UNITED STATES				SECURITIES AND EXCHANGE COMMISSION				WASHINGTON, D.C. 20549				Form 10-KSB

(Mark one)				[X]   ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended May 31, 2007

[  ]   TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to _____________				Commission File Number:  000-52007				LID HAIR STUDIOS INTERNATIONAL, INC				(Name of small business issuer in its charter)				Nevada                                                                                20-2718075				(State or other jurisdiction of                                             I.R.S. Employer				incorporation or organization)                                        Identification No.)				939 Davie Street, Vancouver, BC V6Z 1B9				Tel: 604-628-4658 Fax:  425-920-1020				(operating office)				or				Incorp Services				3155 East Patrick Lane, Suite 1, Las Vegas, NV 89120-3481				Tel: 702-866-2500				(Name, address and telephone number for Agent for Service)

Securities registered under Section 12(b) of the Exchange Act:     None				Securities registered under Section 12(g) of the Exchange Act

                 Common Shares                  (Title of class)

Check whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.				                    YES [X]   NO [  ]				Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).				                    YES [  ]   NO [X]				Check if disclosure of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form, and no disclosure will be contained, to the best of the Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. [X]				The Company's revenues for the most recent fiscal year were $65,584.				The aggregate market value of the voting stock held by non-affiliates of the Company on August 27, 2007 was $404,000.				As of August 27, 2007 the Company had 9,300,000 issued and outstanding shares of common stock.

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**Table of Contents**

| **PART I...............................................................................................................................................................** | **3**                                                                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                 |                                                                                                                                                                                                               |  |
|                                                                                                                                                                           | ITEM 1. DESCRIPTION OF BUSINESS..................................................................................................                                                                             | 3 |
|                                                                                                                                                                           | ITEM 2. DESCRIPTION OF PROPERTY.................................................................................................                                                                              | 5 |
|                                                                                                                                                                           | ITEM 3. LEGAL PROCEEDINGS.............................................................................................................                                                                        | 5 |
|                                                                                                                                                                           | ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS..................................                                                                                                                 | 5 |
|                                                                                                                                                                 |                                                                                                                                                                                                               |  |
| **PART II.............................................................................................................................................................**  | **5**                                                                                                                                                                                                         |
|                                                                                                                                                                 |                                                                                                                                                                                                               |  |
|                                                                                                                                                                           | ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.............                                                                                                                                 | 5 |
|                                                                                                                                                                           | ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION................                                                                                                                             | 6 |
|                                                                                                                                                                           | ITEM 7. FINANCIAL STATEMENTS.....................................................................................................                                                                             | 11 |
|                                                                                                                                                                           | ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING							AND FINANCIAL DISCLOSURE........................................................................................................... | 27 |
|                                                                                                                                                                           | ITEM 8A. CONTROLS AND PROCEDURES.........................................................................................                                                                                     | 27 |
|                                                                                                                                                                           | ITEM 8B. OTHER INFORMATION........................................................................................................                                                                            | 27 |
|                                                                                                                                                                 |                                                                                                                                                                                                               |  |
| **PART III............................................................................................................................................................**  | **28**                                                                                                                                                                                                        |
|                                                                                                                                                                 |                                                                                                                                                                                                               |  |
|                                                                                                                                                                           | ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;							COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT....................................................                             | 28 |
|                                                                                                                                                                           | ITEM 10. EXECUTIVE COMPENSATION.............................................................................................                                                                                  | 29 |
|                                                                                                                                                                           | ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT							AND RELATED STOCKHOLDER MATTERS.......................................................................................          | 29 |
|                                                                                                                                                                           | ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS........................................                                                                                                               | 30 |
|                                                                                                                                                                           | ITEM 13. EXHIBITS.................................................................................................................................                                                            | 30 |
|                                                                                                                                                                           | ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES...........................................................                                                                                                    | 30 |
|                                                                                                                                                                           | EXHIBIT 31.1 - CERTIFICATIONS.........................................................................................................                                                                        | 32 |
|                                                                                                                                                                           | EXHIBIT 32.1 - CERTIFICATIONS........................................................................................................                                                                         | 33 |
|                                                                                                                                                                           | EXHIBIT 14.1 - CODE OF ETHICS..........................................................................................................                                                                       | 34 |

2

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Part I
ITEM 1.  DESCRIPTION OF BUSINESS
**Marketing Strategy**

3

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4

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**ITEM 2. DESCRIPTION OF PROPERTY**
**ITEM 3. LEGAL PROCEEDINGS**
**ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**
**Part II**
**ITEM 5.  MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS**
| **Year ended May 31, 2007:**   | **High** | **Low** |
|--------------------------------|----------|---------|
|                      |          |         |
| March 31, 2007 to May 31, 2007 | $0.10    | $0.10   |

