U.S. Securities and Exchange Commission
                             Washington, D.C. 20549

                                   FORM 10-QSB




[X]     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 for the quarterly period ended June 30, 2002

[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 for the transition period from _______ to _______


                           NATIONAL BEAUTY CORPORATION
                           ---------------------------
        (Exact name of small business issuer as specified in its charter)

                            BEAUTYMERCHANT.COM, INC.
                            ------------------------
                           (Former name of registrant)

          Nevada                                   13-3422912
     -----------                                   ----------
(State or other jurisdiction of                  (IRS Employer
incorporation or organization)                 identification No.)


           4810 W. Commercial Boulevard, Ft. Lauderdale, Florida 33319
           -----------------------------------------------------------
                    (Address of principal executive offices)

                                 (954) 717-8680
                                 --------------
                           (Issuer's telephone number)



Check  whether  the issuer (1) filed all reports required to be filed by Section
13  or  15(d) of the Exchange Act during the past 12 months (or for such shorter
period  that the registrant was required to file such reports), and (2) has been
subject  to  such  filing  requirements  for  the  past 90 days. Yes [x] No [  ]

Number of shares of common stock outstanding as of
August 5, 2002: 4,400,062

Number of shares of preferred stock outstanding as of
August 5, 2002: 750,000








<PAGE 1>
                              INDEX TO FORM 10-QSB
                              --------------------

                                                                  Page No.
                                                                  --------
PART I
------

Item 1.     Financial Statements

     Consolidated Balance Sheets - June 30, 2002 and December 31, 2001   3

     Consolidated Statements of Operations - Three and Six Months Ended
     June 30, 2002 and 2001                                              4

     Consolidated Statements of Cash Flows -Six Months Ended June 30, 2002
     and 2001                                                            5

     Notes to Consolidated Financial Statements                        6-7

Item 2.     Management's Discussion and Analysis of Financial Condition
            And Results of Operations                                 8-12

PART II
-------

Item 1.     Legal Proceedings                                           12

Item 2.     Changes in Securities                                       12

Item 3.     Defaults Upon Senior Securities                             12

Item 4.     Submission of Matters to a Vote of Security Holders         12

Item 5.     Other Information                                           12





























<TABLE>
<CAPTION>


                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                    AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
<S>                        <C>        <C>

                       (Unaudited)
                      June 30, 2002  Dec. 31, 2001
 ASSETS
  ------
CURRENT ASSETS:
-------------------------
Cash and cash equivalents  $  3,750   $ 11,001
Accounts receivable . . .       132        903
Marketable securities . .     1,500      1,743
Inventory . . . . . . . .     4,087      1,700
Prepaid expenses. . . . .    45,000     90,000
                           ---------  ---------
TOTAL CURRENT ASSETS. . .    54,469    105,347
                           ---------  ---------

FIXED ASSETS
-------------------------
Furniture . . . . . . . .    21,616     21,616
Leasehold improvements. .     3,500      3,500
Equipment . . . . . . . .    34,985     34,985
Accumulated depreciation.   (37,361)   (35,361)
                           ---------  ---------
NET FIXED ASSETS. . . . .    22,740     24,740
                           ---------  ---------

OTHER ASSETS:
-------------------------
Deposits. . . . . . . . .     6,656      6,656
                           ---------  ---------
TOTAL OTHER ASSETS. . . .     6,656      6,656
                           ---------  ---------

TOTAL ASSETS. . . . . . .  $ 83,865   $136,743
                           =========  =========

</TABLE>











                 See accompanying notes to financial statements








<TABLE>
<CAPTION>


                          NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS (CONTINUED)
                          AS OF JUNE 30, 2002 AND DECEMBER 31, 2001
<S>                                                                <C>           <C>
                                                                 (Unaudited)
                                                                 June 30, 2002  Dec. 31, 2001
 LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

CURRENT LIABILITIES
-----------------------------------------------------------------
Accounts payable and accrued expenses . . . . . . . . . . . . . .  $     2,279   $     2,230
Outstanding checks in excess of bank balance. . . . . . . . . . .          640        11,664
Current portion of capitalized lease obligation . . . . . . . . .          875         2,313
                                                                   ------------  ------------
TOTAL CURRENT LIABILITIES . . . . . . . . . . . . . . . . . . . .        3,794        16,207
                                                                   ------------  ------------

