UNITED
      STATES


SECURITIES
      AND EXCHANGE COMMISSION


WASHINGTON,
      D.C. 20549





**FORM
      10-KSB**




[X]  
                  ANNUAL
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934For
                  the fiscal year endedAugust
                  31, 2007[
                  ]    TRANSITION
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                  ACTFor
                  the transition period from _________ to ________Commission
                  file number333-139343
  DesignerSportsApparel,
                  Inc.(Name
                  of small business issuer in its
                  charter)
  **Nevada**
              20-3491905(State
                  or other jurisdiction of incorporation or organization)
              (I.R.S.
                  Employer Identification No.)207
                  N. Center Street, Unit A, Arlington, TX
              76011(Address
                  of principal executive offices)
              (Zip
                  Code)




Securities
                registered under Section 12(b) of the Exchange Act:Title
                of each class
            Name
                of each exchange on which registeredNone
            Not
                ApplicableSecurities
                registered under Section 12(g) of the Exchange Act:Common
                Stock, par value $0.001(Title
                of class)





Check
      whether the Issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the Securities 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 [
      ]





Check
      if
      disclosure of delinquent filers in response to Item 405 of Regulation S-B is
      not
      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 [ ]





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





State
      issuer’s revenue for its most recent fiscal year. **$6,595**





State
      the
      aggregate market value of the voting and non-voting common equity held by
      non-affiliates computed by reference to the average bid and asked price of
      such
      common equity, as of a specified date within the past 60 days. **N/A**





State
      the
      number of shares outstanding of each of the issuer’s classes of common equity,
      as of the latest practicable date. 5,757,000 Common Shares as of November
      29, 2007.





Transitional
      Small Business Disclosure Format (Check One): Yes: __; No X




Table
          of Contents




**TABLE
                OF
                CONTENTS**PagePART
                IItem
                1.
            Description
                of Business
            3Item
                2.
            Description
                of Property
            6Item
                3.
            Legal
                Proceedings
            6Item
                4.
            Submission
                of Matters to a Vote of Security
                Holders
            6PART
                IIItem
                5.
            Market
                for Common Equity and Related Stockholder Matters
            7Item
                6.
            Management’s
                Discussion and Analysis or Plan of
                Operation
            9Item
                7.
            Financial
                Statements
            13Item
                8.
            Changes
                In and Disagreements With Accountants on Accounting and
                Financial Disclosure
            14Item
                8A.
            Controls
                and Procedures
            14Item
                8B.
            Other
                Information
            15PART
                IIIItem
                9.
            Directors,
                Executive Officers, Promoters and Control Persons;
                Compliance With Section 16(a) of the Exchange Act
            15Item
                10.
            Executive
                Compensation
            18Item
                11.
            Security
                Ownership of Certain Beneficial Owners and Management
                and Related Stockholder Matters
            20Item
                12.
            Certain
                Relationships and Related
                Transactions
            20Item
                13.
            Exhibits
            21Item
                14.
            Principal
                Accountant Fees and Services
            21




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**** **PART
      I**


**Item
      1. Description of Business**




We
      were
      incorporated as DesignerSportsApparel, Inc. in the State of Nevada on August
      29,
      2005. We are primarily in the business of providing custom, silk-screened
      t-shirts to fraternities for Greek-sponsored events. The initial focus of our
      business plan was to target college-aged consumers who frequently purchase
      T-shirts.





Currently,
      we have a licensing agreement with the Sigma Alpha Epsilon Fraternity, allowing
      us to provide silk-screened T-shirts to every chapter of the fraternity on
      college campuses nation-wide for events. To date, our sales have been generated
      through direct contact by our executive officer, Mr. Parker, with fraternity
      chapter presidents and other officers at campuses across the country. Contact
      information is obtained through Sigma Alpha Epsilon’s national office. Following
      our incorporation, we sent product samples to Sigma Alpha Epsilon fraternity
      chapter officers to introduce the quality of our product, and begin a dialogue
      with decision-makers at the chapter level. We have a website at www.designersportsapparel.com and are
      also able to generate sales through our website.





Mr.
      Parker has contracted with outside vendors for purchasing blank T-shirts, for
      printing of our products and graphic design. Mr. Parker has retained three
      different graphic artists to work directly with our customers to generate
      artwork for t-shirts on a project-by-project basis if our consumers are seeking
      a graphic design that we currently do not provide. Mr. Parker also contracts
      with outside vendors for purchasing blank t-shirts, and for printing our
      products. Printed t-shirts that we maintain in inventory are stored at our
      corporate office. Our turnaround time from receipt of an order to delivery
      is
      generally 2 business days, provided that we are able to fill the order from
      our
      existing inventory. Turnaround time from receipt of an order to delivery for
      apparel that we either do not have in inventory or that requires custom graphic
      design varies, but generally these orders can be delivered in 5-10 business
      days. All product orders are shipped to our corporate office for delivery to
      our
      customers.





Our
      business plan has been to increase our product offering and to seek to develop
      additional licensing agreements to act a supplier to other national fraternities
      and sororities whose membership base consists of our target market. We decided
      to target national Fraternities and Sororities because they are large
      organizations that are comprised of college-aged consumers who frequently
      purchase t-shirts and not for their affiliation with any specific university.





**Licensing
      Agreement**





On
      April
      4, 2006, we entered into a non-exclusive License Agreement with the Sigma Alpha
      Epsilon Fraternity. This License Agreement grants us the right to utilize the
      Greek letters of the fraternity, crest, badge, flag, name, and “True Gentlemen”
logo of the organization. Through this agreement, we are able to design and
      produce silk-screened t-shirts and other products which include graphics and
      logos held by the Sigma Alpha Epsilon Fraternity under trademark laws, and
      sell
      those products to local chapters of the Sigma Alpha Epsilon Fraternity for
      Greek-sponsored events. Given that this License Agreement is non-exclusive,
      we
      compete with other licensees that also provide similar merchandise to members
      of
      the Sigma Alpha Epsilon




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Fraternity.
      We have attempted to compete favorably on the basis of quality, uniqueness
      and
      creativity of the designs produced by our artists and our personalized and
      direct marketing efforts.





Under
      the
      terms of the License agreement, we are required to provide a quarterly sales
      report to the Sigma Alpha Epsilon Fraternity within thirty (30) days of the
      end
      of each calendar quarter detailing product sales and royalties due to the Sigma
      Alpha Epsilon Fraternity. We are also required to submit to the Sigma Alpha
      Epsilon Fraternity within thirty (30) days of the end of each quarter, a License
      royalty payment equal to eight (8%) percent of the gross product sales during
      the quarter. Any royalty which is not paid within seven (7) days of the due
      date
      shall accrue interest at the rate of ten (10%) per annum.





The
      License Agreement remains in effect through the 30 th day of
      June each year, and is renewable on an annual basis. In order to renew the
      License Agreement to be effective July 1 of each year, we must submit a written
      request for renewal to the Sigma Alpha Epsilon Fraternity, along with a forty
      ($40.00) dollar annual advance. This advance will be deducted from the quarterly
      royalty payments due to the Sigma Alpha Epsilon Fraternity in the following
      year
      until the entire forty ($40.00) dollar advance has been satisfied. We must
      also
      submit to the Sigma Alpha Epsilon Fraternity, along with the written request
      for
      renewal, representative samples of any merchandise we wish to market pursuant
      to
      the renewal of the License Agreement.





