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, 2006
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    ____          No  __x___



<PAGE>2

The Company's revenues for the year ended December 31, 2006 were
$133,803.   As of February 28, 2007, 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, 2006 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.

There is not expected to be any material changes in Creative NJ's
operations as a result of the spin-off.

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 operates as a cosmetic and beauty
supply distributor at both the retail and wholesale levels.   Creative
NJ's various beauty and cosmetic products are 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.

Products.  Creative NJ's beauty and cosmetic products primarily
consist of the following items: Shampoos, conditioners, mousse,
setting/styling and spray gels, lotions, lipstick and nail products
and hair sprays as well as such beauty and cosmetic related
appliances as blow dryers, curling irons, mirrors, air diffusers and
hair trimmers.  Many of the aforesaid products (at least 80%) may be
considered to be national brands bearing consumer recognition with
respect to their respective names.  Such consumer recognition of
such brand names is considered by Creative NJ to be of assistance to
it with respect to sale of such products since consumer recognition
is advanced by national brand media advertising (at no cost to
Creative NJ but to Creative NJ's benefit) when potential customers
are already familiar with the product as a result of media
advertising.

<PAGE>4

Suppliers.  The above indicated products are purchased by Creative NJ
from a number of unaffiliated suppliers and management of Creative NJ
does not contemplate or anticipate any significant difficulties with
its ability to purchase such products from its current suppliers and/or
from replacement and/or additional suppliers if and when necessary or
advisable.  Creative NJ does not have any written or oral agreements
with any of its suppliers.  Creative NJ purchases approximately 50% to
60% of its products from New York City Beauty Supply.  Management
believes that other suppliers could provide similar products on
comparable terms.  A change in suppliers, however, could cause a delay
in obtaining merchandise and possible loss of sales that could affect
operating results.

Distribution.  Creative NJ is currently distributing its products to
approximately 200 nail and beauty salons.  Its territory is principally
and almost exclusively located within the northern and central portion
of the State of New Jersey, in the counties of Essex, Hudson, Bergen,
Passaic, Morris and Union.

Creative NJ sells cosmetic and beauty supplies, both on the retail and
wholesale levels to beauty salons and to the general public.  No
customer contributes more than 10% of revenues.  Creative NJ operates
in a single segment.

Wholesale sales consist of sales to beauty salons of merchandise for
resale.  Sales of merchandise to these customers for consumption in the
course of providing hair care services, and not for the resale are
considered retail sales.  All sales to the general public are also
considered retail sales.

Net sales are summarized as follows:

                                Year ended December 31,
                                   2006         2005
                                ----------   ----------
     Retail                     $   77,446   $   84,882
     Wholesale                      56,357       51,222
                                ----------   ----------
                                $  133,803   $  136,104
                                ==========   ==========


Competition.   Competition is based on price.  Creative NJ's price
ranges of its various products are within the manufacturer-suggested
prices, services and product lines.  Creative NJ is competing with
established companies and other entities (many of which may possess
substantially greater resources than Creative NJ).  Almost all of
the companies with which Creative NJ competes are substantially
larger, have more substantial histories, backgrounds, experience and



<PAGE>5

records of successful operations, greater financial, technical,
marketing and other resources, more employees and more extensive
facilities than Creative NJ now has, or will have in the foreseeable
future.  It is also likely that other competitors will emerge in the
near future.  There is no assurance that Creative NJ's products will
compete successfully with other established and/or well-regarded
products. Inability to compete successfully might result in
increased costs, reduced yields and additional risks to the
investors herein.

Marketing.  Creative NJ has no formal marketing plan and no sales
representatives.  Creative NJ's products are marketed through catalog
advertising to the salon industry and special promotions.  The salons
order and receive their products weekly.  No customer accounts for more
than 10% of sales and there are no existing sales contracts.

Backlog.  Creative NJ services its wholesale accounts on two days
notice. There is no backlog.  If Creative NJ does not have a specific
item, it is back ordered until the next delivery.

Employees.  Creative NJ currently has one full-time employee and one
part-time employee.  Creative NJ does not plan to hire additional
employees in the next twelve months.

