-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, M8TKAb8qCgvrGg0Eh+JsuArtH86L06Hk5rF/erYHh8CVfoSXfoo6LtguI+Faead+ TExdYiS3vwGcyw4JKlxJhw== 0001014897-05-000033.txt : 20050413 0001014897-05-000033.hdr.sgml : 20050413 20050413121601 ACCESSION NUMBER: 0001014897-05-000033 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040930 FILED AS OF DATE: 20050413 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Creative Beauty Supply of New Jersey CORP CENTRAL INDEX KEY: 0001290658 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-DRUGS PROPRIETARIES & DRUGGISTS' SUNDRIES [5122] IRS NUMBER: 000000000 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-50773 FILM NUMBER: 05747819 BUSINESS ADDRESS: STREET 1: 380 TOTOWA ROAD CITY: TOTOWA STATE: NJ ZIP: 07512 BUSINESS PHONE: 973-904-0004 MAIL ADDRESS: STREET 1: 380 TOTOWA ROAD CITY: TOTOWA STATE: NJ ZIP: 07512 10QSB/A 1 creativenj10q2q04am1.txt FORM 10QSB FOR 9-30-2004 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT 1 TO FORM 10-QSB [x] Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended September 30, 2004 - -OR- [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities And Exchange Act of 1934 for the transaction period from _________ to________ Commission File Number 0-50773 Creative Beauty Supply of New Jersey Corporation (Exact name of Small Business Issuer in its charter) New Jersey 56-2415252 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification number) 380 Totowa Road Totowa, NJ 07512 (Address of principal executive offices) (Zip Code) Registrant's Telephone number, including area code: (973) 904-0004 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 [ ] The number of outstanding shares of the registrant's common stock, September 30, 2004: Common Stock - 3,494,650 2 PART I Item I - FINANCIAL STATEMENTS CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION BALANCE SHEET SEPTEMBER 30, 2004 (UNAUDITED) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 232,527 Marketable securities 185,000 Accounts receivable 1,483 Inventory 52,060 Prepaid expenses 2,314 ---------- TOTAL CURRENT ASSETS 473,384 PROPERTY AND EQUIPMENT - net 5,523 ---------- TOTAL ASSETS $ 478,907 ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade $ 20,448 Accrued salaries 25,000 Payroll taxes payable 3,214 Accrued expenses 2,748 ---------- TOTAL CURRENT LIABILITIES 51,410 ---------- STOCKHOLDERS' EQUITY: Preferred stock, par value $.001, authorized 10,000,000 shares, issued and outstanding -0- shares - Common stock, par value $.001, authorized 100,000,000 shares, issued and outstanding 3,494,650 shares 3,495 Additional paid-in-capital 501,646 Accumulated deficit (57,644) Accumulated other comprehensive loss (20,000) ---------- TOTAL STOCKHOLDERS' EQUITY 427,497 ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 478,907 ========== The accompanying notes are an integral part of these financial statements. 3 CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE SIX AND THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003 (UNAUDITED)
For The Three Months Ended For The Six Months Ended September 30, September 30, Predecessor Predecessor 2004 2003 2004 2003 ---------- ---------- ---------- ---------- Net sales $ 34,237 $ 41,801 $ 74,684 $ 91,313 Cost of sales 26,534 31,141 57,901 68,028 ---------- ---------- ---------- ---------- Gross profit 7,703 10,660 16,783 23,285 ---------- ---------- ---------- ---------- Operating Expenses Salaries - officers 7,930 5,450 16,020 13,520 Employee benefits 3,236 2,997 6,313 5,641 Professional fees 6,280 16,429 18,380 36,458 Rent 4,050 3,900 8,000 7,800 Other general and administrative 5,536 5,067 10,876 11,716 ---------- ---------- ---------- ---------- Total operating expenses 27,032 33,843 59,589 75,135 ---------- ---------- ---------- ---------- Loss from operations (19,329) (23,183) (42,806) (51,850) Other income Interest income 1,106 1,667 2,296 3,754 ---------- ---------- ---------- ---------- Net loss (18,223) (21,516) (40,510) (48,096) Other comprehensive loss - net of taxes: Unrealized holding loss arising during the period, net of income taxes benefits of $191,712,$-0-, $119,820 and $-0-, respectively (308,288) (80,000) (200,180) (40,000) ---------- ---------- ---------- ---------- Total comprehensive loss $ (326,511) $ (101,516) $ (240,690) $ (88,096) ========== ========== ========== ========== Earning (loss) per share: Basic and diluted net loss per common share $ (0.01) $ (0.01) $ (0.01) $ (0.01) ========== ========== ========== ========== Basic and diluted weighted average common shares outstanding 3,494,650 3,494,650 3,494,650 3,494,650 ========== ========== ========== ==========
