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 1934
For the fiscal year ended:  December 31, 2007
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      0-50773

Creative Beauty Supply of New Jersey Corporation
(Name of Small Business Issuer in its charter)

   New Jersey                                        56-2415252
 (State or other jurisdiction                     (I.R.S. Employer
of incorporation or organization)                  Identification
                                                       number)

          380 Totowa Road
              Totowa, NJ                          07512
(Address of principal executive offices)        (Zip Code)

Registrant's Telephone number, including area code:
(973) 904-0004


Securities registered pursuant to Section 12(b) of the Act:       None
Securities registered pursuant to Section 12(g) of the Act:
   Common Stock, $.01 par value

Check whether the Company (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act during the
preceding 12 months (or such shorter period that the Company was
required to file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days.
Yes    __x__          No  _____

Check if there is no 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 Company'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.
[  x  ]

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



<PAGE>2

The Company's revenues for the year ended December 31, 2007 were $0.
As of March 15, 2008, the market value of the Company's voting $.00l
par value common stock held by non-affiliates of the Company was $0.00.

The number of shares outstanding of Company's only class of common
stock, as of December 31, 2007 and March 15, 2008 was 10,532,150 shares
of its $.001 par value common stock.

No documents are incorporated into the text by reference.

Transitional Small Business Disclosure Format (check one)
 Yes                No    x
     --------          --------



<PAGE>3
PART I
ITEM 1.  BUSINESS

Creative Beauty Supply of New Jersey Corporation (Creative NJ or the
Company) was incorporated in the State of New Jersey on October 1,
2003.  It was formed pursuant to a resolution of the board of directors
of Creative Beauty Supply Inc. (CBS), as a wholly owned subsidiary of
that company, a publicly traded New Jersey corporation.

On January 1, 2004, the assets and liabilities of CBS were contributed
at book value to Creative NJ, and CBS approved a spin-off of this
subsidiary to its shareholders.  The spin-off was approved in
contemplation of a merger which occurred on March 19, 2004 between CBS
and Global Digital Solutions, Inc., a Delaware corporation, upon
approval by vote of the stockholders of CBS and Global Digital whereby
the former shareholders of CBS became the owners of 100 percent of the
common stock of Creative NJ.  The common shares were transferred upon
completion of the Form 10SB.  CBS is the predecessor of Creative NJ.
Pursuant to the requirements of Staff Legal Bulletin #4, the spin-off
was completed in September 2005 with the satisfactory resolution of all
SEC comments to the Form 10SB.

Pursuant to the terms of the spin-off arrangement, Global Digital
provided its shareholders as of January 1, 2004, the record date, one
share of Creative NJ for every share of Global Digital owned as of that
date.

Creative NJ filed its Form 10SB voluntarily.  Creative NJ will
voluntarily file periodic reports in the event its obligation to file
such reports is suspended under the Exchange Act.

Corporate Operations.  Creative NJ operated as a cosmetic and beauty
supply distributor at both the retail and wholesale levels.  Creative
NJ's various beauty and cosmetic products were purchased by it from a
number of unaffiliated suppliers and manufacturers and thereafter sold
on its premises to retail walk-in customers or directly to beauty
salons.

On November 30, 2007 Creative NJ's Board of Directors approved a plan
to dispose of its wholesale and retail beauty supply business.  The
Board recognized that this operation has never realized a profit and
that sales volumes have been declining each year.  Creative NJ's plan
was to contact its suppliers and return as much of the inventory as
possible and sell the remaining balance to its customers.  Creative
NJ's objective was to ceased all operations by December 31, 2007 and
vacate the facility it leased by January 31, 2008.  As of December 31,
2007, Creative NJ disposed of all its inventory by way of sales,
returns to suppliers and sale to inventory liquidator and ceased its
operations.


ITEM 2.  PROPERTIES.

Creative NJ was obligated as assignee under an operating lease
agreement with an unrelated party for the space occupied by its
executive offices, store, and warehouse facilities in Totowa, New

<PAGE>4

Jersey.  This lease which was the obligation of CBS was assigned to
Creative NJ on January 1, 2004.  The lease expired on April 30, 2004,
with a monthly rent of $1,300.  This lease was renewed in April 2004
for a 35 month term expiring on April 30, 2007 requiring a monthly rent
of $1,350.  This lease was not renewed and Creative NJ continued to
lease the space for $1,350 per month on a month to month basis.


ITEM 3.  LEGAL PROCEEDINGS.

Creative NJ is not involved in any legal proceedings at this date.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

During the last quarter of the fiscal year ended December 31, 2007, no
matters were submitted to a vote of Creative Beauty Supply of New
Jersey Corporation security holders, through the solicitation of
proxies.





<PAGE>5

PART II

ITEM 5.  MARKET FOR CORPORATION'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS

Market Information.  Creative NJ's common stock is not included in
the pink sheets or in the OTC Bulletin Board maintained by the NASD.

There is no public trading market for Creative NJ common stock and
there is no guarantee any trading market will develop.

Holders.  As of December 31, 2007, the approximate number of
recordholders of Creative NJ were 113.

Dividends.  Holders of Creative NJ's common stock are entitled to
receive such dividends as may be declared by its board of directors
after the spin-off has been completed.  Creative NJ does not
anticipate that it will declare any dividends.  All profit will be
used for continuing operations.


ITEM 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

On November 30, 2007 Creative NJ's Board of Directors approved a plan
to dispose of its wholesale and retail beauty supply business.  The
Board recognized that this operation has never realized a profit and
that sales volumes have been declining each year.  Creative NJ's plan
was to contact its suppliers and return as much of the inventory as
possible and sell the remaining balance to its customers.  Creative
NJ's objective was to ceased all operations by December 31, 2007 and
vacate the facility it leased by January 31, 2008.  As of December 31,
2007, Creative NJ disposed of all its inventory by way of sales,
returns to suppliers and sale to inventory liquidator and ceased its
operations.

Discontinued Operations.  Assets and liabilities of discontinued
operations as of December 31, 2007 are summarized as follows:

Current Assets:
   Accounts receivable, trade                      $    2,503
   Prepaid expenses                                     2,399
   Property and equipment, net of
     accumulated depreciation                           1,300
                                                   ----------
     Total Assets of Discontinued Operations            6,202
                                                   ----------

Current Liabilities:
   Payroll taxes withheld and accrued                   2,130
   Accrued expenses                                    18,064
                                                   ----------



<PAGE>6

Total Liabilities of Discontinued Operations           20,194
                                                   ----------
Net Liabilities of Discontinued Operations         $   13,992
                                                   ==========

Results of discontinued operations for the years ended December 31,
2007 and 2006 are summarized as follows:

                                              2007           2006
                                            -------         ------
Net Sales                              $   124,404         $   133,803

     Cost of Sales                         119,393             100,722
                                       -----------         -----------
     Gross Profit                            5,011              33,081
                                       -----------         -----------
     Operating Expenses:
        Salaries - officers                 32,050              32,030
        Employee benefits                   18,403              17,051
        Professional fees                   16,680              15,081
        Rent                                16,200              16,200
        Other general and administrative    23,193              24,708
                                       -----------         -----------
            Total Operating Expenses       106,526             105,070
                                       -----------         -----------
    Loss from Discontinued Operations,
      net of income taxes of -0-       $  (101,515)        $   (71,989)
                                       ===========         ===========

Cash flows from discontinued operations for the years ended December
31, 2007 and 2006 are summarized by major classification as follows:

                                                 2007        2006
                                                ------      ------
Cash flows provided by operating activities   $ 48,284      $  3,020

Cash flows from investing activities                 -             -

Cash flows from financing activities                 -             -
                                             ---------      --------
   Net cash used in discontinued operations   $ 48,284      $  3,020
                                             ========       ========

The components of property and equipment for discontinued operations at
December 31, 2007 consisted of:

   Delivery equipment                                    $    6,497
     Less Accumulated depreciation                            5,197
                                                         ----------
   Net book value                                        $    1,300
                                                         ==========



<PAGE>7

Depreciation expense included in "Loss from Discontinued Operations"
amounted to $1,300 for each of the years ended December 31, 2007 and
2006, respectively.