Creative NJ's operations do not depend nor are they expected to depend
upon patents, copyrights, trade secrets, know-how or other proprietary
information.  No amounts have been expended by Creative NJ for research
and development of any products nor does Creative NJ expect to expend
any amounts this year or in the near future.

Creative NJ's business, products and properties are not subject to
material regulation (including environmental regulation) by federal,
state, or local governmental agencies.

Seasonal Nature of Business Activities.  Creative NJ's business
activities are not seasonal.

ITEM 2.  PROPERTIES.

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 that was the obligation of CBS, 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.

Rent expense for each of the years ended December 31, 2006 and 2005 was
$16,200.

The future lease payments at December 31, 2006 are $5,400.

<PAGE>6

ITEM 3.  LEGAL PROCEEDINGS.

The Company 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, 2006, no
matters were submitted to a vote of Creative Beauty Supply of New
Jersey Corporation security holders, through the solicitation of
proxies.





<PAGE>7

                  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.
Creative NJ plans to apply to the OTC Bulletin Board.

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, 2006, the approximate number of record
holders 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.

Trends and Uncertainties.  Demand for Creative NJ's products will be
dependent on, among other things, market acceptance of Creative NJ's
concept and general economic conditions, which are cyclical in
nature.  Inasmuch as all of Creative NJ's activities are the receipt
of revenues from the sales of its products, Creative NJ's business
operations may be adversely affected by Creative NJ's competitors.
Our sales have been decreasing due to increased competition from
other beauty supply stores and changes in customer preferences.
These decreases may continue even if we identify and obtain other
product lines.  To date, no types of product lines have been
identified and no timeframes established or cash needs defined.

Capital and Source of Liquidity.

At December 31, 2006, Creative NJ had cash and cash equivalents of
$270,482, a decrease of $87,938 from the cash and cash equivalents
balance of $358,420 at December 31, 2005.  At December 31, 2005,
Creative NJ had cash and cash equivalents of $358,420, an increase of
$145,079 from the cash and cash equivalents balance of $213,341 at
December 31, 2004.

Cash used in operating activities totaled $87,938 for the year ended
December 31, 2006 compared to $136,403 for the year ended December 31,
2005.  The primary reason for the decrease from year to year was due to
a lower prior years' accounts payable being paid in 2006 versus 2005.

The Company's marketable securities consist of 100,000 shares of common
stock of Proguard Acquisition Corp., a company trading on the Over The
Counter Bulletin Board.   The Company has entered into an agreement with



<PAGE>8

an unrelated third party for the sale of these shares at a price of
$1.00 per share for a total of $100,000.  The option agreement expired
on November 4, 2006 but was extended to March 31, 2007.

In 2005, Creative NJ had an investment in 200,000 common shares of Ram
Venture Holdings Corp. (RAM), a publicly trading company listed on NASD
Bulletin Board, at an original cost of $200,000.  No relationship or
affiliation ever existed between Creative NJ and Ram or CBS and Ram.
At June 30, 2005, management determined that the Company's investment
was worthless.  A loss of $200,000 was recorded.

For the year ended December 31, 2006, Creative NJ did not have net cash
flows from investing and financing activities.  In 2005, Creative NJ
had the following investing and financing activities:

On November 12, 2005, the Board of Directors authorized the issuance of
4,887,500 shares of common stock at $.04 per share to the brother of
Creative NJ's President in exchange for 8,500 shares of common stock of
Arena Resources, Inc., a publicly traded company on the American Stock
Exchange, with a fair value of $23 per share ($195,500).  The Company
sold the shares and received, net of commissions on sale, $195,482.

In December 2005, Creative NJ issued 2,150,000 shares of common stock
to its President for $86,000.

Results of Operations.

Creative NJ sells approximately 1,000 different products at varying
mark ups ranging from 20 to 40 percent.

For the year ended December 31, 2006, Creative NJ had net sales of
$133,803 and cost of sales of $100,722 resulting in gross profit of
$33,081.  Comparatively, for the year ended December 31, 2005, Creative
NJ had net sales of $136,104 and cost of sales of $98,563 resulting in
gross profit of $37,541.  Sales and gross profit declined in 2006 due
to the increased competition from other beauty supply stores and
changes in customer preference in products.

