SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                       For the quarter ended June 30, 2005
                                       OR
            [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

               For the transition period from ________ to ________

                         Commission File Number: 2-99080

                       NATIONAL DIVERSIFIED SERVICES, INC.
                       -----------------------------------
                 (Name of Small Business Issuer in its Charter)



          Delaware                                      11-2820379
         --------                                    -------------
State or other jurisdiction of           I.R.S. Employer Identification Number
incorporation or organization


             201 Circle Drive North, Suite 112, Piscataway, NJ 08854
             -------------------------------------------------------
                     (Address of principal executive office)

                    Issuer's telephone number: (732) 356-9555


  c/o Morse & Morse, PLLC, 1400 Old Country Road, Suite 302, Westbury, New York
 ------------------------------------------------------------------------------
         (Former name or former address, if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.

                                  Yes_x_ No__.

88,488,700 Common Shares, $.001 par value were issued and outstanding at August
18, 2005.

<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.


                                      INDEX
                                      -----

                                                                    Page Number
                                                                    -----------
PART I.  FINANCIAL INFORMATION

         Item 1.  Financial Statements

           Consolidated Balance Sheets
            June 30, 2005 (Unaudited) and
            December 31, 2004                                             3

           Consolidated Statement of Operations
            Six and Three Months ended June 30,
            2005 and 2004 (Unaudited)                                     4

           Consolidated Statement of Stockholders' Equity                 5

           Consolidated Statement of Cash Flows
            Six Months Ended June 30, 2005 and
            March 31, 2004 (Unaudited)                                    6

           Notes to Financial Statements (Unaudited)                      7

         Item 2.  Management's Discussion and Analysis of
           Financial Condition and Results of
           Operations                                                     8

PART II. OTHER INFORMATION                                                9

SIGNATURES                                                               10


                                       2
<PAGE>

              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS



                                     ASSETS
<TABLE>
<CAPTION>

                                                                                       JUNE 30,            DECEMBER 31,
                                                                                         2005                  2004
                                                                                      (Unaudited)           (Audited)
                                                                                    ----------------     ----------------
<S>                                                                                       <C>                    <C>
CURRENT ASSETS
   Cash and cash equivalents                                                        $        70,066      $        77,808
   Securities available-for-sale                                                            111,971              109,524
                                                                                    ----------------     ----------------
                  Total assets                                                      $       182,037      $       187,332
                                                                                    ================     ================


                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
   Accounts payable and accrued expenses                                            $        76,868      $        68,409
                                                                                    ----------------     ----------------
                  Total liabilities                                                          76,868               68,409
                                                                                    ----------------     ----------------

COMMITMENTS

STOCKHOLDERS' EQUITY
   Common stock, $.001 par value;
     Authorized - 30,000,000 shares; issued and
     outstanding - 6,548,870 shares                                                           6,549                6,549
   Additional paid-in capital                                                               705,755              705,755
   Accumulated deficit                                                                     (599,362)            (590,758)
   Accumulated other comprehensive loss                                                      (2,723)              (2,623)
                                                                                    ----------------     ----------------
     Total stockholders' equity                                                             109,156              118,923

     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                     $       182,037      $       187,332
                                                                                    ================     ================
</TABLE>


    See accompanying notes to consolidated financial statements (unaudited).


                                       3
<PAGE>



              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                           SIX                                  THREE
                                                                      MONTHS ENDED                          MONTHS ENDED
                                                                          JUNE 30,                             JUNE 30,
                                                           ----------------------------------    ----------------------------------
                                                                  2005             2004                2005               2004
                                                           ----------------  ----------------    ----------------  ----------------
<S>                                                              <C>               <C>                 <C>               <C>
REVENUES                                                   $         3,412   $         2,835     $         1,745   $         1,376

GENERAL AND ADMINISTRATIVE
   EXPENSES                                                         17,066            11,342               6,795             4,124
                                                           ----------------  ----------------    ----------------  ----------------
NET LOSS                                                           (13,654)           (8,507)             (5,050)           (2,748)

OTHER COMPREHENSIVE GAIN (LOSS), NET OF TAX:
   Unrealized gains/(losses) on securities:
     Unrealized holding gain/(loss)
       arising during period                                          (100)           (2,131)             (1,063)           (2,533)
                                                           ----------------  ----------------    ----------------  ----------------
COMPREHENSIVE LOSS                                         $       (13,754)  $       (10,638)    $        (3,987)  $        (5,281)
                                                           ================  ================    ================  ================

BASIC AND DILUTED NET LOSS PER SHARE                                   NIL               NIL                 NIL               NIL


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING                    6,548,870         6,548,870           6,548,870         6,548,870
                                                           ================  ================    ================  ================
</TABLE>

    See accompanying notes to consolidated financial statements (unaudited).


