**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

| [X]                | Quarterly                Report pursuant to Section 13 or 15(d) of the Securities Exchange                Act of                1934 |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|
|               |                                                                                                                                 |
|               | For                the quarterly period ended July                31, 2006                                                           |
|               |                                                                                                                                 |
| [                ] | Transition                Report pursuant to 13 or 15(d) of the Securities Exchange Act of                1934                       |
|               |                                                                                                                                 |
|               | For                the transition period                  to ___________                                                   |
|               |                                                                                                                                 |
|               |  Commission                File Number: 000-51058                                                                               |

| Delaware                                                                      | 68-0605151                                             |
|-------------------------------------------------------------------------------|--------------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.)  |

| 107                St. Patrick’s Street, Donaldsonville, LA 70346 |
|-------------------------------------------------------------------------|
| (Address                of principal executive offices)                 |

| 225-473-7578                                                                                                     |
|------------------------------------------------------------------------------------------------------------------|
| (Issuer’s                telephone number)                                                                 |
|  _______________________________________________________________                                            |
| (Former                name, former address and former fiscal year, if changed since last                report) |

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Table          of Contents

|                                                      | TABLE                OF CONTENTS                                                          |   Page |
|-----------------------------------------------------------|-------------------------------------------------------------------------------------------|------------------|
|  PART                I - FINANCIAL INFORMATION  |
| Item                1.                                    | Financial                Statements                                                       | 3                |
| Item                2.                                    | Plan                of Operation                                                          | 4                |
| Item                3.                                    | Controls                and Procedures                                                    | 6                |
|  PART                II - OTHER INFORMATION     |
| Item                1.                                    | Legal                Proceedings                                                          | 8                |
| Item                2.                                    | Unregistered                Sales of Equity Securities and Use of                Proceeds | 8                |
| Item                3.                                    | Defaults                Upon Senior Securities                                            | 8                |
| Item                4.                                    | Submission                of Matters to a Vote of Security                Holders         | 8                |
| Item                5.                                    | Other                Information                                                          | 8                |
| Item                6.                                    | Exhibits                                                                                  | 8                |

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Table          of Contents

**PART      I - FINANCIAL INFORMATION**

**Item      1.** **     Financial      Statements**

| Our                unaudited financial statements included in this Form 10-QSB are as                follows: |
|---------------------------------------------------------------------------------------------------------------|
|  F-1                                                                                                     |  Unaudited                Balance Sheet as of July 31,                2006; |
|  F-2                                                                                                     |  Unaudited                Statements                of Operations for the three and nine months ended July 31, 2006 and                2005                and for the period from August 19, 2004 (inception) to July 31, 2006; |
|  F-3                                                                                                     |  Unaudited                Statements of Cash Flows for the nine months ended                July 31, 2006 and 2005 and for the period from August 19, 2004 (inception)                to July 31, 2006; |
|  F-4                                                                                                     |  Notes                to Unaudited Financial                Statements; |

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**X        AND O COSMETICS, INC. **

**f/k/a          Elite Cosmetics, Inc. **

Balance              Sheet

|                                                                                                                                                                                          |   | July                    31,2006 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|
| ASSETS                                                                                                                                                                                        |   |                            |
| CURRENT                  ASSETS                                                                                                                                                               |   |                            |
|                                                                                                                                                                                          |   |                            |
| Cash                                                                                                                                                                                     | $      | 51                              |
|                                                                                                                                                                                          |   |                            |
| TOTAL                  ASSETS                                                                                                                                                                 |   | 51                              |
|                                                                                                                                                                                          |   |                            |
| LIABILITIES                  AND STOCKHOLDERS' DEFICIENCY                                                                                                                                     |   |                            |
|                                                                                                                                                                                          |   |                            |
| CURRENT                  LIABILITIES                                                                                                                                                          |   |                            |
|                                                                                                                                                                                          |   |                            |
| Accounts                  payable                                                                                                                                                        | $      | 400                             |
| Loan                  payable - related party                                                                                                                                            |   | 40,000                          |
|                                                                                                                                                                                          |   |                            |
| TOTAL                  LIABILITIES                                                                                                                                                            |   | 40,400                          |
|                                                                                                                                                                                          |   |                            |
| STOCKHOLDERS'                  DEFICIENCY                                                                                                                                                     |   |                            |
|                                                                                                                                                                                          |   |                            |
| Common                    stock, $0.001 par value, 100,000,000  shares                    authorized, 28,870,000 shares issued and                    outstanding,   |   | 2,887                           |
| Additional                  paid in capital                                                                                                                                              |   | 863,081                         |
| Accumulated                  deficit during the development stage                                                                                                                        |   | (906,317)                       |
|                                                                                                                                                                                          |   |                            |
| Total                  Stockholders' Deficiency                                                                                                                                               |   | (40,349)                        |
|                                                                                                                                                                                          |   |                            |
| Total                  Liabilities and Stockholders' Deficiency                                                                                                                          | $      | 51                              |