Wholesale sales consist of sales to beauty salons of merchandise for
resale.  Sales of merchandise to beauty salons for their own
consumption, not for resale, are considered retail sales.  All sales to
the general public are also considered retail sales.

Net sales from discontinued operations are summarized as follows for
the years ended December 31, 2007 and 2006:

                                              Year ended December 31,
                                              2007              2006
                                             ------            ------
  Retail                                   $ 73,797           $ 77,446
  Wholesale                                  50,607             56,357
                                           --------           --------
                                           $124,404           $133,803
                                           ========           ========

Recent Accounting Pronouncements

In September 2006, the FASB issued SFAS No. 157, "Fair Value
Measurements."  This statement defines fair value, establishes a
framework for measuring fair value, and expands disclosures about fair
value measurements.  SFAS No. 157 will be effective for the Company
beginning January 1, 2008.  The adoption of SFAS No. 157 is not
expected to have a material effect on the Company's financial condition
or results of operations.

In February 2006, FASB issued SFAS No. 155, "Accounting for Certain
Hybrid Financial Instruments" ("SFAS No. 155"). SFAS No. 155 amends
SFAS No 133, "Accounting for Derivative Instruments and Hedging
Activities", and SFAS No. 140, "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities". SFAS No. 155,
permits fair value remeasurement for any hybrid financial instrument
that contains an embedded derivative that otherwise would require
bifurcation, clarifies which interest-only strips and principal-only
strips are not subject to the requirements of SFAS No. 133, establishes
a requirement to evaluate interest in securitized financial assets to
identify interests that are freestanding derivatives or that are hybrid
financial instruments that contain an embedded derivative requiring
bifurcation, clarifies that concentrations of credit risk in the form
of subordination are not embedded derivatives, and amends SFAS No. 140
to eliminate the prohibition on the qualifying special-purpose entity
from holding a derivative financial instrument that pertains to a
beneficial interest other than another derivative financial instrument.
This statement is effective for all financial instruments acquired or
issued after the beginning of the Company's first fiscal year that
begins after September 15, 2006. SFAS No. 155 did not have a material
effect on the financial position or results of operations of the
Company.


<PAGE>8

In June 2006, the FASB issued Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109" ("FIN 48"), which clarifies the accounting for uncertainty in
income taxes recognized in financial statements in accordance with FASB
No. 109,"Accounting for Income Taxes".  FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be
taken in a tax return.  The provisions of FIN 48 are effective for
fiscal years beginning after December 15, 2006, with the cumulative
effect of the change in accounting principle recorded as an adjustment
to opening retained earnings.  FIN 48 did not have a material effect on
the financial position or results of operations of the Company.

In September 2006, FASB issued SFAS 158 'Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans--an amendment of
FASB Statements No. 87, 88, 106, and 132(R)'  This Statement improves
financial reporting by requiring an employer to recognize the over
funded or under funded status of a defined benefit postretirement plan
(other than a multiemployer plan) as an asset or liability in its
statement of financial position and to recognize changes in that funded
status in the year in which the changes occur through comprehensive
income of a business entity or changes in unrestricted net assets of a
not-for-profit organization.  This Statement also improves financial
reporting by requiring an employer to measure the funded status of a
plan as of the date of its year-end statement of financial position,
with limited exceptions.  An employer with publicly traded equity
securities is required to initially recognize the funded status of a
defined benefit postretirement plan and to provide the required
disclosures as of the end of the fiscal year ending after December 15,
2006.  An employer without publicly traded equity securities is
required to recognize the funded status of a defined benefit
postretirement plan and to provide the required disclosures as of the
end of the fiscal year ending after June 15, 2007.  However, an
employer without publicly traded equity securities is required to
disclose the following information in the notes to financial statements
for a fiscal year ending after December 15, 2006, but before June 16,
2007, unless it has applied the recognition provisions of this
Statement in preparing those financial statements: (1) a brief
description of the provisions of this Statement; (2) the date that
adoption is required and (3) the date the employer plans to adopt the
recognition provisions of this Statement, if earlier.  The Company does
not have a defined benefit plan and this pronouncement had no impact on
the Company's financial statements.

FASB Staff Position (FSP) No. 00-19-2, Accounting for Registration
Payment Arrangements, was issued in December 2006 to address an
issuer's accounting for registration payment arrangement. The FSP
specifies that the contingent obligation to make future payments or
otherwise transfer consideration under a registration payment
arrangement should be separately recognized and measured in accordance
with SFAS No. 5, Accounting for Contingencies.  For registration
payment arrangements and financial instruments subject to those
arrangements that were entered into prior to the issuance of this FSP
and that continues to be outstanding at the adoption date, this
guidance is effective for fiscal years beginning after December 15,

<PAGE>9

2006 and interim periods within those fiscal years. Retrospective
application of the guidance in this FSP to financial statements for
earlier interim or annual periods presented is not permitted.  The
adoption of FSP 00-19-2 did not have an impact on our financial
position, results of operations or cash flows.

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option
for Financial Assets and Financial Liabilities" ("SFAS 159"). SFAS 159
allows entities the option to measure eligible financial instruments at
fair value as of specified dates.  Such election, which may be applied
on an instrument by instrument basis, is typically irrevocable once
elected.  SFAS 159 is effective for fiscal years beginning after
November 15, 2007.  The implementation of this guidance is not expected
to have any impact on the Company's financial statements.

In June 2007, the Emerging Issues Task Force ("EITF") issued EITF 07-3,
"Accounting for Nonrefundable Advance Payments for Goods or Services to
Be Used in Future Research and Development Activities," which provides
guidance on the accounting for certain nonrefundable advance payments
for goods or services that will be used or rendered for future research
and development activities. This issue is effective prospectively for
fiscal years beginning after December 15, 2007, or fiscal 2009 for the
Company. The implementation of this guidance is not expected to have
any impact on the Company's financial statements.

In December 2007, the FASB issued FAS 141(R), "Business Combinations -
a replacement of FASB Statement No. 141", which significantly changes
the principles and requirements for how the acquirer of a business
recognizes and measures in its financial statements the identifiable
assets acquired, the liabilities assumed, and any noncontrolling
interest in the acquiree. The statement also provides guidance for
recognizing and measuring the goodwill acquired in the business
combination and determines what information to disclose to enable users
of the financial statements to evaluate the nature and financial
effects of the business combination. This statement is effective
prospectively, except for certain retrospective adjustments to deferred
tax balances, for fiscal years beginning after December 15, 2008.  This
statement will be effective for the Company beginning in fiscal 2009.
The Company is currently evaluating FAS 141(R), and has not yet
determined the impact if any, FAS 141(R) will have on its results of
operations or financial position.

