material respects, the financial position of Eastern Services Holdings, Inc.
        as
        of December 31, 2006 and 2005, and the results of operations and its cash
        flows
        for the twelve months ending December 31, 2006 and 2005, in conformity with
        U.S.
        generally accepted accounting principles.
  
 Gately
        & Associates, LLC
 Altamonte
        Springs, Florida
 February
        1, 2007
 
 
 F-1
 
 **EASTERN
                    SERVICES HOLDINGS, INC.****BALANCE
                    SHEET****As
                    of December 31, 2006 and December 31, 2005****ASSETS****CURRENT
                    ASSETS**
                
                **12/31/2006**
                
                **12/31/2005**Cash
                
                $
                43,825
                
                $
                85,868Accounts
                    Receivable
                
                
                153,480
                
                
                149,280Allowance
                    For Doubtful Accounts
                
                
                (149,280
                )
                
                (149,280
                )Advances
                
                
                -
                
                
                9,307Total
                    Current Assets
                
                
                48,025
                
                
                95,175**PROPERTY
                    AND EQUIPMENT**Equipment
                
                
                40,591
                
                
                43,280Less:
                    accumulated depreciation
                
                
                (37,234
                )
                
                (39,562
                )Total
                    Property and Equipment
                
                
                3,357
                
                
                3,718**TOTAL
                    ASSETS**
                
                $
                51,382
                
                $
                98,893**LIABILITIES
                    AND STOCKHOLDERS CAPITAL****CURRENT
                    LIABILITIES**Accounts
                    payable and accrued expenses
                
                $
                110,501
                
                $
                63,520Loan
                    payable - auto
                
                
                1,354
                
                
                5,571Total
                    Current Liabilities
                
                
                111,855
                
                
                69,091**STOCKHOLDERS
                    EQUITY**Common
                    stock, Authorized: 100,000,000 at $0.001par
                    value, Issued: 1,400,000 and 1,400,000, respectively
                
                
                1,400
                
                
                1,400Additional
                    paid in capital
                
                
                39,600
                
                
                39,600Retained
                    Deficit
                
                
                (101,473
                )
                
                (11,198
                )Total
                    Stockholders' Equity
                
                
                (60,473
                )
                
                29,802**TOTAL
                    LIABILITIES AND CAPITAL**
                
                $
                51,382
                
                $
                98,893
   The
          accompanying footnotes are an integral part of these financial
          statements.






F-2






**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF OPERATIONS****For
                  the twelve months ending December 31, 2006 and
                  2005****12/31/2006**
              
              **12/31/2005****REVENUE**
              
              $
              81,150
              
              $
              110,946**COST
                  OF SERVICES**
              
              
              76,657
              
              
              69,635**GROSS
                  PROFIT OR (LOSS)**
              
              
              4,493
              
              
              41,311**GENERAL
                  AND ADMINISTRATIVE EXPENSES**
              
              
              93,095
              
              
              43,018**OPERATING
                  INCOME**
              
              
              (88,602
              )
              
              (1,707
              )**INCOME
                  TAX PROVISION**
              
              
              1,001
              
              
              -**INTEREST
                  EXPENSE**
              
              
              672
              
              
              -**INTEREST
                  INCOME**
              
              
              -
              
              
              427**NET
                  INCOME (LOSS)**
              
              $
              (90,275
              )
              $
              (1,280
              )**Earnings
                  (loss) per share, basic & diluted**
              
              $
              (0.06
              )
              $
              (0.00
              )**Weighted
                  average number of common shares**
              
              
              1,400,000
              
              
              1,400,000




The
        accompanying footnotes are an integral part of these financial
        statements.