Before
      any new merchandise can be marketed to local chapters, a representative sample
      of the new merchandise utilizing the Sigma Alpha Epsilon Fraternity’s
      trademarked graphics or logos must be submitted to the Sigma Alpha Epsilon
      Fraternity for quality control approval. This requirement is in addition to
      the
      required submission of representative samples of merchandise to accompany the
      annual request for the renewal of the License Agreement.





We
      are
      required to maintain records of sales of merchandise containing the licensed
      graphics or logos of the Sigma Alpha Epsilon Fraternity for a period of three
      (3) years following each transaction. Said records shall be made reasonably
      available for audit or inspection by or on behalf of the Sigma Alpha Epsilon
      Fraternity.





As
      part
      of our License Agreement with the Sigma Alpha Epsilon Fraternity, we maintain
      a
      comprehensive general and product liability insurance protecting against claims
      of any sort for loss or damage arising out of the design, manufacture, or
      marketing of licensed products. This insurance policy is maintained in the
      face
      amount of one million ($1,000,000.00) dollars and names the Sigma Alpha Epsilon
      Fraternity as co-insured.





By
      virtue
      of our License Agreement with the Sigma Alpha Epsilon Fraternity we have been
      named as a Licensed Vendor on the National Sigma Alpha Epsilon Fraternity
      website. We are allowed to link our website with the National Sigma Alpha
      Epsilon Fraternity website as well as display the Greek Licensing Logo on our
      website identifying us as an approved licensed vendor of Sigma Alpha Epsilon
      Fraternity themed apparel.





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***Competition***




We
      compete generally with many other manufacturers and retailers in the retail
      apparel industry and specifically with those who offer products with similar
      content. We compete with, among many others, online providers, local university
      bookstores, and retail t-shirt shops generally located adjacent to the schools’
campus.   This competition has resulted in our being unable
      to gain any significant  market  share, which  has had  a
      material adverse effect on our  business.  We have attempted to
      compete favorably on the basis of quality, uniqueness and creativity of the
      designs produced by our artists, and our personalized and direct marketing
      efforts. Notwithstanding what we believe are our advantages, we have not been
      able to compete effectively against our competitors, many of whom have
      significantly greater financial resources and a stronger market
      presence.




***Patents,
      Licenses, Trademarks, Franchises, Concessions, Royalty Agreements, or Labor
      Contracts***





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





***Research
      and Development***





We
      have
      not incurred any research or development expenditures since our
      incorporation.





***Existing
      and Probable Governmental Regulation***




Government
      regulation and compliance with environmental laws have not had a material effect
      on our business.





***Compliance
      with Environmental Laws***





We
      did
      not incur any costs in connection with the compliance with any federal, state,
      or local environmental laws.





***Employees***





We
      have
      no employees as of the date of this report other than our sole executive
      officer, Mr. Parker. We conduct our business largely through agreements with
      consultants and other independent third party vendors.


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**Item
      2. Description of Property**





We
      maintain our corporate office at 207 N. Center Street, Unit A, Arlington, Texas
      76011. In July 2006, we began paying rent for this space under a 6 month lease
      agreement that is renewable on a month-to-month basis. The lease obligates
      us to
      pay $150 per month in rent plus our portion of utilities. The amount of space
      used is nominal and is an office-sharing arrangement. While limited in size,
      our
      present corporate office provides facilities suited to our current operations.





**Item
      3. Legal Proceedings**





We
      are
      not a party to any pending legal proceeding. We are not aware of any pending
      legal proceeding to which any of our officers, directors, or any beneficial
      holders of 5% or more of our voting securities are adverse to us or have a
      material interest adverse to us.





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





No
      matters have been submitted to our security holders for a vote, through the
      solicitation of proxies or otherwise, during the fourth quarter of the fiscal
      year ended August 31, 2007.


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**PART
      II**





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





**Market
      Information**





Our
      common stock is currently quoted on the OTC Bulletin Board (“OTCBB”), which is
      sponsored by the NASD. The OTCBB is a network of security dealers who buy and
      sell stock. The dealers are connected by a computer network that provides
      information on current "bids" and "asks", as well as volume information. As
      of
      May 31, 2007, our shares were quoted on the OTCBB under the symbol
“DSPA.”





The
      following table sets forth the range of high and low bid quotations for our
      common stock for each of the periods indicated as reported by the OTCBB. These
      quotations reflect inter-dealer prices, without retail mark-up, mark-down or
      commission and may not necessarily represent actual transactions.





Fiscal
                Year Ending August 31, 2007Quarter
                Ended
            
            High
                $
            
            Low
                $August
                31, 2007
            
            n/a
            
            n/aMay
                31, 2007
            
            n/a
            
            n/aFebruary
                28, 2007
            
            n/a
            
            n/aNovember
                30, 2006
            
            n/a
            
            n/a





**Penny
      Stock**





The
      SEC
      has adopted rules that regulate broker-dealer practices in connection with
      transactions in penny stocks. Penny stocks are generally equity securities
      with
      a market price of less than $5.00, other than securities registered on certain
      national securities exchanges or quoted on the NASDAQ system, provided that
      current price and volume information with respect to transactions in such
      securities is provided by the exchange or system. The penny stock rules require
      a broker-dealer, prior to a transaction in a penny stock, to deliver a
      standardized risk disclosure document prepared by the SEC, that: (a) contains
      a
      description of the nature and level of risk in the market for penny stocks
      in
      both public offerings and secondary trading; (b) contains a description of
      the
      broker's or dealer's duties to the customer and of the rights and remedies
      available to the customer with respect to a violation of such duties or other
      requirements of the securities laws; (c) contains a brief, clear, narrative
      description of a dealer market, including bid and ask prices for penny stocks
      and the significance of the spread between the bid and ask price; (d) contains
      a
      toll-free telephone number for inquiries on disciplinary actions; (e) defines
      significant terms in the disclosure document or in the conduct of trading in
      penny stocks; and (f) contains such other information and is in such form,
      including language, type size and format, as the SEC shall require by rule
      or
      regulation.





The
      broker-dealer also must provide, prior to effecting any transaction in a penny
      stock, the customer with (a) bid and offer quotations for the penny stock;
      (b)
      the compensation of the broker-dealer and its salesperson in the transaction;
      (c) the number of shares to which such bid




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and
      ask
      prices apply, or other comparable information relating to the depth and
      liquidity of the market for such stock; and (d) a monthly account statement
      showing the market value of each penny stock held in the customer's
      account.





In
      addition, the penny stock rules require that prior to a transaction in a penny
      stock not otherwise exempt from those rules, the broker-dealer must make a
      special written determination that the penny stock is a suitable investment
      for
      the purchaser and receive the purchaser's written acknowledgment of the receipt
      of a risk disclosure statement, a written agreement as to transactions involving
      penny stocks, and a signed and dated copy of a written suitability
      statement.





These
      disclosure requirements may have the effect of reducing the trading activity
      for
      our common stock. Therefore, stockholders may have difficulty selling our
      securities.





**Holders
      of Our Common Stock**





As
      of
      August 31, 2007, we had approximately 37 holders of record of our common stock
      and several other stockholders hold shares in street name.





**Dividends**





There
      are
      no restrictions in our articles of incorporation or bylaws that
      restrict us from
      declaring dividends. The Nevada Revised Statutes, however, do prohibit us from
      declaring dividends where, after giving effect to the distribution of the
      dividend:





1.
            We
                would not be able to pay our debts as they become due in the usual
                course
                of business; or





2.
            Our
                total assets would be less than the sum of our total liabilities,
                plus the
                amount that would be needed to satisfy the rights of shareholders
                who have
                preferential rights superior to those receiving the
                distribution.