In December 2007, the FASB issued SFAS No. 160, Noncontrolling
Interests in Consolidated Financial Statements-an amendment of ARB No.
51. This Statement amends ARB 51 to establish accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. It clarifies that a noncontrolling
interest in a subsidiary is an ownership interest in the consolidated
entity that should be reported as equity in the consolidated financial
statements. In addition to the amendments to ARB 51, this Statement
amends FASB Statement No. 128, Earnings per Share; so that earnings-
per-share data will continue to be calculated the same way those data
were calculated before this Statement was issued.  This Statement is
effective for fiscal years, and interim periods within those fiscal

<PAGE>10

years, beginning on or after December 15, 2008. The implementation of
this guidance is not expected to have any impact on the Company's
financial statements.

Forward-Looking Statements

This Form 10-KSB contains forward-looking statements within the meaning
of the federal securities laws.  These statements include those
concerning the following:  Our intentions, beliefs and expectations
regarding the fair value of all assets and liabilities recorded; our
strategies; growth opportunities; product development and introduction
relating to new and existing products; the enterprise market and
related opportunities; competition and competitive advantages and
disadvantages; industry standards and compatibility of our products;
relationships with our employees; our facilities, operating lease and
our ability to secure additional space; cash dividends; excess
inventory, our expenses; interest and other income; our beliefs and
expectations about our future success and results; our operating
results; our belief that our cash and cash equivalents will be
sufficient to satisfy our anticipated cash requirements; our
expectations regarding our revenues and customers; investments and
interest rates.  These statements are subject to risk and uncertainties
that could cause actual results and events to differ materially.

Creative NJ undertakes no obligation to update forward-looking
statements to reflect events or circumstances occurring after the date
of this Form 10-KSB.


ITEM 7.  FINANCIAL STATEMENTS

Financial Statements

The response to this item is being submitted as a separate section of
this report beginning on page 20.


ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE

None


ITEM 8A CONTROLS AND PROCEDURES

Changes in Internal Controls

During the year ended December 31, 2007, there were no changes in our
internal controls over financial reporting (as defined in Rule 13a-
15(f) and 15d-15(f) under the Exchange Act) that have materially
affected, or are reasonably likely to materially affect, our internal
control over financial reporting.



<PAGE>11

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management,
including our chief executive officer and chief financial officer, we
conducted an evaluation of our disclosure controls and procedures, as
such term is defined under Rule 13a-15(e) and Rule 15d-15(e)
promulgated under the Securities Exchange Act of 1934, as amended, as
of December 31, 2007.  Based on this evaluation, our chief executive
officer and chief principal financial officers have concluded such
controls and procedures to be effective as of December 31, 2007 to
ensure that information required to be disclosed by the issuer in the
reports that it files or submits under the Act is recorded, processed,
summarized and reported, within the time periods specified in the
Commission's rules and forms and to ensure that information required to
be disclosed by an issuer in the reports that it files or submits under
the Act is accumulated and communicated to the issuer's management,
including its principal executive and principal financial officers, or
persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.

Management's Report on Internal Control over Financial Reporting

Management of Creative NJ is responsible for establishing and
maintaining adequate internal control over financial reporting as
derived in Rule 13a-15(f) under the Securities Exchange Act of 1934.
We have assessed the effectiveness of those internal controls as of
December 31, 2007, using the Committee of Sponsoring Organizations of
the Treadway Commission ("COSO") Internal Control Intergrated Framework
as a basis for our assessment.

Because of its inherent limitations, internal control over financial
reporting may not prevent or detect misstatements.  Projections of any
evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may
deteriorate.  All internal control systems, no matter how well
designed, have inherent limitations.  Therefore, even those systems
determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation.

A material weakness in internal controls is a deficiency in internal
control, or combination of control deficiencies, that adversely affects
Creative NJ's ability to initiate, authorize, record, process, or
report external financial data reliably in accordance with accounting
principles generally accepted in the United States of America such that
there is more than a remote likelihood that a material misstatement of
Creative NJ's annual or interim financial statements that is more than
inconsequential will not be prevented or detected.  In the course of
making our assessment of the effectiveness of internal controls over
financial reporting, we did not identify any material weakness in our
internal control over financial reporting.  Therefore, it is our
conclusion that Creative NJ's internal controls over financial
reporting were effective as of December 31, 2007.


<PAGE>12

This annual report does not include an attestation report of Creative
NJ's registered public accounting firm regarding internal control over
financial reporting.  Management's report was not subject to
attestation by the Corporation's registered public accounting firm
pursuant to temporary rules of the Securities and Exchange Commission
that permit Creative NJ's to provide only management's report in this
annual report.


ITEM 8B OTHER INFORMATION

None



<PAGE>13
PART III

ITEM 9.    DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS
AND CORPORATE GOVERANCE; COMPLAINCE WITH SECTION 16(a) OF THE EXCHANGE
ACT.
<TABLE>
Name                            Position Held        Term of Office

                                  <c>                  <c>
Carmine Catizone, age 56      President, Director   October 1, 2003
                                                       to present

Daniel Generelli, age 38      Secretary/Treasurer   October 1, 2003
                            Vice-President/Director    to present
</TABLE>
Resumes:

Carmine Catizone.  Mr. Catizone has been President and a director of
Creative NJ since its incorporation on October 1, 2003.  From June
1988 to July 1994, Mr. Catizone was President and a Director of J&E
Beauty Supply, Inc., a retail and wholesale beauty supply
distributor.  Mr. Catizone served as President and a director of C&C
Investments, Inc., a blank check company (now known as T.O.P.S.
Medical Corp., which provided chemicals for transportation of
organs) from July 1977 to December 1984.  From August 1995 to March
19, 2004, Mr. Catizone was President and a director of Creative
Beauty Supply, Inc., now Global Digital Solutions, Inc., a SEC
reporting company.  Mr. Catizone is not currently involved with
T.O.P.S. Medical Corp.  From June 1980 to December 1985, Mr.
Catizone had been district sales manager (engaged in sales of
cosmetics) for Chattem Labs.  Mr. Catizone received his Bachelor of
Science degree from Fairleigh Dickerson University in 1972.

Daniel Generelli.  Mr. Generelli has been Secretary-Treasurer and a
director of Creative NJ since its incorporation on October 1, 2003.
From August 1995 to March 19, 2004, Mr. Generelli was Secretary-
Treasurer and a director of Creative Beauty Supply, Inc., now Global
Digital Solutions, Inc., a SEC reporting company.  From December
1989 to July 1995, Mr. Generelli was Secretary/Treasurer and a
director of J&E Beauty Supply, Inc., a retail and wholesale beauty
supply distributor.  From December 1984 to December 1989, Mr.
Generelli was employed as a distribution supervisor with Tags Beauty
Supply, a retail and wholesale beauty supply distributor in
Fairfield, NJ.  Mr. Generelli graduated from Ramapo College of New
Jersey with a Bachelor of Science degree in June of 1984.