5

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

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- Sales – Gross Profit			 Professional Fees			Depreciation			
- Other Administrative Expenses		  Professional Fees consist primarily of our contracted accounting, legal and audit fees. These amounted to $46,890 for the year ended May 31, 2007 and $37,522 for the year ended May 31, 2006.  Professional fees are attributable primarily to accounting, legal and audit fees for preparation and review of our filings with the Securities & Exchange Commission (SEC) in 2007.			Sales refer to our gross profit – Sales less Cost of Sales.  Our gross profit increased from $36,952 for the year ended May 31, 2006 to $66,945 for the year ended May 31, 2007. The increase in Sales and Gross Profit is a result of commencing business operations.			Amortization expense charged to operations was $7,749 and $4,610 in 2007 and 2006, respectively.			Other Administrative Expenses refers to our office supplies, telephone expenses, bank charges, fees to process and file documents with the SEC, stock transfer fees and corporate filing fees with the State of Nevada and other administrative expenses. These amounted to $95,641 for the year ended May 31, 2007 and $50,406 for the year ended May 31, 2006 respectively. The increase in 2007 versus 2006 is attributable primarily to an increase in wages.**Overview**Our accumulated deficit as of our year ended on May 31, 2007 was $142,766 and as of May 31, 2006, the accumulated deficit was $59,431.  During the fiscal year ended May 31, 2007, the deficit increased by $83,335 (2006: $55,586).  The discussion below provides an overview of our operations, discusses our results of operations, our plan of operations and our liquidity and capital resources.**Results of Operations**Net revenues increased year over year to $66,945 from $36,952 respectively for the year ended May 31, 2007 versus May 31, 2006. This increase is the result of opening the salon in August 2005.  
6
  ****           		We realized a net loss of $83,335 for the fiscal year ended May 31, 2007, compared to a net loss of $55,586 for the fiscal year ended May 31, 2006. The increase in net loss is primarily due to the increase in wages.    		We do not expect our rent expenses to increase next year but expect them to remain at the current level.    		We expect our depreciation expense to increase in the next year due to the depreciation of the equipment.    		We expect our other administrative expenses to increase in the next year as our legal fees may increase as we further our strategic goals and additional advice and/or opinions may be required.     		Due to the foregoing factors, our operating results are difficult to forecast.  You should evaluate our prospects in light of the risk, expenses and difficulties commonly encountered by companies in rapidly evolving markets.  We cannot assure you that we will successfully address such risks and challenges.  In addition, even though we have an operational business with revenues, we cannot assure you that our revenues will increase or that we will become profitable in the future.     *Overview –June 1, 2006 to May31, 2007* For the year ended May 31, 2007 we generated revenue of $66,945 and $36,952 for the previous year ended May 31, 2006. Management expects the vast majority of our revenue to be generated from operations from future hair salon startups and/or acquisitions.  Total expenses for the year ended May 31, 2007 were $150,280 compared to $92,538 for the year ended May 31, 2006. Out of these total expenses for the year ended May 31, 2007, $34,390 represented professional fees, $3,864 for supplies, $16,377 rent, $77,314 represent wages, $3,380 with the preparation and filing of the registration statement and costs associated with the commencing of operations of the hair studio.    		Wages increased by $16,904 during the year ended May 31, 2007 from $24,910 for the year ended May 31, 2006. The increase in wages is consistent with the increase in revenue.     Liquidity and Capital Resources For the year ended May 31, 2007, cash used by operating activities was $71,121. Cash used by operating activities for the year ended May 31, 2006 was $33,657.    		Cash used by investing activities during the year ended May 31, 2007 was $Nil. Cash used by investing activities for the year ended May 31, 2006 was $53,024. The change in cash used in investing activities is due to the $53,024 cash used to purchase property and equipment and leasehold improvements during the year ended May 31, 2006.    		Net cash provided by financing activities for the year ended May 31, 2007 was $144,382. Cash provided by financing activities for the year ended May 31, 2006 was $91,715. The change in cash provided by financing activities is due to the $200,000 received from the issuance of shares.    		At May 31, 2007 we had $78,629 in cash, compared to $4,085 as at May 31, 2006.     Plan of Operations The Company's primary objective for fiscal year ending May 31, 2008 is to increase its existing salon sales while controlling costs. We will focus our marketing efforts on positioning our salon business based on quality services and products while maintaining affordable pricing for its customers. We intend to build on the substantial walk-in clientele by hiring additional stylists.    		The Company's other objectives for fiscal 2008 are as follows:		   - Improve customer value by offering a wider range services at a variety of prices,			 Introduce “special occasion” packages for Valentine’s Day, Mother’s Day, Secretary’s Day,			Develop quality enhancements based on excellent customer service and products 			
- Analyze our core market and to assess its viability for market growth for additional salon locations		  Our ongoing objective is to increase sales through increased services and price promotions and effective marketing of Lid Hair Studios’ competitive attributes of quality services and value pricing.  
7
           		The Company has plans to fully develop the Vancouver market area in terms of additional salon locations that will carry the same name. Management estimates that the Vancouver and surrounding cities will support additional locations while focusing on brand name recognition of Lids Hair Studios for high quality service and products and value pricing.  Media advertising is important to effectively build brand awareness and enhance the positioning of the Lids Hair Studios in a very competitive Vancouver market. All of our growth for fiscal 2008 and 2009 will be focused in the Vancouver. These development plans are highly dependent on the availability of potential sites, lease terms, financing availability and cost, and availability and quality of management and staff personnel.     Growth Strategy We are incorporating the following strategy to our future objectives:     - Expand our salon operations through:    - the addition and development of additional Lid Hair Studios with additional locations in our existing market by 2008;			   the possible acquisition or development of salons operating under other names;			- Improve our profitability by continuing to enhance the salon services for our clients and improving operating efficiency of our salon brand;     Focus on improving efficiency and utilizing creative and aggressive marketing initiatives		
During the next twelve months, we intend to continue to make efforts to increase the number of clients and increase the number of salons.  Net income may not be recognized until 2008 depending on the tenant improvements and commencement of leases and close dates for sales.			Over the next twelve months we expect that our number of employees will increase.  Additional staff will be required when we acquire a salon or start of a new salon as well fill the remaining chairs in the operating salon.			We are currently actively seeking new acquisitions and looking for a suitable location to start a new salon.			We cannot predict with certainty what revenues we can expect during the next twelve months, and we believe that we probably will not have enough revenue, when added to our cash on hand, to pay our operating expenses for the next twelve months. Therefore, we anticipate that we will be required to raise additional capital to pay those expenses. We cannot guarantee that we will be able to raise that capital, in which event, our operations may be required to be curtailed.**Seasonality**Generally our salon business is not affected by season.  We have regular monthly clients and walk-in traffic. 			Our salon services including but not limited to cuts, colouring, various hair treatments and product sales.  Revenue is generated both through sales and hair services.**Clients**We do not have a significant concentration of sales with any individual customer and, therefore, the loss of any one customer would not have a material impact on our business.**Working Capital**We had positive working capital of $44,405 at May 31, 2007, compared to negative working capital of $(73,756) at May 31, 2006.			We fund the growth of our business through a combination of available cash and cash equivalents, short-term investments and cash flows generated from operations. In addition, we raised an additional $200,000 through the sell of 2,000,000 common shares registered and declared effective May 10, 2006.			Additional information regarding our "Liquidity and Capital Resources" is included in Item 6 Management's Discussion and Analysis of Financial Condition and Results of Operations, of this Annual Report on Form 10-K.