For the year ended December 31, 2006, Creative NJ had operating
expenses of $136,464.  A majority of these expenses consisted of those
necessary to conduct our business that have not materially decreased or
increased from prior periods.  We incurred $46,475 for professional
fees necessary to continue as a reporting company.

For the year ended December 31, 2005, Creative NJ had operating
expenses of $143,028.  A majority of these expenses consisted of those
necessary to conduct our business that have not materially decreased or
increased from prior periods.  We incurred $52,284 for professional
fees necessary to become and continue as a reporting company.

Plan of Operation.  During the next twelve months, Creative NJ may
obtain new product lines by negotiating with various manufacturers.
Creative NJ does not intend to hire any additional employees.

<PAGE>9

To date, no types of product lines have been identified and no
timeframes established or cash needs defined.  Creative NJ has not
   -  made any contacts,
   -  had any discussions,
   -  made any arrangements, nor
   -  have any understanding

with any third parties regarding obtaining new product lines.

Creative NJ is not delinquent on any of its obligations even though
Creative NJ has had limited operating revenues.  Creative NJ intends to
market its products utilizing cash made available from the sale of its
products.  Creative NJ is of the opinion that revenues from the sales
of its products will be sufficient to pay its expenses.

Creative NJ does not have nor does it intend to have pension and/or
other post-retirement benefits in the future.

Creative NJ does not have any or intends to have any derivative
instruments or hedging activities.

Critical Accounting Policies

The preparation of financial statements and related disclosures in
conformity with accounting principles generally accepted in the United
States of America requires management to make judgments, assumptions
and estimates that affect the amounts reported in Creative NJ's
financial statements and the accompanying notes.  The amounts of assets
and liabilities reported in our balance sheets and the amounts of
revenues and expenses reported for each of our fiscal periods are
affected by estimates and assumptions which are used for, but not
limited to, the accounting for allowance for doubtful accounts, fair
market values of marketable securities, asset impairments, inventory
and income taxes.  Actual results could differ from these estimates.

The following critical accounting policies are significantly affected
by judgments, assumptions and estimates used in the preparation of the
financial statements.

Revenue Recognition
Revenue is recognized when earned in accordance with applicable
accounting standards.  Net sales are recognized at the time products
are shipped to customers.  Over-the-counter sales are recorded at point
of sale.

Receivables and Credit Policies

Accounts receivable are uncollateralized customer obligations due under
normal trade terms requiring payment within thirty (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.


<PAGE>10

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.

Investment in Available For Sale Securities
Creative NJ classifies its investments in equity securities as
available-for-sale and reports them at fair value.  Realized gains and
losses are recorded in earnings (loss) and changes in the unrealized
gain or loss is excluded from earnings (loss) and reported as a
component of other comprehensive income (loss).

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.  Creative NJ also considers obsolescence, excessive levels,
deterioration and other factors in evaluating net realizable value.

Recent Accounting Pronouncements

The Financial Accounting Standards Board ("FASB") issued Interpretation
No. 47 ("FIN 47"), "Accounting for Conditional Asset Retirement
Obligations" in March 2005. FIN 47 clarifies that an entity must record
a liability for a conditional assets retirement obligation if the fair
value of the obligation can be reasonably estimated. This
Interpretation also clarifies the circumstances under which an entity
would have sufficient information to reasonably estimate the fair value
of an asset retirement obligation. This Interpretation is effective no
later than the end of fiscal years ending after December 12, 2005. This
guidance did not have a material effect on the Company's financial
statements.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and
error Corrections - a replacement of APB Opinion No. 20 and FASB
Statement No. 3". This Statement requires retrospective application to
prior periods' financial statements of changes in accounting principle,
unless it is impracticable to determine either the period-specific
effects or the cumulative effect of the change.  The statement is
effective for accounting changes and corrections of errors made in
fiscal years beginning after December 15, 2005. This statement did not
have a material effect on the Company's financial statements.

In July 2006, the FASB published FASB Interpretation No. 48 ("FIN No.
48"), "Accounting for Uncertainty in Income Taxes, to address the non-
comparability in reporting tax assets and liabilities resulting from a
lack of specific guidance in FASB Statement of Financial accounting
Standards ("SFAS" No. 109, Accounting for Income Taxes, on the
uncertainty in income taxes recognized in an enterprise's financial
statements. FIN 48 will apply to fiscal years beginning after December
15, 2006. The adoption of FIN 48 is not expected to have a material
effect on the Company's financial condition or results of operations.

