**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      DC 20549**

**FORM      10-QSB**

**KMA      GLOBAL SOLUTIONS INTERNATIONAL, INC.**

| **NEVADA***(State                  or other jurisdiction of**incorporation                  or organization)*                                                      | **88-0433489***(I.R.S.                  Employer**Identification                  No.)* |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|                                                                                                                                                               |
| **5570A                  KENNEDY ROAD****MISSISAUGA                  ONTARIO, CANADA L4Z2A9***(Address                  of principal executive offices, zip code)* |
|                                                                                                                                                               |
| **Issuer’s                  telephone number, including area code:  (905)                  568-5220**                                              |

----

**PART      I**

**FINANCIAL      INFORMATION**

**Item      1.  FINANCIAL STATEMENTS**

**KMA      GLOBAL SOLUTIONS INTERNATIONAL, INC.**

**INTERIM      CONSOLIDATED FINANCIAL STATEMENTS**

**APRIL      30, 2007**

**(unaudited)**

**(expressed      in U.S. dollars)**

|  **INDEX**                                                                                                                            | **PAGE**                    |
|--------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------|
|                                                                                                                                       |                        |
|  Interim              Consolidated Balance Sheets               |  1                - 2  |
|                                                                                                                                       |                        |
|  Interim              Consolidated Statements of Income and Retained Earnings                                                         |  3                     |
|                                                                                                                                       |                        |
|  Interim              Consolidated Statements of Cash Flows                                                                           |  4                     |
|                                                                                                                                       |                        |
|  Notes              to the Interim Consolidated Financial Statements                                                             |  5                - 13 |

**                                                                                            **

----

**INTERIM      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                         |   | As                  atApril                  30, 2007(unaudited)$ |      |   |                           As atApril                  30, 2007(unaudited)$ |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|--------|------------------------------------------------------------------------------------------------------------------------------|--------|
| **ASSETS**                                                                                                                                                                                                   |   |                                                              |      |   |                                                                                                                         |   |
|  **CURRENT**                                                                                                                                                                                            |   |                                                              |      |   |                                                                                                                         |   |
|                      Cash                                                                                                                                                      |   |                                                              | 19,528    |   |                                                                                                                         |   | 22,710 |   |
|                      Accounts receivable                                                                                                                                            |   |                                                              | 102,592   |   |                                                                                                                         |   | 287,701 |   |
|                      Inventories (Note 3)                                                                                                                                           |   |                                                              | 591,997   |   |                                                                                                                         |   | 303,117 |   |
|                      Advances to shareholders (Note 4)                                                                                                                              |   |                                                              | 95,227    |   |                                                                                                                         |   | -- |   |
|                      Prepaid expenses                                                                                                                                               |   |                                                              | 275,539   |   |                                                                                                                         |   | 340,210 |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|  **TOTAL                CURRENT                ASSETS**                         |   |                                                              | 1,084,884 |   |                                                                                                                         |   | 953,738 |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|  **DEPOSITS                ON EQUIPMENT AND PATENTS**                                                                                                                                                   |   |                                                              | 65,633    |   |                                                                                                                         |   | 57,342 |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|  **EQUIPMENT                AND PATENTS**(Note 5)                                                                                                                                                       |   |                                                              | 658,264   |   |                                                                                                                         |   | 641,178 |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|  **FUTURE                INCOME TAXES** (Note 6)                                                                                                                                                        |   |                                                              | 494,047   |   |                                                                                                                         |   | 335,958 |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|  **DEFERRED                COSTS** (Note 8(b))                                                                                                                                                          |   |                                                              | 200,204   |   |                                                                                                                         |   | 212,404 |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|                                                                                                                                                                                                         |   |                                                              |      |   |                                                                                                                         |   |   |   |
|                                                                                                                                                                                                         |   |                                                              | 2,503,033 |   |                                                                                                                         |   | 2,200,620 |   |