8
		As at May 31, 2007 and May 31, 2006, we had cash and cash equivalents of $78,629 and $4,085 respectively. Although we believe we are adequately capitalized, based on the risk factors for a company at our stage of development, we acknowledge we may need to raise additional capital within the next twelve months.		If cash generated from operations are insufficient to meet our long-term liquidity needs, we may need to raise additional funds or seek other financing arrangements.  Additionally funding may not be available on favorable terms or at all.**PLAN OF OPERATIONS			Competitive Strategy**There are three major ways in which we will create an advantage over our competitors over the next twelve months;		- Name identity, quality service, and value pricing			 high employee motivation (bonus incentives)			innovative and aggressive service options.		
Operations
Lid Hair Studios International Inc. commenced daily business operations on August 1, 2005 with the opening of our first salon. In preparation for the opening we leased space, renovated the space, purchased salon equipment and hired staff.
Promotion
We expect to significantly increase our planned expenditures for marketing and promotion over the next twelve month period. This is essential to increase awareness of our existing salon.  There are several district newspapers where we will place advertisements as well as distribute flyers to area residents.  We expect that promotion expenses will be approximately $5,000 over the next six-month period ending February 28, 2008.  The expenses will be for printing and advertisement placement in local area newspapers.
Personnel
As of July 30, 2007, our management and personnel includes our president, Eric S. Anderson, our salon manager, Amber Warren and one full-time stylist and two chair renters. Mr. Anderson handles all of the responsibilities in the area of corporate administration, business development and research. In addition, our president also provides us with capital raising services. In the twelve months ending May 31, 2008, we plan to raise our total number of permanent employees to approximately 4: we will add two more stylists to fill vacant chairs.  Ms. Warren is responsible for the day-to-day operations of the salon and prepares receipts daily and organizes accounting items for the accountant.
If our sales and marketing program is successful in growing our sales beyond our current expectations, we may be required to hire new personnel to meet the demand and maintain a high level of customer service. 
Other Expenses
We also incurred expenses unrelated to the business operations including auditing and legal expenses relating to the preparation of the registration statement and other required reporting documents. We expect to incur a total of $7,500 in legal expenses related to the preparation and filing of the registration statement. Since the effectiveness of our registration statement, we expect our ongoing legal expenses to be significantly reduced, averaging less than $500 per month.
Future Operations
Due to our lack of business operations and resulting operating deficit, in their report on our audited consolidated financial statements for the period ended May 31, 2007, our independent auditors included an explanatory paragraph regarding concerns about our ability to continue as a going concern. Our audited financial statements contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors. With our recent salon commencing business in August 2005, we expect this situation to change over future operating quarters. However, we may still incur losses as we will be expending funds for expenses unrelated to the operation of the salon business such as auditing and legal expenses necessary to file our registration statement and other reporting documents and to raise capital in the future as needed.
		There are no assurances that we will be able to obtain further funds required for our continued operations and expansion plans. We are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on

9

		commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we may not be able to execute our acquisition and expansion plans as detailed.
Certain Relationships and Related Transactions
We intend that any transactions between us and our officers, directors, principal stockholders, affiliates or advisors will be on terms no less favorable to us than those reasonably obtainable from third parties.  To date, several related party transactions have taken place.
		Certain relationships and related transactions are discussed in detail on page 30 in section Part III Item 12. Certain Relationships and Related Transactions.
		As noted in Note 5 of the Interim Consolidated Financial Statements of May 31, 2007:
       a)       As of May 31, 2007, the amount due to the shareholder of $942 (2006: $56,560) is uncollateralized, non-interest bearing and due on demand.  b)During the year, the Company paid directors and officers of the Company $38,849 (2006: $15,042) in wages and directors’ fees.

10

**ITEM 7. FINANCIAL STATEMENTS**
INDEX TO FINANCIAL STATEMENTS

**LID HAIR STUDIOS INTERNATIONAL, INC.					(Formerly Belford Enterprises, Inc.)					CONSOLIDATED FINANCIAL STATEMENTS					MAY 31, 2007					US FUNDS**

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Page

  

Report of Independent Registered Public Accounting Firm

F-2

  

Consolidated Financial Statements:

                 

                Consolidated Balance Sheets

F-3

  

                Consolidated Statement of Stockholders’ Equity (Deficit)

F-4

  

                Consolidated Statements of Operations

F-5

  

                Consolidated Statements of Cash Flows

F-6

   

                Notes to Consolidated Financial Statements

F-7 to F-16
			F-1			11

***Report of Independent Registered Public Accounting Firm***

Board of Directors				Lid Hair Studios International, Inc.			We have audited the accompanying balance sheets of Lid Hair Studios International, Inc., as of May 31, 2007 and 2006, and the related statements of operations, stockholders' equity (deficit), and cash flows for the two years ended May 31, 2007 and 2006, and the period from April 20, 2005 (inception) to May 31, 2007. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.			We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.			In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Lid Hair Studios International, Inc. as of May 31, 2007 and 2006, and the results of its operations and cash flows for the two years ended May 31, 2007, and the period from April 20, 2005 (inception) to May 31, 2007, in conformity with accounting principles generally accepted in the United States of America.			The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As described in Note 2, the Company has recurring losses from operations, which raises substantial doubt about its ability to continue as a going concern.  Management's plans in regard to this matter are also discussed in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.				SCHUMACHER & ASSOCIATES, INC.			Denver, Colorado				August 15, 2007

F-2				12

**
LID HAIR STUDIOS INTERNATIONAL, INC.
(Formerly Belford Enterprises, Inc.)
CONSOLIDATED BALANCE SHEETS       Statement 1
Expressed in US dollars
****

****

**ASSETS**

May 31							2007

May 31							2006

**Current**

****

****

    Cash

**$**

**78,629**

$

4,085

    Inventory

****

**1,348**

882

  

****

**79,977**

4,967

**Property and Equipment**, net of depreciation*(Note 7)*

****

**29,422**

35,109

**Lease rights,**net of amortization *(Note 8)*****

****

**12,821**

13,057

**Prepaid expenses and deposits**

****

**8,898**

1,362

**$**

**131,118**

$

54,495

  