**Recent
      Sales of Unregistered Securities**





Our
      issuances of securities without registration under the Securities Act of 1933
      during the reporting period have been previously included in a Quarterly Report
      on Form 10-QSB or Current Report on Form 8-K.





**Securities
      Authorized for Issuance Under Equity Compensation Plans**





We
      currently have no equity compensation plan in place.





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**Item
      6. Plan of Operation**





**Forward-Looking
      Statements**




Historical
      results and trends should not be taken as indicative of future operations.
      Management’s statements contained in this report that are not historical facts
      are forward-looking statements within the meaning of Section 27A of the
      Securities Act of 1933, as amended, and Section 21E of the Securities and
      Exchange Act of 1934 (the “Exchange Act”), as amended. Actual results may differ
      materially from those included in the forward-looking statements. The Company
      intends such forward-looking statements to be covered by the safe-harbor
      provisions for forward-looking statements contained in the Private Securities
      Litigation Reform Act of 1995, and is including this statement for purposes
      of
      complying with those safe-harbor provisions. Forward-looking statements, which
      are based on certain assumptions and describe future plans, strategies and
      expectations of the Company, are generally identifiable by use of the
      words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,”
“prospects,” or similar expressions. The Company’s ability to predict results or
      the actual effect of future plans or strategies is inherently uncertain. Factors
      which could have a material adverse affect on the operations and future
      prospects of the Company on a consolidated basis include, but are not limited
      to: changes in economic conditions, legislative/regulatory changes, availability
      of capital, interest rates, competition, significant restructuring activities
      in
      calendar 2004 and thereafter, and generally accepted accounting principles.
      These risks and uncertainties should be considered in evaluating forward-looking
      statements and undue reliance should not be placed on such statements. Further
      information concerning the Company and its business, including additional
      factors that could materially affect the Company’s financial results, is
      included herein and in the Company’s other filings with the SEC.





**Business
      Overview**





We
      were
      incorporated as DesignerSportsApparel, Inc. in the State of Nevada on August
      29,
      2005. We are primarily in the business of providing custom, silk-screened
      t-shirts to fraternities for Greek-sponsored events. The initial focus of our
      business plan is to target college-aged consumers who frequently purchase
      T-shirts.





**Plan
      of Operations in the Next 12 Months**





Our
      business plan since our inception has been to provide custom, silk-screened
      T-shirts to collegiate consumers. The demand for our products has been generally
      seasonal during the academic school year. To date, all of our sales have been
      generated during the academic school year.





We
      are
      currently experiencing significant difficulties which may threaten our ability
      to continue in our current line of business. We have exhausted our capital
      on
      operating expenses associated with developing our product line, pursuing sales,
      and fulfilling our reporting obligations as a public company. Our efforts to
      obtain additional capital in order to further pursue our business plan have
      been
      unsuccessful thus far.





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Since
      inception, our business has not been profitable over any annual or quarterly
      period. As reflected in this annual report on Form 10KSB, we experienced a
      Net
      Loss of $53,490 for the year ended August 31, 2007, and a Net Loss of $61,475
      for the year ended August 31, 2006. Our history of Net Losses is due to
      significant General and Administrative Expenses, high Cost of Sales, and other
      expenses related to the pursuit of our business plan and maintenance of our
      business operations. This history of unprofitable operations has made it
      difficult to raise capital, to hire and retain employees and consultants, to
      contract for third party services, and to otherwise execute on our business
      plan.





Additionally,
      our sales efforts have failed to yield a significant revenue stream or a likely
      revenue stream in the foreseeable future. During
      the year ended August 31, 2007, we spent approximately $47,972 on General and
      Administrative Expenses in pursuit of our business plan. We
      currently have forecasted the additional expenditure of approximately $50,000 during
      the next twelve months in order to further pursue our business plan - for sales
      and marketing, for general and administrative expenses, and for working capital
      requirements, including the anticipated cost of compliance with the reporting
      requirements of the Securities Exchange Act of 1934. We do not presently have
      any guaranteed customers or contracts for sales of any of our
      products.





If
      we are
      unable to overcome the difficulties outlined above, we may have to identify
      and
      evaluate other business opportunities that are consistent with our expertise
      and
      income needs.





**Results
      of Operations for the Years Ended August 31, 2007 and 2006**





We
      generated revenue of $6,595 for the year ended August 31, 2007, compared to
      $1,935 in revenue for the year ended August 31, 2006. Our revenue for the years
      ended August 31, 2007 and 2006 were generated by sales of custom, silk-screened
      T-shirts. Therefore, our increase in revenue is attributable to an increase
      in
      sales.





Our
      cost
      of goods sold for the year ended August 31, 2007 was $12,113, and was $7,037
      for
      the year ended August 31, 2006. Thus, we recorded gross Loss from sales of
      $5,518 for the year ended August 31, 2007, and $5,102 for the year ended August
      31, 2006.





We
      incurred operating expenses in the amount of $47,972 for the year ended August
      31, 2007, compared to operating expenses of $56,373 for the year ended August
      31, 2006. Our operating expenses for the years ended August 31, 2007 and 2006
      were primarily attributable to general and administrative expenses associated
      with the initial development of our business, legal expenses, and consulting
      fees.


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We
      anticipate our operating expenses would increase if we implemented our business
      plan. The increase would be attributable to our sales and marketing plan, and
      the professional fees to be incurred in connection with the filing of a
      registration statement with the Securities Exchange Commission under the
      Securities Act of 1933. We anticipate our ongoing operating expenses will also
      increase once we become a reporting company under the Securities Exchange Act
      of
      1934.





We
      incurred a net loss in the amount of $53,490 for the year ended August 31,
      2007
      and a loss of $61,475 for the year ended August 31, 2006.




**Liquidity
      and Capital Resources**





As
      of
      August 31, 2007, we had total current assets of $4,166 and total assets in
      the
      amount of $5,842. Our total current liabilities as of August 31, 2007 were
      $64,782. Thus, we had a working capital deficit of $60,616 as of August 31,
      2007.





Operating
      activities used $32,736 in cash for the year ended August 31, 2007. Our net
      loss
      of $53,490 was the primary component of our negative operating cash flow. Cash
      flows provided by financing activities during the year ended August 31, 2007
      amounted to $32,070 and consisted primarily of loans from shareholders and
      officers.





We
      currently do not have enough cash to satisfy our minimum cash requirements
      for
      the next twelve months. This raises substantial doubt about our ability to
      continue as a going concern. Our ability to continue as a going concern is
      dependent on our ability to raise additional capital based upon the company’s
      desired plan of operation. The financial statements do not include any
      adjustments that might be necessary if we are unable to continue as a going
      concern.





As
      discussed above, the completion of our business plan for the next 12 months
      is
      contingent upon us obtaining additional financing. We do not anticipate meeting
      the financing requirements of our current business plan. Thus, we are currently
      negotiating to acquire other business opportunities, unrelated to our current
      business operations. We anticipate that we will also need additional financing
      to acquire another business. If we are unable to obtain additional financing,
      our business plan and our ability to acquire another business and continue
      as a
      going concern will be significantly impaired. We do not have any formal
      commitments or arrangements for the sales of stock or the advancement or loan
      of
      funds. Without the necessary cash flow, we will not be able to pursue our plan
      of operations or any plan of operations until such time as the necessary funds
      are raised in the equity securities market.