<PAGE>11

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. Management is currently evaluating the
effects SFAS No. 157 will have on the Company's financial condition or
results of operations.

In September 2006, the SEC issued Staff Accounting Bulletin ("SAB") No.
108, "Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements" (SAB
108), to provide guidance on the consideration of the effects of prior
year misstatements in quantifying current year misstatements for the
purpose of a materiality assessment. Under SAB 108, companies should
evaluate a misstatement based on its impact on the current year income
statement, as well as the cumulative effect of correcting such
misstatements that existed in prior years existing in the current
year's ending balance sheet. SAB 108 will become effective for the
Company in its fiscal year ending June 30, 2007. The Company is
currently evaluating the impact of the provisions of SAB 108 on its
consolidated financial statements.

In September 2006, FASB issued SFAS No. 158, "Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plan", an amendment of
FASB Statement No. 87, 88, 106, and 132 (R). SFAS No. 158 requires
companies to recognize the over-funded or under-funded status of their
defined benefit postretirement plans as an asset or liability and to
recognize changes in that fund status in the year in which the change
occur through comprehensive income. The Company has adopted SFAS No.
158 on December 31, 2006. The adoption of SFAS No. 158 does not to have
a material effect on the Company's financial condition or results of
operations.

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.


<PAGE>12

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

Controls and Procedures.  Carmine Catizone, the chief executive officer
and Daniel Generelli, the chief financial officer of Creative NJ have
made an evaluation of the disclosure controls and procedures relating
to the financial statements of Creative NJ for the year ended December
31, 2006 and have judged such controls and procedures to be effective
as of December 31, 2006 (the evaluation date).

There have not been any significant changes in the internal controls of
Creative NJ or other factors that could significantly affect internal
controls relating to Creative NJ since the evaluation date.

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 55      President, Director   October 1, 2003
                                                       to present

Daniel Generelli, age 37      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.

Carmine Catizone, Daniel Generelli and Pasquale Catizone would be
deemed to be promoters of Creative NJ.

Section 16(a) Beneficial Ownership Reporting Compliance

To the Company'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      2006  $30,000      ---         ---            ---         ---             ---          ---
   President          2005  $30,000      ---         ---            ---         ---             ---          ---
                      2004  $30,000      ---          ---            ---        ---             ---          ---

Daniel Generelli      2006   $2,030      ---          ---            ---        ---             ---          ---
  Secretary/Treasurer 2005   $2,260      ---          ---            ---        ---             ---          ---
                      2004   $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 February 28, 2007
<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.

Spin-off from Predecessor.

On January 1, 2004, the assets and liabilities of CBS were contributed
at book value which represented fair value at January 1, 2004, 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.  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 Memorandum of Understanding between CBS and Global
Digital, Creative NJ and Carmine Catizone, Pasquale Catizone and
their families have agreed to indemnify Global from any claims
arising from existing liabilities of CBS prior to the closing that
occurred on March 19, 2004.  Carmine Catizone was President and
Chief Executive Officer of CBS through the closing date of the
merger, and is currently President of Creative NJ and Pasquale
Catizone was a stockholder of CBS through the closing date of the
merger.

There are no other agreements between Global Digital Solutions, Inc.
and Creative NJ post spin-off.  The spin-off includes all the
operations, assets and liabilities of the Creative NJ subsidiary.

Global Digital does not retain any liability once the spin-off is
completed and Global Digital and Creative NJ will mutually release
each other from any claims after the spin-off.

On November 12, 2005, the board of directors authorized the issuance of
4,887,500 shares of common stock to Pasquale Catizone, the brother of
the Company's president, at $.04 per share in exchange for 8,500 shares
of common stock of Arena Resources, Inc., with a fair value of $23 per
share ($195,500).  The Company sold the shares and received, net of
commissions on sale, $195,482.

On December 3, 2005, the board of directors authorized the sale and
issuance of 1,250,000 shares of common stock to Carmine Catizone, the
Company's president at $.04 per share ($50,000).  On December 20, 2005,
the board of directors authorized the sale and issuance of 900,000
shares of common stock to the Company's president at $.04 per share
($36,000).