****

****

**LIABILITIES**

****

****

**Current**

****

****

    Accounts payable

**$**

**25,630**

$

15,163

    Accrued liabilities

****

**9,000**

7,000

    Due to shareholder*(Note 5a)*

****

**942**

56,560

****

** 35,572**

78,723

   

****

****

**Commitments and contingencies***(Notes 2, 5,  6, and 9)*

****

****

  

****

****

**STOCKHOLDERS’ EQUITY (DEFICIT)**

****

****

**Capital Stock*******(Note 4)*

****

****

    Authorized:  75,000,000 common shares at $0.001 par value

****

****

    Issued, allotted and outstanding:  9,300,000 and 7,300,000							    common shares at May 31, 2007 and 2006 respectively

****

**9,300**

7,300

    Additional paid-in capital

****

**227,200**

29,200

    Accumulated comprehensive income (loss)

****

**1,812**

(1,297)

**Accumulated (deficit)**

****

**(142,766)**

(59,431)

****

****

**95,546**

(24,228)

****

**$**

**131,118**

$

54,495

See accompanying notes to consolidated financial statements				F-3				13

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LID HAIR STUDIOS INTERNATIONAL, INC.
(Formerly Belford Enterprises, Inc.)
CONSOLIDATED STATEMENTOF 
STOCKHOLDERS’ EQUITY (DEFICIT)      Statement 2
Expressed in US dollars

Common Stock

Additional							Paid-in

Accumulated

Accumulated							Comprehensive

Total							Stockholders’							Equity

Shares

Amount

Capital

(Deficit)

Income (Loss)

(Deficiency)

Balance – April 20, 2005

-

$

-

$

-

$

-

$

-

$

-

  

Shares issued for cash – May 11,							    2005 at $.005

5,000,000

5,000

20,000

-

-

25,000

Loss for the period May 31 2005

-

-

-

(3,845)

-

(3,845)

5,000,000

5,000

20,000

(3,845)

-

21,155

  

Shares issued for cash – June 20,							    2005 at $.005

2,300,000

2,300

9,200

-

-

11,500

Loss for the year May 31 2006

-

-

-

(55,586)

-

(55,586)

Foreign currency translation							    adjustment

-

-

-

-

(1,297)

(1,297)

  

Balance – May 31, 2006

7,300,000

7,300

29,200

(59,431)

(1,297)

(24,228)

  

Shares issued for cash July 31,   2006 at $0.10

2,000,000

2,000

198,000

-

-

200,000

  

Loss for the year ended							    May 31, 2007

-

-

-

(83,335)

-

(83,335)

  

Foreign currency translation							    Adjustment

-

-

-

-

       3,109

 3,109

  

Balance – May 31, 2007

9,300,000

$

9,300

$

227,200

$

(142,766)

$

      1,812

$

 95,546

See accompanying notes to consolidated financial statements				F-4				14

LID HAIR STUDIOS INTERNATIONAL, INC.
(Formerly Belford Enterprises, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS       Statement 3
Expressed in US dollars
****

****

****

**May 31,									2007**

May 31,								2006

**REVENUE**

****

****

   Hair salon services

**$**

**65,584**

$

**36,539**

  

****

****

****

   Retail sales

****

**3,386**

**984**

   Cost of goods sold

****

**(2,025)**

**(571)**

   Gross profit from retail sales

****

**1,361**

**413**

   Net revenue

****

**66,945**

**36,952**

  

****

****

****

**EXPENSES**

****

****

****

   Advertising and promotion

****

**405**

**-**

   Amortization and depreciation

****

**7,749**

**4,610**

   Insurance

****

**950**

**575**

   Interest and bank charges

****

**2,176**

**1,308**

   Professional fees

****

**46,890**

**37,522**

   Rent

****

**16,377**

**15,039**

   Supplies

****

**3,864**

**3,139**

   Telephone

****

**433**

**401**

   Transfer agent and printing

****

**3,380**

**2,454**

   Utilities

****

**3,242**

**2,580**

   Directors’ fees

****

**23,000**

**-**

   Wages

****

**41,814**

**24,910**

  

****

**150,280**

**92,538**

  

****

****

****
**NET LOSS**
**$**

**(83,335)**

$

**(55,586)**

  

****

****

****

Weighted average shares outstanding

****

**8,971,233**

**7,173,972**

  

****

****

****

Loss per share

**$**

**(0.01)**

$

**(0.01)**

  

****

****

****

**Other Comprehensive Loss**:

****

****

****

   Net loss for the year

**$**

**(83,335)**

$

**(55,586)**

   Foreign currency translation adjustment

****

**3,109**

**(1,297)**

**$**

**(80,226)**

$

**(56,883)**

See accompanying notes to consolidated financial statements				F-5				15

**LID HAIR STUDIOS INTERNATIONAL, INC.				(Formerly Belford Enterprises, Inc.)				CONSOLIDATED STATEMENTS OF CASH FLOWS        Statement 4				Expressed in US dollars******
****

****

**Cash Flows from (Used By):**

**May 31, 									2007**

May 31,								2006
OPERATING ACTIVITIES
****

****

   Net loss

**$**

**(83,335)**

$

(55,586)

   Items not involving cash:

****

****

      Amortization and depreciation

****

**7,749**

4,610

  

****

**(75,586)**

(50,976)

   Changes in non-cash working capital:

****

****

      Prepaid expenses and deposits

****

**(7,536)**

(1,362)

      Inventory

****

**(466)**

(882)

      Accounts payable and accrued liabilities

****

**12,467**

19,563

****

**(71,121)**

(33,657)

****

****

**INVESTING ACTIVITIES**

****

****

   Purchase of property and equipment

****

**-**

(53,024)

****

****

**-**

(53,024)

****

****

****

**FINANCING ACTIVITIES**

****

****

   Shares issued

****

**200,000**

36,500

   Advances from (payment to) shareholder

****

**(55,618)**

55,215

****

**144,382**

91,715

****

****
**Foreign Currency Adjustment**
****

**1,283**

(1,049)