**Off
      Balance Sheet Arrangements**





As
      of
      August 31, 2007, there were no off balance sheet arrangements.





**Going
      Concern**





We
      have
      limited working capital and have received limited revenue from sales of
      products. We have incurred significant initial product costs, including
      promotions and custom computer




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designs
      associated with our licensed products. We also incurred costs associated with
      our entry into new college markets. These factors create substantial doubt
      with
      our auditors about our ability to continue as a going concern. Management
      believes that we have insufficient capital reserves to operate through February
      28, 2008 without the need for infusion of additional capital.





**Critical
      Accounting Policies**





In
      December 2001, the SEC requested that all registrants list their most “critical
      accounting polices” in the Management Discussion and Analysis. The SEC indicated
      that a “critical accounting policy” is one which is both important to the
      portrayal of a company’s financial condition and results, and requires
      management’s most difficult, subjective or complex judgments, often as a result
      of the need to make estimates about the effect of matters that are inherently
      uncertain. We believe that the following accounting policies fit this
      definition.





Cash
      and Cash Equivalents





We
      consider cash on hand, cash in banks, certificates of deposit, time deposits,
      and U.S. government and other short-term securities with maturities of three
      months or less when purchased as cash and cash equivalents.





Management
      Estimates





The
      preparation of financial statements in conformity with generally accepted
      accounting principles requires management to make estimates and assumptions
      that
      affect the reported amounts of assets and liabilities at the date of the
      financial statements and the reported amounts of revenue and expenses during
      the
      reporting period. Actual results could differ from those estimates.





**Recently
      Issued Accounting Pronouncements**





We
      do not
      expect the adoption of recently issued accounting pronouncements to have a
      significant impact on our results of operations, financial position or cash
      flow.


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**Item
      7. Financial Statements**





Index
      to
      Financial Statements:




**Audited
                Financial Statements:**F-1
            Report
                of Independent Registered Public Accounting
                Firm;F-2
            Balance
                Sheet as of August 31, 2007;F-3
            Statements
                of Operations for the Years Ended August 31, 2007
                and August 31, 2006;F-4
            Statement
                of Stockholders’ Deficit as of August 31, 2007;F-5
            Statements
                of Cash Flows for the Years Ended August 31, 2007
                and August 31, 2006;F-6
            Notes
                to Financial
                Statements;




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Maddox
        Ungar Silberstein, PLLC CPAs and Business Advisors
 Phone
        (248) 203-0080
 Fax
        (248)
        281-0940
 30600
        Telegraph Road, Suite 2175
 Bingham
        Farms, MI 48025-4586
 www.maddoxungar.com
 
 **REPORT
        OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
        FIRM**
 
 Board
        of
        Directors
 DesignerSportsApparel,
        Inc.
 Las
        Vegas, Nevada
 
 We
        have
        audited the accompanying balance sheet of DesignerSportsApparel, Inc. as
        of
        August 31, 2007 and the related statements of operations, stockholders’ deficit
        and cash flows for the years ended August 31, 2007 and 2006. These financial
        statements are the responsibility of the Company’s management. Our
        responsibility is to express an opinion on these financial statements based
        on
        our audit.
 
 We
        conducted our audits in accordance with the standards of the Public Company
        Accounting Oversight Board (United States). Those standards require that
        we plan
        and perform the audits to obtain reasonable assurance about whether the
        financial statements are free of material misstatement *.* The
        Company has determined that it is not required to have, nor were we engaged
        to
        perform, an audit of its internal control over financial reporting. Our
        audits included consideration of internal control over financial reporting
        as a
        basis for designing audit procedures that are appropriate in the circumstances,
        but not for the purpose of expressing an opinion on the effectiveness of
        the
        Company’s internal control over financial reporting. Accordingly, we express no
        such opinion. 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 our audits provide 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 DesignerSportsApparel, Inc.
        as of
        August 31, 2007, and the results of its operations and cash flows for the
        years
        ended August 31, 2007 and 2006, in conformity with U.S. generally accepted
        accounting principles.
 
 The
        accompanying financial statements have been prepared assuming that the Company
        will continue as a going concern. As discussed in Note H to the financial
        statements, the Company has limited working capital, has received limited
        revenue from sales of products or services, and has incurred losses from
        operations. These factors raise substantial doubt about the Company’s ability to
        continue as a going concern. Management’s plans with regard to these matters are
        described in Note H. The accompanying financial statements do not include
        any
        adjustments that might result from the outcome of this uncertainty.
   /s/
        Maddox Ungar Silberstein, PLLC
 Maddox
        Ungar Silberstein, PLLC
 Bingham
        Farms, Michigan
 November
        28, 2007




Table
          of Contents


**DESIGNERSPORTSAPPAREL,
        INC.**
 **BALANCE
        SHEET**
 **As
        Of August 31, 2007**
  **ASSETS****Current
                  Assets**Cash
              
              
              
              $
              1,188Accounts
                  Receivable
              
              
              
              
              1,978Security
                  Deposit
              
              
              
              
              1,000Total
                  Current Assets
              
              
              
              
              4,166**Other
                  Assets**Web
                  Site Development Costs
              $
              4,945Less:
                  Accumulated Amortization of Web Site Costs
              
              -3,269
              
              
              1,676**TOTAL
                  ASSETS**
              
              
              
              $
              5,842**LIABILITIES****Current
                  Liabilities**Due
                  to Officer and Shareholder
              
              
              
              $
              32,267Due
                  to Consultant
              
              
              
              
              5,000Accounts
                  Payable
              
              
              
              
              27,515**Total
                  Liabilities**
              
              
              
              
              64,782**STOCKHOLDERS’
                  DEFICIT****Share
                  Capital**Authorized:90,000,000
                  Common Shares, Par Value $0.001 per Share10,000,000
                  Preferred Shares, Par Value $0.001 per ShareIssued
                and Outstanding:  5,757,000 Common Shares
              
              
              
              
              5,757Additional
                  Paid-in Capital
              
              
              
              
              50,268Accumulated
                  Deficit
              
              
              
              
              (114,965)**Total
                  Stockholders’ Deficit**
              
              
              
              
              (58,940)**TOTAL
                  LIABILITIES AND STOCKHOLDERS’ DEFICIT**
              
              
              
              $
              5,842
 The
        accompanying notes are an integral part of the financial
        statements.




Table
          of Contents


**DESIGNERSPORTSAPPAREL,
      INC.**


**STATEMENT****S
        OF
        OPERATIONS**
 **FOR
        THE YEARS ENDED AUGUST 31, 2007 AND 2006**
  August
                  31,2007
              
              August
                  31,2006**Gross
                  Sales**
              $
              6,595
              
              $
              1,935**Cost
                  of Goods Sold**
              
              12,113
              
              
              7,037**Gross
                  (Loss) from Sales**
              
              (5,518)
              
              
              (5,102)**General
                  and Administrative Expenses**
              
              47,972
              
              
              56,373**Net
                  Loss**
              $
              (53,490)
              
              $
              (61,475)**Weighted
                  Average Number Of Shares Outstanding**
              
              5,757,000
              
              
              4,624,500**Net
                  Loss Per Share**
              $
              (0.01)
              
              $
              (0.01)
 The
        accompanying notes are an integral part of the financial
        statements.