----

**INTERIM      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                                                     |   | As                  atApril                  30, 2007(unaudited)$ |      |   | As                  atApril                  30, 2007(unaudited)$ |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|-----------|--------|-------------------------------------------------------------------|--------|
| **LIABILITIES**                                                                                                                                                                                                                                                          |   |                                                              |      |   |                                                              |   |
| **CURRENT**                                                                                                                                                                                                                                                              |   |                                                              |      |   |                                                              |   |
|      Accounts                  payable and accrued liabilities                                                                                                                                                                                  |   |                                                              | 1,209,602 |   |                                                              |   | 1,062,297 |   |
|      Current                  portion of capital lease obligation (Note 7)                                                                                                                                                                      |   |                                                              | 45,941    |   |                                                              |   | 55,804 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **TOTAL                  CURRENT LIABILITIES**                                                                                                                                                                                                                           |   |                                                              | 1,255,543 |   |                                                              |   | 1,118,101 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **ADVANCES                  FROM SHAREHOLDERS**(Note 4)                                                                                                                                                                                                                  |   |                                                              | --        |   |                                                              |   | 87,053 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **CAPITAL                  LEASE OBLIGATION**(Note 7)                                                                                                                                                                                                                    |   |                                                              | --        |   |                                                              |   | 207 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                              | 1,255,543 |   |                                                              |   | 1,205,361 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **SHAREHOLDERS’                  EQUITY**                                                                                                                                                                                                                          |   |                                                              |      |   |                                                              |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **CAPITAL                  STOCK**(Note 8)                                                                                                                                                                                                                               |   |                                                              |      |   |                                                              |   |   |   |
|      Preferred                  stock, $0.001 par value, 25,000,000 shares        authorized                  and none issued and outstanding                                                           |   |                                                              |      |   |                                                              |   |   |   |
|      Common                  stock, $0.001 par value, 175,000,000 shares        authorized                  and 54,933,319 shares issued and        outstanding |   |                                                              | 54,933    |   |                                                              |   | 42,066 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **ADDITIONAL                  PAID-IN CAPITAL**(Note 8)                                                                                                                                                                                                                  |   |                                                              | 1,595,231 |   |                                                              |   | 729,098 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **SHARES                  TO BE ISSUED**(Note 8)                                                                                                                                                                                                                         |   |                                                              | --        |   |                                                              |   | 826,485 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **WARRANTS**(Note 9)                                                                                                                                                                                                                                                     |   |                                                              | 436,000   |   |                                                              |   | -- |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **ACCUMULATED                  COMPREHENSIVE INCOME**(Note 8)                                                                                                                                                                                                            |   |                                                              | 74,017    |   |                                                              |   | 51,031 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
| **(DEFICIT)**(Note 8)                                                                                                                                                                                                                                                    |   |                                                              | (912,691  | )      |                                                              |   | (653,421 | ) |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                              | 1,247,490 |   |                                                              |   | 995,259 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |
|                                                                                                                                                                                                                                                                     |   |                                                              | 2,503,033 |   |                                                              |   | 2,200,620 |   |
|                                                                                                                                                                                                                                                                     |   |                                                              |      |   |                                                              |   |   |   |

----

**INTERIM      CONSOLIDATED STATEMENTS OF INCOME AND DEFICIT**

|                                                                                                                  |   |   | 2007$      |   |   |        | 2006$      |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **SALES**                                                                                                             |   |   | 1,199,676  |   |   |   | 1,137,676  |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **COST                  OF SALES**                                                                                    |   |   |       |   |   |   |       |   |
|     Inventories,                  beginning of period                                             |   |   | 303,117    |   |   |   | 452,055    |   |
|     Purchases                                                                                     |   |   | 1,187,960  |   |   |   | 941,572    |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
|                                                                                                                  |   |   | 1,491,077  |   |   |   | 1,393,627  |   |
|     Less:  Inventories,                  end of period                                  |   |   | 591,997    |   |   |   | 483,313    |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
|                                                                                                                  |   |   | 899,080    |   |   |   | 910,314    |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **GROSS                  MARGIN**                                                                                     |   |   | 300,596    |   |   |   | 227,362    |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **SELLING,                  GENERAL AND ADMINISTRATIVE****    EXPENSES**                          |   |   | 692,042    |   |   |   | 562,899    |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| (Loss)                  before income taxes                                                                           |   |   | (391,446   | )      |   |   | (335,537   | )      |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| Income                  taxes – future (Note 6)                                                                 |   |   | (132,176   | )      |   |   | (90,565    | )      |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **NET                  (LOSS) FOR THE PERIOD**                                                                        |   |   | (259,270   | )      |   |   | (244,972   | )      |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **(DEFICIT)                  RETAINED EARNINGS,**beginning of    Period                  (Note 8) |   |   | (653,421   | )      |   |   | 82,982     |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **(DEFICIT)**,                  end of period (Note 8)                                                                |   |   | (912,691   | )      |   |   | (161,990   | )      |
|                                                                                                                  |   |   |       |   |   |   |       |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| **(LOSS) PER                  SHARE**                                                                            |   |   |       |   |   |   |       |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| Basic                                                                                                                 |   |   | (0.01      | )      |   |   | (0.01      | )      |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| Diluted                                                                                                               |   |   | (0.01      | )      |   |   | (0.01      | )      |
|                                                                                                                  |   |   |       |   |   |   |       |   |
| Weighted                  average number of common shares                                                             |   |   | 41,890,991 |   |   |   | 35,634,074 |   |
|                                                                                                                  |   |   |       |   |   |   |       |   |