F-3








**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENT
                  OF STOCKHOLDERS EQUITY****As
                  of December 31, 2006****SHARES
                  OF**
              
              
              
              **ADDITIONAL****COMMON**
              
              **PAR**
              
              **PAID
                  IN**
              
              **RETAINED**
              
              **TOTAL****STOCK**
              
              **VALUE**
              
              **CAPITAL**
              
              **DEFICIT**
              
              **CAPITAL**Balance,
                  December 31, 2002
              
              
              1,000,000
              
              $
              1,000
              
              
              -
              
              $
              (3,994
              )
              $
              (2,994
              )Net
                  income (loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              (23,836
              )
              
              (23,836
              )Balance,
                  December 31, 2003
              
              
              1,000,000
              
              $
              1,000
              
              $
              -
              
              $
              (27,830
              )
              $
              (26,830
              )Common
                  stock subscribed during
              
              
              400,000
              
              
              400
              
              
              39,600
              
              
              -
              
              
              40,000December
                  2004 at $0.10 per shareSubcription
                  receivable
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (40,000
              )Net
                  Income (loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              17,912
              
              
              17,912Balance,
                  December 31, 2004
              
              
              1,400,000
              
              $
              1,400
              
              $
              39,600
              
              $
              (9,918
              )
              $
              (8,918
              )Subscription
                  receivable
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              40,000Net
                  Income (Loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              (1,280
              )
              
              (1,280
              )Balance,
                  December 31, 2005
              
              
              1,400,000
              
              
              1,400
              
              
              39,600
              
              
              (11,198
              )
              
              29,802Net
                  Income (loss)
              
              
              -
              
              
              -
              
              
              -
              
              
              (90,275
              )
              
              (90,275
              )Balance,
                  December 31, 2006
              
              
              1,400,000
              
              $
              1,400
              
              $
              39,600
              
              $
              (101,473
              )
              $
              (60,473
              )







The
        accompanying footnotes are an integral part of these financial
        statements.






F-4






**EASTERN
                  SERVICES HOLDINGS, INC.****STATEMENTS
                  OF CASH FLOWS****For
                  the twelve months ending December 31, 2006 and
                  2005****CASH
                  FLOWS FROM OPERATING ACTIVITIES**
              
              **12/31/2006**
              
              **12/31/2005**Net
                  income (loss)
              
              $
              (90,275
              )
              $
              (1,280
              )Adjustments
                  to reconcile net income to net cashprovided
                  by (used in) operating activities:Depreciation
              
              
              2,670
              
              
              2,478Fed
                  Income Tax Payable
              
              
              -
              
              
              (5,521
              )Increase
                  (Decrease) in accounts receivable
              
              
              (4,200
              )
              
              -(Increase)
                  Decrease in advances and prepaid expenses
              
              
              9,307
              
              
              (9,307
              )Increase
                  (Decrease) in accounts payable
              
              
              46,982
              
              
              63,184Total
                  adjustments to net income
              
              
              54,759
              
              
              50,834Net
                  cash provided by (used in) operating activities
              
              
              (35,516
              )
              
              49,554**CASH
                  FLOWS FROM INVESTING ACTIVITIES**Cash
                  paid for fixed assets
              
              
              (2,310
              )
              
              -Net
                  cash flows provided by (used in) investing activites
              
              
              (2,310
              )
              
              -**CASH
                  FLOWS FROM FINANCING ACTIVITIES**Cash
                  paid on note payable - auto
              
              
              (4,217
              )
              
              (4,038
              )Cash
                  received from stock issuance
              
              
              -
              
              
              40,000Net
                  cash provided by (used in) financing activities
              
              
              (4,217
              )
              
              35,962**CASH
                  RECONCILIATION**Net
                  increase (decrease) in cash
              
              
              (42,043
              )
              
              85,516Cash
                  - beginning balance
              
              
              85,868
              
              
              352**CASH
                  BALANCE END OF PERIOD**
              
              $
              43,825
              
              $
              85,868





The
        accompanying footnotes are an integral part of these financial
        statements.






F-5











EASTERN
      SERVICES HOLDINGS, INC.