The accompanying notes are an integral part of these financial statements. 4 CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2004 AND 2003 (UNAUDITED) Predecessor 2004 2003 ---------- ---------- Cash Flows from Operating Activities: Cash received from customers $ 74,699 $ 91,629 Cash paid to suppliers and employees (102,472) (136,517) Interest received 2,296 3,754 ---------- ---------- Net cash used by operating activities (25,477) (41,134) Cash Flows from Investing Activities: Acquisition of marketable securities (5,000) - ---------- ---------- NET DECREASE IN CASH AND CASH EQUIVALENTS (30,477) (41,134) CASH AND CASH EQUIVALENTS - beginning of period 263,004 332,755 ---------- ---------- CASH AND CASH EQUIVALENTS - end of period $ 232,527 $ 291,621 ========== ========== RECONCILIATION OF NET LOSS TO NET CASH USED BY OPERATIONS: Net loss $ (40,510) $ (48,096) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 649 939 Decrease in accounts receivable 15 316 (Increase) decrease in inventory (5,372) 3,730 (Increase) decrease in prepaid expenses (1,664) 606 Increase in accounts payable and accrued expenses 21,405 1,371 ---------- ---------- Net cash used by operating activities $ (25,477) $ (41,134) ========== ========== The accompanying notes are an integral part of these financial statements. 5 CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2004 1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Creative Beauty Supply of New Jersey Corporation (the "Company") was incorporated in the State of New Jersey on October 1, 2003. It was formed pursuant to a resolution of the board of directors of Creative Beauty Supply, Inc. ("CBS" or "Predecessor") as a wholly-owned subsidiary of that company, a publicly traded New Jersey Corporation. On January 1, 2004, the assets and liabilities of CBS were contributed at book value to the Company, and this subsidiary was then spun-off by CBS to its stockholders, subject to the Company's current registration statement on Form 10-SB being declared effective. This spin-off was consummated in contemplation of a merger between CBS and Global Digital Solutions, Inc. (Global), a Delaware corporation. The merger occurred on March 19, 2004 whereby the former shareholders of CBS became the owners of 100 percent of the common stock of the Company. In addition, on January 1, 2004, the Company commenced operations in the beauty supply industry at both the wholesale and retail levels. The Company is located in Totowa, New Jersey and sells cosmetic and beauty supplies to the general public and beauty salons in northern and central New Jersey. Financial Statement Presentation The Company has adopted a calendar reporting year ending on December 31 while CBS reported on a fiscal year ending on March 31. As the Company had acquired all of the net assets, employees and business of CBS, the financial statements had previously been prepared based on fiscal years ending on March 31. The statements of operations include the operations of CBS from April 1, 2003 through September 30, 2003 and the Company from April 1, 2004 through September 30, 2004. The statements of operations for the six months ended September 30, 2004 and 2003 are not necessarily indicative of results for the full year. While the Company believes that the disclosures presented are adequate to make the information not misleading, these financial statements should be read in conjunction with financial statements and accompanying notes of the Company and Predecessor as of and for the years ended March 31, 2004 and 2003 included in the Company's registration statement on Form 10-SB12G/B, as well as other interim filings of the Predecessor. As of the date of these financial statements, this registration statement has not been declared effective. 6 Investment in Available-For-Sale Securities The Company considers its investments in equity securities as available-for-sale and has therefore reflected the investments at fair value in the accompanying financial statements. Realized gains and losses are recorded in income. Changes in unrealized gains or losses are excluded from income and reported as a component of other comprehensive income (loss) in the stockholders' equity section of the balance sheet. Inventory Inventory, consisting of finished goods, is valued at lower of cost or market with cost being determined on the first-in. first-out (FIFO) method. The Company also considers obsolescence, excessive levels, deterioration and other factors in evaluating net realizable value. Income Taxes Deferred income taxes are provided on the liability method whereby deferred income tax assets are recognized for deductible temporary differences and operating loss carry forwards and deferred income tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax law and rates on the date of enactment. Earnings (Loss) Per Share The Company computes earnings (loss) per share in