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 September 30, 2001

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


                              NATIONAL BEAUTY CORP
                              --------------------
        (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.)


             4818 W. Commercial Blvd., 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
November 6, 2001: 987,361










                              INDEX TO FORM 10-QSB
                              --------------------

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

Item 1.     Financial Statements
     Consolidated Balance Sheets - September 30, 2001
and December 31, 2000                                         3

     Consolidated Statements of Operations - Three and Nine Months
Ended September 30, 2001 and 2000                             4

Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2001
and 2000                                                      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 CORP & SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                 AS OF SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

<S>                          <C>                   <C>
                                 (Unaudited)
ASSETS                        September 30, 2001    Dec. 31, 2000
---------------------------
CURRENT ASSETS:
---------------------------
Cash and cash equivalents .  $            23,354   $       56,191
Accounts receivable . . . .                1,929            1,684
Marketable securities . . .                6,000           68,000
Inventory . . . . . . . . .                4,087            3,564
Shareholder loan receivable                1,879            7,892
Prepaid expenses. . . . . .                1,370              -0-
TOTAL CURRENT ASSETS. . . .               36,028          137,331
                             --------------------  ---------------

FIXED ASSETS
---------------------------
Furniture and fixtures. . .               21,616            6,521
Leasehold improvements. . .                3,500            2,000
Equipment . . . . . . . . .               34,985           32,185
Accumulated depreciation. .              (35,186)         (32,344)
NET FIXED ASSETS. . . . . .               24,915            8,362
                             --------------------  ---------------

OTHER ASSETS:
---------------------------
Deposits. . . . . . . . . .                7,800            3,700
TOTAL OTHER ASSETS. . . . .                7,800            3,700
                             --------------------  ---------------

TOTAL ASSETS. . . . . . . .  $            68,743   $      149,393
                             --------------------  ---------------

</TABLE>













                 See accompanying notes to financial statements

<TABLE>
<CAPTION>


                                  NATIONAL BEAUTY CORP & SUBSIDIARIES
                                CONSOLIDATED BALANCE SHEETS (CONTINUED)
                             AS OF SEPTEMBER 30, 2001 AND DECEMBER 31, 2000

<S>                                                               <C>                   <C>
                                                                      (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY                               September 30, 2001    Dec. 31, 2000
----------------------------------------------------------------
CURRENT LIABILITIES
----------------------------------------------------------------
Accounts payable and accrued expenses. . . . . . . . . . . . . .  $             2,230   $        2,230
Note payable . . . . . . . . . . . . . . . . . . . . . . . . . .                3,055              -0-
Current portion of capitalized lease obligation. . . . . . . . .                1,712            1,862
TOTAL CURRENT LIABILITIES. . . . . . . . . . . . . . . . . . . .                6,997            4,092

LONG-TERM DEBT
----------------------------------------------------------------
Capitalized lease obligation . . . . . . . . . . . . . . . . . .                1,040            2,765

STOCKHOLDERS' EQUITY
----------------------------------------------------------------
Common stock ($.001 par value, 100,000,000 shares authorized;
987,361 and 58,425 issued and outstanding at September 30, 2001
and December 31, 2000, respectively) . . . . . . . . . . . . . .                  987               58
Convertible preferred stock ($.001 par value; 50,000,000 shares
authorized, 950,000 shares issued and outstanding) . . . . . . .                  950            1,000
Additional paid in capital . . . . . . . . . . . . . . . . . . .            1,205,050        1,168,764
Retained deficit . . . . . . . . . . . . . . . . . . . . . . . .           (1,146,281)      (1,027,286)
TOTAL STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . .               60,706          142,536
                                                                  --------------------  ---------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . .  $            68,743   $      149,393
                                                                  --------------------  ---------------

</TABLE>
















                 See accompanying notes to financial statements

<TABLE>
<CAPTION>


                         NATIONAL BEAUTY CORP & SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
           FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