Notes
      to
      the financial statements








1.   Summary
      of Significant Accounting Policies:




Industry -
      Eastern Services Holdings, Inc. (the Company) was incorporated in the state
      of
      Delaware on November 5, 2004. At the time of incorporation the Company exchanged
      shares with Eastern Services Group, Inc. making Eastern Services Group, Inc.
      an
      acquired subsidiary. As the Company was the non-operating acquirer, for
      accounting purposes Eastern Services Group, Inc. is considered the accounting
      acquirer. The share exchange has been accounted for as a retroactive stock
      split. Eastern Services Group, Inc. was incorporated on February 27, 1998 under
      the laws of the State of Nevada. The Company is headquartered in California.
      The
      Company provides state and local tax consultation and analysis to casinos in
      the
      Las Vegas metropolitan area. The Company does not provide filing services.
      The
      Company’s fiscal year end is December 31, a calendar year end.




Significant
      Accounting Policies:




The
      Company’s management has adopted the following accounting policies.




Basis
      of Accounting - The
      Company’s financial statements are prepared in accordance with generally
      accepted accounting principles. The Company’s management has made all
      adjustments in their opinion that are necessary in order to make the financial
      statements not misleading.




Estimates
      and adjustment -The
      Company’s management is of the opinion that all estimates and adjustment have
      been made in accordance with Generally Accepted Accounting Principle in order
      for the financial statements to not be misleading.




Revenue
      Recognition -
      Revenues are recognized when the contingency requirements of the Company’s
      service contracts are fulfilled in a manner which leads to tax savings to the
      customer. If the Company is not successful in providing tax savings for
      property, sales and use tax then the customer does not have to pay for services
      provided. Proof of tax savings occurs when the state issues its assessment
      taxes
      in the month of June therefore revenue is not recognized until such time and
      payment of 50% of the tax savings is due from the customer at that time. In
      all
      contracts the Company acts as the principle and recognizes revenues on the
      gross
      method based on these tax savings which is not assured until the tax assessments
      are issued by the county. Cost of sales is recognized as the Company pays its
      employees for their work throughout the year regardless as to whether the
      Company is successful in providing tax savings.




Cash
      and Cash Equivalents - The
      Company considers cash on hand and amounts on deposit with financial
      institutions which have original maturities of three months or less to be cash
      and cash equivalents.




Property
      and Equipment -
      Property and equipment are recorded at cost. Depreciation is computed using
      the
      straight line method over the estimated useful lives of the various classes
      of
      assets as follows:







F-6







Equipment
            .......................................
            2
                to 10 yearsFurniture
            .......................................
            5
                to 10 years







Maintenance
      and repairs, as incurred, are charged to expenses; betterments and renewals
      are
      capitalized in equipment accounts. Cost and accumulated depreciation applicable
      to  items
      replaced or retired are eliminated from the related accounts; gain or loss
      on
      the disposition thereof is included as income.




Income
      Taxes - The
      Company utilizes the asset and liability method to measure and record deferred
      income tax assets and liabilities. Deferred tax assets and liabilities reflect
      the future income tax effects of temporary differences between the financial
      statement carrying amounts of existing assets and liabilities and their
      respective tax bases and are measured using enacted tax rates that apply to
      taxable income in the years in which those temporary differences are expected
      to
      be recovered or settled. 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.




Earnings
      Per Share - Basic
      and diluted earnings per share is computed by dividing earnings available to
      stockholders by the weighted-average number of shares outstanding for the period
      as guided by the Financial Accounting Standards Board (FASB) under Statement
      of
      Financial Accounting Standards (SFAS) No. 128, “Earnings per Shares”. Diluted
      EPS reflects the potential dilution of securities that could share in the
      earnings. The Company used for years ending December 31, 2005 and 2004 earnings
      as the numerator and weighted average number of shares as disclosed in the
      statement of operations to calculate earnings per share. As the Company had
      a
      loss for the year ending December 31 2006, the option agreement that was entered
      into that year would not be dilutive.




Concentrations
      of Credit Risk -
      Financial instruments which potentially expose the Company to concentrations
      of
      credit risk consist principally of operating demand deposit accounts. The
      Company’s policy is to place its operating demand deposit accounts with high
      credit quality financial institutions that are insured by the FDIC.




Compensation
      in the form of stock - The
      Company used SFAS No.123, “Accounting For Stock Based Compansation,” for the
      year ending December 31, 2005. As required by a revision of this standard,
      the
      Company has adopted SFAS No. 123R to account for stock based compensation
      whereby through this adoption the Company accounts for amounts regarding stock
      based compensation at its expense instead of proforma results. For this
      transition the Company has elected the prospective method to account for the
      change.