STOCKHOLDERS' EQUITY
-----------------------------------------------------------------
Common stock ($.001 par value, 100,000,000 shares authorized;
4,400,062 and 1,466,362 issued and outstanding at June 30, 2002
and December 31, 2001, respectively). . . . . . . . . . . . . . .        4,400         1,466
Convertible preferred stock ($.001 par value; 50,000,000 shares
authorized, 750,000 and 950,000 shares issued and outstanding at
June 30, 2002 and December 31, 2001, respectively). . . . . . . .          750           950
Additional paid in capital. . . . . . . . . . . . . . . . . . . .    1,634,976     1,402,450
Retained deficit. . . . . . . . . . . . . . . . . . . . . . . . .   (1,560,055)   (1,284,330)
                                                                   ------------  ------------
TOTAL STOCKHOLDERS' EQUITY. . . . . . . . . . . . . . . . . . . .       80,071       120,536
                                                                   ------------  ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY. . . . . . . . . . . .  $    83,865   $   136,743
                                                                   ============  ============
</TABLE>










                 See accompanying notes to financial statements
                 ----------------------------------------------




<TABLE>
<CAPTION>


                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
            FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2002 AND 2001

<S>                          <C>          <C>        <C>          <C>
                       Three Months Ended June 30, Six Months Ended June 30,
                                   2002       2001         2002        2001
                             -----------------------------------------------
REVENUES:
---------------------------
Sales . . . . . . . . . . .  $  139,050   $103,028   $  284,306   $ 190,315
Cost of sales . . . . . . .     (68,342)   (66,218)    (136,886)   (126,949)
                             -----------  ---------  -----------  ----------
GROSS PROFIT. . . . . . . .      70,708     36,810      147,420      63,366
                             -----------  ---------  -----------  ----------

EXPENSES:
---------------------------
Selling, general and
administrative. . . . . . .     312,000     62,132      422,902     104,350
                             -----------  ---------  -----------  ----------
TOTAL EXPENSES. . . . . . .     312,000     62,132      422,902     104,350
                             -----------  ---------  -----------  ----------

OPERATING LOSS. . . . . . .  $ (241,292)  $(25,322)  $ (275,482)  $ (40,984)
                             -----------  ---------  -----------  ----------
OTHER (EXPENSE):
---------------------------
Unrealized loss on trading
securities. . . . . . . . .           0    (25,908)        (243)    (55,408)
Interest expense. . . . . .           -       (260)           -        (520)
                             -----------  ---------  -----------  ----------
NET (LOSS). . . . . . . . .  $ (241,292)  $(51,490)  $ (275,725)  $ (96,912)
                             ===========  =========  ===========  ==========
  Net (loss) per share -
  basic and fully diluted .  $    (0.06)  $  (0.76)  $    (0.18)  $   (1.53)
                             ===========  =========  ===========  ==========
  Weighted average shares*.   4,208,379     67,824    1,527,939      63,287
                             ===========  =========  ===========  ==========
</TABLE>



*Includes retroactive adjustment for 1 for 200 reverse stock split effected
during 2001













                 See accompanying notes to financial statements




<TABLE>
<CAPTION>


                             NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                           FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001