Section 16(a) Beneficial Ownership Reporting Compliance

To Creative NJ's knowledge, no director, officer or beneficial owner of
more than ten percent of any class of equity securities of the Company
failed to file on a timely basis reports required by Section 16(a) of
the Exchange Act during 2006.



<PAGE>14

Code of Ethics Policy

We have not yet adopted a code of ethics that applies to our principal
executive officer, principal financial officer, principal accounting
officer or controller or persons performing similar functions.

Corporate Governance

We have no change in any state law or other procedures by which
security holders may recommend nominees to our board of directors.  In
addition to having no nominating committee for this purpose, we
currently have no specific audit committee and no audit committee
financial expert.  Based on the fact that our current business affairs
are simple, any such committees are excessive and beyond the scope of
our business and needs.


ITEM 10.  EXECUTIVE COMPENSATION

To date, Creative NJ has not entered into employment agreements nor
are any contemplated.
<TABLE>
<CAPTION>
                   Annual Compensation                    Awards               Payouts
                ---------------------------        ----------------------      ----------
                                                    Other        Restricted  Securities
                                                    Annual          Stock    Underlying         LTIP       All Other
Name and Position   Year  Salary($)  Bonus($) Compensation($)  Awards(#)  Options/SARs(#)  Payouts($) Compensation($)

                    <c>    <c>         <c>         <c>            <c>        <c>             <c>          <c>
Carmine Catizone      2007  $30,000      ---         ---            ---         ---             ---          ---
   President          2006  $30,000      ---         ---            ---         ---             ---          ---
                      2005  $30,000      ---          ---            ---        ---             ---          ---

Daniel Generelli      2007   $2,030      ---          ---            ---        ---             ---          ---
  Secretary/Treasurer 2006   $2,260      ---          ---            ---        ---             ---          ---
                      2005   $1,540      ---          ---            ---        ---             ---          ---
</TABLE>

Board of Directors Compensation

Members of the Board of Directors may receive an amount yet to be
determined annually for their participation and will be required to
attend a minimum of four meetings per fiscal year.  To date, Creative
NJ has not paid any directors' fees or expenses.


ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following tabulates holdings of shares of Creative NJ by each
person who, adjusted for completion of the spin-off, will holders of
record or is known by management to own beneficially more than 5.0% of
the common shares and, in addition, by all directors and officers of
Creative NJ individually and as a group.   Each named beneficial owner
has sole voting and investment power with respect to the shares set
forth opposite his name.



<PAGE>15

                   Shareholdings at March 15, 2008
<TABLE>
                                                              Percentage of
                                Number & Class(1)              Outstanding
Name and Address                  of Shares                   Common Shares

                                   <c>                           <c>
Carmine Catizone(4)           Common   3,458,000(direct)           32.83%
10 1/2 Walker Avenue                      80,600(2)(indirect)        .77%
Morristown, NJ 07960

Daniel T. Generelli           Common      40,000                     .38%
24 Kansas Street
Hackensack, NJ 07601

All Directors & Officers      Common   3,498,000(direct)           33.21%
as a group (2 persons)                    80,600(indirect)           .77%

Pasquale Catizone(4)          Common   5,387,500(direct)           51.15%
266 Cedar Street                          10,000(3)(indirect)        .09%
Cedar Grove, NJ 07009

Ram Venture Holdings Corp.(5) Common     595,054                    5.65%
3040 E. Commercial Blvd.
Fort Lauderdale, FL 33308

Cede & Co.                    Common     607,446                    5.77%
P.O. Box 20
Bowling Green Station
New York, NY 10274
</TABLE>
(1)Pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as
amended, beneficial ownership of a security consists of sole or shared
voting power (including the power to vote or direct the voting) and/or
sole or shared investment power (including the power to dispose or
direct the disposition) with respect to a security whether through a
contract, arrangement, understanding, relationship or otherwise.

Unless otherwise indicated, each person indicated above has sole power
to vote, or dispose or direct the disposition of all shares
beneficially owned, subject to applicable unity property laws.

(2)Carmine Catizone and Phyllis Catizone are husband and wife and are
deemed to be the beneficial owners of each other's shares and custodial
shares.

(3)Pasquale Catizone and Barbara Catizone are husband and wife and are
deemed to be the beneficial owners of each other's shares.

(4)Carmine Catizone and Pasquale Catizone are brothers.






<PAGE>16

ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE.

Certain Relationships and Related Transactions

None

Director Independence

Creative NJ's board of directors consists of Carmine Catizone and
Daniel Generelli.  Neither of them is independent as such term is
defined by a national securities exchange or an inter-dealer quotation
system.  During the fiscal year ended December 31, 20067, there were no
transactions with related persons.


ITEM 13.    EXHIBITS

 List of Exhibits

(2.1) Articles of Incorporation(1)
(2.2) Bylaws(1)
(3)   Form of Common Stock Certificate(1)
(6)  Renewed Lease Agreement(2)
(6.1)Agreement and Plan of Reorganization between Global Digital
Solutions and Creative Beauty Supply, Inc,(3)

(1) Incorporated by reference to Form 10SB, file number 0-50773 filed
on May 21, 2004.
(2) Incorporated by reference to amendment 3 to Form 10SB, file number
0-50773 filed on June 15, 2005
(3) Incorporated by reference to Form 8-K filed March 8, 2004 by
Creative Beauty Supply, Inc.

The following exhibits are filed with this report:

  Exhibit 31 - 302 certification
  Exhibit 32 - 906 certification


ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Audit Fees.  The aggregate fees billed and estimated to be billed for
the fiscal years ended December 31, 2007 and 2006 for professional
services rendered by Rotenberg, Meril, Solomon, Bertiger & Guttilla,
P.C. (RMSBG) for the audit of the registrant's annual financial
statements and review of the financial statements included in the
registrant's Form 10-QSB or services that are normally provided by the
accountant in connection with statutory and regulatory filings or
engagements for the fiscal years were $14,000 and $13,400.



<PAGE>17

Audit related fees.  The aggregate fees billed for the fiscal years
ended December 31, 2007 and 2006 for assurance and related services by
RMSBG that are reasonably related to the performance of the audit or
review of the registrant's financial statements for that fiscal year
were $0.

Tax Fees.  We did not incur any aggregate tax fees and expenses from
RMSBG for the 2007 and 2006 fiscal years for professional services
rendered for tax compliance, tax advice, and tax planning.

All Other Fees.  We did not incur any other fees from RMSBG for the
2007 and 2006 fiscal years.

The board of directors, acting as the Audit Committee considered
whether, and determined that, the auditor's provision of non-audit
services was compatible with maintaining the auditor's independence.
All of the services described above for fiscal year 2007 were approved
by the Board of Directors pursuant to its policies and procedures.  We
intend to continue using RMSBG solely for audit and audit-related
services, tax consultation and tax compliance services, and, as needed,
for due diligence in acquisitions.




<PAGE>18

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the Company has duly caused this
Report to be signed on its behalf by the undersigned duly authorized
person.