----

**INTERIM      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                                                                                                                          |   |   | 2007$    |   |   |   | 2006$    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**                                                                                                                                                     |   |   |     |   |   |   |     |   |
|     Net                  (loss) for the period                                                                                                                                            |   |   | (259,270 | )      |   |   | (244,972 | )      |
|     Adjustments                  for:                                                                                                                                                     |   |   |     |   |   |   |     |   |
|         Amortization                                                                                                                                                  |   |   | 28,348   |   |   |   | 21,333   |   |
|         Shares                  issued for services provided                                                                                                          |   |   | 6,500    |   |   |   | 52,172   |   |
|         Future                  income taxes                                                                                                                          |   |   | (132,176 | )      |   |   | (90,565  | )      |
|                                                                                                                                                                                                          |   |   | (356,598 | )      |   |   | (262,032 | )      |
|     Changes                  in non-cash working capital:        Decrease                  (Increase) in accounts receivable                      |   |   | 194,124  |   |   |   | (94,656  | )      |
|         (Increase)                  in inventories                                                                                                                    |   |   | (259,486 | )      |   |   | (22,132  | )      |
|         Decrease                  (Increase) in prepaid expenses                                                                                                      |   |   | 81,671   |   |   |   | (19,912  | )      |
|         Increase                  in accounts payable and            accrued                  liabilities |   |   | 79,861   |   |   |   | 88,324   |   |
|                                                                                                                                                                                                          |   |   | 96,170   |   |   |   | (48,376  | )      |
|                                                                                                                                                                                                          |   |   |     |   |   |   |     |   |
| Cash                  flows from operating activities                                                                                                                                                         |   |   | (260,428 | )      |   |   | (310,408 | )      |
|                                                                                                                                                                                                          |   |   |     |   |   |   |     |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**                                                                                                                                                     |   |   |     |   |   |   |     |   |
|     Issuance                  of capital stock                                                                                                                                            |   |   | 500,000  |   |   |   | --       |   |
|     Increase                  in bank indebtedness                                                                                                                                        |   |   |     |   |   |   | 141,672  |   |
|     (Decrease)                  in capital lease obligation                                                                                                                               |   |   | (12,893  | )      |   |   | (12,850  | )      |
|     (Decrease)                  increase in advances from shareholders (net)                                                                                                              |   |   | (179,816 | )      |   |   | 36,521   |   |
| Cash                  flows from financing activities                                                                                                                                                         |   |   | 307,291  |   |   |   | 165,343  |   |
|                                                                                                                                                                                                          |   |   |     |   |   |   |     |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES**                                                                                                                                                     |   |   |     |   |   |   |     |   |
|     Decrease                  in advances to shareholders                                                                                                                                 |   |   | --       |   |   |   | 46,086   |   |
|     Purchase                  of equipment and patents                                                                                                                                    |   |   | (7,679   | )      |   |   | (14,713  | )      |
|     Deposits                  on equipment and patents                                                                                                                                    |   |   | (4,637   | )      |   |   | (2,691   | )      |
| Cash                  flows from investing activities                                                                                                                                                         |   |   | (12,316  | )      |   |   | 28,682   |   |
|                                                                                                                                                                                                          |   |   |     |   |   |   |     |   |
| **EFFECT                  OF CUMULATIVE CURRENCY TRANSLATION****    ADJUSTMENTS**                                                                                                         |   |   | (37,729  | )      |   |   | (10,344  | )      |
|                                                                                                                                                                                                          |   |   |     |   |   |   |     |   |
| (Decrease)                  in cash                                                                                                                                                                           |   |   | (3,182   | )      |   |   | (126,727 | )      |
| Cash,                  beginning of period                                                                                                                                                                    |   |   | 22,710   |   |   |   | 126,727  |   |
|                                                                                                                                                                                                          |   |   |     |   |   |   |     |   |
| Cash,                  end of period                                                                                                                                                                          |   |   | 19,528   |   |   |   | --       |   |
|                                                                                                                                                                                                          |   |   |     |   |   |   |     |   |
| **SUPPLEMENTAL                  INFORMATION:**                                                                                                                                                                |   |   |     |   |   |   |     |   |
|     Interest                  paid                                                                                                                                                        |   |   | 2,394    |   |   |   | 5,928    |   |
|     Income                  taxes paid                                                                                                                                                    |   |   | --       |   |   |   | --       |   |

----

**NOTES      TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

**1.         DESCRIPTION      OF THE BUSINESS**

|   | KMA                Global Solutions International, Inc. (“KMA International” or the                “Company”) is engaged in the supply of Electronic Article Surveillance                (“EAS”) solutions, focusing on providing customized solutions in the                apparel, multi media, sporting goods, food and pharmaceutical                industries. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2.         BASIS      OF PRESENTATION**

**3.         INVENTORIES**

|                              |   | April                    30,2007 |    |   |   |   |   | January                    31,2007 |   |
|-----------------------------------|--------|----------------------------------|---------|--------|--------|--------|--------|------------------------------------|--------|
|                              |   | $                           |    |   |   |   |   |                               |   | $ |   |
|                              |   |                             |    |   |   |   |   |                               |   |   |   |
| Finished                    goods |   |                             | 126,828 |   |   |   |   |                               |   |   | 117,702 |   |
| Raw                    materials  |   |                             | 465,169 |   |   |   |   |                               |   |   | 185,415 |   |
|                              |   |                             |    |   |   |   |   |                               |   |   |   |   |
|                              |   |                             | 591,997 |   |   |   |   |                               |   |   | 303,117 |   |