****

****

****
**Increase in Cash**
****

**74,544**

3,985
   Cash – Beginning of year  
****

**4,085**

100
**CASH – END OF YEAR**
**$**

**78,629**

$

4,085

****

****

**SUPPLEMENTAL CASH FLOW INFORMATION**

****

****

   Interest paid

**$**

**-**

$

-

   Income taxes paid

**$**

**-**

$

-

  

****

****

**SUPPLEMENTAL SCHEDULE OF NON-CASH								   INVESTING AND FINANCING ACTIVITIES**

****

****

Foreign currency translation adjustment included in							   property and equipment

**$**

**1,826**

$

1,801

Purchase of property and equipment funded by							   shareholder

**$**

**-**

$

10,269

See accompanying notes to consolidated financial statements				F-6				16

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
US FUNDS
YEAR ENDED MAY 31, 2007
1.       Summary of Significant Accounting Policies

This summary of significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management who are responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles in the United States of America and have been consistently applied in the preparation of the financial statements.*Organization and Description of Business*Belford Enterprises, Inc. (the “Company”) was incorporated in the State of Nevada on April 20, 2005.  On August 15, 2005, the Company changed its name to Lid Hair Studios International, Inc. to reflect its business plan, which is to open a nationwide chain of hair salons. 				On June 7, 2005, the Company incorporated a wholly-owned subsidiary, Belford Enterprises B.C. Ltd., in the Province of British Columbia, Canada.  On June 18, 2005, the Company, through its subsidiary, purchased hair salon equipment and commenced operations in the hair salon and personal services business and provides related personal services including but not limited to hair cuts, permanents, styling, manicures, and pedicures. *Principles of Consolidation*The consolidated financial statements include the accounts of both Lid Hair Studios International, Inc. and Belford Enterprises B.C. Ltd. All inter-company accounts have been eliminated in the consolidation.*Cash and Cash Equivalents*Cash and cash equivalents consist of highly liquid debt instruments purchased with an initial maturity of three months or less.*Risks and Uncertainties*The Company's operations are subject to significant risks and uncertainties, including financial, operational and other risks associated with operating an emerging business, including the potential risk of business failure.*Concentrations*Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents.  At May 31, 2007, the Company had $2,456 (2006: $4,085) of cash or cash equivalents which are not insured by agencies of the U.S. Government.

****

****
****
**
**

F-7				17

**LID HAIR STUDIOS INTERNATIONAL, INC.				(FORMERLY BELFORD ENTERPRISES, INC.)				NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS				US FUNDS				YEAR ENDED MAY 31, 2007****1.       Summary of Significant Accounting Policies** - *Continued*

*Inventory*Inventory is stated at the lower of cost or market. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing the inventory to its present location and condition, and is calculated using the weighted average method.*Foreign Currency Translations*The Company’s functional currency is the Canadian dollar. The Company’s reporting currency is the U.S. dollar.  All transactions initiated in other currencies are re-measured into the functional currency as follows:					Monetary assets and liabilities at the rate of exchange in effect at the balance sheet date,					ii)   Non-monetary assets and liabilities, and equity at historical rates, and					iii)   Revenue and expense items at the average rate of exchange prevailing during the period.					Gains and losses on re-measurement are included in determining net income for the period.					Translation of balances from the functional currency into the reporting currency is conducted as follows:					Assets and liabilities at the rate of exchange in effect at the balance sheet date,					ii)   Equity at historical rates, and					iii)   Revenue and expense items at the average rate of exchange prevailing during the period.					Translation adjustments resulting from translation of balances from functional to reporting currency are accumulated as a separate component of shareholders’ equity as a component of comprehensive income or loss.

****

****
**
**

F-8				18

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
*(*NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
US FUNDS
YEAR ENDED MAY 31, 2007
1.       Summary of Significant Accounting Policies
 - 
Continued

*Long-Lived Assets*Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not be recoverable or at least at the end of each reporting period. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. For long-lived assets to be held and used, management measures fair value based on quoted market prices or based on discounted estimates of future cash flows.*Loss per Share*The Company computes net loss per common share using SFAS No. 128 *"Earnings Per Share."*  Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per share is computed by dividing net loss by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares at May 31, 2007.  The Company has incurred a net loss and has no potentially dilutive common shares, therefore; basic and diluted loss per share is the same.  Additionally, for the purposes of calculating diluted loss per share, there were no adjustments to net loss. *Advertising*The Company expenses the cost of advertising when incurred. Advertising expenses are included with marketing and promotion in selling, general and administrative expenses in the accompanying statements of operations.*Segment Reporting*SFAS No. 131, *"Disclosures about Segments of an Enterprise and Related Information",* changed the way public companies report information about segments of their business in their quarterly reports issued to stockholders. It also requires entity-wide disclosures about the products and services an entity provides, the material countries in which it holds assets and reports revenues and its major customers.				The Company is currently operating in one geographical segment, being Canada.*Derivative Financial Instruments*The Company was not a party to any derivative financial instruments during the reported fiscal periods.

****
**

F-9				19

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
US FUNDS
YEAR ENDED MAY 31, 2007
1.       Summary of Significant Accounting Policies
 - 
Continued

*Stock-Based Compensation*The Company accounts for stock-based compensation issued to employees based on SFAS No. 123R “*Share Based Payment*”. SFAS No. 123R is a revision of SFAS No. 123 “*Accounting for Stock-Based Compensatio*n”, and supersedes APB Opinion No. 25, “Accounting for Stock Issued to Employees” and its related implementation guidance. SFAS 123R establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. SFAS 123R focuses primarily on accounting for transactions in which an entity obtains employee services in share-based payment transactions. SFAS 123R does not change the accounting guidance for share-based payment transactions with parties other than employees provided in SFAS 123 as originally issued and Emerging Issues Task Force Issue No. 96-18, “*Accounting for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or in Conjunction with Selling, Goods or Services*”.  SFAS 123R does not address the accounting for employee share ownership plans, which are subject to AICPA Statement of Position 93-6, “*Employers’ Accounting for Employee Stock Ownership Plans*”.				SFAS 123R requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award – the requisite service period (usually the vesting period). SFAS 123R requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the fair value of the equity or liability instruments issued.				As at May 31, 2007, the Company had no stock-based compensation plans nor had it granted options to employees.  No stock-based employee compensation cost is reflected in net loss, as no options had been granted.*Revenue Recognition*Revenues are recognized in accordance with SEC Staff Accounting Bulletin (SAB) No. 101, "*Revenue Recognition in Financial Statements*." Under SAB 101, product revenues (or service revenues) are recognized when persuasive evidence of an arrangement exists, delivery has occurred (or service has been performed), the sales price is fixed and determinable and collectibility is reasonably assured.				The Company's revenues are derived principally from hair styling fees, sales of hair products and other related charges. Revenue is recognized from services when performed and billed.