Director Independence

The Company'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

<PAGE>17

system.  During the fiscal year ended December 31, 2006 there were no
transactions with related persons other than as described in the
section above entitled "Item 10.  Executive Compensation.


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, 2006 and 2005 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 $13,400 and $15,074.

Audit related fees.  The aggregate fees billed for the fiscal years
ended December 31, 2006 and 2005 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 2006 and 2005 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
2006 and 2005 fiscal years.



<PAGE>18

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 2006 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>19

                  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 12, 2007

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 12, 2007        /s/ Carmine Catizone
                            ---------------------
                            By: Carmine Catizone
                               President, Chief Executive Officer

       March 12, 2007        /s/Daniel Generelli
                           ----------------------
                           By: Daniel Generelli
                               Chief Financial Officer and
                                Controller
</TABLE>



<PAGE>20

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION

                     INDEX TO FINANCIAL STATEMENTS


                                                              Page

REPORT OF INDEPENDENT REGISTERED ACCOUNTING FIRM               21

FINANCIAL STATEMENTS:
  Balance Sheet                                                22

  Statements of Operations and Comprehensive Loss              23

  Statements of Stockholders' Equity                           24

  Statements of Cash Flows                                     26

  Notes to Financial Statements                                28




<PAGE>21

           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 sheet of Creative Beauty
Supply of New Jersey Corporation as of December 31, 2006 and the
related statements of operations and comprehensive loss, stockholders'
equity and cash flows for the years ended December 31, 2006 and 2005.
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.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.  An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation.  We believe that our audits
provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of the Company
as of December 31, 2006 and the results of its operations and cash
flows for the years ended December 31, 2006 and 2005, in conformity
with accounting principles generally accepted in the United States of
America.



/s/ Rotenberg Meril Solomon Bertiger & Guttilla, P.C.
ROTENBERG MERIL SOLOMON BERTIGER & GUTTILLA, P.C.


Saddle Brook, New Jersey
March 12, 2007






<PAGE>22

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

                                ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                                $  270,482
  Marketable securities                                       100,000
  Accounts receivable                                           1,665
  Inventory                                                    56,830
  Prepaid expenses                                              2,731
                                                           ----------
    TOTAL CURRENT ASSETS                                      431,708

PROPERTY AND EQUIPMENT, net of accumulated depreciation         2,599
                                                           ----------
TOTAL ASSETS                                               $  434,307
                                                           ==========


                  LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Accounts payable - trade                                 $   10,916
  Payroll taxes payable                                           631
  Accrued expenses                                             16,686
                                                           ----------
    TOTAL CURRENT LIABILITIES                                  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
  Additional paid-in-capital                                  776,109
  Accumulated deficit                                        (475,567)
  Accumulated other comprehensive income                       95,000
                                                           ----------
    TOTAL STOCKHOLDERS' EQUITY                                406,074
                                                           ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                 $  434,307
                                                           ==========





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




<PAGE>23

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
        STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
             FOR THE YEARS ENDED DECEMBER 31,2006 AND 2005


                                                 2006         2005
                                              ----------   ----------
Net Sales                                     $  133,803   $  136,104

Cost of Sales                                    100,722       98,563
                                              ----------   ----------
Gross Profit                                      33,081       37,541
                                              ----------   ----------
Operating Expenses
  Salaries - officers                             32,030       32,260
  Employee benefits                               17,051       14,545
  Professional fees                               46,475       52,284
  Rent                                            16,200       16,200
  Other general and administrative                24,708       27,739
                                              ----------   ----------
    Total Operating Expenses                     136,464      143,028
                                              ----------   ----------
Loss from operations                            (103,383)    (105,487)
                                              ----------   ----------

Other Income (Expense)
  Interest income                                 11,125        3,928
  Loss on marketable securities                        -     (200,018)
                                              ----------   ----------
    Total Other Income (Expense)                  11,125     (196,090)
                                              ----------   ----------
Net Loss                                         (92,258)    (301,577)

Other Comprehensive Income, net of taxes:
  Unrealized gain on securities held for sale
   net of income taxes of $-0- and $-0-           95,000            -
  Reclassification adjustment, net of income
   taxes of $-0- and $-0-                              -      138,000
                                              ----------   ----------
Total Comprehensive Income (Loss)             $    2,742   $ (163,577)
                                              ==========   ==========