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Table          of Contents

**X      AND O COSMETICS, INC. **

**f/k/a        Elite Cosmetics, Inc. **

Statements              of Operations

|                                                                                                                                               | For                  the Three                    Months Ended July                    31, |       | For                  the Nine                    Months Ended July                    31, |   | From                  August                    19, 2004(Inception)Through                      July                        31, |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                               | 2006                                                                                       |       | 2005                                                                                      |   | 2006                                                                                                                       |   | 2005 |   | 2006 |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| REVENUE                                                                                                                                            | $                                                                                          | -          |                                                                                      | $      | -                                                                                                                               |   | $ | 190 |   | $ | - |   | $ | 190 |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| COST                  OF REVENUE                                                                                                                   |                                                                                       | -          |                                                                                      |   | -                                                                                                                               |   |   | 131 |   |   | - |   |   | 679 |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| GROSS                  PROFIT                                                                                                                      |                                                                                       | -          |                                                                                      |   | -                                                                                                                               |   |   | 59 |   |   | - |   |   | (489) |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| OPERATING                  EXPENSES                                                                                                                |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Stock                  compensation                                                                                                           |                                                                                       | -          |                                                                                      |   | -                                                                                                                               |   |   | - |   |   | 852,000 |   |   | 852,483 |
| Professional                  Fees                                                                                                            |                                                                                       | 4,516      |                                                                                      |   | 27,020                                                                                                                          |   |   | 10,344 |   |   | 27,020 |   |   | 38,991 |
| General                  and administrative                                                                                                   |                                                                                       | 48         |                                                                                      |   | 247                                                                                                                             |   |   | 6,473 |   |   | 497 |   |   | 12,936 |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Total                  Operating Expenses                                                                                                     |                                                                                       | 4,564      |                                                                                      |   | 27,267                                                                                                                          |   |   | 16,817 |   |   | 879,517 |   |   | 904,410 |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| LOSS                  FROM OPERATIONS                                                                                                              |                                                                                       | (4,564)    |                                                                                      |   | (27,267)                                                                                                                        |   |   | (16,758) |   |   | (879,517) |   |   | (904,899) |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| OTHER                  EXPENSE                                                                                                                     |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Interest                  expense                                                                                                             |                                                                                       | 300        |                                                                                      |   | 271                                                                                                                             |   |   | 876 |   |   | 271 |   |   | 1,418 |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Total                  Other Expense                                                                                                          |                                                                                       | 300        |                                                                                      |   | 271                                                                                                                             |   |   | 876 |   |   | 271 |   |   | 1,418 |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| NET                  LOSS BEFORE INCOME TAXES                                                                                                      |                                                                                       | (4,864)    |                                                                                      |   | (27,538)                                                                                                                        |   |   | (17,634) |   |   | (879,788) |   |   | (906,317) |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Provision                  for Income Taxes                                                                                                   |                                                                                       | -          |                                                                                      |   | -                                                                                                                               |   |   | - |   |   | - |   |   | - |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| NET                  LOSS                                                                                                                          | $                                                                                          | (4,864)    |                                                                                      | $      | (27,538)                                                                                                                        |   | $ | (17,634) |   | $ | (879,788) |   | $ | (906,317) |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Net                  loss per share - basic and diluted                                                                                            | $                                                                                          | (0.00)     |                                                                                      | $      | (0.00)                                                                                                                          |   | $ | (0.00) |   | $ | (0.07) |   | $ | (0.05) |
|                                                                                                                                               |                                                                                       |       |                                                                                      |   |                                                                                                                            |   |   |   |   |   |   |   |   |   |
| Weighted                    avergae number of shares outstanding                      during the period - basic                        and diluted |                                                                                       | 28,870,000 |                                                                                      |   | 28,851,957                                                                                                                      |   |   | 28,870,000 |   |   | 12,080,476 |   |   | 19,469,409 |

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**X        AND O COSMETICS, INC.**
**f/k/a          Elite Cosmetics, Inc. **