                                       4
<PAGE>

              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                            CONSOLIDATED STATEMENT OF
                              STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
                                                                                                    ACCUMULATED
                                                                   ADDITIONAL                          OTHER
                                           COMMON STOCK            PAID-IN          ACCUMULATED    COMPREHENSIVE
                                       SHARES        AMOUNT        CAPITAL            DEFICIT          LOSS          TOTAL
                                   ------------    ------------  ------------     ------------    ------------   ------------
<S>                                     <C>             <C>         <C>                <C>            <C>            <C>
BALANCE AT DECEMBER 31, 2004
   (Audited)                         6,548,870     $     6,549   $   705,755      $  (590,758)    $    (2,623)   $   118,923
                                   ------------    ------------  ------------     ------------    ------------   ------------
COMPREHENSIVE LOSS (Unaudited):
   Net loss                                  -               -             -          (13,654)              -        (13,654)
   Other comprehensive loss,
    net of tax:
     Unrealized loss on securities:
       Unrealized holding loss arising
         during the period                   -               -             -                -            (100)          (100)
                                   ------------    ------------  ------------     ------------    ------------   ------------
       Total comprehensive loss              -               -             -           (8,604)         (1,163)        (9,767)
                                   ------------    ------------  ------------     ------------    ------------   ------------
BALANCE AT JUNE 30, 2005
   (Unaudited)                       6,548,870     $     6,549   $   705,755      $  (604,412)    $    (2,723)   $   105,169
                                   ============    ============  ============     ============    ============   ============
</TABLE>

    See accompanying notes to consolidated financial statements (unaudited).



<PAGE>
              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>


                                                                                                   SIX
                                                                                               MONTHS ENDED
                                                                                                  JUNE 30,
                                                                                           2005              2004
                                                                                    ----------------     ----------------
<S>                                                                                        <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                                                         $       (13,654)     $        (8,507)
   Adjustments to reconcile net loss to net cash
     used in operating activities:
       Changes in assets and liabilities:
         Accounts payable and accrued expenses                                                8,459                 (754)
                                                                                    ----------------     ----------------
NET CASH USED IN OPERATING ACTIVITIES                                                        (5,195)              (9,261)
                                                                                    ----------------     ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchases of securities available-for-sale                                                (2,547)              (2,476)
                                                                                    ----------------     ----------------
NET CASH USED IN INVESTING ACTIVITIES                                                        (2,547)              (2,476)
                                                                                    ----------------     ----------------
NET CHANGE IN CASH AND CASH EQUIVALENTS                                                      (7,742)             (11,737)
CASH AND CASH EQUIVALENTS - beginning                                                        77,808               97,682
                                                                                    ----------------     ----------------
CASH AND CASH EQUIVALENTS - ending                                                  $        77,808      $        85,945
                                                                                    ================     ================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
   Cash paid for income taxes                                                       $           228      $           342
                                                                                    ================     ================
NON-CASH INVESTING AND FINANCING ACTIVITIES:
   Unrealized gain/(loss) on securities available-for-sale                          $          (100)     $        (2,131)
                                                                                    ================     ================
</TABLE>

    See accompanying notes to consolidated financial statements (unaudited).


                                       5
<PAGE>

              NATIONAL DIVERSIFIED SERVICES, INC. AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  JUNE 30, 2005
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements do not
include all disclosures required to be included in a complete set of financial
statements prepared in conformity with U.S. generally accepted accounting
principles. In the opinion of management, all adjustments (consisting of normal
recurring accruals) that are considered necessary for a fair presentation have
been included. The results for the six month period ended June 30, 2005 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2005. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's annual report on Form
10-KSB filed on March 29, 2005 for the year ended December 31, 2004.