Earning (loss) per share:
  Basic and diluted net loss per common share $    (0.01)  $    (0.07)
                                              ==========   ==========
  Basic and diluted weighted average common
   shares outstanding                         10,532,150    4,273,794
                                              ==========   ==========





The accompanying notes are an integral part of these financial
statements

<PAGE>24

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
                   STATEMENTS OF STOCKHOLDERS' EQUITY
             FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
<TABLE>
<CAPTION>
                                                   Common Stock
                                                  $.001 Par Value
                                                  ---------------       Additional
                                                Number                    Paid In
                                               of Shares     Amount       Capital
                                              ----------   ----------   ----------

                                           <c>          <c>          <c>
Balance, December 31, 2004                     3,494,650   $    3,495   $  501,646

Issuance of common stock for cash              2,150,000        2,150       83,850

Issuance of common stock for marketable
  securities                                   4,887,500        4,887      190,613

Reclassification adjustment for realized
  loss, net of taxes of $-0-                           -            -            -

Net loss for the year                                  -            -            -
                                              ----------   ----------   ----------
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
                                              ==========   ==========   ==========
</TABLE>




<PAGE>25

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
CONTINUED          STATEMENTS OF STOCKHOLDERS' EQUITY
             FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005
<TABLE>
<CAPTION>
                                                          Accumulated
                                                             Other
                                             Accumulated  Comprehensive
                                                Deficit      Income        Total
                                              ----------   ----------   ----------

                                           <c>          <c>          <<c>
Balance, December 31, 2004                    $  (81,732)  $ (138,000)  $  285,409

Issuance of common stock for cash                      -            -       86,000

Issuance of common stock for marketable
  securities                                           -            -      195,500

Reclassification adjustment for realized
  loss, net of taxes of $-0-                           -      138,000      138,000

Net loss for the year                           (301,577)           -     (301,577)
                                              ----------   ----------   ----------
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
                                              ==========   ==========   ==========
</TABLE>





The accompanying notes are an integral part of these financial
statements




<PAGE>26

            CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
                        STATEMENTS OF CASH FLOWS
             FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

                                                 2006         2005
                                              ----------   ----------
Cash Flows from Operating Activities:
  Cash received from customers                $  133,228   $  136,381
  Cash paid to suppliers and employees          (232,291)    (276,712)
  Interest paid                                        -            -
  Income taxes paid                                    -            -
  Interest received                               11,125        3,928
                                              ----------   ----------
     Net cash used in operating activities       (87,938)    (136,403)
                                              ----------   ----------

Cash Flows from Investing Activities:
  Proceeds from sale of marketable securities          -      195,482
                                              ----------   ----------
    Net cash provided by investing activities          -      195,482
                                              ----------   ----------

Cash Flows from Financing Activities:
  Cash received from issuance of common stock          -       86,000
                                              ----------   ----------
    Net cash provided by financing activities          -       86,000
                                              ----------   ----------

NET (DECREASE) INCREASE IN CASH AND CASH
 EQUIVALENTS                                     (87,938)     145,079
CASH AND CASH EQUIVALENTS - beginning of year    358,420      213,341
                                              ----------   ----------
CASH AND CASH EQUIVALENTS - end of year       $  270,482   $  358,420
                                              ==========   ==========



<PAGE>27

SCHEDULE OF NONCASH ACTIVITIES:
  Issuance of common stock for marketable
   securities                                          -   $  195,500
                                              ==========   ==========

RECONCILIATION OF NET LOSS TO NET CASH USED IN OPERATIONS:
Net loss                                      $  (92,258)  $ (301,577)

Adjustments to reconcile net loss to net cash
 used in operating activities:
  Depreciation                                     1,300        1,299
  Loss on marketable securities                        -      200,018
 (Increase) decrease in accounts receivable         (575)         277
  Decrease (increase) in inventory                 3,469       (2,240)
 (Increase) decrease in prepaid expenses          (2,161)         169
  Increase (decrease) in accounts payable and
   accrued expenses                                2,287      (34,349)
                                              ----------   ----------
Net cash used in operating activities         $  (87,938)  $ (136,403)
                                              ==========   ==========

The accompanying notes are an integral part of these financial
statements




<PAGE>28

           CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION
                     NOTES TO FINANCIAL STATEMENTS
                      DECEMBER 31, 2006 AND 2005


1.  THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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
stockholders.  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.