accordance with Statement of Financial Standards No. 128 ("SFAS 128"), which requires the presentation on the face of the income statement "basic" earnings per share and "diluted" earnings per share. Basic earnings per share is computed by dividing the net income (loss) available to common stockholders by the weighted average number of outstanding common shares. The calculation of dilutive earnings per share is similar to basic earnings per share except the denominator includes dilutive common stock equivalents such as stock options and convertible debentures. There were no dilutive common stock equivalents for all periods presented. Earnings (Loss) Per Share The Company computes earnings (loss) per share in accordance with Statement of Financial Standards No. 128 ("SFAS 128"), which requires the presentation on the face of the income statement "basic" earnings per share and "diluted" earnings per share. Basic earnings per share is computed by dividing the net income (loss) available to common stockholders by the weighted average number of outstanding common shares. The calculation of dilutive earnings per share is similar to 7 basic earnings per share except the denominator includes dilutive common stock equivalents such as stock options and convertible debentures. There were no dilutive common stock equivalents for all periods presented. Comprehensive Income (Loss) The Company reports components of comprehensive income (loss) under the requirements of SFAS 130, "Reporting Comprehensive Income". SFAS 130 establishes rules for the reporting of comprehensive income or loss and its components which require that certain items be presented as separate components of stockholders' equity. For the periods presented, the Company's other comprehensive income (loss) consisted solely of unrealized gains (losses) from available-for-sale marketable securities. 2. MARKETABLE SECURITIES The cost and fair value of marketable equity securities that are available-for-sale are as follows at September 30, 2004: Cost $ 205,000 Gross unrealized loss (20,000) ---------- Fair values $ 185,000 ========== 3. INCOME TAXES The deferred income tax assets and liabilities at September 30, 2004 and 2003 relate to temporary differences between the financial statement carrying amounts and their tax basis. Assets and liabilities that give rise to significant portions of the net deferred tax assets and liabilities relate to the following: September 30, 2004 2003 ---------- ---------- (Predecessor) Net operating loss carry forwards $ 15,675 $ 105,527 Inventory, principally due to inventory reserves not currently deductible - 2,236 Unrealized holding losses 4,550 - ---------- ---------- 20,225 107,763 Valuation allowance (20,225) (107,763) ---------- ---------- Net deferred income tax asset $ - $ - ========== ========== 8 A valuation allowance has been established equal to the full amount of the deferred tax assets as the Company was not assured at September 30, 2004 and 2003 that it was more likely than not that the Company would realize these benefits and pay these liabilities. The change in valuation allowance for the six months ended September 30, 2004 and 2003 was an increase of $12,454 and $11,384, respectively, due to the increase in available net operating loss carry forwards. Federal net operating loss carry forwards of approximately $58,000 will expire through the year 2024 and state net operating loss carry forwards of $56,000 will expire through the year 2012. However, state net operating loss carry forwards are restricted and limited in 2005. 4. SALES Wholesale sales consist of sales to beauty salons of merchandise for resale. Sales of merchandise to beauty salons for their own consumption and not for resale are considered retail sales. All sales to the general public are also considered retail sales. Net sales are summarized as follows: Six Months Ended September 30, 2004 2003 ---------- ---------- (Predecessor) Retail $ 43,333 $ 50,334 Wholesale 31,351 40,979 ---------- ---------- $ 74,684 $ 91,313 ========== ========== Three Months Ended September 30, 2004 2003 ---------- ---------- (Predecessor) Retail $ 21,193 $ 27,339 Wholesale 13,044 14,462 ---------- ---------- $ 34,237 $ 41,801 ========== ========== 5. OTHER MATTER On May 21, 2004, the Company filed a registration statement with the Securities and Exchange Commission ("SEC") on Form 10-SB12G, to spin off the Company to the shareholders of CBS and to register for sale 3,494,650 shares of $.001 par value common stock, which comprises all of the issued and outstanding common stock of the Company. The Company 9 received a letter from the SEC that contained comments on the filing as well as requests for additional information. The Company filed an amended Form 10-SB12G/A on October 7, 2004 