Table
          of Contents


**DESIGNERSPORTSAPPAREL,
      INC.**


**STATEMENT
        OF STOCKHOLDERS’ DEFICIT**
 **AS
        OF AUGUST 31, 2007**
 Common
                    Stock
                
                Additional
                  Paid-in
                  Capital
                
                Accumulated
                  Deficit
                
                TotalShares
                
                AmountIssuance
                    of common stock for cash @$.001, September 16, 2005
                
                2,500,000
                
                $
                2,500
                
                $
                0
                
                
                -
                
                $
                2,500Issuance
                    of common stockfor
                    cash @$.005, December 16, 2005
                
                3,105,000
                
                
                3,105
                
                
                12,420
                
                
                -
                
                
                15,525Issuance
                    of common stock for cash @$.25, July 31, 2006
                
                152,000
                
                
                152
                
                
                37,848
                
                
                -
                
                
                38,000Net
                    loss for the year ended August 31, 2006
                
                -
                
                
                -
                
                
                -
                
                
                (61,475)
                
                
                (61,475)Balance,
                    August 31, 2006
                
                5,757,000
                
                
                5,757
                
                
                50,268
                
                
                (61,475)
                
                
                (5,450)Net
                    loss for the year ended August 31, 2007
                
                -
                
                
                -
                
                
                -
                
                
                (53,490)
                
                
                (53,490)Balance,
                    August 31, 2007
                
                5,757.000
                
                $
                5,757
                
                $
                50,268
                
                $
                (114,965)
                
                $
                (58,490)
 The
        accompanying notes are an integral part of the financial
        statements.




Table
          of Contents


**DESIGNERSPORTSAPPAREL,
      INC.**


**STATEMENTS
        OF CASH FLOWS**
 **FOR
        THE YEARS ENDED AUGUST 31, 2007 AND 2006**
 
 August
                  31,2007
              
              August
                  31,2006**Cash
                  Flows from Operating Activities**Net
                  Loss for the Year
              $
              (53,490)
              
              $
              (61,475)**Adjustments
                  to Reconcile Net Loss to Net Cash Used**
                **in
                  Operating Activities**Amortization
              
              1,621
              
              
              1,648**Changes
                  in Assets and Liabilities**Inventory
              
              5,952
              
              
              (5,952)Accounts
                  Payable
              
              17,444
              
              
              10,186Security
                  Deposit
              
              -
              
              
              (1,000)Due
                  to Consultant
              
              -
              
              
              5,000Accounts
                  Receivable
              
              (4,263)
              
              
              -**Net
                  Cash Used in Operating Activities**
              
              (32,736)
              
              
              (51,593)**Cash
                  Flows from Investing Activities**Web
                  Site Development Costs
              
              0
              
              
              (4,945)**Cash
                  Flows from Financing Activities**Due
                  from Related Party
              
              2,285
              
              
              (2,285)Loans
                  from Shareholders and Officers
              
              29,785
              
              
              4,652Issuance
                  of Common Stock
              
              0
              
              
              56,025**Net
                  Cash Provided by Financing Activities**
              
              32,070
              
              
              58,392**Net
                  Increase (Decrease) in Cash and Cash Equivalents**
              
              (666)
              
              
              1,854**Cash
                  and Cash Equivalents-beginning of year**
              
              1,854
              
              
              0**Cash
                  and Cash Equivalents-end of year**
              $
              1,188
              
              $
              1,854**Supplemental
                  Cash Flow Information:**Cash
                  Paid for Interest
              $
              0
              
              $
              0Cash
                  Paid for Income Taxes
              $
              0
              
              $
              0
 The
        accompanying notes are an integral part of the financial
        statements.
  Table
            of Contents


**DesignerSportsApparel,
      Inc.**


**NOTES
        TO THE FINANCIAL STATEMENTS**
 **AUGUST
        31, 2007**
 
 
 **NOTE
        A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**
 
 This
        summary of significant accounting policies of DesignerSportsApparel, Inc.
        (the
“Company”) is presented to assist in understanding the company’s financial
        statements. The financial statements and notes are representations of the
        company’s management, who is responsible for their integrity and objectivity.
        These accounting policies conform to generally accepted accounting principles
        and have been consistently applied to the preparation of the financial
        statements. The Company will adopt accounting policies and procedures based
        upon
        the nature of future transactions. Inventory is maintained using a perpetual
        inventory system and the cost is valued using the lower of cost or market.
        Inventory is computed using a moving or average cost system. Cost of goods
        sold
        are recorded at the most recent moving average cost. Inventory at the period
        ending August 31, 2007 was deemed worthless by management and was written
        off.
 
 Description
        of Operational Activities
 The
        Company was incorporated on August 29, 2005 under the laws of the State of
        Nevada. The Company elected a fiscal year-end of August 31. No activity took
        place between August 29, 2005 and August 31, 2005.
 
 The
        Company is primarily in the business of providing custom, silk-screened
        T-shirts. The initial focus of the Company’s business plan is to target
        college-aged consumers who frequently purchase T-shirts. In furtherance of
        the
        Company’s business plan, the Company entered into a licensing agreement with the
        Sigma Alpha Epsilon Fraternity, allowing it to provide silk-screened T-shirts
        to
        every chapter of the fraternity on college campuses nation-wide for events.
        Company sales are generated through direct contact with fraternity chapter
        presidents and other officers at campuses across the country. The Company’s
        business plan is to increase its product offering and to seek to develop
        additional licensing agreements to act a supplier to other national
        organizations whose membership base consists of the Company’s target market. The
        Company presently contracts with outside vendors for purchasing blank T-shirts,
        for printing of its products and graphic design.
 
 Cash
        and Cash Equivalents
 The
        Company considers cash on hand, cash in banks, certificates of deposit, time
        deposits, and U.S. government and other short-term securities with maturities
        of
        three months or less when purchased as cash and cash equivalents.
 
 Management
        Estimates
 The
        preparation of financial statements in conformity with generally accepted
        accounting principles requires management to make estimates and assumptions
        that
        affect the reported amounts of assets and liabilities at the date of the
        financial statements and the reported amounts of revenue and expenses during
        the
        reporting period. Actual results could differ from those estimates.
  Table
            of Contents
 **DesignerSportsApparel,
        Inc.**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **AUGUST
        31, 2007**
 
 
 **NOTE
        B: ORGANIZATION AND WEB SITE DEVELOPMENT COSTS**
 
 Web
        Site
        Development costs of $4,945 are amortized over the expected life of 36 months.
        Regular web site maintenance costs are expensed in the current reporting
        period
        as operating expenses. Organization costs are expensed in the current reporting
        period.
 
 **NOTE
        C: OFFERING COSTS**
 
 Professional
        fees associated with capital raising activities which were incurred by the
        Company in connection with a Regulation D private stock offering and a public
        registration pursuant to the Securities Act of 1933, and were recorded as
        operating expenses .
  **NOTE
        D: INCOME TAXES**
 
 No
        provision for income taxes has been recorded in the financial statements
        as the
        Company has incurred net operating losses from the date of inception through
        August 31, 2007.
 
 For
        the
        period ended from inception (August 29, 2005) through August 31, 2007, the
        Company has incurred net losses and, therefore, has no tax liability. The
        net
        deferred tax asset generated by the loss carry-forward has been fully reserved.
        The cumulative net operating loss carry-forward is approximately $114,965
        at
        August 31, 2007, and will expire in various amounts through year
        2027.
 