2.   Related
      Party Transactions:




A
      stockholder may loan the Company working capital from time to time. At the
      year
      ending December 31, 2006 and 2005 the Company had no amounts owed.




3.   Accounts
      Receivable:




The
      Company carries balances from time to time in accounts receivable for services
      performed. The Company’s management has established an allowance for doubtful
      accounts for those accounts that may not be collectible.




4.   Use
      of Estimates:




The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      effect the 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.






F-7




5.
      Income Taxes:




The
      Company has a net operating loss that may be used to offset future income for
      tax purposes for a period of 20 years from the date of inception of these
      losses. These losses were derived solely from operating activities. The net
      operating losses create a deferred tax asset as a benefit to the Company in
      the
      amount of $20,295. The Company has set up a valuation allowance of $20,295
      to
      reduce the deferred tax asset as in the opinion of management, it is more likely
      than not that some portion or all of the deferred tax asset will not be
      realized.




The
      income tax payable that was accrued for the quarters ending was offset by the
      Company’s net operating loss carryforward therefore the provisions for income
      tax in the income statement is an estimate of what may be the tax liability
      for
      the current year end.




The
      availability of the Company’s net operating loss carryforwards are subject to
      limitation if there is a 50% or more positive change in the ownership of the
      Company’s stock. The provision for income taxes consists of the state minimum
      tax imposed on corporations.





Deferred
      income taxes reflect the net tax effects of temporary differences between the
      carrying amounts of assets and liabilities for financial statement purposes
      and
      the amounts used for income tax purposes. Significant components of the
      Company's deferred tax liabilities and assets as of December 31, 2006 are as
      follows:





Deferred
                tax assets:Federal
                net operating loss
            
            $
            15,705State
                net operating loss
            
            
            4,591Total
                deferred tax assets
            
            
            20,295Less
                valuation allowance
            
            
            (20,295
            )$
            --





The
      Company has provided a 100% valuation allowance on the deferred tax assets
      at
      December 31, 2005 and the current quarter to reduce such asset to zero, since
      there is no assurance that the Company will generate future taxable income
      to
      utilize such asset. Management will review this valuation allowance requirement
      periodically and make adjustments as warranted.





The
      reconciliation of the effective income tax rate to the federal statutory rate
      for the years ended December 31, 2006 and 2005 is as follows:




2006
            
            2005Federal
                income tax rate
            
            
            (15.0
            %)
            
            (15.0
            %)State
                tax, net of federal benefit
            
            
            (5.0
            %)
            
            (5.0
            %)Increase
                in valuation allowance
            
            
            20.0
            %
            
            20.0
            %Effective
                income tax rate
            
            
            0.0
            %
            
            0.0
            %






F-8






6.   Accounts
      Payable and Accrued Expenses:




Accounts
      payable and accrued expenses consist of trade payables from normal operations
      of
      the business.




7.   Operating
      and Capital Lease Agreements:






The
      Company has entered into a short-term lease for use of storage space. The
      contract is renewable every thirty days. The Company has not entered into any
      long-term leases.




8.
      Note Payable:




On
      May
      14, 2002 the Company entered into a loan agreement for an auto/truck in the
      amount of $20,000 for a 5-year period with a variable interest rate. During
      the
      year 2005, the rate averaged 11% and payments averaged $375 per month. The
      Company considers the balance due on this note as short term as its intension
      is
      to retire this debt during the year ending December 31, 2006.




9.  Stockholder
      Equity:




The
      Company has authorized 100,000,000 shares of common stock at a par value of
      $.001 per share of which 1,400,0000 shares have been issued.




Upon
      incorporation of the Company (November 5, 2004), 1,000,000 shares of common
      stock were issued in an exchange agreement for the 1,000 shares (100%) of the
      subsidiary, Eastern Service Group, Inc. Eastern Service Group is the accounting
      acquirer and therefore the share exchange was accounted as a retroactive share
      exchange.