**4.         ADVANCES      TO (FROM) SHAREHOLDERS**

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**5.         EQUIPMENT      AND PATENTS**

|                                           |   | Cost    |      |   |   |   |   | AccumulatedAmortization |    |   |    |   |   | April                  30,2007Net |   |
|------------------------------------------------|--------|---------|-----------|--------|--------|--------|--------|-------------------------|---------|--------|---------|--------|--------|-----------------------------------|--------|
|                                           |   |  $ |      |   |   |   |   |                    |  $ |   |    |   |   |                              |   |   | $ |   |
|                                           |   |    |      |   |   |   |   |                    |    |   |    |   |   |                              |   |   |   |   |
| Equipment                                      |   |    | 954,212   |   |   |   |   |                    |    |   | 510,887 |   |   |                              |   |   |   |   | 443,325 |   |
| Equipment                  under capital lease |   |    | 171,332   |   |   |   |   |                    |    |   | 35,694  |   |   |                              |   |   |   |   | 135,638 |   |
| Patents                                        |   |    | 86,057    |   |   |   |   |                    |    |   | 21,503  |   |   |                              |   |   |   |   | 64,554 |   |
| Computer                  equipment            |   |    | 38,571    |   |   |   |   |                    |    |   | 27,098  |   |   |                              |   |   |   |   | 11,473 |   |
| Office                  furniture              |   |    | 5,528     |   |   |   |   |                    |    |   | 2,254   |   |   |                              |   |   |   |   | 3,274 |   |
|                                           |   |    |      |   |   |   |   |                    |    |   |    |   |   |                              |   |   |   |   |   |   |
|                                           |   |    | 1,255,700 |   |   |   |   |                    |    |   | 597,436 |   |   |                              |   |   |   |   | 658,264 |   |

|                                           |   | Cost    |      |   |   |   |   | AccumulatedAmortization |    |   |    |   |   | January                  31,2007Net |   |
|------------------------------------------------|--------|---------|-----------|--------|--------|--------|--------|-------------------------|---------|--------|---------|--------|--------|-------------------------------------|--------|
|                                           |   |  $ |      |   |   |   |   |                    | $  |   |    |   |   |                                |   |   | $ |   |
|                                           |   |    |      |   |   |   |   |                    |    |   |    |   |   |                                |   |   |   |   |
| Equipment                                      |   |    | 892,915   |   |   |   |   |                    |    |   | 460,364 |   |   |                                |   |   |   |   | 432,551 |   |
| Equipment                  under capital lease |   |    | 161,594   |   |   |   |   |                    |    |   | 29,626  |   |   |                                |   |   |   |   | 131,968 |   |
| Patents                                        |   |    | 81,166    |   |   |   |   |                    |    |   | 19,049  |   |   |                                |   |   |   |   | 62,117 |   |
| Computer                  equipment            |   |    | 36,379    |   |   |   |   |                    |    |   | 24,549  |   |   |                                |   |   |   |   | 11,830 |   |
| Office                  furniture              |   |    | 4,720     |   |   |   |   |                    |    |   | 2,008   |   |   |                                |   |   |   |   | 2,712 |   |
|                                           |   |    |      |   |   |   |   |                    |    |   |    |   |   |                                |   |   |   |   |   |   |
|                                           |   |    | 1,176,774 |   |   |   |   |                    |    |   | 535,596 |   |   |                                |   |   |   |   | 641,178 |   |

**6.         INCOME      TAXES**

|                                                                                                                                                             |   | April                  30,2007 |     |   |   |   |   | April                  30,2006 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|--------|--------|--------|--------|--------------------------------|--------|
|                                                                                                                                                             |   |  $                        |     |   |   |   |   |                           |   | $ |   |
| Income                  tax provision at combined Canadian federal and    provincial                  statutory rate of 36.12% (2006-36.12%) |   |                           | (141,390 | )      |   |   |   |                           |   |   | (121,197 | ) |
|                                                                                                                                                             |   |                           |     |   |   |   |   |                           |   |   |   |   |
| Increase                  due to:                                                                                                                                |   |                           |     |   |   |   |   |                           |   |   |   |   |
|     Change                  in effective tax rate                                                                                            |   |                           | --       |   |   |   |   |                           |   |   | 24,655 |   |
|     Other                                                                                                                                    |   |                           | 9,214    |   |   |   |   |                           |   |   | 5,977 |   |
|                                                                                                                                                             |   |                           |     |   |   |   |   |                           |   |   |   |   |
|                                                                                                                                                             |   |                           | (132,176 | )      |   |   |   |                           |   |   | (90,565 | ) |