 The
        cumulative tax effect at the expected rate of 34% of significant items
        comprising our net deferred tax amount is as follows:
 
 As
                  of August 31, 2007Deferred
                  tax asset attributable to:Net
                  operating loss
              $
              39,100Valuation
                  allowance
              
              (39,100)Net
                  deferred tax asset
              $
              -0-
 
 **NOTE
        E: PROPERTY AND EQUIPMENT**
 
 At
        August
        31, 2007, the Company had no property and equipment. Prior to August 31,
        2007,
        the Company borrowed the use of office equipment from a related party and
        was
        not charged any fees for the use of the equipment. Once the Company acquires
        equipment, the Company shall account for property and equipment at cost.
        Expenditures for the maintenance and repair shall be charged against operations.
        Renewals and improvements that materially extend the life of the asset shall
        be
        capitalized.
 
 The
        Company shall account for depreciation of the equipment based on the
        straight-line method over the estimated useful lives for financial reporting
        and
        uses accelerated depreciation methods for income tax reporting.
  Table
            of Contents
 **DesignerSportsApparel,
        Inc.**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **AUGUST
        31, 2007**
 
 
 **NOTE
        F: RELATED PARTY TRANSACTIONS**
 
 The
        Company has maintained an office at the office of a shareholder. The amount
        of
        space used is nominal. During the period from inception through June 30,
        2006,
        the company paid no rent. The fair market value of this office rent is not
        reflected in the statement of operations as it is valued at no more than
        $150
        per month. In July 2006, the Company began paying rent for this space under
        a 6
        month lease agreement that is renewable on a month-to-month basis. The lease
        obligates the Company to pay $150 per month in rent plus its portion of
        utilities (approximately $50 per month) .
 
 An
        officer of the Company loaned funds to the Company for operating expenses
        in
        order to assist the Company with working capital requirements. Loans outstanding
        at August 31, 2007 were as follows:
  DATE
              AMOUNT
              
              INTEREST
                  RATE & MATURITY DATESeptember
                  2005
              $
              2,500
              
              
              5%;
                  12/31/06April
                  2006
              
              2,152
              
              
              0%;
                  Demand NoteSeptember
                  2006
              
              2,500
              
              
              5%;
                  2/28/07, unpaidJanuary
                  2007
              
              25,000
              
              
              5%;
                  01/02/08August
                  2007
              
              115
              
              
              0%;
                  Demand NoteTOTAL
              $
              32,267
 
 **NOTE
        G: COMMON STOCK**
 
 On
        June
        19, 2006 the Company amended its Articles of Incorporation to increase the
        authorized common shares from 25,000,000 to 90,000,000. In addition the Company
        amended its Articles of Incorporation to authorize 10,000,000 of Preferred
        Shares. As of August 31, 2007, the Company had 5,757,000 common shares
        outstanding.
 
 **NOTE
        H: LIQUIDITY AND CAPITAL RESERVES**
 
 The
        Company has limited working capital and received limited revenue from sales
        of
        products or services. The Company incurred significant initial product costs,
        including promotions and custom computer designs associated with its licensed
        products. The Company also incurred costs associated with its entry into
        new
        college markets.
  These
        factors create substantial doubt about the Company’s ability to continue as a
        going concern. The financial statements do not include any adjustment that
        might
        be necessary if the Company is unable to continue as a going
        concern.
  Table
            of Contents
 **DesignerSportsApparel,
        Inc.**
 **NOTES
        TO THE FINANCIAL STATEMENTS**
 **AUGUST
        31, 2007**
 
 **NOTE
        H: LIQUIDITY AND CAPITAL RESERVES (continued)**
 
 The
        ability of the Company to continue as a going concern is dependent on the
        Company generating cash from the sale of its common stock or obtaining debt
        financing and attaining future profitable operations. Management’s plans include
        selling its equity securities and obtaining debt financing to fund its capital
        requirement and ongoing operations; however, there can be no assurance the
        Company will be successful in these efforts.
 
 Management
        believes that the Company has insufficient capital reserves to operate through
        February 28, 2008 without the need for infusion of additional capital. The
        Company continues to sell its products and purchases inventory from its
        suppliers when an order is received. Although the principals of the Company
        have
        no legal obligation to infuse additional capital, it is expected that the
        principals shall do so as reasonably necessary by providing short-term demand
        loans carrying a market interest rate.
 
 **NOTE
        I: MATERIAL CONTRACTS**
  On
        April
        4, 2006 the Company entered into a License Agreement with Sigma Alpha Epsilon
        Fraternity (“SAE”). The agreement provides the Company with the right to use the
        insignia of SAE including the Greek letters, crest, badge, flags, the True
        Gentleman logo, and the name of the organization. The Company pays a $40
        annual
        advance and 8.5% of gross sales. The term was until June 30, 2007 and the
        contract is renewable, but has not yet been renewed as of August 31, 2007.
        The
        Company has paid royalties on its sales.
 
 On
        September 28, 2005 the Company entered into a business consulting agreement
        with
        Don India, Sr . of
        Design U Factory, Inc. The Agreement provides compensation to the Consultant
        at
        a rate of $50 per hour. As of August 31, 2007, the Company owed $5,000 in
        consulting fees to Mr. India.
 
 **NOTE
        J: RECENT ACCOUNTING PRONOUNCEMENTS**
 
 The
        Company does not expect the adoption of recently issued accounting
        pronouncements to have a significant impact on the Company’s results of
        operations, financial position or cash flow.




Table
          of Contents


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





No
      events
      occurred requiring disclosure under Item 304(b) of Regulation S-B.





**Item
      8A. Controls and Procedures**





We
      carried out an evaluation of the effectiveness of the design and operation
      of
      our disclosure controls and procedures (as defined in Exchange Act Rules
      13a-15(e) and 15d-15(e)) as of August 31, 2007. This evaluation was carried
      out
      under the supervision and with the participation of our Chief Executive Officer
      and Chief Financial Officer, Mr. David Parker. Based upon that evaluation,
      our
      Chief Executive Officer and Chief Financial Officer concluded that, as of August
      31, 2007, our disclosure controls and procedures are effective. There have
      been
      no significant changes in our internal controls over financial reporting during
      the quarter ended August 31, 2007 that have materially affected or are
      reasonably likely to materially affect such controls.





Disclosure
      controls and procedures are controls and other procedures that are designed
      to
      ensure that information required to be disclosed in our reports filed or
      submitted under the Exchange Act are recorded, processed, summarized and
      reported, within the time periods specified in the SEC's rules and forms.
      Disclosure controls and procedures include, without limitation, controls and
      procedures designed to ensure that information required to be disclosed in
      our
      reports filed under the Exchange Act is accumulated and communicated to
      management, including our Chief Executive Officer and Chief Financial Officer,
      to allow timely decisions regarding required disclosure.





Limitations
      on the Effectiveness of Internal Controls





Our
      management does not expect that our disclosure controls and procedures or our
      internal control over financial reporting will necessarily prevent all fraud
      and
      material error. Our disclosure controls and procedures are designed to provide
      reasonable assurance of achieving our objectives and our Chief Executive Officer
      and Chief Financial Officer concluded that our disclosure controls and
      procedures are effective at that reasonable assurance level. Further, the design
      of a control system must reflect the fact that there are resource constraints,
      and the benefits of controls must be considered relative to their costs. Because
      of the inherent limitations in all control systems, no evaluation of controls
      can provide absolute assurance that all control issues and instances of fraud,
      if any, within the Company have been detected. These inherent limitations
      include the realities that judgments in decision-making can be faulty, and
      that
      breakdowns can occur because of simple error or mistake. Additionally, controls
      can be circumvented by the individual acts of some persons, by collusion of
      two
      or more people, or by management override of the internal control. The design
      of
      any system of controls also is based in part upon certain assumptions about
      the
      likelihood of future events, and there can be no assurance that any design
      will
      succeed in achieving its stated goals under all potential future conditions.
      Over time, control may become inadequate because of changes in conditions,
      or
      the degree of compliance with the policies or procedures may deteriorate.