****
**

F-10				20

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
US FUNDS
YEAR ENDED MAY 31, 2007
1.       Summary of Significant Accounting Policies
 - 
Continued

*Use of Estimates*The preparation of the Company's financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates.*Estimated Fair Value of Financial Instruments*The carrying values of cash, accounts payable and due to shareholder reflected in the financial statements approximates their fair value due to the short-term maturity of the instruments.*Comprehensive Income (Loss)*The Company has adopted Statement of Financial Accounting Standards (SFAS) No. 130, *"Reporting Comprehensive Income"*. SFAS 130 requires that the components and total amounts of comprehensive income be displayed in the financial statements beginning in 1998.  Comprehensive income includes net income and all changes in equity during a period that arises from non-owner sources, such as foreign currency items and unrealized gains and losses on certain investments in equity securities.*Income Taxes*The Company records deferred taxes in accordance with Statement of Financial Accounting Standards (SFAS) No. 109, *"Accounting for Income Taxes."* The statement requires recognition of deferred tax assets and liabilities for temporary differences between the tax bases of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.*Start-up Costs*The Company has adopted Statement of Position No. 98-5 ("SOP 98-5"), *"Reporting the Costs of Start-Up Activities."* SOP 98-5 requires that all non-governmental entities expense the cost of start-up activities, including organizational costs as those costs are incurred.*Other*The Company's fiscal year end is May 31.				The Company paid no dividends during the year presented.				The Company’s operating assets are principally located in Canada.

****

****
**
**
**
**
**

F-11				21

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
US FUNDS
YEAR ENDED MAY 31, 2007
2.       Basis of Presentation - Going Concern

The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America, assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business.  As of May 31, 2007, the Company had recurring losses from operations totaling $142,766.  The Company intends to fund operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending May 31, 2008.				In response to these problems, management has taken the following actions:

The Company’s SB-2 Registration Statement has become effective, and
- Management intends to raise additional funds through public or private placement offerings.			   
****
  ****    There is no assurance that the Company will be able to raise sufficient funds to complete its business plan.  As a result of the foregoing, there exists substantial doubt about the Company’s ability to continue as a going concern.  The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.    
F-12				22
            LID HAIR STUDIOS INTERNATIONAL, INC. (FORMERLY BELFORD ENTERPRISES, INC.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS US FUNDS YEAR ENDED MAY 31, 2007     3.       Recent Accounting Pronouncements  
There were various accounting standards and interpretations issued during 2007 and 2006, none of which are expected to have a material impact on the Company’s consolidated financial position, operations or cash flows.
  
****
  ****    ****  **4.       Capital Stock**  
a)   On May 11, 2005, the Company issued 5,000,000 common shares at $0.005 to its sole shareholder for $25,000.  These shares were issued during the period ended May 31, 2005.				b)   On June 20, 2005, the Company issued 2,300,000 common shares at $0.005 per share to various shareholders for total cash consideration of $11,500.				c)  On July 31, 2006, the Company issued 2,000,000 common shares at $0.10 per share to various shareholders for total cash consideration of $200,000.
    
F- 13				23
            LID HAIR STUDIOS INTERNATIONAL, INC. (FORMERLY BELFORD ENTERPRISES, INC.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS US FUNDS YEAR ENDED MAY 31, 2007     5.       Related Party Balances and Transactions  
a)   As of May 31, 2007, the amount due to shareholder of $942 (2006: $56,560) is uncollateralized, non-interest bearing and due on demand.				b)   During the year, the Company paid directors and officers of the Company $38,849 (2006: $15,042) in wages and directors’ fees.
  
****
  ****    **6.       Commitments**  
On July 4, 2005, the Company, through its wholly owned subsidiary, as the assignee, signed an agreement for the assignment of lease by tenant with landlord’s consent.  The lease is personally guaranteed by the President of the Company.  The assigned lease was amended and renewed by the previous tenant on July 1, 2005 for an additional term of nine (9) years commencing on July 1, 2006 and ending on June 30, 2015.  The monthly rental payments from July 1, 2005 to June 30, 2015 are as follows:

Periods

Monthly Rental Payment

July 1, 2005 to June 30, 2006

$1,407

July 1, 2006 to June 30, 2009

$1,407

July 1, 2009 to June 30, 2015

$1,543
			Future minimum lease payments are as follows:
Year ending May 31,

Future minimum lease payments

2008

$16,884

2009

$17,020

2010

$18,516

2011

$18,516

Thereafter

$75,607

$146,543
=========================    
F-14				24
            LID HAIR STUDIOS INTERNATIONAL, INC. (FORMERLY BELFORD ENTERPRISES, INC.) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS US FUNDS YEAR ENDED MAY 31, 2007     7.       Property and Equipment  
The Company applies the following depreciation policies:				Leasehold improvements            9 years straight line				Furniture and equipment             20% declining balance over 5 years				Computer equipment                  30% declining balance over 3 years
  
****
  ****    
2007

2006

Cost

Accumulated									Depreciation

Net									Book Value

Cost

Accumulated									Depreciation

Net									Book Value

  

Leasehold improvements

$       10,140

$         1,690

$         8,450

$         9,879

$           550

$       9,329

Furniture and equipment

       27,200

           7,616

      19,584

        26,500

           2,650

      23,850

Computer equipment

         2,330

              942

             1,388

        2,270

              340

         1,930

$       39,670

$       10,248

$       29,422

$       38,649

$        3,540

$     35,109
================================================================================  **8.       Lease Rights**  
On June 18, 2005, the Company entered into an Agreement of Purchase and Sale of Equipment to purchase furniture and equipment and obtain an assignment of lease for approximately $40,000 ($45,000 Canadian $).  According to FASB 141, the purchase price was allocated first to the fair market value of the fixed assets, and then to the intangible rights to the lease received.  A total of $25,403 was allocated to furniture and equipment, and the balance of $14,375 to lease rights.  The lease rights are being amortized over ten years through June 30, 2015, the remaining life of the lease. Amortization expense for the year ended May 31, 2007 was $1,499 (2006: $1,318). The net book value of the lease rights at May 31, 2007 was $12,821 (2006: $13,057).				Estimated future amortization expense:

Year ending May 31,

Future estimated amortization expense

2008

$1,438

2009

$1,438

2010

$1,438

2011

$1,438

Thereafter

     $5,867

  $11,619
							=======    
F-15				25
  **LID HAIR STUDIOS INTERNATIONAL, INC.				(FORMERLY BELFORD ENTERPRISES, INC.)				NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS				US FUNDS				YEAR ENDED MAY 31, 2007****9.       Income Taxes**  
The Company is subject to foreign and domestic income taxes.  The Company has had no income, and therefore has paid no income tax.					Deferred income taxes arise from temporary timing differences in the recognition of income and expenses for financial reporting and tax purposes. The Company’s deferred tax assets consist entirely of the benefit from net operating loss (NOL) carryforwards.  The net operating loss carry forwards expire in 2025 and 2027.  The Company’s deferred tax assets are offset by a valuation allowance due to the uncertainty of the realization of the net operating loss carryforwards.  Net operating loss carryforwards may be further limited by a change in company ownership and other provisions of the tax laws.					The Company’s deferred tax assets, valuation allowance, and change in valuation allowance are as follows:
  
****
  ****    ****  
Year Ending

Estimated NOL Carry-forward

NOL Expires

Estimated Tax Benefit from NOL

Valuation Allowance

Change in Valuation Allowance

Net Tax Benefit

 May 31, 2005

    3,845

2025

  961

   (961)

      (961)

            -

May 31, 2006

 

  59,431

2026

            14,858

(14,858)

(13,897)

            -

May 31, 2007

142,766

2027

            35,691

(35,691)

(20,833)

            -
			Income taxes at the statutory rate are reconciled to the Company’s actual income taxes as follows:
Income tax benefit at statutory rate resulting from net operating							loss carryforward

							(25%)

Deferred income tax valuation allowance

25%

Actual tax rate

0%
===========    
F-16				26
            **ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE** There have been no disagreements on accounting and financial disclosures from the inception of the Company through to the date of this Report.     **ITEM 8A. CONTROLS AND PROCEDURES** Critical Accounting Policies The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure based closely on the definition of "disclosure controls and procedures" in Rule 13a-15(e). The Company’s disclosure controls and procedures are designed to provide a reasonable level of assurance of reaching the Company’s desired disclosure control objectives.  In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.  The Company’s certifying officer has concluded that the Company’s disclosure controls and procedures are effective in reaching that level of assurance.    		As of the end of the period being reported upon, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and the Company's Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on the foregoing, the our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective.    		There have been no significant changes in our internal controls or in other factors that could significantly affect the internal controls subsequent to the date the Company completed its evaluation.     Recent Accounting Pronouncements The following is disclosure regarding recent accounting pronouncements and their effect or potential effect on the Company’s financial statements.    		The Company adopted Statement of Position No. 98-5 (“SOP 98-5”), “Reporting the Costs of Start-Up Activities.” SOP 98-5 requires that all non-governmental entities expense the cost of start-up activities, including organizational costs as those costs are incurred.    		The Company adopted Statement of Financial Accounting Standards (“FAS”) No. 130, “Reporting Comprehensive Income”. FAS No.130 requires that the components and total amounts of comprehensive income be displayed in the financial statements. Comprehensive income includes net income and all changes in equity during a period that arises from non-owner sources, such as foreign currency items and unrealized gains and losses on certain investments in equity securities. The Company’s components of comprehensive income (loss) consist of a net loss.    		In December 1999, The United States Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial Statements."  SAB 101 summarized certain of the SEC's views regarding the application of generally accepted accounting principles to revenue recognition in financial statements. In June 2000, the SEC amended SAB 101 to require companies with fiscal years beginning after December 15, 1999 to implement the provisions of SAB 101 no later than the fourth fiscal quarter. The Company adopted the provisions of SAB 101 at its inception. The Company does not believe that the adoption has any material effect on its financial statements.     **ITEM 8B. OTHER INFORMATION** None to Report.         
27
            **Part III** **ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT** The following table sets forth certain information as of July 10, 2007.     Executive Compensation The following table sets forth the salaries and directors’ fees we expect to pay to our executives on an annual basis.     Person                                            Age          Position                          Term Mr. Eric Steven Anderson  (1)             39            President & Director        1 Year  		Ms. Amber Warren  (2)                       33            Manager & Director        1 Year     (1)      Mr. Eric Steven Anderson is the President and Director of Lid Hair Studios International, Inc.;   (2)      Ms. Amber Warren is the Manager and Director of Lid Hair Studios International, Inc.    		We do not have an audit committee, nor do we have a compensation committee.  We anticipate forming these committees at a future Board of Directors’ meeting.     Chairman, Chief Executive Officer, President, Chief Financial Officer and Chief Accounting Officer Eric Steven Anderson  was born February 1967, in Canada. Mr. Anderson in addition to his obligations at Lid Hair Studios, is a Subway Restaurant franchisee from October 2004 to present.  Prior to October 2004, Mr. Anderson was the proprietor of a personal fitness training company, “Physical Intensity” based in Vancouver, Canada since November 1995.  During this same period, Mr. Anderson held positions at different nightclubs in Vancouver, Canada:  November 1995 – August 1998 – Bartender at Big Bam Boo, Vancouver; August 1998 – January 2000 – Manager at On the Rox, Vancouver; January 2000 – August 2002 – Bartender at Au Bar, Vancouver.      		Mr. Anderson resides in Rio de Janeiro, Brazil however he has daily contact with the Lid Hair Studios on a daily basis via telephone, email and fax.     Director, Manager  Amber Warren  was born November 1972, in Canada. Ms. Warren is employed as full-time permanent Manager/Stylist of Lid Hair Studios International, Inc. since July 2005.  Prior to her employment with our company Ms. Warren was employed with New Mondo for Hair and Spa in Vancouver as a full-time stylist from 1999 to 2004 when she was promoted to Salon Coordinator while continuing her position as stylist.  Ms. Warren remained with New Mondo until June 2005.  Ms. Warren was employed with Elizabeth Arden Red Door Salon & Spa in Vancouver from 1997 to 1998 as a full-time stylist.  Ms. Warren was also a free-lance stylist during this time.  From 1995 to 1997 Ms. Warren was employed with Beauty Club in Vancouver as full-time stylist and had a second position with Scrunch Hair Studio in 1997 employed as a stylist.     		Ms. Warren resides in Vancouver, Canada.     Compliance with Section 16(a) of Securities Exchange Act of 1934 During the fiscal year ended May 31, 2007, our Directors and Officers complied with all applicable Section 16(a) filing requirements. This statement is based solely on a review of the copies of such reports that reflect all reportable transactions furnished to us by our Directors and Officers and their written representations that such reports accurately reflect all reportable transactions.           
28
  ****            **ITEM 10. EXECUTIVE COMPENSATION** The following table sets forth the salaries and directors’ fees paid to our executives on an annual basis.     Executive Compensation The following table sets forth the salaries and directors’ fees we expect to pay to our executives on an annual basis.     Person                                         Position                             Salary                                Directors’ fees     Mr. Eric Steven Anderson (1)          President & Director           $0.00                                          $0.00*  		Ms. Amber Warren (2)                    Manager & Director           $41,760 ($48,000CDN)             $3,000     (1)  Mr. Eric Steven Anderson is the President and Director of Lid Hair Studios International, Inc.;   (2)  Ms. Amber Warren is the Manager and Director of Lid Hair Studios International, Inc.    		We do not have an audit committee, nor do we have a compensation committee. We anticipate forming these committees at a future Board of Directors’ meeting.     
Person