<S>                                                                            <C>         <C>
                                                                                    2002       2001
CASH FLOWS FROM OPERATING ACTIVITIES:
-----------------------------------------------------------------------------
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(275,725)  $(96,912)
Adjustments to reconcile net loss to net cash (used in) operating activities:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,000      1,892
Common stock issued for services. . . . . . . . . . . . . . . . . . . . . . .    235,260     18,245
Unrealized loss on trading securities . . . . . . . . . . . . . . . . . . . .        243     55,408
(Increase) decrease in operating assets:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        771       (245)
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     (2,387)      (523)
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     45,000       (370)
Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        -0-     (4,100)
Increase (decrease) in operating liabilities
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         49        -0-
Outstanding checks in excess of bank balance. . . . . . . . . . . . . . . . .    (11,024)       -0-
                                                                               ----------  ---------
NET CASH (USED IN) OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . .     (5,813)   (26,605)
                                                                               ----------  ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
-----------------------------------------------------------------------------
Expenditures for leaseholds and equipment . . . . . . . . . . . . . . . . . .        -0-     (4,395)
                                                                               ----------  ---------
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . .        -0-     (4,395)
                                                                               ----------  ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
-----------------------------------------------------------------------------
Collection of shareholder loan receivable . . . . . . . . . . . . . . . . . .        -0-      6,013
Principal repayments of note payable. . . . . . . . . . . . . . . . . . . . .        -0-     (6,600)
Principal repayments under capitalized lease. . . . . . . . . . . . . . . . .     (1,438)    (1,250)
                                                                               ----------  ---------
NET CASH (USED) IN FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . .     (1,438)    (1,837)
                                                                               ----------  ---------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . . . . .     (7,251)   (32,837)
                                                                               ----------  ---------
CASH AND CASH EQUIVALENTS,
BEGINNING OF THE YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . .     11,001     56,191
                                                                               ----------  ---------
END OF THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $   3,750   $ 23,354
                                                                               ==========  =========
SUPPLEMENTARY CASH FLOW INFORMATION OF NON-CASH FINANCING:
-----------------------------------------------------------------------------
Common stock issued for services. . . . . . . . . . . . . . . . . . . . . . .  $ 235,260   $ 18,245
                                                                               ==========  =========
Assumption of note payable in connection with assets acquisition. . . . . . .  $       -   $ 15,000
                                                                               ==========  =========
</TABLE>






                 See accompanying notes to financial statements



                   NATIONAL BEAUTY CORPORATION & SUBSIDIARIES
                   ------------------------------------------
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                            June 30, 2002 (UNAUDITED)


ITEM 1.
-------

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information  and  pursuant  to  the  rules  and  regulations  of  the
Securities  and Exchange Commission. Accordingly, they do not include all of the
information  and  footnotes required by generally accepted accounting principles
for  complete  financial  statements.

In  the  opinion  of  management, the unaudited condensed consolidated financial
statements  contain all adjustments consisting only of normal recurring accruals
considered  necessary to present fairly the Company's financial position at June
30,  2002,  the  results of operations for the three month period ended June 30,
2002  and  2001, and cash flows for the six months ended June 30, 2002 and 2001.
The  results  for the period ended June 30, 2002, are not necessarily indicative
of  the  results  to  be expected for the entire fiscal year ending December 31,
2002.

NOTE  2  -  (LOSS)  PER  SHARE
<TABLE>
<CAPTION>


The following represents the calculation of (loss) per share:



<S>                              <C>              <C>              <C>              <C>
                                 Three            Three            Six              Six
                                 Months Ended     Months Ended     Months Ended     Months Ended
BASIC & FULLY DILUTED*           June 30, 2002    June 30, 2001    June 30, 2002    June 30, 2001
-------------------------------  ------------------------------------------------------------------
Net Loss. . . . . . . . . . . .  $    (241,292)   $     (51,490)   $   (275,725)    $     (96,912)

Less- preferred stock dividends             -0-              -0-             -0-               -0-
                                 ------------------------------------------------------------------

Net Loss. . . . . . . . . . . .       (241,292)   $     (51,490)   $   (275,725)    $     (96,912)
Weighted average number
of common shares**. . . . . . .      4,208,379           67,824       1,527,939             67,824
                                 ------------------------------------------------------------------

Basic & Fully Diluted*
loss per share. . . . . . . . .  $        (.06)   $        (.76)   $       (.18)    $         (.76)
                                 ==================================================================

</TABLE>


*  The Company had no common stock equivalents during the periods presented.
** Includes retroactive adjustment for 1 for 200 reverse stock split.