which included answers to those comments and all additional information requested in the SEC letter. The Company received a second comment letter from the SEC which the Company is currently responding to. The registration statement has not been declared effective by the SEC. 10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Trends and Uncertainties. Demand for Creative NJ's products will be dependent on, among other things, market acceptance of Creative NJ's concept and general economic conditions, which are cyclical in nature. Inasmuch as all of Creative NJ's activities are the receipt of revenues from the sales of its products, Creative NJ's business operations may be adversely affected by Creative NJ's competitors. Capital and Source of Liquidity. Creative NJ had cash and cash equivalents of $232,527, a decrease of $30,477 from the cash and cash equivalents balance of $263,004 at March 31, 2004. Cash used in operating activities totaled $25,477. The primary reason for the decrease was the loss for the period, somewhat offset by the increase in accounts payable and accrued expenses. For the six months ended September 30, 2004 and 2003, Creative NJ did not have net cash flows from financing activities. For the six months ended September 30, 2003, CBS, the predecessor company did not have net cash from financing activities. Investments in Available For Sale Securities consist of an investment in 200,000 common shares of Ram Venture Holdings Corp., a publicly trading company listed on NASD Bulletin Board and subscriptions for 100,000 shares of common stock of Proguard Acquisitions, Corp., a non- public company with a cost of $5,000. The unrealized loss of $20,000 is the difference between the fair market value of the common stock owned as determined by the closing market price per share on September 30, 2004 and the cost of the investment which was $200,000. For the six months ended September 30, 2004, Creative NJ acquired available for sale security of $5,000 resulting in net cash used in investing activities of $5,000. For the six months ended September 30, 2003, CBS did not have net cash flow from investing activities. Results of Operations. Creative NJ sells approximately 1,000 different products at varying mark ups ranging from 20 to 40 percent. For the three months ended September 30, 2004, Creative NJ had net sales of 34,237 and cost of sales of $26,534 resulting in gross profit of $7,703. For the three months ended September 30, 2004 Creative NJ had operating expenses of $27,032. A majority of these expenses consisted of those necessary to conduct our business. We paid $6,280 for professional fees necessary to become a reporting company. 11 For the three months ended September 30, 2003, our predecessor had net sales of $41,801 and cost of sales of $31,141 resulting in gross profit of $10,660. In additional to expenses necessary to conduct regular business, CBS paid $16,429 for professional fees relating to its merger with Global Digital Solutions and the spin-off of Creative NJ. For the six months ended September 30, 2004, Creative NJ had net sales of $74,684 and cost of sales of $57,901 resulting in gross profit of $16,783. For the six months ended September 30, 2004 Creative NJ had operating expenses of $59,589. A majority of these expenses consisted of those necessary to conduct our business. We paid $18,380 for professional fees necessary to become a reporting company. For the six months ended September 30, 2003, our predecessor had net sales of $91,313 and cost of sales of $68,028 resulting in gross profit of $23,285. CBS paid $36,458 for professional fees relating to its merger with Global Digital Solutions and the spin-off of Creative NJ. Plan of Operation. During the next twelve months, Creative NJ may obtain new product lines by negotiating with various manufacturers. Creative NJ does not intend to hire any additional employees. To date, no product lines have been identified and no timeframes established or cash needs defined. Creative NJ is not delinquent on any of its obligations even though Creative NJ has had limited operating revenues. Creative NJ intends to market its products utilizing cash made available from the sale of its products. Creative NJ is of the opinion that revenues from the sales of its products will be sufficient to pay its expenses. Creative NJ does not have nor does it intend to have pension and/or other post-retirement benefits in the future. Creative NJ does not have any or intends to have any derivative instruments or hedging activities. Critical Accounting Policies The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make judgments, assumptions and estimates that affect the amounts reported in Creative NJ's financial statements and the accompanying notes. The amounts of assets and liabilities reported in our balance sheets and the amounts of revenues and expenses reported for each of our fiscal periods are affected by estimates and assumptions which are used for, but not limited to, the accounting for allowance for doubtful accounts, fair market values of marketable securities, asset impairments, inventory and income taxes. Actual results could differ from these estimates. 