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**6.**
**INCOME      TAXES **

|   | Significant                components of the Company’s future income tax assets and liabilities are                as follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|                                                            |   | April                  30,2007 |    |   |   |   |   | January                  31,2007 |   |
|-----------------------------------------------------------------|--------|--------------------------------|---------|--------|--------|--------|--------|----------------------------------|--------|
|                                                            |   |  $                        |    |   |   |   |   |                             |   | $ |   |
| Future                  income tax assets:                      |   |                           |    |   |   |   |   |                             |   |   |   |
|     Losses                  carried forward |   |                           | 570,624 |   |   |   |   |                             |   |   | 411,800 |   |
| Future                  income tax liabilities:                 |   |                           |    |   |   |   |   |                             |   |   |   |   |
|     Equipment                  and patents  |   |                           | (76,577 | )      |   |   |   |                             |   |   | (75,842 | ) |
|                                                            |   |                           |    |   |   |   |   |                             |   |   |   |   |
| Future                  tax asset                               |   |                           | 494,047 |   |   |   |   |                             |   |   | 335,958 |   |
|                                                            |   |                           |    |   |   |   |   |                             |   |   |   |   |

**7.         OBLIGATIONS      UNDER CAPITAL LEASE**

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**8.         SHAREHOLDERS’      EQUITY**

**Continuity      of Shareholders’ Equity –KMA Global Solutions Inc. (“KMA Canada”) **
**prior      to reverse merger**

|                                                                                                |   | CommonShares |       |   | ParValue |   |   | AdditionalPaid-inCapital |   |   | Comp.Income |   |   | AccumulatedEarnings |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|----------|--------|--------|--------------------------|--------|--------|-------------|--------|--------|---------------------|--------|
|                                                                                                |   | $            |       |   | $        |   |   | $                        |   |   | $           |   |   | $                   |   |
|                                                                                                |   |         |       |   |     |   |   |                     |   |   |        |   |   |                |   |
| January                  31, 2006                                                                   |   |         | 32,136,800 |   |     |   | --     |                     |   |   | 461,901     |   |   |                | 43,547 |   |   |   | 82,982 |   |
| Issuance                  of shares for    consulting                  services |   |         | 408,000    |   |     |   | --     |                     |   |   | 52,173      |   |   |                | --     |   |   |   | -- |   |
| Issuance                  of shares for    finder’s                  fee  |   |         | 1,700,000  |   |     |   | --     |                     |   |   | 217,391     |   |   |                | --     |   |   |   | -- |   |
| March                  15, 2006                                                                     |   |         | 34,244,800 |   |     |   | --     |                     |   |   | 731,465     |   |   |                | 43,547 |   |   |   | 82,982 |   |

**Continuity      of Shareholders’ Equity - KMA Global Solutions International,      Inc.**

|                                                                                                                               |   | CommonShares |       |   | ParValue |   |   | AdditionalPaid-inCapital |   |   | Comp.Income |   |   | AccumulatedEarnings |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|----------|--------|--------|--------------------------|--------|--------|-------------|--------|--------|---------------------|--------|
|                                                                                                                               |   | $            |       |   |  $  |   |   |  $                  |   |   |  $     |   |   | $                   |   |
|                                                                                                                               |   |         |       |   |     |   |   |                     |   |   |        |   |   |                |   |
| January                  31, 2006                                                                                                  |   |         | 4,920,250  |   |     |   | 4,920  |                     |   |   | 166,421     |   |   |                | --     |   |   |   | (171,341 | ) |
| Retired                  to treasury                                                                                               |   |         | (4,225,427 | )      |     |   | (4,225 | )                        |   |   | 4,225       |   |   |                | --     |   |   |   | -- |   |
| 17:1                  share split                                                                                                  |   |         | 11,117,168 |   |     |   | 11,117 |                     |   |   | (11,117     | )      |   |                | --     |   |   |   | -- |   |
| Issuance                  of shares in    reverse                  merger                                      |   |         | 34,244,800 |   |     |   | 34,245 |                     |   |   | 525,878     |   |   |                | 43,547 |   |   |   | 82,982 |   |
| Accumulated                  deficit    acquired                  in reverse    merger     |   |         | --         |   |     |   | --     |                     |   |   | --          |   |   |                | --     |   |   |   | 171,341 |   |
| Retirement                  of shares                                                                                              |   |         | (5,344,800 | )      |     |   | (5,345 | )                        |   |   | 5,345       |   |   |                | --     |   |   |   | -- |   |
| Issuance                  of replace-    ment                  shares                                          |   |         | 1,179,000  |   |     |   | 1,179  |                     |   |   | (1,179      | )      |   |                | --     |   |   |   | -- |   |
| Currency                  translation    adjustment                                                            |   |         | --         |   |     |   | --     |                     |   |   | --          |   |   |                | 4,601  |   |   |   | -- |   |
| Issuance                  of shares for    investor                  relations    services |   |         | 25,000     |   |     |   | 35     |                     |   |   | 11,025      |   |   |                | --     |   |   |   | -- |   |
| Issuance                  of shares for    consulting                  services                                |   |         | 150,000    |   |     |   | 150    |                     |   |   | 28,500      |   |   |                | --     |   |   |   | -- |   |
| Net                  loss January 31,    2007                                                                  |   |         | --         |   |     |   | --     |                     |   |   | --          |   |   |                | --     |   |   |   | (736,403 | ) |
| January                  31, 2007                                                                                                  |   |         | 42,065,991 |   |     |   | 42,066 |                     |   |   | 729,098     |   |   |                | 48,148 |   |   |   | (653,421 | ) |