<PAGE 6>
--------
ITEM  2.     MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OR  PLAN  OF  OPERATION
--------

In  connection  with  the  Safe  Harbor  Provisions  of  the  Private Securities
Litigation Reform Act of 1995 (the "Reform Act"), National Beauty Corporation is
hereby  providing cautionary statements identifying important factors that could
cause  our  actual  results to differ materially from those projected in forward
looking  statements  (as  such  term  is defined in the Reform Act) made in this
quarterly  Report  on  Form  10-QSB.  Any  statements  that  express, or involve
discussions  as  to,  expectations,  beliefs,  plans, objectives, assumptions or
future events or performance (often, but not always, through the use of words or
phrases  such  as  "likely will result," "are expected to," "will continue," "is
anticipated,"  "estimated,"  "intends,"  "plans"  and  "projection")  are  not
historical facts and may be forward looking statements and involve estimates and
uncertainties  which  could cause actual results to differ materially from those
expresses  in  the  forward looking statements. Accordingly, any such statements
are  qualified  in  their  entirety by reference to, and are accompanied by, the
following  key  factors that have a direct bearing on our results of operations:
the  absence  of  contracts with customers or suppliers; our ability to maintain
and  develop  relationships  with  customers  and  suppliers;  our  ability  to
successfully  integrate  acquired  businesses  or  new  brands;  the  impact  of
competitive products and pricing; supply constraints or difficulties; changes in
the  retail  and  beauty  industries;  the  retention  and  availability  of key
personnel;  and  general  economic  and  business  conditions.

We  caution  that  the  factors  described  herein could cause actual results to
differ  materially  from  those expressed in any forward-looking statements that
the  investors  should  not  place  undue  reliance  on any such forward-looking
statements. Further, any forward-looking statement speaks only as of the date on
which  such  statement  is  made,  and  we undertake no obligation to update any
forward-looking  statement  to reflect events or circumstances after the date on
which  such  statement  is  made  or  to reflect the occurrence of unanticipated
events  or  circumstances.  Consequently,  no  forward-looking  statement can be
guaranteed.

New  factors  emerge from time to time, and it is not possible for us to predict
all  such  factors.  Further, we cannot assess the impact of each such factor on
our  results  of operations or the extent to which any factor, or combination of
factors,  may  cause actual results to differ materially from those contained in
any  forward-looking  statements.

Overview
--------

National  Beauty  Corporation  is  distinctive  holding company comprised of its
wholly  owned  subsidiaries:  BeautyWorks U.S.A., Inc.  Cleaning Express U.S.A.,
Inc.  and Hair Max of Florida Inc .Our objective is to enhance and further brand
itself  as:  (a)  provider  of  quality  hair care services at affordable family
pricing.  (b)  home services provider, specializing in housekeeping. Through the
collective  efforts  of  its  subsidiaries,  we  seek  to:
-     Build  our  customer  base  as  a  one-stop  provider  for  residential
      housekeeping  services;
-     Enhance its brand name reputation of offering convenient, competitive
      pricing and participation in special promotions;
-     Expand its business concept by acquiring beauty salons with established
      customer bases;
-     Develop and   expand   a national chain of haircutting and styling stores.

We  plan  to  accomplish  the  foregoing  by:
     Business  partnerships  with  commercial  realtors
     Free product samples of ALISHA hair products;
     Attempting to acquire existing beauty service salons;
     Seeking to enter into marketing relationships with National advertising
     agencies to establish concept branding strategies;
     Attempting to market its concept, "A Cut Above The Rest", on a national
     basis.
     Develop and build Hair Max stores on a regional basis.

Our  experienced  accomplished  management will allow us to develop our Hair Max
concept,  and  expand  rapidly  using fast food service techniques, dealing with
customer  service. In addition to creating improved compensation and benefits to
employees  in  the  hair  service  industry,  as an incentive to find and retain
quality  service  personnel.

Products  and  Geographic  Expansion

We  intend  to  expand  our  service  businesses  in the Florida area by opening
approximately one additional retail storefront under our BeautyWorks U.S.A. name
during  2002.  We are also exploring the possibility of opening up approximately
one additional BeautyWorks U.S.A. store in the Las Vegas, Nevada during 2002. We
began  our  retail  sales  operations  in  early 2000 and will attempt to expand
product  sales  on  a  continual  basis.