<S>                                    <C>        <C>         <C>         <C>
                                     Three Months Ended          Nine Months Ended
                                        September 30,              September 30,
                                         2001        2000        2001        2000
                                     -----------------------------------------------
REVENUES:
-------------------------------------
Sales . . . . . . . . . . . . . . . .  $135,036   $ 105,930   $ 325,351   $ 290,084
Cost of sales . . . . . . . . . . . .   (70,862)    (64,343)   (197,811)   (192,380)
GROSS PROFIT. . . . . . . . . . . . .    64,174      41,587     127,540      97,704
                                       ---------  ----------  ----------  ----------

EXPENSES:
-------------------------------------
Selling, general and administrative .    79,405     188,967     183,755     643,492
TOTAL EXPENSES. . . . . . . . . . . .    79,405     188,967     183,755     643,492
                                       ---------  ----------  ----------  ----------

OPERATING LOSS. . . . . . . . . . . .  $(15,231)  $(147,380)  $ (56,215)  $(545,788)

OTHER INCOME (EXPENSE):
-------------------------------------
Unrealized loss on trading securities    (6,592)     (8,500)    (62,000)      8,500
Interest expense. . . . . . . . . . .      (260)       (260)       (780)       (780)
                                       ---------  ----------  ----------  ----------
NET LOSS. . . . . . . . . . . . . . .  $(22,083)  $(156,140)  $(118,995)  $(555,068)
                                       ---------  ----------  ----------  ----------
  Net income per share -
  basic and fully diluted . . . . . .  $   (.01)  $    (.01)  $    (.76)  $    (.05)
                                       =========  ==========  ==========  ==========
  Weighted average shares*. . . . . .   322,361      60,945     155,694      65,850
                                       =========  ==========  ==========  ==========
</TABLE>



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













                 See accompanying notes to financial statements


<TABLE>
<CAPTION>


                           NATIONAL BEAUTY CORP & SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

<S>                                                                <C>         <C>
                                                                      2001        2000
CASH FLOWS FROM OPERATING ACTIVITIES:
-----------------------------------------------------------------
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(118,995)  $(398,927)
Adjustments to reconcile net loss to net cash (used in) operating
activities:
Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . .      2,842       1,900
Common stock issued for services. . . . . . . . . . . . . . . . .     37,165     103,818
Unrealized loss on trading securities . . . . . . . . . . . . . .     62,000         -0-
(Increase) decrease in operating assets:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . .       (245)     (1,200)
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . .       (523)       (445)
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . . .     (1,370)    174,711
Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . .     (4,100)        -0-
(Decrease) in accounts payable and accrued expenses . . . . . . .        -0-        (400)
NET CASH (USED IN) OPERATING ACTIVITIES . . . . . . . . . . . . .    (23,226)   (120,543)
                                                                   ----------  ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
-----------------------------------------------------------------
Expenditures for leaseholds and equipment . . . . . . . . . . . .     (4,395)     (1,566)
NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . .     (4,395)     (1,566)
                                                                  -----------  ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
-----------------------------------------------------------------
Common stock issuances. . . . . . . . . . . . . . . . . . . . . .        -0-     151,230
Repayment of shareholder loan receivable. . . . . . . . . . . . .      6,013         -0-
Principal repayments of note payable. . . . . . . . . . . . . . .    (11,945)        -0-
Principal repayments under capitalized lease. . . . . . . . . . .     (1,875)     (1,250)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES. . . . . . . . .     (7,807)    149,980
                                                                  -----------  ----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS. . . . . . . . . . . . . . . . . . . . . . . . .    (35,428)     27,871
                                                                  -----------  ----------
CASH AND CASH EQUIVALENTS,
BEGINNING OF THE YEAR . . . . . . . . . . . . . . . . . . . . . .     56,191     111,428
                                                                  -----------  ----------
END OF THE PERIOD . . . . . . . . . . . . . . . . . . . . . . . .  $  20,763   $ 139,299
                                                                  -----------  ----------
SUPPLEMENTARY CASH FLOW INFORMATION
-----------------------------------------------------------------
OF NON-CASH FINANCING:
-----------------------------------------------------------------
Common stock issued for services. . . . . . . . . . . . . . . . .  $  37,165   $  15,468
                                                                   ==========  ==========
Assumption of note payable in connection with assets acquisition.  $  15,000   $     -0-
                                                                   ==========  ==========
</TABLE>