Statements                of Cash Flows

|                                                                                                                | For                    the Nine months Ended July                    31,  |        | From                    August                      19, 2004 (Inception)                        Through                          July                            31, |
|---------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                | 2006                                                                      |        | 2005                                                                                                                                                                 |   | 2006 |
| CASH                    FLOWS FROM OPERATING ACTIVITIES:                                                            |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| Net                    loss                                                                                         | $                                                                              | (17,634)    |                                                                                                                                                                 | $ | (879,788) |   | $ | (906,317) |
| Adjustments                    to reconcile net loss to net cash used                      in operating activities: |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
|                        Inventory                  Impairment                               |                                                                           | 323         |                                                                                                                                                                 |   |  |   |   | 323 |
| In-kind                    contribution                                                                        |                                                                           | 1,476       |                                                                                                                                                                 |   | 1,021 |   |   | 2,385 |
| Stock                    issued for services                                                                        |                                                                           | -           |                                                                                                                                                                 |   | 852,000 |   |   | 852,483 |
| Changes                    in operating assets and liabilities:                                                     |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| (Increase)                    Decrease in:                                                                     |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| Prepaid                    expense                                                                             |                                                                           | 575         |                                                                                                                                                                 |   | - |   |   | - |
| Inventories                                                                                                    |                                                                           | (323)  |                                                                                                                                                                 |   | (255) |   |   | (323)  |
| Increase                    (Decrease) in:                                                                     |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| Accounts                    payable                                                                            |                                                                           | (255)       |                                                                                                                                                                 |   | (500) |   |   | 400 |
| Accrued                    expenses                                                                            |                                                                           | (912)       |                                                                                                                                                                 |   | - |   |   | - |
|  Net                    Cash Used in Operating Activities                                                      |                                                                           | (16,750)    |                                                                                                                                                                 |   | (27,522) |   |   | (51,049) |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| CASH                    FLOWS FROM INVESTING ACTIVITIES:                                                            |                                                                           | -           |                                                                                                                                                                 |   | - |   |   | - |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| CASH                    FLOWS FROM FINANCING ACTIVITIES:                                                            |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| Proceeds                    from loan payable - related party                                                  |                                                                           | 3,882       |                                                                                                                                                                 |   | 36,118 |   |   | 40,000 |
| Proceeds                    from issuance of common stock                                                      |                                                                           | -           |                                                                                                                                                                 |   | 11,100 |   |   | 11,100 |
| Net                    Cash Provided by Financing Activities                                                        |                                                                           | 3,882       |                                                                                                                                                                 |   | 47,218 |   |   | 51,100 |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| NET                    INCREASE (DECREASE) IN CASH                                                                  |                                                                           | (12,868)    |                                                                                                                                                                 |   | 19,696 |   |   | 51 |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                 |                                                                           | 12,919      |                                                                                                                                                                 |   | - |   |   | - |
|                                                                                                                |                                                                           |        |                                                                                                                                                                 |   |   |   |   |   |
| CASH                    AND CASH EQUIVALENTS AT END OF PERIOD                                                       | $                                                                              | 51          |                                                                                                                                                                 | $ | 19,696 |   | $ | 51 |

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NOTES        TO FINANCIAL STATEMENTS

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**Note        1.**
**Summary        of Significant Accounting Policies and Organization**

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**Note            1.**
**Summary            of Significant Accounting Policies and Organization **

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**Note          1.**
**Summary          of Significant Accounting Policies and Organization **

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**Note          1.**
**Summary          of Significant Accounting Policies and Organization **

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**Note          2. Stockholders’ Equity**

**Note        3. Related Party Transactions**

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**Note          3. Related Party Transactions **

**Note        4. Loan Payable - Stockholder**

**Note        5. Going Concern**

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**Note        6. Subsequent Event**

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**Item      2.      Plan of      Operation**

**Forward-Looking      Statements**

**Historical      Overview**

**Plan      of Operation**

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**Results      of Operations for the three and nine months ended July 31, 2006**

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**Liquidity      and Capital Resources**

**Off      Balance Sheet Arrangements **

**Going      Concern**

**Item      3.     Controls and Procedures**

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**PART      II - OTHER INFORMATION**

**Item      1.     Legal      Proceedings**

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

**Item      3.     Defaults upon Senior      Securities**

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

**Item      5.     Other      Information**

**Item      6.      Exhibits**

| **Exhibit****Number** | **Description                of Exhibit**                                                                                                                                                                                                                |
|-----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                  | Certification                of Chief Executive Officer pursuant to 18                U.S.C. Section 1350, as adopted pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                           |
| 31.2                  | Certification                of Chief Financial Officer pursuant to 18                U.S.C. Section 1350, as adopted pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                           |
| 32.1                  | 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 |

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**SIGNATURES**

|                           | **X                and O Cosmetics, Inc.**                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                           |                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Date:                          | September                19, 2006                                                                                                                                                                                                                                                                                                                                                                                               |
|                           |                                                                                                                                                                                                                                                                                                                                                                                                                            |
|       | By:       /s/                Glen Landry                  Mr.                Glen Landry Title:**    Chief                Executive Officer, Chief Financial Officer****                            and Director** |