Additional  Risk  Factor

National  Beauty  Corporation,  a  Nevada  corporation,  has a limited operating
history  in  its  operations,  which  began  in  the  first  quarter  of  2000.
Accordingly,  you  have little or no information upon which to evaluate National
Beauty Corporation's future business, prospects, and revenues. In addition, as a
new  sales  company,  we  face  intense  competition.  In addition, there are no
assurances  that  we  will  be  successful  in overcoming the following changes:
-     Whether  we  will  be  able  to  retain  existing customers or attract new
      customers;
-     Whether we will be able to respond to changing customer demands;
-     Whether we will have adequate systems in place to manage new retail
      service stores.
-     Whether we will be able to acquire or develop new store locations, for
      desired expansion.
-     Whether we will maintain and increase sufficient customer traffic;
-     Whether we will be able to obtain additional equity or debt financing;
-     Whether we will be competitive in its core businesses;
-     Whether we will successfully locate and acquire existing beauty operations
      for BeautyWorks U.S.A.
-     Whether we can hire and retain qualified management.

Our  principal  suppliers  are  non-retail  wholesale  distributors.

We  plan  to  add  at least 32 employees during the next 12 months to our retail
operations.  If we acquire any beauty salons with existing operations additional
staff  will  be  added  to  operate these businesses relative to the size of the
operation;  however, at this time we are unable to determine how many additional
employees  will  be  required.  The  three  corporate  office employees that are
presently  on  staff  will  manage  new  employees.

Recent  Acquisition

During  the  second quarter of 2001, we acquired a full service salon located in
Boca  Raton,  Florida.  This  beauty  salon currently employs approximately nine
workers  and offers hair, nails and skin treatments to local customers.  This is
our first acquisition in our recent salon 'roll-up' strategy. We plan to acquire
two  additional  salons during the fourth quarter of 2002; however, there are no
assurances  that  it  will  be  successful  in  these  plans.

Additional  Financing

We  may need to raise additional funds to meet future operating requirements. If
we  raise  additional  funds through issuance of equity or debt securities, such
securities  may have rights to our common stock, such as warrants or options. In
addition,  shareholders  may  experience  additional  dilution from issuance and
exercise  of  equity  or  debt  securities  or warrants or options. There are no
assurances  that  we  will  be  able  to  obtain  additional  financing  or that
additional  financing  will  be  available  at  all.

Cleaning  Express  USA.Cleaning  Express  USA.  We  may need to raise additional
funds  to  meet  future  operating  requirements.  If  we raise additional funds
through  issuance  of equity or debt securities, such securities may have rights
to  our common stock, such as warrants or options. In addition, shareholders may
experience  additional  dilution  from  issuance  and exercise of equity or debt
securities  or warrants or options. There are no assurances that we will be able
to obtain additional financing or that additional financing will be available at
all.

Marketing  for  our home cleaning services include print advertising, television
and radio commercials, and a referral program that rewards customers with future
discounts  for  client  referrals.

The home cleaning industry is highly competitive with respect to price, service,
quality  and location.  There are numerous, well-established, larger competitors
in  the  home  cleaning  industry  possessing  substantially  greater financial,
marketing, personnel and other resources than us. There can be no assurance that
we  will  be  able  to  respond  to  various  competitive  factors affecting the
business. We will attempt to compete with its home cleaning industry competitors
by  offering  quality service at a low price. We plan to further expand in South
Florida  by  continuing  its  current  marketing  strategy.

The  primary  markets  for  Cleaning  Express  USA are individual households. No
single  customer  now makes up or is expected in future to make up more than ten
percent  of the total revenues of Cleaning Express USA. Cleaning Express USA has
three  full  time  employees  and  contracts  with  40-50  workers that are each
independently  contracted  with us to service and provide home cleaning services
to  existing  and  new  customers.

BeautyWorks  U.S.A.,  Inc.  National  Beauty  Corp.  expects to tap into the $52
billion beauty industry through its offering of quality service, discount priced
salons.  It  is  estimated that over 90% of all personal care salons are closely
held,  or 'mom and pop' owned and operated. Currently, Regis Corp. (NASDAQ:RGIS)
has  over  6,000 salon stores and is the only well-known publicly traded company
using  this approach. Beautyworks will aim to be both a retailer and provider of
such  needed consumer services and provides a one-stop resource for professional
services  on  hair  nails  and  skin  care. The Company also plans to offer such
services  as  body  and  spa  treatments,  facials,  massages, waxing, and tans.