                 See accompanying notes to financial statements

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                   ------------------------------------------
                       NATIONAL BEAUTY CORP & SUBSIDIARIES
                         September 30, 2001 (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
September  30,  2001,  the  results  of  operations for the three and nine month
periods  ended  September  30, 2001 and 2000, and cash flows for the nine months
ended  September  30,  2001 and 2000. The results for the period ended September
30,  2001,  are not necessarily indicative of the results to be expected for the
entire  fiscal  year  ending  December  31,  2001.

NOTE  2  -  EARNINGS  (LOSS)  PER  SHARE

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

BASIC     & FULLY DILUTED*
----------------------------

                       Three          Three          Nine          Nine
                       Months  Ended  Months  Ended  Months Ended  Months  Ended
                       Sept. 30, 2001 Sept. 30, 2000 Sept. 30, 2001Sept. 30,2000
                        --------------------------------------------------------
Net Loss               $     (22,083) $    (156,140)   $ (118,995)  $  (555,068)

Less- preferred stock dividends
                               -0-             -0-           -0-           -0-
                        --------------------------------------------------------
Net Loss               $     (22,083) $    (156,140)   $ (118,995)  $  (555,068)
                        --------------------------------------------------------
Weighted average number
of common shares**           322,361         60,945       155,694        65,850
                        --------------------------------------------------------
Basic & Fully Diluted*
loss per share        $        (.07)  $       (2.56)   $     (.76)  $     (8.49)
                        --------------------------------------------------------


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


NOTE 3 - OPERATING LEASE
------------------------

In  May  2001,  the  Company  assumed  a  non-cancelable  operating  lease  for
approximately 1100 square feet of retail space in Boca Raton, Florida, which was
leased  by  Beautyworks  U.S.A., Inc. for $3,016 per month. The lease expires in
June  30,  2004  and  has  an  option  for  an  additional  five-year  tenancy.

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 Corp, Inc. is
hereby  providing cautionary statements identifying important factors that could
cause  the Company's 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 the Company's results of
operations:  the absence of contracts with customers or suppliers; the Company's
ability  to maintain and develop relationships with customers and suppliers; the
Company's  ability  to  successfully integrate acquired businesses or new brands
into  the  Company;  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.

The  Company  cautions  that  the  factors  described  herein could cause actual
results  to  differ  materially  from  those  expressed  in  any forward-looking
statements of the Company and 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 the Company
undertakes  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.

New  factors emerge from time to time, and it is not possible for the Company to
predict  all such factors. Further, the Company cannot assess the impact of each
such  factor  on  the Company's 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.

General  Description  of  Business
----------------------------------

National  Beauty  Corp  (The  'Company')  is  comprised  of its two wholly owned
subsidiaries:  BeautyWorks  U.S.A.,  Inc.  and Cleaning Express U.S.A., Inc. The
Company's  objective  is  to enhance and further brand itself as: (a) a shopping
destination  for  beauty  products,  fragrances  and  accessories;  (b) a beauty
services  provider.  Through  the  collective  efforts  of its subsidiaries, the
Company  seeks  to:
-     Build  its  customer base as a one-stop provider for discounted name-brand
beauty  products  and  cosmetics;
-     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 ;



We  plan  to  accomplish  the  foregoing  by:
     Billboard,  radio,  television  and  newspaper  advertising;
     Free product samples of ALISHA hair products;
     Attempting to acquire existing beauty service salons by August 2002;
     Seeking to enter into marketing relationships with National advertising
     agencies to establish concept branding strategies;
     Attempting to market its concept, "We Sell Beauty for Less", on a national
     basis.