Date:    March 31, 2008

Creative Beauty Supply of New Jersey Corporation

/s/ Carmine Catizone
------------------------------
By: Carmine Catizone, President


Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on
behalf of the Company and in the capacities and on the dates indicated.
<TABLE>

                                   <c>
Creative Beauty Supply of New Jersey Corporation

Date:  March 31, 2008        /s/ Carmine Catizone
                            ---------------------
                            By: Carmine Catizone
                               President, Chief Executive Officer

       March 31, 2008       /s/Daniel Generelli
                           ----------------------
                           By: Daniel Generelli
                               Chief Financial Officer and
                                Controller
</TABLE>



<PAGE>19

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION

                     INDEX TO FINANCIAL STATEMENTS


                                                              Page

REPORT OF INDEPENDENT REGISTERED ACCOUNTING FIRM               20

FINANCIAL STATEMENTS:
  Balance Sheets as of December 31, 2007 and 2006              21

  Statements of Operations and Comprehensive Loss
   for the years ended December 31, 2007 and 2006              22

  Statements of Stockholders' Equity for the years
   ended December 31, 2007 and 2006                            23

  Statements of Cash Flows for the years ended
   December 31, 2007 and 2006                                  25

  Notes to Financial Statements                                26




<PAGE>20

REPORT OF INDEPENDENT REGISTERED ACCOUNTING FIRM


To the Board of Directors and Stockholders of
Creative Beauty Supply of New Jersey Corporation

We have audited the accompanying balance sheets of Creative Beauty
Supply of New Jersey Corporation as of December 31, 2007 and 2006 and
the related statements of operations and comprehensive loss,
stockholders' equity and cash flows for the years then ended.  The
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 is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting.
Our audit 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
also 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 the Company
as of December 31, 2007 and 2006 and the results of its operations and
cash flows for the years then ended, in conformity with accounting
principles generally accepted in the United States of America.



/s/ Rotenberg Meril Solomon Bertiger & Guttilla, P.C.


Saddle Brook, New Jersey
March 26, 2008






<PAGE>21

CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
BALANCE SHEET
December 31, 2007 and 2006

ASSETS
                                                  2007          2006
                                                 ------        ------
CURRENT ASSETS:
  Cash and cash equivalents                  $  245,199     $  270,482
  Assets of discontinued operations               6,202        163,825
                                             ----------     ----------
    TOTAL CURRENT ASSETS                        251,401        434,307
                                             ----------     ----------
TOTAL ASSETS                                 $  251,401        434,307
                                             ==========     ==========


LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Liabilities of discontinued operations     $   20,194      $  28,233
                                             ----------      ---------
    TOTAL CURRENT LIABILITIES                    20,194         28,233
                                             ----------      ---------
TOTAL LIABILITIES                                20,194         28,233
                                             ----------      ---------

COMMITMENT

STOCKHOLDERS' EQUITY:
  Preferred stock, par value $.001,
   authorized 10,000,000 shares, issued
   and outstanding -0- shares                        -               -
  Common stock, par value $.001, authorized
   100,000,000 shares, issued and
   outstanding 10,532,150 shares                10,532          10,532
  Additional paid-in-capital                   776,109         776,109
  Accumulated deficit                         (555,434)       (475,567)
  Accumulated other comprehensive income             -          95,000
                                             ---------       ---------
    TOTAL STOCKHOLDERS' EQUITY                 231,207         406,074
                                             ---------       ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 251,401      $  434,307
                                             =========      ==========





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




<PAGE>22
CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

                                                 2007         2006
                                              ----------   ----------
Revenue                                                -            -
                                              ----------   ----------
Operating Expenses
  Professional fees                              (28,063)     (31,394)
                                              ----------   ----------
    Total Operating Expenses                     (28,063)     (31,394)
                                              ----------   ----------
(Loss) from operations                    (28,063)     (31,394)
                                              ----------   ----------
Other Income (Expense)
  Interest income                                 10,361       11,125
  Gain on sale of marketable securities           25,120            -
  Miscellaneous income                            14,230            -
                                              ----------   ----------
    Total Other Income                            49,711       11,125
                                              ----------   ----------
Net Income (Loss) Before Income Taxes             21,648      (20,269)
Income Taxes                                           -            -
                                              ----------   ----------
Income (Loss) from Continued Operations           21,648      (20,269)

Discontinuing Operations:
  Loss from discontinued operations             (101,515)     (71,989)
  Income taxes                                         -            -
                                              ----------   ----------
  Loss from Discontinued Operations             (101,515)     (71,989)
                                              ----------   ----------
Net Loss                                         (79,867)     (92,258)
Other Comprehensive Income, net of taxes
  arising from unrealized gain on available
  for sale securities                                  -       95,000
Reclassification adjustment, net of income
   taxes                                         (95,000)           -
                                              ----------   ----------
Total Comprehensive Income (Loss)             $ (174,867)  $    2,742
                                              ==========   ==========

Earning (loss) per share:
  Continued Operations basic and diluted
    net loss per common share                 $    (0.00)  $    (0.00)
                                              ==========   ==========
  Discontinued Operations basic and diluted
    net loss per common share                 $    (0.01)  $    (0.01)
                                              ==========   ==========
  Basic and diluted weighted average common
   shares outstanding                         10,532,150   10,532,150
                                              ==========   ==========

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

<PAGE>23

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
                   STATEMENTS OF STOCKHOLDERS' EQUITY
             FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
<TABLE>
<CAPTION>
                                                   Common Stock
                                                  $.001 Par Value
                                                  ---------------       Additional
                                                Number                    Paid In
                                               of Shares     Amount       Capital
                                              ----------   ----------   ----------

                                           <c>          <c>          <c>
Balance, December 31, 2005                    10,532,150   $   10,532   $  776,109

Unrealized gain on available for sale
   securities, net of income taxes of $-0-             -            -            -

Net loss for the year                                  -            -            -
                                              ----------   ----------   ----------
Balance, December 31, 2006                    10,532,150       10,532      776,109

Reclassification adjustment net of
  -0- income taxes                                     -            -            -

Net loss for the year                                  -            -            -
                                              ----------   ----------   ----------
Balance, December 31, 2007                    10,532,150   $   10,532   $  776,109
                                              ==========   ==========   ==========
</TABLE>




<PAGE>24

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
CONTINUED          STATEMENTS OF STOCKHOLDERS' EQUITY
             FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
<TABLE>
<CAPTION>
                                                          Accumulated
                                                             Other
                                             Accumulated  Comprehensive
                                                Deficit      Income        Total
                                              ----------   ----------   ----------

                                           <c>          <c>          <<c>
Balance, December 31, 2005                    $ (383,309)  $       -    $  403,332

Unrealized gain on available for sale
  securities, net of income taxes of $-0-              -       95,000       95,000

Net loss for the year                            (92,258)           -      (92,258)
                                              ----------   ----------   ----------
Balance, December 31, 2006                      (475,567)      95,000      406,074

Reclassification adjustment net of
  -0- income taxes                                     -      (95,000)     (95,000)

Net loss for the year                            (79,867)           -      (79,867)
                                              ----------   ----------   ----------
Balance, December 31, 2007                    $ (555,434)  $        -   $  231,207
                                              ==========   ==========   ==========


</TABLE>





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




<PAGE>25

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
                        STATEMENTS OF CASH FLOWS
             FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006

                                                 2007         2006
                                              ----------   ----------
Net loss                                      $  (79,867)  $  (92,258)

Adjustments to reconcile net income to net
  cash used by continued operations:
    Depreciation                                   1,300        1,300
  Gain on sale of marketable securities          (25,120)           -
                                              ----------    ---------
  Cash (provided by) used in continued
   Operations                                    (23,820)       1,300