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**8.**
**SHAREHOLDERS’      EQUITY **

**Continuity      of Shareholders’ Equity - KMA Global Solutions International,      Inc.**

|                                                                                                |   | CommonShares |       |   | ParValue |   |   | AdditionalPaid-inCapital |   |   | Comp.Income |   |   | AccumulatedEarnings |   |
|-----------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|----------|--------|--------|--------------------------|--------|--------|-------------|--------|--------|---------------------|--------|
|                                                                                                |   |  $      |       |   |  $  |   |   |  $                  |   |   |  $     |   |   |  $             |   |
|                                                                                                |   |         |       |   |     |   |   |                     |   |   |        |   |   |                |   |
| Issuance                  of shares    for                  financing, net      |   |         | 10,000,000 |   |     |   | 10,000 |                     |   |   | 965,000     |   |   |                | 2,883  |   |   |   | -- |   |
| Warrant                  valuation    allocation                                |   |         | --         |   |     |   | --     |                     |   |   | (346,000    | )      |   |                | --     |   |   |   | -- |   |
| Issuance                  of shares for    agent                  fees          |   |         | 1,000,000  |   |     |   | 1,000  |                     |   |   | --          |   |   |                | --     |   |   |   | -- |   |
| Issuance                  of agent    warrants                  on financing    |   |         | --         |   |     |   | --     |                     |   |   | (90,000     | )      |   |                | --     |   |   |   | -- |   |
| Issuance                  of shares for    consulting                  services |   |         | 1,867,328  |   |     |   | 1,867  |                     |   |   | 337,133     |   |   |                | 22,986 |   |   |   | -- |   |
| Net                  loss April 30,    2007                                     |   |         | --         |   |     |   | --     |                     |   |   | --          |   |   |                | --     |   |   |   | (259,270 | ) |
| April                  30, 2007                                                                     |   |         | 54,933,319 |   |     |   | 54,933 |                     |   |   | 1,595,231   |   |   |                | 74,017 |   |   |   | (912,691 | ) |

|   | During                the period ended April 30, 2007, the following transactions                occurred: |
|--------|------------------------------------------------------------------------------------------------------------|

|   | (a) | On                February 15, 2006, KMA Canada issued 120,000 common shares (408,000                post                split reorganization common shares) with a deemed value of Cdn $0.50                per                share in exchange for services rendered by a group of consultants                of KMA                Canada. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | On                February 28, 2006, KMA Canada issued 500,000 common shares (1,700,000                post                split reorganization common shares) with a deemed value of Cdn $0.50                per                share as an advance on finders fees in relation to a planned equity                financing.  The advance has been reflected as a deferred cost                until such time as the planned equity financing is                completed.  During the period ended April 30, 2007, $25,000 was                recognized as a cost of issue. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | On                March 1, 2006, pursuant to a resolution of the Board of Directors,                the                issued and outstanding common shares of KMA Canada were subject to                a                reverse stock split at a ratio of five (5) shares to one (1), reducing                the                number of shares outstanding from 10,072,000 to 2,014,400 (34,244,800                post                split reorganization common                shares). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**8.**
**SHAREHOLDERS’      EQUITY **

| (d)   | KMA                  Canada and KMA International, a corporation organized under the                  laws of                  the State of Nevada entered into an acquisition agreement dated                  March 15,                  2006.  Pursuant to the terms of the agreement and upon the                  completion of satisfactory due diligence and receipt of applicable                  regulatory and shareholder approvals, KMA International acquired                  100% of                  the outstanding shares of the capital stock of KMA Canada in exchange                  for                  34,244,800 post split reorganization common shares.  (34,244,800                  post split reorganization shares being the aggregate of 28,900,000                  owned                  by KMA LLC and 5,344,800 owned by KMA Canada                  shareholders.)  Pursuant to an agreement between the KMA Canada                  shareholders and KMA International, the shares in KMA International                  owned                  by the KMA Canada shareholders were retired to treasury and cancelled                  and                  the KMA Canada shareholders received 1,179,000 post split reorganization                  shares. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | KMA                International is the surviving corporation as a result of a merger                transaction with Espo’s, Ltd., a corporation formed under the laws of the                State of New York.  The merger occurred March 15,                2006.  At the time of the merger transaction, Espo’s, Ltd. was a                non-SEC reporting corporation.  As a result of the merger and                acquisition transactions the former shareholders of Espo’s, Ltd. hold                11,811,991 or 28.2% of the post split reorganization common shares                of KMA                International.  Pursuant to the merger agreement, the remaining                71,832,259 post split reorganization shares (4,225,427 pre split                reorganization shares), held by individuals that were former                shareholders of Espo’s, were retired to treasury effective March 15, 2006                and cancelled on May 19, 2006. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | The                terms of the merger transaction and the acquisition agreement provided                that the mind and management of KMA International would be replaced                by the                officers and directors of KMA Canada and having had no significant                business activity for a number of years, upon the effective time                of the                acquisition, KMA International adopted the business plan of KMA                Canada.  The transaction was therefore accounted for as a                reverse acquisition with KMA Canada as the acquiring party and KMA                International as the acquired party, in substance, a reorganization                of KMA                Canada.  Generally accepted accounting principles in the United                States of America require, among other considerations, that a company                whose stockholders retain a majority interest in a business combination                be                treated as the acquirer for accounting purposes.  Accordingly,                the results of operations for the periods prior to the combination                are                those of KMA Canada |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**8.**
**SHAREHOLDERS’      EQUITY **