Products  and  Geographic  Expansion

The  Company  intends  to  expand  its service businesses in the Florida area by
opening  approximately  one  additional  retail storefront under its BeautyWorks
U.S.A.  name  during  2001.  The  Company  is  also exploring the possibility of
opening  up  approximately  one  additional  BeautyWorks U.S.A. store in the Las
Vegas,  Nevada  during  2001.  The  Company began its retail sales operations in
early  2000  and  will  attempt  to  expand  product sales on a continual basis.

Additional  Risk  Factor

National  Beauty  Corp, 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 Corp's future
business, prospects, and revenues. In addition, as a new sales company, National
Beauty Corp faces intense competition. In addition, there are no assurances that
National  Beauty  Corp.  will be successful in overcoming the following changes:
-     Whether  it  will  be  able  to  retain  existing customers or attract new
      customers;
-     Whether it will be able to respond to changing customer demands;
-     Whether it will have adequate systems in place to fulfill all customer
      orders;
-     Whether it will be able to acquire additional sources for merchandise at
      discounted prices;
-     Whether it will maintain and increase sufficient website 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.

The  principal  suppliers  to  National  Beauty  Corp  are  non-retail wholesale
distributors.

The  Company  plans to add at least 2 employees during the next 12 months to its
retail  operations.  If  the  Company  acquires  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 the Company is unable to
determine  how  many  additional employees will be required. The three employees
that  are  presently  on  staff  will  manage  new  employees.

Recent  Acquisition

During  the  second  quarter  of 2001, the Company 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  the  Company's  first  acquisition  in  its  recent  salon
'roll-up'  strategy.  The  Company plans to acquire two additional salons during
the  fourth  quarter  of  2001; however, there are no assurances that it will be
successful  in  these  plans.

Additional  Financing

The  Company  may  need  to  raise  additional  funds  to  meet future operating
requirements.  If the Company raises additional funds through issuance of equity
or  debt  securities,  such  securities  may have rights to the Company's 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 the Company will be able to
obtain  additional  financing  or that additional financing will be available at
all.

Cleaning  Express  USA.Cleaning  Express  USA.  The Company's operations include
home  cleaning  services  that  emphasize budget pricing.  The Company currently
operates  one  Cleaning  Express  USA  office in Tamarac, Florida and dispatches
40-50  workers in teams of two workers on a daily basis.  The present geographic
area  in  which  the  Company operates includes the Broward and South Palm Beach
County  areas  of  South  Florida.

Marketing  for  the  Company's 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 the Company.  There can be no
assurance  that  the  Company  will  be  able  to respond to various competitive
factors  affecting  the  business.  The Company will attempt to compete with its
home  cleaning  industry competitors by offering quality service at a low price.
The  Company  plans 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 this Company to service and provide home cleaning
services  to  existing  and  new  customers.


BeautyWorks  U.S.A.,  Inc.  The  Company announced that it expanded its business
into  a  prototype  store  offering  beauty  retailing  and beauty services hair
styling,  and nail services at affordable pricing. The Company plans to open two
retail  'brick  and  mortar' stores in the South Florida area. During the second
quarter  of  2001, the first retail store was officially opened and is presently
servicing  South  Florida  customers.

BeautyWorks  U.S.A  plans  to  rollup  existing  beauty stores and 'mom and pop'
salons  and  add  state of the art design and retail display areas featuring our
own  private  label  products  as  well  as  designer fragrances and perfumes at
discount  prices.



Results of Operations
---------------------

Net  Income

The  Company  had  a  net loss of $(22,083), or $(.07) per common share, for the
three  months  ended  September  30,  2001,  versus a net loss of $(156,140), or
$(2.56) for the same period ended September 30, 2000. The Company had a net loss
of  $(118,995),  or $(.76) per common share, for the nine months ended September
30,  2001, versus a net loss of $(555,068), or $(8.49) for the same period ended
September  30, 2000. The changes in net loss for both periods were primarily due
to a decrease in administrative expenses relating to the operation and marketing
of  the  BeautyMerchant.com  online  superstore.