Cash provided by discontinued operations          48,284        3,020
                                              ----------   ----------
 Net cash provided by operating activities    $  (55,403)  $  (87,938)
                                              ==========   ==========
Cash Flows from Investing Activities:
  Proceeds from sale of marketable securities     30,120            -
                                              ----------   ----------
    Net cash provided by investing activities     30,120            -
                                              ----------   ----------

NET (DECREASE) INCREASE IN CASH AND CASH
 EQUIVALENTS                                     (25,283)     (87,938)
CASH AND CASH EQUIVALENTS - beginning of year    270,482      358,420
                                              ----------   ----------
CASH AND CASH EQUIVALENTS - end of year       $  245,199   $  270,482
                                              ==========   ==========




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




<PAGE>26

CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006

1.  THE COMPANY

NATURE OF BUSINESS
Creative Beauty Supply of New Jersey Corporation (the Company) was
incorporated in the State of New Jersey on October 1, 2003.  It was
formed pursuant to a resolution of the Board of Directors of Creative
Beauty Supply, Inc., ("CBS") as a wholly-owned subsidiary of that
company, a publicly traded New Jersey Corporation.  On January 1, 2004,
the assets and liabilities of CBS were contributed at book value to the
company, and this subsidiary was then spun-off by CBS to its
shareholders. This spin-off was done in contemplation of a merger which
occurred on March 19, 2004 between CBS and Global Digital Solutions,
Inc. ("Global"), a Delaware corporation whereby the former shareholders
of CBS became the owners of 100 percent of the common stock of the
Company.

On January 1, 2004, the Company commenced operations in the beauty
supply industry at both the wholesale and retail levels. The Company
sells cosmetic and beauty supplies to the general public and beauty
salons in Northern and Central New Jersey.

Discontinued Operations (see Note 10)
On November 30, 2007 the Company's Board of Directors approved a plan
to dispose of its wholesale and retail beauty supply business. The
Board recognized that this operation has never realized a profit and
that sales volumes have been declining each year. The Company's plan
was to contact its suppliers and return as much of the inventory as
possible and sell the remaining balance to its customers. The Company's
objective was to ceased all operations by December 31, 2007 and vacate
the facility it leased by January 31, 2008. As of December 31, 2007 the
Company disposed of all its inventory by way of sales, returns to
suppliers and sale to inventory liquidator and ceased its operations.

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation
The Company's consolidated financial statements are prepared in
conformity with US generally accepted accounting principles ("GAAP").

Reclassifications
Certain prior year amounts related to reporting the disposal of the
Company, as discontinued operations, have been reclassified to conform
to current year classification.

Use of Estimates
These financial statements and accompanying notes have been prepared in
accordance with GAAP.  The preparation of these financial statements
requires management to make estimates, judgments and assumptions that
affect the reported amounts of assets,



<PAGE>27

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Use of Estimates (Continued)
liabilities, revenues and expenses. The Company continually evaluates
the accounting policies and estimates used to prepare the consolidated
financial statements. The Company bases its estimates on historical
experiences and assumptions believed to be reasonable under current
facts and circumstances. Actual amounts and results could differ from
these estimates made by management.

Revenue Recognition
Net sales are recognized at the time products are shipped to customers.
Over the counter sales are recorded at point of sale.

Cash and Cash Equivalents
For financial statement purposes, short-term investments with an
original maturity of ninety days or less and highly liquid investments
are considered cash and cash equivalents.  Cash and cash equivalents
consist of a money market account.

Investments in Available for Sale Securities
The Company considers its investments in equity securities as
available-for-sale and has therefore reflected the investments at fair
value in the accompanying financial statements.  Realized gains and
losses are recorded in earnings (loss).  Changes in unrealized gains or
losses are excluded from earnings (loss) and reported as a component of
other comprehensive income (loss) in the stockholders' equity section
of the balance sheet.

Receivables and Credit Policies
Accounts receivable are uncollateralized customer obligations due under
normal trade terms requiring payment within 30 days from the invoice
date or as specified by the invoice and are stated at the amount billed
to the customer.  Customer account balances with invoices dated over 90
days or 90 days past the due date are considered delinquent.

Payments of accounts receivable are allocated to the specific invoices
identified on the customer's remittance advice, or if unspecified, are
applied to the earliest unpaid invoices.

The carrying amount of accounts receivable is reduced by a valuation
allowance that reflects management's best estimate of the amount that
will not be collected. Management individually reviews all accounts
receivable balances that are considered delinquent and based on an
assessment of current credit worthiness, estimates the portion, if any,
of the balance that will not be collected.  In addition, management
periodically evaluates the adequacy of the allowance based on the
Company's past experience.  Management considered accounts receivable
at December 31, 2007 and 2006 to be fully collectible; accordingly, no
allowance for doubtful accounts was provided for..



<PAGE>28

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Inventory
Inventory, consisting of finished goods, is valued at lower of cost or
market with cost being determined on the first-in, first-out (FIFO)
method. The Company also considers obsolescence, excessive levels,
deterioration and other factors in evaluating net realizable value.

Long-Lived Assets
The Company periodically evaluates the net realizable value of long
lived assets, including property and equipment, relying on a number of
factors including operating results, business plans, economic
projections and anticipated future cash flows.  Impairment in the
carrying value of an asset is recognized whenever future cash flows
(undiscounted) from an asset are estimated to be less than its carrying
value.  The amount of the impairment recognized is the difference
between the carrying value of the asset and its fair value.

Property and Equipment
Property and equipment are recorded at cost.  Depreciation of property
and equipment is provided for over the estimated useful lives of the
respective assets.  The estimated useful life of the Company's delivery
van is 5 years. Depreciation is recorded on the straight-line method.

Maintenance, repairs and minor renewals are charged to earnings when
they are incurred.  When assets are retired or otherwise disposed of,
the assets and related allowance for depreciation is eliminated from
the account and any resulting gain or loss is reflected in income.

Income Taxes
Deferred income taxes are provided on the liability method whereby
deferred income tax assets are recognized for deductible temporary
differences and operating loss carry forwards and deferred income tax
liabilities are recognized for taxable temporary differences.

Temporary differences are the differences between the reported amounts
of assets and liabilities and their tax basis.  Deferred income tax
assets are reduced by a valuation allowance when, in the opinion of
management, it is more likely than not that some portion or all of the
deferred tax assets will not be realized.  Deferred income tax assets
and liabilities are adjusted for the effects of changes in tax law and
rates on the date of enactment.

Earnings (Loss) per Share
The Company computes earnings or loss per share in accordance with
Statement of Accounting Standard No. 128, "Earnings per Share".  Basic
earnings per share is computed by dividing the net income (loss)
available to common stockholders by the weighted average number of
outstanding common shares.  Diluted earnings per share reflects the
potential dilution that could occur if securities or other agreements
to issue common stock were exercised or converted into common stock.
Diluted earnings per share is computed based upon the weighted average



<PAGE>29

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Earnings (Loss) Per Share (Continued)
of number of common shares and dilutive common equivalent shares
outstanding, which includes convertible debentures, stock options and
warrants.  There were no dilutive common stock equivalents for all
periods presented.