During
      November and December 2004 the Company undertook a private placement issuance,
      Regulation D Rule 506 offering, of 400,000 shares of common stock for a value
      of
      $40,000, or $.10 per share. The Company believes this offering is exempt from
      registration with the US Securities and Exchange Commission. These shares have
      been subscribed for and the funds received in January of 2005.




On
      March
      1, 2005 the company entered into an option agreement with a company officer
      whereby the agreement calls for the purchase of 500,000 shares of common stock
      at an exercise price of $1.00 per share. The agreement will expire on March
      1,
      2007. The payment of these shares when exercised is due when the purchaser
      sells
      these common shares. There is no compensation, repurchase or awards with regard
      to this option agreement.




10.  Employment
      Contract and Incentive Commitments:




The
      Company has no employment contracts and incentive commitments. The Company’s
      policy on compensation to Mr. Carrigan, its sole employee, is based upon a
      verbally agreed amount of $60,000 per year. For the year ended December 31,
      2006
      the Company accrued $45,000 in wages.




11.  Required
      Cash Flow Disclosure for Interest and Taxes Paid:




The
      Company paid interest during the years ending December 31, 2006 and 2005 in
      the
      amounts of $672 and $0, respectively. The Company paid income taxes during
      the
      years ending December 31, 2006 and 2005 in the amount of $1,001 and $169,
      respectively.




12.  Contingent
      Liabilities:




Currently
      the Company has not identified any contingent liabilities that may be due.










F-9




**Item
      8.**  **Changes
      In and Disagreements With Accountants on Accounting and Financial
      Disclosure.**





None.





**Item
      8A. Controls and Procedures.**





**Evaluation
      of Disclosure Controls and Procedures**





Under
      the
      supervision and with the participation of our management, including our
      principal 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 (Exchange Act), as of December 31, 2006. Based
      on this evaluation, our principal executive officer and principal financial
      officer have concluded that our disclosure controls and procedures are effective
      to ensure that information required to be disclosed by us in the reports we
      file
      or submit under the Exchange Act is recorded, processed, summarized, and
      reported within the time periods specified in the Securities and Exchange
      Commission's rules and forms and that our disclosure and controls are designed
      to ensure that information required to be disclosed by us in the reports that
      we
      file or submit under the Exchange Act is accumulated and communicated to our
      management, including our principal executive officer and principal financial
      officer, or persons performing similar functions, as appropriate to allow timely
      decisions regarding required disclosure.





**Changes
      in Internal Controls**





There
      were no changes (including corrective actions with regard to significant
      deficiencies or material weaknesses) in our internal controls over financial
      reporting that occurred during the third quarter of fiscal 2006 that has
      materially affected, or is reasonably likely to materially affect, our internal
      control over financial reporting.





**Item
      8B. Other Information.**




None.





**PART
      III**




**Item
      9.**  **Directors,
      Executive Officers, Promoters and Control Persons; Compliance with Section
      16(a)
      of the Exchange Act.**




Our
      sole
      executive officer and director and his age as of March 6, 2006 is as
      follows:




**Name**
            **Age**
            **Position**Akhee
                Rahman
            35
            President
                and
              Chief
                Executive Officer
              Secretary
              Treasurer
              Director




Set
      forth
      below is a brief description of the background and business experience of our
      executive officers and directors for the past five years:




**AKHEE
      RAHMAN** is our
      founder and currently serves as our President, Chief Executive Officer, and
      Chief Financial Officer as well as our Chairman of the Board of Directors.
      Prior
      to joining us, Ms. Rahman was Secretary and Director for Converge Global
      Inc., an internet incubator, from 2000 to 2001. Converge Global, Inc. was a
      public company however, it terminated the registration of its securities under
      Section 12(g) of the Exchange Act on November 20, 2002. Ms. Rahman was also
      the Secretary and Treasurer for Essential Technologies, Inc., a private software
      solutions firm from 2001 to 2002.