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 Table
          of Contents




**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 August 31, 2007 is as
      follows:




Name
                of Officer
            Age
            OfficeDavid
                B. Parker
            51
            Chief
                Executive Officer, Chief Financial Officer, and
                Director




Set
      forth
      below is a brief description of the background and business experience of
      executive officers and directors.





**David
      B. Parker.** In
      addition to acting as our sole executive officer and director, **** Mr.
      Parker also acts as Chief Executive Officer of Certified Services USA, Inc.
      Certified Services USA, Inc. is a private company incorporated in November
      2006
      that is seeking to develop a membership association for independent contractors.
      Mr. Parker served as Chief Executive Officer and a member of the board of
      directors of Assured Pharmacy, Inc. from April 2003 to February 2005. Assured
      Pharmacy, Inc. is a reporting company that is engaged in the business of
      establishing and operating specialty pharmacies focused on dispensing highly
      regulated medication for chronic pain management. Mr. Parker founded RxSystems,
      Inc. in March 2002 and served as its Chairman and Chief Executive Officer until
      its dissolution in 2003. RxSystems, Inc. dissolved following the assignment
      of
      its sole asset, exclusive licensing rights, to Assured Pharmacy, Inc. in 2003.
      From December 2001 to June 2002, Mr. Parker served as a business consultant.
      Mr.
      Parker served as Vice President of Retail Sales for Prudential Securities from
      November 1989 to December 1991. Mr. Parker launched and operated his own
      independent consulting practice from January 1991 until December 2001. From
      August 1983 to February 1988, Mr. Parker was employed at Merrill Lynch Pierce
      Fenner & Smith, where he rose to the position of executive Vice President.
      Mr. Parker graduated from Texas Christian University in 1981.





**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**





David
      Parker is our only significant employee.





15
 Table
          of Contents




We
      conduct our business through agreements with consultants and arms-length third
      parties. Current arrangements in place include the following:





1.
            A
                verbal agreement with our graphic artists, printers, and suppliers
                to
                provide services at their respective and customary rates upon request.





2.
            Verbal
                agreements with our accountants to perform requested financial accounting
                services.





3.
            Verbal
                agreements with auditors to perform audit functions at their respective
                normal and customary rates.





These
      verbal agreements are unenforceable. We do not intend to enter into written
      agreements regarding these arrangements because the services that these parties
      provide are not unique and we are confident that suitable replacements could
      be
      secured are comparable rates to provide these services if necessary.





**Family
      Relationships**





There
      are
      no family relationships between or among the directors, executive officers
      or
      persons nominated or chosen by us to become directors or executive
      officers.





**Involvement
      in Certain Legal Proceedings**





To
      the
      best of our knowledge, during the past five years, none of the following
      occurred with respect to a present or former director, executive officer, or
      employee: (1) 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; (2) any conviction in a
      criminal proceeding or being subject to a pending criminal proceeding (excluding
      traffic violations and other minor offenses); (3) being 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 or her involvement in any type of business,
      securities or banking activities; and (4) being found by a court of competent
      jurisdiction (in a civil action), the SEC or the Commodities Futures Trading
      Commission to have violated a federal or state securities or commodities law,
      and the judgment has not been reversed, suspended or vacated.





**Audit
      Committee**





We
      do not
      have a separately-designated standing audit committee. The entire board of
      directors performs the functions of an audit committee, but no written charter
      governs the actions of the board of directors when performing the functions
      of
      that would generally be performed by an audit committee. The board of directors
      approves the selection of our independent accountants and meets and interacts
      with the independent accountants to discuss issues related to financial
      reporting. In addition, the board of directors reviews the scope and results
      of
      the audit with the independent accountants, reviews with management and the
      independent accountants our annual




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 Table
          of Contents




operating
      results, considers the adequacy of our internal accounting procedures and
      considers other auditing and accounting matters including fees to be paid to
      the
      independent auditor and the performance of the independent auditor.





For
      the
      fiscal year ending August 31, 2007, the board of directors:





1.
            Reviewed
                and discussed the audited financial statements with management,
                and





2.
            Reviewed
                and discussed the written disclosures and the letter from our independent
                auditors on the matters relating to the auditor's
                independence.





Based
      upon the board of directors’ review and discussion of the matters above, the
      board of directors authorized inclusion of the audited financial statements
      for
      the year ended August 31, 2007 to be included in this Annual Report on Form
      10-KSB and filed with the Securities and Exchange Commission.





**Section
      16(a) Beneficial Ownership Reporting Compliance**





Section
      16(a) of the Exchange Act requires our
      directors and executive officers and persons who beneficially own more than
      ten
      percent of a registered class of the Company’s equity securities to file with
      the SEC initial reports of ownership and reports of changes in ownership of
      common stock and other equity securities of the Company. Officers, directors
      and
      greater than ten percent beneficial shareholders are required by SEC regulations
      to furnish us with copies of all Section 16(a) forms they file. To the best
      of
      our knowledge based solely on a review of Forms 3, 4, and 5 (and any amendments
      thereof) received by us during or with respect to the year ended August 31,
      2007, the following persons have failed to file, on a timely basis, the
      identified reports required by Section 16(a) of the Exchange Act during fiscal
      year ended August 31, 2007:





Name
                and principal position
            Number
                of
              late
                reports
            Transactions
                not
              timely
                reported
            Known
                failures to
              file
                a required formDavid
                B. Parker, CEO and Director
            0
            0
            0




**Code
      of Ethics Disclosure**





As
      of
      August 31, 2007, we have not adopted a Code of Ethics for Financial Executives,
      which include our principal executive officer, principal financial officer,
      principal accounting officer or controller, or persons performing similar
      functions, as required by sections 406 and 407 of the Sarbanes-Oxley Act of
      2002. Our management believes that the size of our company and current
      operations at this time do not require a code
      of
      ethics to govern the behavior of our sole officer. We anticipate that we will
      adopt a code of ethics once we are in a position to do so.


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**Item
      10. Executive Compensation**





The
      table
      below summarizes all compensation awarded to, earned by, or paid to our current
      executive officers for each of the last two completed fiscal years.





SUMMARY
              COMPENSATION TABLEName
              and
              principal
              position
            Year
            Salary($)
            Bonus
              ($)
            Stock
              Awards
              ($)
            Option
              Awards
              ($)
            Non-Equity
              Incentive
                Plan
              Compensation
              ($)
            Nonqualified
              Deferred
              Compensation
              Earnings
                ($)
            All
                Other
              Compensation
              ($)
            Total
              ($)David
                Parker, CEO and CFO
            2007
              2006
            -
              -
            -
              -
            -
              -
            -
              -
            -
              -
            -
              -
            -
              -
            -
              -





**Narrative
      Disclosure to the Summary Compensation Table**




We
      do not
      compensate our executive officers by the payment of salaries or bonus
      compensation.