12 The following critical accounting policies are significantly affected by judgments, assumptions and estimates used in the preparation of the financial statements. Revenue is recognized when earned in accordance with applicable accounting standards. Net sales are recognized at the time products are shipped to customers. Over-the-counter sales are recorded at point of sale. The allowance for doubtful accounts is based on Creative NJ's assessment of the collectability of specific customer accounts, credit worthiness and economic as well as the aging of the accounts receivable balances. If there is a deterioration of a major customer's credit worthiness or actual defaults are higher than Creative NJ's historical experience, Creative NJ's estimates of recoverability of amounts due Creative NJ could be adversely affected. Creative NJ has elected to classify all of its investments in equity securities as available-for-sale and report them at fair value. Realized gains and losses are recorded in earnings (loss) and changes in the unrealized gain or loss is excluded from earnings (loss) and reported as a component of other comprehensive income (loss). Creative NJ's inventory consists of finished goods and is valued at lower of cost or market with cost being determined on the first-in, first-out (FIFO) method. Creative NJ also considers obsolescense, excessive levels, deterioration and other factors in evaluating net realizable value. Creative NJ periodically evaluates the net realizable value of long- lived assets, including property and equipment, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. An impairment in the carrying value of an asset is recognized whenever future cash flows (undiscounted) from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. New Accounting Standards: In December 2003, the Financial Accounting Standards Board ("FASB") issued a revised Interpretation No. 46, "Consolidation of Variable Interest Entities - An Interpretation of ARB No. 51," which provides guidance on the identification of and reporting for variable interest entities for consideration in determining whether a variable interest entity should be consolidated. Interpretation No. 46, as revised, is effective for the Company in the third quarter of fiscal 2004. The adoption of Interpretation No. 46 had no impact on the Company's results of operations for the six months ended September 30, 2004, or its financial condition at that date, nor is it expected to have a significant impact in the future. In December 2004, the FASB issued SFAS No. 123(R), "Share-Based Payment," which replaces SFAS 123, "Accounting for Stock-Based Compensation" ("SFAS No. 123"), and supersedes Accounting Principles 13 Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB No. 25"). SFAS 123(R) requires companies to recognize in their income statement the grant-date fair value of stock options and other equity- based compensation issued to employees. This SFAS is effective for most public companies for interim and annual reporting periods beginning after June 15, 2005. Grant-date fair value will be determined using one of two acceptable valuation models. This Standard requires that compensation expense for most equity-based awards be recognized over the requisite service period, usually the vesting period; while compensation expense for liability-based awards (those usually settled in cash rather than stock) be re-measured to fair-value at each balance sheet date until the award is settled. The Standard also provides guidance as to the accounting treatment for income taxes related to such compensation costs, as well as transition issues related to adopting the new Standard. The adoption of SFAS No. 123(R) had no impact on the Company's results of operations for the six months ended September 30, 2004, or its financial condition at that date, nor is it expected to have a significant impact in the future. In December 2004, the FASB issued SFAS No. 153, "Exchange of Non- monetary Assets an amendment of APB Opinion No. 29." This Statement precludes companies from using the "similar productive assets" criteria to account for non-monetary exchanges at book value with no gain or loss being recognized. Effective for fiscal periods beginning after June 15, 2005, all companies will be required to use fair value for most non-monetary exchanges, recognizing gain or