From
      2000-2001 she was the Treasurer for Digitalmen.com, Inc., a private online
      community and resource center for men. From 1996 to 1999 and between 2002 and
      2004, Ms. Rahman was not employed. Prior to 1996 she worked as a manager
      for the clothing retailer, Cache. Ms. Rahman has a Bachelor of Arts degree
      in International Business and Trade from the University of Dallas.




Set
      forth
      below is a brief description of the background and business experience of each
      person who is not an executive officer but who is expected by us to make a
      significant contribution to the business:




**Name**
            **Age**
            **Position**Richard
                Carrigan
            40
            Principal
                of Eastern Services Group, Inc.
              Principal
                Shareholder




**RICHARD
      CARRIGAN** is the
      principal of Eastern Services Group, Inc., our wholly owned subsidiary, as
      well
      as our principal shareholder. Prior to starting Eastern Services Group in 1998,
      Mr. Carrigan was named Marketing Manager for Woodmasters Design &
Manufacturing, Inc., Chicago IL in 1995 where he was responsible for the West
      Coast sales and marketing for a $10 million architectural millwork company
      including servicing clients, negotiating and bidding of new contracts. He also
      serviced thirty accounts with direct customer contact. From 1993- through 1994,
      Mr. Carrigan was a Cost Engineer with Baker Mellon Stuart Construction,
      Inc. in Pittsburgh, Pennsylvania. His responsibilities included administering
      government contracts with a total budget of $20 Million and
      negotiating and analyzing contracts with the Public Works Commission.
      Mr. Carrigan managed 40 employees including Purchasing Agents, Construction
      Foremen and the Sub-Contractor Manager. He also developed plans and projections
      to ensure that the projects were completed within budget and on schedule. From
      1992 through 1993, Mr. Carrigan was an Operations Consultant for M.M.P.C.
      Inc. in Pittsburgh, Pennsylvania. From 1988 through 1991, Mr. Carrigan was
      an Assistant Controller with John Chatillon and Sons, Inc. in Greensboro, NC.
      Mr. Carrigan received his Master of Business Administration from the Joseph
      M. Katz Graduate School of Business, University of Pittsburgh in 1992. He
      received his Bachelor of Science degree from the University of Pittsburgh in
      1988. Mr. Carrigan also serves as the sole officer and director of Grant
      Enterprises, Inc.




**Term
      of Office**




Our
      directors are appointed for a one-year term to hold office until the next annual
      general meeting of our shareholders or until removed from office in accordance
      with our bylaws. Our officers are appointed by our board of directors and hold
      office until removed by the board.




**Significant
      Employees**





As
      of
      December 31, 2006, we have one employee and our wholly owned subsidiary has
      one
      employee.




**Family
      Relationships**





No
      family
      relationships exist among our directors or executive officers.





**Involvement
      in Certain Legal Proceedings**




To
      our
      knowledge, during
      the past five years, none of our directors, executive officers, promoters,
      control persons, or nominees has been:




•
            the
                subject of any bankruptcy petition filed by or against any business
                of
                which such person was a general partner or executive officer either
                at the
                time of the bankruptcy or within two years prior to that time;•
            convicted
                in a criminal proceeding or is subject to a pending criminal proceeding
                (excluding traffic violations and other minor offenses);•
            subject
                to any order, judgment, or decree, not subsequently reversed, suspended
                or
                vacated, of any court of competent jurisdiction, permanently or
                temporarily enjoining, barring, suspending or otherwise limiting
                his
                involvement in any type of business, securities or banking activities;
                or•
            found
                by a court of competent jurisdiction (in a civil action), the Commission
                or the Commodity Futures Trading Commission to have violated a federal
                or
                state securities or commodities law.







**Code
      of Ethics**





We
      have
      not yet adopted a code of ethics.





**Compliance
      with Section 16(a) of the Exchange Act**




Section
      16(a) of the Securities Exchange Act of 1934 requires the Company's officers
      and
      directors, and persons who own more than 10 percent of a registered class of
      the
      Company's equity securities, to file reports of ownership and changes in
      ownership with the Securities and Exchange Commission (SEC). Officers,
      directors, and greater than 10 percent stockholders are required by SEC
      regulation to furnish the Company with copies of all Section 16(a) forms they
      file.