NOTE 2 - NATURE OF BUSINESS

The Company was organized under the laws of the State of Delaware on May 30,
1985 and was in the development stage until 1989. During November 1989, the
Company began setting up operations to import to the United States products for
sale principally to the hardware and construction markets. Two wholly-owned
subsidiaries were formed to conduct these operations. The Company commenced
operations during the first three months of 1990 and began billing its customers
in April 1990. Billings to customers ended in June 1990 and the Company
terminated its import business. As set forth in Note 5 the Company consummated a
merger on August 9, 2005.

NOTE 3 - PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of the Company and
its subsidiaries, which are all wholly-owned and totally inactive. All
significant intercompany accounts and transactions have been eliminated in
consolidation.

NOTE 4 - REVENUE RECOGNITION

The Company's only revenues are derived from investments. Investment income is
recognized when earned.

NOTE 5 - SUBSEQUENT EVENTS

On August 4, 2005, the Company entered into an Agreement and Plan of Merger (the
"Agreement") with NADS Acquisition Corp., a wholly owned subsidiary of the
Company ("NADS"), The Certo Group, Inc., a Delaware corporation ("Certo") and
Dominic Certo, the sole shareholder of Certo (the "Certo Shareholder"), which
closed on August 9, 2005. Pursuant to the Agreement, Certo merged into NADS. As
consideration for the merger of Certo into NADS, the Company issued 79,639,830
shares of the Company's common stock to the Certo Shareholder.

On August 4, 2005, the Company entered into a Consulting Agreement with George
Rubin and with Morry F. Rubin (collectively, the "Consultants"), pursuant to
which the Consultants would provide advice to the Company in connection with
general business consulting services for a term of one year. In consideration
for the services to be provided, the Company has agreed to pay the Consultants
an aggregate fee of $85,000 and provide them with anti-dilution protection in
connection with certain issuances of equity by the Company. In addition, the
Company has granted the Consultants and certain other shareholders with
registration rights.

On July 1, 2005, the Company executed a Letter of Intent with the Certo Group
LLC to consummate a merger. Under the terms of the Letter of Intent, the Company
would acquire 100% of the Certo Group LLC in a stock for stock exchange in which
the owner of the Certo Group LLC would acquire a controlling interest of up to
90% in the Company. Upon the completion of the transaction, the current
stockholders of the Company would own 10% of the Company's outstanding common
stock on a fully diluted basis. The Certo Group LLC operates restaurant and
vending operations for its customers throughout the United States.

On July 20, 2005, the Board of Directors authorized the payment of $69,000 to
certain members of management and attorneys for services rendered. Additionally,
in lieu of cash payments, the Board approved the exercise of 2,300,000 warrants
exercisable at $0.03 per share held by them.

On July 26, 2005, the Company obtained the consent of the majority of its
shareholders to amend the Company's Articles of Incorporation and increase the
authorized number of shares to 100,000,000 from 30,000,000.

On July 26, 2005, the Company formed a wholly owned subsidiary NADS Acquisition
Corp.


                                       6
<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.


Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations

Results of Operations

During the six months ended June 30, 2005, the Company had no revenues other
than investment income since the Company terminated its import and sale business
operations in 1990. As discussed in the section entitled "Subsequent Events"
below, on August 9, 2005 the Company consummated a merger.

During the six months ended June 30, 2005, there were no material changes in the
financial condition of the Company other than a net loss of $13,654 as compared
to a net loss of $8,507 for the comparable period of the prior year. Further,
because the Company lacks any current business activities or operations, other
than searching for a new business opportunity or merger candidate, there are no
trends or uncertainties that have had or are reasonably expected to have a
material favorable or unfavorable impact on revenues or income (loss) from
continuing operations. Further, there are no unusual or infrequent events or
transactions or any significant economic changes that materially effected the
amount of reported income (loss) from continuing operations.