Comprehensive Income (Loss)
The Company reports components of comprehensive income (loss) under the
requirements of SFAS 130, "Reporting Comprehensive Income".  SFAS 130
establishes rules for the reporting of comprehensive income (loss) and
its' components which require that certain items be presented as
separate components of stockholders' equity.  For the years presented,
the Company's other comprehensive income (loss) consist solely of
unrealized gins (losses) from marketable securities available for sale.

Recently Issued Accounting Standards
In February 2006, FASB issued SFAS No. 155, "Accounting for Certain
Hybrid Financial Instruments" ("SFAS No. 155"). SFAS No. 155 amends
SFAS No 133, "Accounting for Derivative Instruments and Hedging
Activities", and SFAS No. 140, "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities". SFAS No. 155,
permits fair value remeasurement for any hybrid financial instrument
that contains an embedded derivative that otherwise would require
bifurcation, clarifies which interest-only strips and principal-only
strips are not subject to the requirements of SFAS No. 133, establishes
a requirement to evaluate interest in securitized financial assets to
identify interests that are freestanding derivatives or that are hybrid
financial instruments that contain an embedded derivative requiring
bifurcation, clarifies that concentrations of credit risk in the form
of subordination are not embedded derivatives, and amends SFAS No. 140
to eliminate the prohibition on the qualifying special-purpose entity
from holding a derivative financial instrument that pertains to a
beneficial interest other than another derivative financial instrument.
This statement is effective for all financial instruments acquired or
issued after the beginning of the Company's first fiscal year that
begins after September 15, 2006. SFAS No. 155 did not have a material
effect on the financial position or results of operations of the
Company.

In June 2006, the FASB issued Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes - an interpretation of FASB Statement No.
109" ("FIN 48"), which clarifies the accounting for uncertainty in
income taxes recognized in financial statements in accordance with FASB
No. 109,"Accounting for Income Taxes". FIN 48 prescribes a recognition
threshold and measurement attribute for the financial statement
recognition and measurement of a tax position taken or expected to be
taken in a tax return. The provisions of FIN 48 are effective for
fiscal years beginning after December 15, 2006, with the cumulative
effect of the change in accounting principle recorded as an adjustment
to opening retained earnings. FIN 48 did not have a material effect on
the financial position or results of operations of the Company.



<PAGE>30

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recently Issued Accounting Standards (Continued)
In September 2006, the FASB issued SFAS No. 157, "Fair Value
Measurements."  This statement defines fair value, establishes a
framework for measuring fair value, and expands disclosures about fair
value measurements.  SFAS No. 157 will be effective for the Company
beginning January 1, 2008.  The adoption of SFAS No. 157 is not
expected to have a material effect on the Company's financial condition
or results of operations.

In September 2006, FASB issued SFAS 158 'Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plans--an amendment of
FASB Statements No. 87, 88, 106, and 132(R)' This Statement improves
financial reporting by requiring an employer to recognize the over
funded or under funded status of a defined benefit postretirement plan
(other than a multiemployer plan) as an asset or liability in its
statement of financial position and to recognize changes in that funded
status in the year in which the changes occur through comprehensive
income of a business entity or changes in unrestricted net assets of a
not-for-profit organization.  This Statement also improves financial
reporting by requiring an employer to measure the funded status of a
plan as of the date of its year-end statement of financial position,
with limited exceptions.  An employer with publicly traded equity
securities is required to initially recognize the funded status of a
defined benefit postretirement plan and to provide the required
disclosures as of the end of the fiscal year ending after December 15,
2006. An employer without publicly traded equity securities is required
to recognize the funded status of a defined benefit postretirement plan
and to provide the required disclosures as of the end of the fiscal
year ending after June 15, 2007.  However, an employer without publicly
traded equity securities is required to disclose the following
information in the notes to financial statements for a fiscal year
ending after December 15, 2006, but before June 16, 2007, unless it has
applied the recognition provisions of this Statement in preparing those
financial statements: (1) a brief description of the provisions of this
Statement; (2) the date that adoption is required and (3) the date the
employer plans to adopt the recognition provisions of this Statement,
if earlier.  The Company does not have a defined benefit plan and this
pronouncement had no impact on the Company's financial statements.

FASB Staff Position (FSP) No. 00-19-2, Accounting for Registration
Payment Arrangements, was issued in December 2006 to address an
issuer's accounting for registration payment arrangement. The FSP
specifies that the contingent obligation to make future payments or
otherwise transfer consideration under a registration payment
arrangement should be separately recognized and measured in accordance
with SFAS No. 5, Accounting for Contingencies.  For registration
payment arrangements and financial instruments subject to those
arrangements that were entered into prior to the issuance of this FSP
and that continues to be outstanding at the adoption date, this
guidance is effective for fiscal years beginning after December 15,
2006 and interim periods within those fiscal years. Retrospective
application of the guidance in this FSP to financial statements for



<PAGE>31

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recently Issued Accounting Standards (Continued)
earlier interim or annual periods presented is not permitted.  The
adoption of FSP 00-19-2 did not have an impact on our financial
position, results of operations or cash flows.

In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option
for Financial Assets and Financial Liabilities" ("SFAS 159").  SFAS 159
allows entities the option to measure eligible financial instruments at
fair value as of specified dates.  Such election, which may be applied
on an instrument by instrument basis, is typically irrevocable once
elected.  SFAS 159 is effective for fiscal years beginning after
November 15, 2007.  The implementation of this guidance is not expected
to have any impact on the Company's financial statements.

In June 2007, the Emerging Issues Task Force ("EITF") issued EITF 07-3,
"Accounting for Nonrefundable Advance Payments for Goods or Services to
Be Used in Future Research and Development Activities," which provides
guidance on the accounting for certain nonrefundable advance payments
for goods or services that will be used or rendered for future research
and development activities.  This issue is effective prospectively for
fiscal years beginning after December 15, 2007, or fiscal 2009 for the
Company.  The implementation of this guidance is not expected to have
any impact on the Company's financial statements.

In December 2007, the FASB issued FAS 141(R), "Business Combinations -
a replacement of FASB Statement No. 141", which significantly changes
the principles and requirements for how the acquirer of a business
recognizes and measures in its financial statements the identifiable
assets acquired, the liabilities assumed, and any noncontrolling
interest in the acquiree. The statement also provides guidance for
recognizing and measuring the goodwill acquired in the business
combination and determines what information to disclose to enable users
of the financial statements to evaluate the nature and financial
effects of the business combination. This statement is effective
prospectively, except for certain retrospective adjustments to deferred
tax balances, for fiscal years beginning after December 15, 2008. This
statement will be effective for the Company beginning in fiscal 2009.
The Company is currently evaluating FAS 141(R), and has not yet
determined the impact if any, FAS 141(R) will have on its results of
operations or financial position.

In December 2007, the FASB issued SFAS No. 160, Noncontrolling
Interests in Consolidated Financial Statements-an amendment of ARB No.
51. This Statement amends ARB 51 to establish accounting and reporting
standards for the noncontrolling interest in a subsidiary and for the
deconsolidation of a subsidiary. It clarifies that a noncontrolling
interest in a subsidiary is an ownership interest in the consolidated
entity that should be reported as equity in the consolidated financial
statements. In addition to the amendments to ARB 51, this Statement
amends FASB Statement No. 128, Earnings per Share; so that earnings-
per-share data will continue to be calculated the same way those data
were calculated before this Statement was issued.  This Statement is

<PAGE>32

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Recently Issued Accounting Standards (Continued)
effective for fiscal years, and interim periods within those fiscal
years, beginning on or after December 15, 2008.  The implementation of
this guidance is not expected to have any impact on the Company's
financial statements.