| (e)   | On                June 16, 2006, KMA International issued 25,000 common shares with                a deemed value of Cdn $0.50 per share in exchange for investor                relation services provided by a consulting company for KMA                International. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | On                October 20, 2006, KMA International issued 150,000 common shares                with                a deemed value of USD $0.19 per share in exchange for consulting                services . |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (g)   | On                December 12, 2006, KMA International agreed to issue 360,000 common                shares                at USD $0.15 per share with piggyback registration rights in exchange                for                consulting services. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (h)   | On                December 12, 2006, KMA International agreed to issue 300,000 common                shares                at USD $0.15 per share with piggyback registration rights in exchange                for                consulting services. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | On                January 19, 2007, KMA International agreed to issue 1,000,000 common                shares  at USD $0.20 per share with piggyback registration                rights in exchange for consulting                services. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (j)   | On                January 31, 2007, a group of investors agreed to purchase 10,000,000                shares of the company’s common stock at a price of USD $0.10 per                share.   The total purchase price of USD $1,000,000 shall                be paid to KMA International as follows: (i) $500,000 payable upon                Closing                and (ii) $500,000 payable within 30 days of the effective date of                the                Registration Statement. The agreement includes 10,000,000 Warrants                issued                to the investors, which shall be exercisable only within 2 years                of the                effective date of the Registration Statement, at an exercise price                of USD                $0.20 per share. Upon closing, the Agent received 1,000,000 common                shares,                together with Warrants exercisable within 2 years of the effective                date of                the Registration Statement, at an exercise price of USD $0.20 per                share.   As of April 30, 2007 KMA International received                $1,000,000.  The shares of common stock were registered on March                12, 2007. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (k)   | On                January 31, 2007, KMA International agreed to issue 207,328 common                shares                for consulting services.  The shares were valued as follows;                71,429 common shares at USD $0.14 per share, 59,701 common shares                at USD                $0.17 per share , 57,471 common shares at USD $0.17 per share and                18,727                common shares at USD $0.53 per                share. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**9.           WARRANTS**

|                                                                       |   | **April                30, 2007**     |           |   | April                30, 2006                                 |       |
|----------------------------------------------------------------------------|--------|---------------------------------------|----------------|--------|---------------------------------------------------------------|------------|
|                                                                       |   | **Number                of warrants** |           |   | **Weighted****Average****Exercise                Price****$** |       |   | Number                of warrants |   |   | Weighted                AverageExercise                Price$ |   |
| Balance,                January 31, 2007                                   |   | ** **                            | **-**          |   |                                                          | ** ** | **-** |   |   |   | - |   |   |   | - |   |
| Granted,                private                placement                   |   | ** **                            | **10,000,000** |   |                                                          | ** ** | **0.20** |   |   |   | - |   |   |   | - |   |
| Granted,                agent warrants as                share issue costs |   | ** **                            | **1,000,000**  |   |                                                          | ** ** | **0.20** |   |   |   | - |   |   |   | - |   |
| Balance,                end of period                                      |   | ** **                            | **11,000,000** |   |                                                          | ** ** | **0.20** |   |   |   | - |   |   |   | - |   |

| Number                ofWarrants | Exercise                Price                                                                | Expiry                Date      | Fair                Value |
|----------------------------------|----------------------------------------------------------------------------------------------|---------------------------------|---------------------------|
| $                                | $                                                                                            |
| 11,000,000                       |                             0.20 | January                31, 2009 | 436,000                   |

**10.           COMMITMENTS**

| a)   | The                Company is committed to minimum annual rentals under a long-term                lease for                premises which expires October 31, 2008. Minimum rental commitments                remaining under this lease approximate $155,797 including $103,865                due                within one year, $51,932 due in                2009. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | The                Company has entered into various vehicle leases and has accounted                for them                as operating leases.  Obligations due approximate $63,571                including $47,367 within one year, $15,065 due in 2009 and $1,139                due in                fiscal 2010. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTES      TO THE CONSOLIDATED FINANCIAL STATEMENTS**

| **10.** | **COMMITMENTS**(Continued) |
|---------|----------------------------|

| c)   | The                Company is committed to minimum annual rentals under a long-term                lease for                premises which expires March 14, 2010.  Minimum rental                commitments remaining under this lease approximate $236,574 including                $81,111 due within one year, $81,111 due in 2009 and $74,352 due                in                2010. |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**11.      FINANCIAL      INSTRUMENTS**