ACCOUNTING ESTIMATES:
The preparation of financial statements in conformity with accounting
principals generally accepted in the Unites States of America require
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimated.


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 EQUIVALENTS:
The Company considers all highly liquid investments purchased with an
original maturity of three months or less to be a cash equivalent.
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 income.  Changes in unrealized gains or losses



<PAGE>29

are excluded from income 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 thirty (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, 2006 to be fully collectible; accordingly, no allowance
for doubtful accounts was provided for.


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.


<PAGE>30

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 Financial Accounting Standards No. 128, "Earnings per
Share".  Basic earnings per share is computed by dividing the 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
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 gains from marketable securities available for sale.

RECENT ACCOUNTING PRONOUCEMENTS:
The Financial Accounting Standards Board ("FASB") issued Interpretation
No. 47 ("FIN 47"), "Accounting for Conditional Asset retirement
Obligations" in March 2005.  FIN 47 clarifies that an entity must
record a liability for a conditional assets retirement obligation if
the fair value of the obligation can be reasonably estimated.  This
Interpretation also clarifies the circumstances under which an entity
would have sufficient information to reasonably estimate the fair value
of an asset retirement obligation.  This Interpretation is effective no



<PAGE>31

later than the end of fiscal years ending after December 12, 2005.
This guidance did not have a material effect on the Company's financial
statements.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and
error Corrections - a replacement of APB Opinion No. 20 and FASB
Statement No. 3".  This Statement requires retrospective application to
prior periods' financial statements of changes in accounting principle,
unless it is impracticable to determine either the period-specific
effects or the cumulative effect of the change.  The statement is
effective for accounting changes and corrections of errors made in
fiscal years beginning after December 15, 2005.  This statement did not
have a material effect on the Company's financial statements.

In July 2006, the FASB published FASB Interpretation No. 48 ("FIN No.
48"), "Accounting for Uncertainty in Income Taxes", to address the non-
comparability in reporting tax assets and liabilities resulting from a
lack of specific guidance in FASB Statement of Financial Accounting
Standards ("SFAS" No. 109, Accounting for Income Taxes, on the
uncertainty in income taxes recognized in an enterprise's financial
statements.  FIN 48 will apply to fiscal years beginning after December
15, 2006.  The adoption of FIN 48 is not expected to have a material
effect on the Company's financial condition or results of operations.

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.  Management is currently evaluating the
effects SFAS No. 157 will have on the Company's financial condition and
results of operations.

In September 2006, the SEC issued Staff Accounting Bulletin ("SAB") No.
108, "Considering the Effects of Prior Year Misstatements when
Quantifying Misstatements in Current Year Financial Statements" (SAB
108), to provide guidance on the consideration of the effects of prior
year misstatements in quantifying current year misstatements for the
purpose of a materiality assessment.  Under SAB 108, companies should
evaluate a misstatement based on its impact on the current year income
statement, as well as the cumulative effect of correcting such
misstatements that existed in prior years existing in the current
year's ending balance sheet.  SAB 108 will become effective for the
Company in its fiscal year ending June 30, 2007.  The Company is
currently evaluating the impact of the provisions of SAB 108 on its
financial statements.

In September 2006, FASB issued SFAS No. 158, "Employers' Accounting for
Defined Benefit Pension and Other Postretirement Plan", an amendment of
FASB Statement No. 87, 88, 106, and 132 (R).  SFAS No. 158 requires
companies to recognize the over-funded or under-funded status of their
defined benefit postretirement plans as an asset or liability and to
recognize changes in that fund status in the year in which the change
occur through comprehensive income.  The Company has adopted SFAS No.



<PAGE>32

158 on December 31, 2006.  The adoption of SFAS No. 158 does not have a
material effect on the Company's financial condition or results of
operations.


2.  CONCENTRATIONS 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, 2006, the Company's uninsured
cash balances approximated $178,700.