3.  CONCENTRATION OF CREDIT RISK:

The Company sells its product to various customers primarily in
Northern and Central New Jersey.  The Company performs ongoing credit
evaluations on its customers and generally does not require collateral.

The Company maintains its cash balances with a major bank.  The
balances are insured by the Federal Deposit Insurance Corporation up to
$100,000 per depositor. At December 31, 2007, the Company's uninsured
cash balances approximated $ 148,700.

4.  SUPPLIER CONCENTRATION:

For the years ended December 31, 2007 and 2006 the Company purchased
approximately 56% of its products from one supplier.  Management
believes other suppliers could provide similar products on comparable
terms.  A change in suppliers, however, could cause a delay in
merchandise and possible loss of sales which could affect operating
results.

5.  FAIR VALUE OF FINANCIAL INSTRUMENTS:

The Company measures its financial assets and liabilities as required
by SFAS No. 107, "Disclosure About Fair Value of Financial
Instruments".  Cash and cash equivalents, trade receivables, accounts
payable and accrued expenses are carried at book value amounts which
approximates fair value due to their short-term maturities.



<PAGE>33

6.  MARKETABLE SECURITIES:

During 2007 and 2006, sales proceeds and realized gains and losses on
securities classified as available-for-sale were:

                                             2007         2006
                                           --------      -------
Sales Proceeds                             $ 30,120      $     -
                                           ========      =======
Realized Gain                              $ 25,120      $     -
                                           ========      =======

The method used to determine the cost of securities sold was actual
cost per share.

7.  INCOME TAXES:

The deferred income tax assets and liabilities at December 31, 2007
relate to temporary differences between the financial statement
carrying amounts and their tax basis.  Assets and liabilities that give
rise to significant portions of the net deferred tax assets and
liabilities relate to the following:

Net operating loss carry forwards                     $  139,960
Capital loss carry forwards                               64,440
                                                      ----------
                                                         204,400
Valuation allowance                                     (204,400)
                                                      ----------

Net income tax assets                                 $        -
                                                      ==========

A valuation allowance has been established equal to the full amount of
the deferred tax assets as the Company is not assured at December 31,
2007  that it is more likely than not that these benefits will be
realized.

The change in valuation allowance for the year ended December 31, 2007
was a increase of $56,800 due to increases in federal and state net
operating loss carry forwards and capital loss carry forwards net of a
decrease in inventory valuations.

At December 31, 2007, the Company has unused Federal net operating loss
carry forwards of approximately $380,500 expiring between 2023 and 2027
and unused New Jersey net operating loss carry forwards of
approximately $377,400 expiring between 2012 and 2014.

8.  SUPPLEMENTAL CASH FLOW INFORMATION:

There was no interest or income taxes paid during the years ended
December 31, 2007 and 2006.



<PAGE>34

9.  COMMITMENTS:

The Company was obligated as assignee under an operating lease
agreement with an unrelated party for the space occupied by its
executive offices, store, and warehouse facilities in Totowa, New
Jersey.  This lease which was the obligation of CGS, was assigned to
the Company on January 1, 2004.  The lease expired on April 30, 2004,
with a monthly rent of $1,300.  This lease was renewed in April 2004
for a 35 month term expiring on April 30, 2007 requiring a monthly rent
of $1,350. This lease was not renewed and the Company continued to
lease the space for $1,350 per month on a month to month basis.  The
Company vacated the premises during January 2008 in connection with
ceasing operations, as discussed in Note 10.

Rent expense for the year ended December 31, 2007 and 2006 was $16,200
in each year.

10.  DISCONTINUED OPERATIONS:

On November 30, 2007 the Company's Board of Directors approved a plan
to dispose of its wholesale and retail beauty supply business. The
Board recognized that this operation has never realized a profit and
that sales volumes have been declining each year. The Company's plan
was to contact its suppliers and return as much of the inventory as
possible and sell the remaining balance to its customers. The Company's
objective was to ceased all operations by December 31, 2007 and vacate
the facility it leased by January 31, 2008. As of December 31, 2007 the
Company disposed of all its inventory by way of sales, returns to
suppliers and sale to inventory liquidator and ceased its operations.

Assets and liabilities of discontinued operations as of December 31,
2007 are summarized as follows:

Current Assets:
   Accounts receivable, trade                      $    2,503
   Prepaid expenses                                     2,399
   Property and equipment, net of
     accumulated depreciation                           1,300
                                                   ----------
     Total Assets of Discontinued Operations            6,202
                                                   ----------

Current Liabilities:
   Payroll taxes withheld and accrued                   2,130
   Accrued expenses                                    18,064
                                                   ----------
Total Liabilities of Discontinued Operations           20,194
                                                   ----------
Net Liabilities of Discontinued Operations         $   13,992
                                                   ==========



<PAGE>35

10.  DISCONTINUED OPERATIONS (Continued)

Results of discontinued operations for the years ended December 31,
2007 and 2006 are summarized as follows:

                                              2007           2006
                                            -------         ------
Net Sales                              $   124,404         $   133,803

     Cost of Sales                         119,393             100,722
                                       -----------         -----------
     Gross Profit                            5,011              33,081
                                       -----------         -----------

     Operating Expenses:
        Salaries - officers                 32,050              32,030
        Employee benefits                   18,403              17,051
        Professional fees                   16,680              15,081
        Rent                                16,200              16,200
        Other general and administrative    23,193              24,708
                                       -----------         -----------
            Total Operating Expenses       106,526             105,070
                                       -----------         -----------
    Loss from Discontinued Operations,
      net of income taxes of -0-       $  (101,515)        $   (71,989)
                                       ===========         ===========

Cash flows from discontinued operations for the years ended December
31, 2007 and 2006 are summarized by major classification as follows:

                                                 2007        2006
                                                ------      ------
Cash flows provided by operating activities   $ 48,284     $  3,020

Cash flows from investing activities                 -            -

Cash flows from financing activities                 -            -
                                              --------     --------
   Net cash used in discontinued operations   $ 48,284     $  3,020
                                              ========     ========

The components of property and equipment for discontinued operations at
December 31, 2007 consisted of:

   Delivery equipment                                    $    6,497
     Less Accumulated depreciation                            5,197
                                                         ----------
   Net book value                                        $    1,300
                                                         ==========

Depreciation expense included in "Loss from Discontinued Operations"
amounted to $1,300 for each of the years ended December 31, 2007 and
2006, respectively.



<PAGE>36

10.  DISCONTINUED OPERATIONS (Continued)

Wholesale sales consist of sales to beauty salons of merchandise for
resale.  Sales   of merchandise to beauty salons for their own
consumption, not for resale, are considered retail sales.  All sales to
the general public are also considered retail sales.

Net sales from discontinued operations are summarized as follows for
the years ended December 31, 2007 and 2006:

                                              Year ended December 31,
                                              2007              2006
                                             ------            ------
  Retail                                   $ 73,797           $ 77,446
  Wholesale                                  50,607             56,357
                                           --------           --------
                                           $124,404           $133,803
                                           ========           ========