To
      the
      Company's knowledge, based solely on a review of the copies of such reports
      furnished to the Company, all reports under Section 16(a) required to be filed
      by its officers and directors and greater than ten percent beneficial owners
      were timely filed as of the date of this filing.




**Item
      10. Executive Compensation.**





**Compensation
      of Executive Officers**




**Summary
      Compensation Table** .
      The
      table below summarizes all compensation awarded to, earned by, or paid to our
      executive officers by any person for all services rendered in all capacities
      to
      us from the date of our inception until December 31,
      2006.




**ANNUAL
                COMPENSATION**
            **LONG
                TERM COMPENSATION****NAME**
            **TITLE**
            **YEAR**
            **SALARY**
            **BONUS**
            **OTHER
                ANNUAL COMPENSATION**
            **RESTRICTED**
              **OPTION
                STOCKS/**
              **PAYOUTS
                AWARDED**
            **SARS**
              **($)**
            **LTIP**
              **COMPENSATION**
            **ALL
                OTHER COMPENSATION**Ahkee
                Rahman
            President
              CEO
                and
              Chairman
            2006
              2005
              2004
            $0
              $0
              $0
            0
              0
              0
            0
              0
              0
            $500
                (1)
            0
              0
              0
            0
              0
              0
            0
              0
              0Richard
                Carrigan (2)
            
            2006
              2005
              2004
            $45,000
              $60,000
              $160,353
            0
              0
              0
            0
              0
              0
            0
              0
              0
            0
              0
              0
            0
              0
              0
            0
              0
              0




(1)
              Ahkee
                  Rahman has an option to purchase 500,000 shares of our common stock
                  for a
                  period of two years expiring March 1, 2007 at $1.00 a share.(2)
              These
                  amounts reflect salary paid by our subsidiary to Mr. Carrigan, the
                  sole employee of our operating subsidiary.










**OPTIONS
      GRANTS IN LAST FISCAL YEAR (INDIVIDUAL GRANTS)**




**Name**
            **Number
                of securities underlying options granted (#)**
            **Percent
                of total options granted to employees in last fiscal
                year**
            **Exercise
                or base Price ($/Share)**
            **Expiration
                Date**Ahkee
                Rahman
            500,000
            100%
            $1.00
            March
                1, 2007




**Aggregated
      Option Exercises and Fiscal Year-End Option Value Table.** The
      following table sets forth certain information regarding stock options exercised
      during fiscal year ending December 31, 2006, by the executive officer named
      in
      the Summary Compensation Table.




**Employment
      Agreements**




We
      do not
      have an employment or consultant agreement with Ms. Ahkee Rahman, our Chief
      Executive Officer, President, and Chairman of the Board of
      Directors.




**Compensation
      of Directors**




For
      the
      fiscal year ended December 31, 2006, we did not compensate our directors for
      their services.




**Item
      11.**  **Security
      Ownership of Certain Beneficial Owners and Management and Related Stockholder
      Matters.**




The
      following table sets forth certain information regarding the ownership of our
      capital stock, as of March 6, 2007, for: (i) each director; (ii) each person
      who
      is known to us to be the beneficial owner of more than 5%of our outstanding
      common stock; (iii) each of our executive officers named in the Summary
      Compensation Table; and (iv) all of our current executive officers and directors
      of as a group. Except as otherwise indicated in the footnotes, all information
      with respect to share ownership and voting and investment power has been
      furnished to us by the persons listed. Except as otherwise indicated in the
      footnotes, each person listed has sole voting power with respect to the shares
      shown as beneficially owned.