Director’sPosition

Stock BasedSalary

Fees

Compensation

Total

 

2006

2007

2006

2007

2006

2007

2006

2007

Eric Steven Anderson

Chair, CEO, CFO, CAO

0

0

0

$20,000

$0

$0

$0

$20,000

Amber Warren

Director, Manager

0

0

0

$3,000

$15,042

$15,849

$15,042

$18,849
   		We currently have two directors.    		As of May 31, 2007, there are no other arrangements, standard or otherwise, with any director or officer wherein the director or officer is compensated other than as stated above.    		We intend to do one or a combination of the following to compensate our employees, officers and directors so that they are retained and so that we can attract qualified personnel as we deem appropriate.    		Develop a stock option plan and have our employees, officers and directors opt in to the plan at their choosing; and/or issue shares to our employees, officers and directors.    		We do not have an audit committee or a compensation committee.     **ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS** On July 31, 2006, the company accepted 9 of subscription agreements for the sale of 2,000,000 shares registered under the SB-2 Registration Statement which was declared effective May 10, 2006.  The shares were issued by resolution on July 31, 2006.      		The following table sets forth, as of  July 30, 2007, certain information as to shares of our common stock owned by (i) each person known by us to beneficially own more than 5% of our outstanding common stock, (ii) each of our directors, and (iii) all of our executive officers and directors as a group:           
29
           		                                                 AMOUNT AND NATURE          PERCENT OF  		                                                 OF BENEFICIAL SHARES        OUTSTANDING  		            NAME                            OWNED                                        OWNERSHIP  		Eric Steven Anderson                5,000,000 common shares                   54.35%  		Amber Warren                             160,000                                             1.74%  		_________________  		Mr. Anderson’s and Ms. Warren’s shares are not registered.     **ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS** We intend that any transactions between us and our officers, directors, principal stockholders, affiliates or advisors will be on terms no less favorable to us than those reasonably obtainable from third parties.  To date, several related party transactions have taken place.     **ITEM 13. EXHIBITS** EXHIBITS (a)       Audited Consolidated Financial Statements (included in Part 11 of this Report):    		            Auditor’s Report  		            Consolidated Balance Sheet – May 31, 2007  		            Consolidated Statements of Operations and Deficit – May 31, 2007  		            Consolidated Statements of Cash Flows – May 31, 2007  		            Consolidated Statement of Stockholders’ Equity – May 31, 2007  		            Notes to Consolidated Financial Statements – May 31, 2007    		(b)    None.     		(c)  Exhibit  		             14.1 Code of Ethics  		             31.1 Certification of Chief Executive Officer and Chief Financial Officer and Chief Accounting Officer  		             32.1 Certification of Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer     **ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES** Our audit fees have remained consistent the last two years. However, we are aware that audit fees have generally increased as a function of the increased reporting requirements mandated by the enacted Sarbanes-Oxley Act.  We are also optimistic that our business activities will increase, which will require auditing procedures over a greater transaction base.     		AUDIT FEES.   The aggregate fees billed by our auditors for professional services rendered for the audits of our annual financial statements for the fiscal years ended May 31, 2007 and 2006 and for the reviews of the financial statements included in our Quarterly Reports on Form 10-QSB during the fiscal year ended May 31, 2007 and 2006 were $13,000 and $8,000 respectively.    		AUDIT RELATED FEES.  We did not incur any fees to auditors for audit related fees during the fiscal years ended May 31, 2007 and 2006.    		TAX FEES.  We did not incur any fees to auditors for tax compliance, tax advice or tax compliance services during the fiscal years ended May 31, 2007 and 2006.         
30
  ****           		ALL OTHER FEES.  We did not incur any other fees billed by auditors for services rendered to our Company, other than the services covered in “Audit Fees” for  the fiscal years ended May 31, 2007 and 2006.    		SIGNATURES    		In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.      		                                                                                      LID HAIR STUDIOS INTERNATIONAL, INC.  		                                                                                                      (Registrant)    		                                                                         By         /s/ Eric Steven Anderson                                                                                                                                Eric Steven Anders, Chief Executive Officer, Chief   		                                                                                     Financial Officer, Chief Accounting Officer		                                                                            Date     August 27,  2007  
31
    ****    ****