Sales

Revenues  increased  $29,106  or  27%  to  $135,036  for  the three months ended
September  30,  2001  as  compared  with  $105,903  for  the  three months ended
September  30,  2000.  Revenues  increased $35,267 or 12% to $325,351 during the
nine months ended September 30, 2001 as compared with $290,084 in the comparable
period  in  2000.  The increase was primarily due to increased sales activity at
its  BeautyWorks  U.S.A.  store.  Average  selling  prices  and  gross  margins
increased.

Expenses

Selling,  General,  and  Administrative  expenses  for  the  three  months ended
September  30, 2001 decreased $109,562 or 58% to $79,405. In comparison with the
three-month  period  ended  September 30, 2000, the decrease was attributable to
decreased  web development, advertising, professional expenses, and payroll. The
all decreased due to the Company's plan to manage expenses and grow efficiently.
This  included  primarily  reducing  personnel  and  advertising.

Liquidity  and  Capital  Resources

On  September  30,  2001, the Company had cash of $20,763 and working capital of
$29,031.  This  compares with cash of $92,550 and working capital of $241,476 at
September  30,  2000.  The  decrease in working capital was due to a decrease in
cash  and  prepaid  expenses,  and  an  increase  in  notes  payable.

Net  cash  used  in  operating  activities was $23,226 for the nine months ended
September  30,  2001  as  compared with net cash used in operating activities of
$166,757  for the period ended September 30, 2000. The decrease in cash used was
primarily  attributable  to  a  decrease  in  net  loss  for  the  period.

Net  cash  used  in  investing  activities  was $4,395 for the nine months ended
September  30, 2001 as compared with cash used in investing activities of $1,566
for  the  period ended September 30, 2000. Net cash used in investing activities
during  both  periods  were  from  fixed  asset  purchases  during  the  period.

Net  cash  used in financing activities totaled $7,807 for the nine months ended
September 30, 2001 as compared with net cash provided by financing activities of
$149,455  for the nine months ended September 30, 2000. The decrease in net cash
provided  by  financing  activities  was  primarily  due  to  the  collection of
subscribed  common  stock  during  2000.



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

Item  1.  Legal  Proceedings.

None
Item  2.  Changes  in  Securities.
On  July  30,  2001,  we reverse split our common stock at a ratio of 200 for 1.
This  reverse  stock split was approved by our Board of Directors and a majority
of  our  shareholders.  Prior  to the reverse split, we had 14,472,200 shares of
common  stock  outstanding.  After  the  reverse  split, we had 72,361 shares of
common  stock  outstanding.
This  reverse  stock split did not affect our authorized shares or the par value
of our shares. We are authorized to issue 100,000,000 shares of common stock and
50,000,000  shares  of  preferred  stock.
On  August  15,  2001,  Ed  Roth, our president and a director, converted 25,000
shares of preferred stock into 250,000 shares of common stock.  Alisha Roth, our
vice  president  and a director, converted 25,000 shares of preferred stock into
250,000  shares  of  common.  After the conversion of these preferred shares, we
had  572,361  shares  of  our common stock outstanding. Ed Roth is the holder of
475,000 shares of preferred stock that has not been converted into common stock;
Alisha Roth is the holder of 475,000 shares of preferred stock that has not been
converted  into  common  stock.  Each  share  of  these  preferred  shares  is
convertible  into ten shares of common stock or an aggregate of 9,500,000 shares
of  common  stock  upon  conversion.
Item  3.  Defaults  upon  Senior  Securities
None
Item  4.  Submission  of  Matters  to  a  vote  of  Security  Holders.

On  July  15,  2001, our shareholders voted to approved a reverse stock split of
our  common  stock at a ratio of 200 to 1. This approval of our shareholders was
given  by  the  written  consent of the holders of 57% of our outstanding common
stock.

Item  5.  Other  Information

None

Item  6.

None





                           --SIGNATURE PAGE FOLLOWS--

                                   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 CORP, INC.
                                        (Registrant)



Date:  November 6, 2001                  /S/Michael J. Bongiovanni
                                         -------------------------
                                        Michael J. Bongiovanni
                                        Chief Financial Officer