**Fair      Value**

**Foreign      Exchange Risk**

**Credit      Risk**

**Interest      Rate Risk**

----

**Item      2. MANAGEMENT'S DISCUSSION AND ANALYSIS**

----

----

|                                                                       |   |     |      |   |   |   |   |     |   |   |      |   |   |     |   |   |   |   |
|----------------------------------------------------------------------------|--------|----------|-----------|--------|--------|--------|--------|----------|--------|--------|-----------|--------|--------|----------|--------|--------|--------|--------|
|                                                                       |   |     |      |   |   |   |   |     |   |   |      |   |   |     |   |   |   |   |
|                                                                       |   | **2007** |      |   |   |   |   | **2006** |   |   |      |   |   | **2005** |   |   |   |   |
|                                                                       |   |     |      |   |   |   |   |     |   |   |      |   |   |     |   |   |   |   |
|  Sales                                                                |   |     | 1,199,676 |   |   |   | 100    | %        |   |   | 1,139,676 |   |   |     | 100    | %      |   |   | 1,117,370 |   |   |   | 100 | % |
|  Cost                of Sales                                         |   |     | 899,080   |   |   |   | 75     | %        |   |   | 910,314   |   |   |     | 80     | %      |   |   | 880,034 |   |   |   | 78.8 | % |
|  Gross                Profit                                          |   |     | 300,596   |   |   |   | 25     | %        |   |   | 227,362   |   |   |     | 20     | %      |   |   | 237,336 |   |   |   | 21.2 | % |
| Selling                General                                             |   |     | 692,042   |   |   |   | 57.7   | %        |   |   | 562,899   |   |   |     | 49.5   | %      |   |   | 192,132 |   |   |   | 17.2 | % |
|      &                Administrative Expenses |   |     |      |   |   |   |   |     |   |   |      |   |   |     |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) Before Income Taxes                           |   |     | (391,446  | )      |   |   | (32.6  | %)       |   |   | (335,537  | )      |   |     | (29.5  | )%     |   |   | 45,204 |   |   |   | 4 | % |
| Net                Income (loss)                                           |   |     | (259,270  | )      |   |   | (21.6  | %)       |   |   | (244,972  | )      |   |     | (21.5  | )%     |   |   | 25,504 |   |   |   | 2.3 | % |

----

----

|                                                      |   | **2007** |     |   | **2006** |   |     | **2005** |   |
|-----------------------------------------------------------|--------|----------|----------|--------|----------|--------|----------|----------|--------|
| Net                cash from operating activities         |   | $        | (260,428 | )      |     | $      | (310,408 | )        |   | $ | (105,568 | ) |
| Net                cash from investing activities         |   | $        | (12,316  | )      |     | $      | 28,682   |     |   | $ | (51,095 | ) |
| Net                cash from financing activities         |   | $        | 307,291  |   |     | $      | 165,343  |     |   | $ | 133,402 |   |
| Effect                of currency translation adjustments |   | $        | (37,729  | )      |     | $      | (10,344  | )        |   | $ | (134 | ) |
| Total                change in cash and cash equivalents  |   | $        | (3,182   | )      |     | $      | (126,727 | )        |   | $ | (23,392 | ) |

***Overview***

***Operating      Activities***

----

***Financing      Activities***

***Investing      Activities***

***Off-Balance      Sheet Arrangements***

***Market      Risk***

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES**

----

***Revenue      Recognition***

***Sales      Returns and Allowances***

***Allowance      for Doubtful Accounts***

***Inventories***

----

***Goodwill***

***Accounting      for Income Taxes***

**Item      3. CONTROLS AND PROCEDURES**

----

----

**PART      II**

**OTHER      INFORMATION**

**Item      1. LEGAL PROCEEDINGS**

**Item      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**Item      3. DEFAULTS UPON SENIOR SECURITIES**

**Item      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**Item      5. OTHER INFORMATION**

**Item      6. EXHIBITS**

| **Exhibit                No.** | **Exhibit                Description**                                                                                                               |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| **31#**                        | Certifications                of Chief Executive Officer and Chief Financial Officer under Exchange                Act                Rule 13a-14(a) |
| **32#**                        | Certifications                of Chief Executive Officer and Chief Financial Officer under 18 U.S.C.                1350.                            |
| **#**                          | Filed                herewith.                                                                                                                       |

----

**SIGNATURES**

**KMA      GLOBAL SOLUTIONS INTERNATIONAL, INC.**

| June                14, 2007 | By:  /s/                Jeffrey D. Reid |   |
|------------------------------|---------------------------------------------------|--------|

----

**Exhibit      31**

----

| Dated:                June 14, 2007 | /s/                Jeffrey D. Reid |   |
|-------------------------------------|------------------------------------|--------|

----

**Exhibit      32**

| Date:                June 14, 2007 | /s/                Jeffrey D. Reid |   |
|------------------------------------|------------------------------------|--------|