**Title
                of Class**
            **Name
                and Address**
              **of
                Beneficial Owner**
            **Amount
                and Nature**
              **of
                Beneficial Owner**
            **Percent**
              **of
                Class**Common
                Stock
            Richard
                Carrigan
              7695
                Desperado St.
              Las
                Vegas, Nevada 89131
            1,005,000
            71.9%
                (1)Common
                Stock
            Ahkee
                Rahman
              1221
                Ocean Avenue, #1202.
              Santa
                Monica, California 90401
            500,000
                (2)
            26.3%
                (4)Common
                Stock
            All
                executive officers
              and
                directors as a group
            1,505,000
                (3)
            79.2%
                (4)




(1)
              This
                  percentage of class is based on 1,400,000 shares of common stock
                  issued
                  and outstanding as of March 6, 2007.(2)
              Ms. Rahman
                  currently owns an option to purchase 500,000 shares of our common
                  stock at
                  $1.00 per share.(3)
              This
                  amount is based on 1,005,000 shares of our common stock owned by
                  Richard
                  Carrigan and 500,000 shares issuable to Ms. Rahman upon execution of
                  her option to purchase such
                  shares.











(4)
              This
                  percentage of class is based on a total of 1,900,000 shares of
                  common
                  stock consisting of 1,400,000 shares of common stock issued and
                  outstanding as of March 6, 2007 and the 500,000 shares issuable
                  to
                  Ms. Rahman upon execution of her option to purchase such
                  shares.




**Item
      12.**  **Certain
      Relationships and Related Transactions.**




None
      of
      the following persons, other than Richard Carrigan, Aileen Carrigan, and Patrick
      E. Carrigan as part of our December 2004 private offering, has any direct or
      indirect material interest in any transaction to which we are a party since
      our
      incorporation or in any proposed transaction to which we are proposed to be
      a
      party:




(A)
            Any
                our directors or officers of the Company;(B)
            Any
                proposed nominee for election as a director of the
                Company;(C)
            Any
                person who beneficially owns, directly or indirectly, shares carrying
                more
                than 10% of the voting rights attached to our Common Stock;
                or(D)
            Any
                relative or spouse of any of the foregoing persons, or any relative
                of
                such spouse, who has the same house as such person or who is a director
                or
                officer of any parent or subsidiary of the
                Company.




As
      of
      December 31, 2005, an unsecured demand note payable in the amount of $3,078
      to
      our principal shareholder was paid in full. Mr. Carrigan had loaned us
      working capital.




**Item
      13.**  **Exhibits.**




**Exhibit No.**
            
            **Title
                of Document**
            
            **Location**3.1
            
            Articles
                of Incorporation
            
            Incorporated
                by reference to Amendment No. 1 to Form SB-2 filed on September 19,
                20053.2
            
            Bylaws
            
            Incorporated
                by reference to Amendment No. 1 to Form SB-2 filed on September 19,
                200531.1
            
            Certification
                of Chief Executive Officer Pursuant to Rule 13a-14(a) of the
                Securities Exchange Act of 1934
            
            Filed
                herewith32.1
            
            Certification
                of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as
                adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
            
            Filed
                herewith





**Item
      14. Principal Accounting Fees and Services.**





**Audit
      Fees**




For
        our fiscal year
        ended December 31, 2006, we were billed approximately $6,500 for professional
        services rendered for the audit and reviews of our financial statements.
        For our
        fiscal year ended December 31, 2005, we were billed approximately $6,500
        for
        professional services rendered for the audit and reviews of our financial
        statements.




**Tax
      Fees**




For
      our
      fiscal years ended December 31, 2006 and 2005, we were not billed for
      professional services rendered for tax compliance, tax advice, and tax
      planning.




**All
      Other Fees**




The
      Company did not incur any other fees related to services rendered by our
      principal accountant for the fiscal years ended December 31, 2006 and
      2005.











**SIGNATURES**


In
      accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused
      this report to be signed on its behalf by the undersigned, thereunto duly
      authorized.





**Eastern
                Services Holdings, Inc.**By:
            By:
                /s/*Ahkee
                Rahman*AHKEE
                RAHMANPresident,
                Chief Executive Officer,
              Chief
                Financial OfficerDate:
            March
                6, 2007





In
      accordance with the Exchange Act, this report has been signed below by the
      following persons on behalf of the registrant and in the capacities and on
      the
      dates indicated.





**Name**
            
            **Title**
            
            **Date***/s/**Ahkee
                Rahman*
            
            President,
                Chief Executive Officer,
            
            March
                6, 2007AHKEE
                RAHMAN
            
            Chief
                Financial Officer