Liquidity and Capital Resources

Financing of the Company's activities has been provided from the December 1986
initial public offering of its securities for cash amounting to a net of
approximately $600,000. At June 30, 2005, the Company's working capital amounted
to $105,169 with cash and cash equivalents and securities available for sale
aggregating $182,037. Management believes that its cash assets are adequate to
meet the Company's short term and long term liquidity and cash requirements
until such time, if ever, as the Company completes a transaction to establish an
operating business.

The Company has been unable to find a suitable business opportunity or merger
candidate over the last ten years. Such opportunities may be limited due to the
lack of adequate cash resources available or because the Company's common stock
has no active and established trading market. Nevertheless, Management is
continuing to explore various business opportunities that may be available to
it. As of the filing date of this Form 10-QSB, there are no known trends or any
known demands, commitments, events or uncertainties that will result in or that
are reasonably likely to result in the Registrant's liquidity increasing or
decreasing in any material way. Further, at the present time, the Company has no
commitments for capital expenditures and does not anticipate same until it
establishes a business or acquires an operating business, of which there can be
no assurances given.

Subsequent Events

On August 4, 2005, the Company entered into an Agreement and Plan of Merger (the
"Agreement") with NADS Acquisition Corp., a wholly owned subsidiary of the
Company ("NADS"), The Certo Group, Inc., a Delaware corporation ("Certo") and
Dominic Certo, the sole shareholder of Certo (the "Certo Shareholder"), which
closed on August 9, 2005. Pursuant to the Agreement, Certo merged into NADS. As
consideration for the merger of Certo into NADS, the Company issued 79,639,830
shares of the Company's common stock to the Certo Shareholder.

On August 4, 2005, the Company entered into a Consulting Agreement with George
Rubin and with Morry F. Rubin (collectively, the "Consultants"), pursuant to
which the Consultants would provide advice to the Company in connection with
general business consulting services for a term of one year. In consideration
for the services to be provided, the Company has agreed to pay the Consultants
an aggregate fee of $85,000 and provide them with anti-dilution protection in
connection with certain issuances of equity by the Company. In addition, the
Company has granted the Consultants and certain other shareholders with
registration rights.

Item 3. Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in the Company's Exchange Act
reports is recorded, processed, summarized and reported within the time periods
specified in the SEC's rules and forms, and that such information is accumulated
and communicated to the Company's management, including its Chief Executive
Officer and Chief Financial Officer, as appropriate, to allow timely decisions
regarding required disclosure based closely on the definition of "disclosure
controls and procedures" in Rule 13a-15(e). In designing and evaluating the
disclosure controls and procedures, management recognized that any controls and
procedures, no matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control objectives, and management
necessarily was required to apply its judgment in evaluating the cost-benefit
relationship of possible controls and procedures. The Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and the Company's
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures. Based on the foregoing, the

                                       7
<PAGE>
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures were effective at the reasonable
assurance level at the end of our most recent quarter. There have been no
changes in the Company's disclosure controls and procedures or in other factors
that could affect the disclosure controls subsequent to the date the Company
completed its evaluation.

Management has not yet completed, and is not yet required to have completed, its
assessment of the effectiveness of internal control over financial reporting as
required by Section 404 of the Sarbanes-Oxley Act.

                       NATIONAL DIVERSIFIED SERVICES, INC.

                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings:

None

Item 2. Changes in Securities:

None

Item 3. Defaults Upon Senior Securities:

None

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

On July 26, 2006 a majority of stockholders of the Company ratified by action
taken in lieu of a meeting, an amendment to the Company's Certificate of
Incorporation. Said amendment approved an increase in the authorized number of
common shares from 30,000,000 shares to 100,000,000 shares, $.001 par value.

Item 5. Other Information:

None

Item 6. Exhibits:

31.1 Certification of Chief Executive and Chief Financial Officer Pursuant to
Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002

32.1 Certification of Chief Executive and Chief Financial Officer pursuant to
18U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002


                                       8
<PAGE>
                       NATIONAL DIVERSIFIED SERVICES, INC.

                                   SIGNATURES

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

                       NATIONAL DIVERSIFIED SERVICES, INC.
                                  (Registrant)





Dated: August 19, 2005              /s/Dominic Certo
                                    --------------
                                    Dominic Certo, Chief Executive
                                    Officer
                                    and Chief Financial Officer




                                       9