We have retained the services of Neal Realty and Development of Fort Lauderdale,
Florida  to search for shopping center locations. We believe the beauty services
business  industry,  is  well  established.

Initial  plans are for multiple store locations in South Palm Beach County, Dade
County  and  Broward  County,  Florida,  as  soon  as  appropriate locations are
selected  Clark County, Nevada is also being considered for a second development
market  for  Hair  Max, Inc. In June 2002, the company made application with the
U.S.  Patent and trademark office, to gain exclusive rights to the name and logo
for  "HAIR  MAX".

The  beauty  services  industry  is  highly  competitive  with respect to price,
service,  and  location. As a result, the potential for failure in this industry
is  significant. There are numerous, well-established, larger competitors in the
beauty  services  industry with considerable expertise, possessing substantially
greater  financial,  marketing, personnel and other resources than us. There can
be  no  assurance that we will be able to respond to various competitive factors
affecting  the  business.

The  company will concentrate all efforts and strategies on increasing the brick
and  mortar services business, and not pursue any further Internet or e-commerce
projects  at  this  time.

We are actively seeking partners and compatible businesses to acquire within the
huge  beauty  services  industry.

RESULTS  OF  OPERATIONS
-----------------------

Net  Income

The  Company  had  a  net  loss of $(241,292), or $.06 per common share, for the
three  months ended June 30, 2002, versus a net loss of $(51,490), or $(.76) for
the same period ended June 30, 2001. The change in net loss was primarily due to
an  increase  in  common  shares  issued  for professional services rendered and
salaries  for  officers.

Sales

Revenues  increased  $36,022  or 35% to $139,050 for the three months ended June
30, 2002 as compared with $103,028 for the three months ended June 30, 2001. The
increase was primarily due to the acquisition of the salon in the second quarter
of  2001  that  generated  additional revenues. Average selling prices and gross
margins  remained  fairly  constant.

Expenses

Selling,  General,  and  Administrative expenses for the three months ended June
30,  2002  increased  $249,868  to  $312,000. In comparison with the three-month
period  ended  June  30,  2001,  consulting  and payroll increased approximately
$217,000  due  to our acquisition of the salon in the second quarter of 2001 and
common  stock  issuances  for  professional  services  rendered and salaries for
officers.

Liquidity  and  Capital  Resources

On  June  30,  2002,  we had cash of $3,750 and working capital of $50,675. This
compares  with  cash  of  $11,001 and working capital of $89,140 at December 31,
2001.  The  decrease  in  working  capital  was  due  to  a decrease in cash and
expiration  of  prepaid  expense.

Net  cash  used in operating activities was $5,813 for the six months ended June
30,  2002  as compared with net cash used in operating activities of $26,605 for
the  period  ended  June  30,  2001.  The  decrease  in  cash used was primarily
attributable  to  an  increase  in  net  loss  for  the  period.

Net cash used in investing activities was $-0- for the six months ended June 30,
2002  as  compared  with net cash used in investing activities of $4,395 for the
period  ended  June 30, 2001. The use of cash for the period ended June 30, 2001
was  for  salon  equipment  expenditures.

Net  cash  used  in financing activities totaled $1,438 for the six months ended
June  30,  2002  as  compared  with net cash provided by financing activities of
$1,837 for the six months ended June 30, 2001. The decrease in net cash provided
by  financing activities was primarily due to the collection of shareholder loan
receivable  during  2001.

PART II. OTHER INFORMATION
--------

Item 1. Legal Proceedings

None.

Item 2. Changes in Securities

None.

Item 3. Defaults Upon Senior Securities

None.

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

None.

Item 5. Other Information

None.

Item 6. Exhibits and Reports on Form 8-K

None


                                   SIGNATURES
                                   ----------

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

                                   NATIONAL BEAUTY CORPORATION
                                        (Registrant)



Date:  August 5, 2002                   __________________________
                                        /S/Michael J. Bongiovanni
                                          Chief Financial Officer