**Outstanding
      Equity Awards at Fiscal Year-End**





The
      table
      below summarizes all unexercised options, stock that has not vested, and equity
      incentive plan awards for each named executive officer as of August 31,
      2007.





**OUTSTANDING
                EQUITY AWARDS AT FISCAL YEAR-END**OPTION
                AWARDS
            STOCK
                AWARDSName
            Number
                of
              Securities
              Underlying
              Unexercised
              Options
              (#)
              Exercisable
            Number
                of
              Securities
              Underlying
              Unexercised
              Options
              (#)
              Unexercisable
            Equity
              Incentive
              Plan
              Awards:
              Number
                of
              Securities
              Underlying
              Unexercised
              Unearned
              Options
              (#)
            Option
              Exercise
              Price
              ($)
            Option
              Expiration
              Date
            Number
              of
              Shares
              or
                Units
              of
              Stock
                That
              Have
              Not
              Vested
              (#)
            Market
              Value
              of
              Shares
              or
              Units
              of
              Stock
              That
              Have
              Not
              Vested
              ($)
            Equity
              Incentive
              Plan
              Awards:
              Number
              of
              Unearned
              Shares,
              Units
                or
              Other
              Rights
              That
                Have
              Not
              Vested
              (#)
            Equity
              Incentive
              Plan
              Awards:
              Market
                or
              Payout
              Value
                of
              Unearned
              Shares,
              Units
                or
              Other
              Rights
              That
              Have
                Not
              Vested
              (#)David
                Parker
            -
            -
            -
            -
            -
            -
            -
            -
            -




18
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          of Contents


**Compensation
      of Directors**





The
      table
      below summarizes all compensation of our directors as of August 31,
      2007.





**DIRECTOR
                COMPENSATION**Name
            Fees
                Earned or
              Paid
                in
              Cash
              ($)
            Stock
                Awards
              ($)
            Option
                Awards
              ($)
            Non-Equity
              Incentive
              Plan
              Compensation
              ($)
            Non-Qualified
              Deferred
              Compensation
              Earnings
              ($)
            All
              Other
              Compensation
              ($)
            Total
              ($)David
                Parker
            -
            -
            -
            -
            -
            -
            -




**Narrative
      Disclosure to the Director Compensation Table**





We
      do not
      pay any cash compensation to our directors.




19
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          of Contents





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





The
      following table sets forth, as of August 31, 2007, the beneficial ownership
      of
      our common stock by each executive officer and director, by each person known
      by
      us to beneficially own more than 5% of the our common stock and by the executive
      officers and directors as a group. Except as otherwise indicated, all shares
      are
      owned directly and the percentage shown is based on 5,757,000 shares of common
      stock issued and outstanding on August 31, 2007.





**Title
                of class**
            **Name
                and address**
              **of
                beneficial owner****(1)**
            **Amount
                of**
              **beneficial
                ownership**
            **Percent**
              **of
                class****Executive
                Officers & Directors:**Common
            David
                Parker
              207
                N. Center Street, Unit A
              Arlington,
                TX 76011
            2,500,000
                Shares
            43.4%**Total
                of All Directors and Executive Officers:**
            2,500,000
                Shares
            43.4%




(1)
            As
                used in this table, "beneficial ownership" means the sole or shared
                power
                to vote, or to direct the voting of, a security, or the sole or shared
                investment power with respect to a security (i.e., the power to dispose
                of, or to direct the disposition of, a security). In addition, for
                purposes of this table, a person is deemed, as of any date, to have
                "beneficial ownership" of any security that such person has the right
                to
                acquire within 60 days after such
                date.




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





Except
      as
      disclosed below, none of our directors or executive officers, nor any proposed
      nominee for election as a director, nor any person who beneficially owns,
      directly or indirectly, shares carrying more than 5% of the voting rights
      attached to all of our outstanding shares, nor any members of the immediate
      family (including spouse, parents, children, siblings, and in-laws) of any
      of
      the foregoing persons has any material interest, direct or indirect, in any
      transaction over the last two years or in any presently proposed transaction
      which, in either case, has or will materially affect us.





·
            We
                have maintained an office at the office of a shareholder. The amount
                of
                space used is nominal. During the period from inception through June
                30,
                2006, we paid no rent. The fair market value of this office rent
                is not
                reflected in the statement of operations as it is valued at no more
                than
                $150 per month. In July 2006, we began paying rent for this space
                under a
                6 month lease agreement that is renewable on a month-to-month basis.
                The
                lease obligates us to pay $150 per month in rent plus its portion
                of
                utilities (approximately $50 per
                month).





·
            An
                officer of the Company loaned funds to us for operating expenses
                in order
                to assist us with working capital requirements. Loans outstanding
                at
                August 31, 2007 were as follows:




DATE
            AMOUNT
            
            INTEREST
                RATE & MATURITY RATESeptember
                2005
            $
            2,500
            
            
            5%;
                12/31/06April
                2006
            
            2,152
            
            
            0%;
                Demand NoteSeptember
                2006
            
            2,500
            
            
            5%;
                2/28/07, unpaidJanuary
                2007
            
            25,000
            
            
            5%;
                01/02/08August
                2007
            
            115
            
            
            0%;
                Demand NoteTOTAL
            $
            32,267


20
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          of Contents





**Item
      13. Exhibits**





Exhibit
                Number
            Description3.1
            Articles
                of Incorporation, as amended(1)3.2
            By-laws,
                as amended(1)31.1
            Certification
                of Chief Executive Officer pursuant to
                Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant
                to
                Section 302 of the Sarbanes-Oxley Act of 200231.2
            Certification
                of Chief Financial Officer pursuant to
                Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant
                to
                Section 302 of the Sarbanes-Oxley Act of 200232.1
            Certification
                of Chief Executive Officer and Chief
                Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
                pursuant
                to Section 906 of the Sarbanes-Oxley Act of
                2002





(1)
            Previously
                filed as an exhibit to the Registration Statement filed on Form SB-2
                on
                December 14, 2006.




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





**Audit
      Fees**





The
      aggregate fees billed by our auditors for professional services rendered in
      connection with a review of the financial statements included in our quarterly
      reports on Form 10-QSB and the audit of our annual consolidated financial
      statements for the fiscal years ended August 31, 2007 and August 31, 2006 were
      approximately $5,450 and $3,250 respectively.





**Audit-Related
      Fees**





Our
      auditors did not bill any additional fees for assurance and related services
      that are reasonably related to the performance of the audit or review of our
      financial statements.





**Tax
      Fees**





The
      aggregate fees billed by our auditors for professional services for tax
      compliance, tax advice, and tax planning were $0 and $0 for the fiscal years
      ended August 31, 2007 and 2006.





**All
      Other Fees**





The
      aggregate fees billed by our auditors for all other non-audit services, such
      as
      attending meetings and other miscellaneous financial consulting, for the fiscal
      years ended August 31, 2007 and 2006 were $0 and $0 respectively.




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          of Contents


**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.





**Designer
      Sports Apparel, Inc.**





By:
            /s/ David ParkerChief
                Executive Officer,
              Chief
                Financial Officer and DirectorNovember 29,
              2007




In
        accordance with the requirements of the Securities Act of 1933, this
        registration statement was signed by the following persons in the capacities
        and
        on the date stated:








By:
            /s/David
              ParkerChief
                Executive Officer,
              Chief
                Financial Officer and DirectorNovember 29,
              2007