3.  SUPPLIER CONCENTRATION:
For the years ended December 31, 2006 and 2005, the Company purchased
approximately 56 percent and 60 percent, respectively, of its products
from one supplier.  Management believes that 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.


4.  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
approximate fair value due to their short-term maturities.

The investment in marketable equity securities is recorded at fair
value.


5.  MARKETABLE SECURITIES:
The cost and fair value of marketable equity securities that are
available-for-sale at December 31, 2006 are as follows:

     Cost                                     $    5,000
     Gross unrealized gain                        95,000
                                              ----------
     Fair value                               $  100,000
                                              ==========

The Company's marketable securities consist of 100,000 shares of common
stock of Proguard Acquisition Corp., a company trading on the Over The
Counter Bulletin Board.  The Company has entered into an option
agreement with an unrelated third party for the sale of these shares at
a price of $1.00 per share for a total of $100,000.  The option
agreement expired on November 4, 2006 but was extended to March 31,
2007.

<PAGE>33

The unrealized appreciation of marketable equity securities reported as
accumulated other comprehensive income at December 31, 2006 and 2005 is
as follows:

                                    2006         2005
                                 ----------   ----------
     Net unrealized gain (loss)  $   95,000   $        -
     Deferred income taxes                -            -
                                 ----------   ----------
                                 $   95,000   $        -
                                 ==========   ==========

During 2006 and 2005, sales proceeds and realized gains and losses on
securities classified as available-for-sale were:

                                    2006         2005
                                 ----------   ----------
     Sales Proceeds              $        -   $  195,482
                                 ==========   ==========

     Realized Losses             $        -   $  200,018
                                 ==========   ==========

At June 30, 2005, management determined that the Company's investment
in RAM Venture Holding Corp. was worthless.  A loss of $200,000 was
recorded.

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


6.  PROPERTY AND EQUIPMENT:
The components of property and equipment at December 31, 2006 are as
follows:

     Delivery equipment                       $    6,497
     Less Accumulated depreciation                 3,898
                                              ----------
     Net book value                           $    2,599
                                              ==========

Depreciation expense amounted to $1,300 and $1,299 for the years ended
December 31, 2006 and 2005, respectively.


7.  INCOME TAXES:
The deferred income tax assets and liabilities at December 31, 2006
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:



<PAGE>34

     Net operating loss carry forwards        $  103,800
     Capital loss carry forwards                  42,000
     Inventory valuation                           1,800
                                              ----------
                                              $  147,600
     Valuation allowance                        (147,600)
                                              ----------
     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,
2006  that it is more likely than not that these benefits will be
realized.

The change in valuation allowance for the year ended December 31, 2006
was a decrease of $1,400 due to increases in federal and state net
operating loss carry forwards net of decreases in capital loss carry
forwards and inventory valuations.

At December 31, 2006, the Company has unused federal net operating loss
carry forwards of approximately $269,400 expiring between 2023 and
2026, unused New Jersey net operating loss carry forwards of
approximately $267,400 expiring between 2012 and 2014 and capital loss
carry forwards of $200,018 expiring in 2010.


8.  COMMON STOCK:
On November 12, 2005, the Board of Directors authorized the issuance of
4,887,500 shares of common stock to the brother of its president for
$.04 per share ($195,500) in exchange for 8,500 shares of Arena
Resources, Inc. common stock with a fair value of $23 per share
($195,500).  The Company, immediately upon receipt of the shares sold
them and received, net of commissions on sale, $195,482.

On December 3, 2005, the Board of Directors authorized the sale and
issuance of 1,250,000 shares of common stock to its president for $.04
per share ($50,000).

On December 20, 2005, the Board of Directors authorized the sale and
issuance of 900,000 shares of common stock to its president for $.04
per share ($36,000).


9.  SALES:
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.



<PAGE>35

Net sales are summarized as follows:

                                Year ended December 31,
                                   2006         2005
                                ----------   ----------
     Retail                     $   77,446   $   84,882
     Wholesale                      56,357       51,222
                                ----------   ----------
                                $  133,803   $  136,104
                                ==========   ==========


10.  COMMITMENT:
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 CBS, 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.

Rent expense for each of the years ended December 31, 2006 and 2005 was
$16,200.

The future lease payments at December 31, 2006 are $5,400.