loss, if the transaction meets commercial, substance criteria. The Company does not expect this Standard to have a significant impact on its current financial statements. In November 2004, the FASB issued Statement No. 151, "Inventory Costs, an amendment of ARB 43, Chapter 4" ("SFAS 151"), to clarify the accounting for abnormal amounts of idle facility expense, freight, handling costs, and wasted materials (spoilage). ARB 43 allowed some of these "abnormal costs" to be carried as inventory, whereas the new Standard requires that these costs be expensed as incurred. This Statement is effective for fiscal years beginning after June 15, 2005. The Company does not expect this Standard to have a significant impact on its current financial statements. In December 2004, the FASB issued FSP FAS 109-1, "Application of FASB Statement No. 109, "Accounting for Income Taxes," to the "Tax Deduction on Qualified Production Activities Provided by the American Jobs Creation Act of 2004" to provide accounting guidance on the appropriate treatment of tax benefits generated by the enactment of the Act. The FSP requires that the manufacturer's deduction be treated as a special deduction in accordance with SFAS 109 and not as a tax rate reduction. The Company is awaiting final tax regulations from the IRS before completing its assessment of the impact of adopting FSP FAS 109-1 on its current financial statements. 14 Forward-Looking Statements This Form 10-QSB contains forward-looking statements within the meaning of the federal securities laws. These statements include those concerning the following: Our intentions, beliefs and expectations regarding the fair value of all assets and liabilities recorded; our strategies; growth opportunities; product development and introduction relating to new and existing products; the enterprise market and related opportunities; competition and competitive advantages and disadvantages; industry standards and compatibility of our products; relationships with our employees; our facilities, operating lease and our ability to secure additional space; cash dividends; excess inventory, our expenses; interest and other income; our beliefs and expectations about our future success and results; our operating results; our belief that our cash and cash equivalents will be sufficient to satisfy our anticipated cash requirements; our expectations regarding our revenues and customers; investments and interest rates. These statements are subject to risk and uncertainties that could cause actual results and events to differ materially. Creative NJ undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this Form 10-QSB. Item 3. Controls and Procedures. Evaluation of Disclosure Controls and Procedures Carmine Catizone, the chief executive officer and Daniel Generelli, the chief financial officer of Creative NJ have made an evaluation of the disclosure controls and procedures relating to the financial statements of Creative NJ for the six months ended September 30, 2004 and have judged such controls and procedures to be effective as of September 30, 2004 (the evaluation date). Changes in Internal Controls There have been no significant changes (including corrective actions with regard to significant deficiencies or material weaknesses) in our internal controls or in other factors that could significantly affect these controls subsequent to the Evaluation Date set forth above. PART II - OTHER INFORMATION Item 1. Legal Proceedings. not applicable. Item 2. Changes in Securities and Use of Proceeds. not applicable. Item 3. Defaults Upon Senior Securities. not applicable. Item 4. Submission of Matters to a Vote of Security Holders. not applicable. Item 5. Other Information. not applicable. Item 6. Exhibits and Reports on Form 8-K. 15 (a) Reports on Form 8-K. (b) Exhibits. Exhibit 31 - Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Exhibit 32 - Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 16 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934,the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: April 11, 2005 CREATIVE BEAUTY SUPPLY OF NEW JERSEY CORPORATION By: /s/ Carmine Catizone - --------------------------- Carmine Catizone, President and Director EX-31 2 creativenj10q2q04am1ex31.txt 302 CERTIFICATIONS 302 CERTIFICATION I, Carmine Catizone, certify that: 1. I have reviewed the amendment to the quarterly report on Form 10-QSB of Creative Beauty Supply of New Jersey Corporation; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 12a-14) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: April 11, 2005 /s/Carmine Catizone ---------------------------- Carmine Catizone President & Chief Executive Officer 302 CERTIFICATION I, Daniel Generelli, certify that: 1. I have reviewed the amendment to the quarterly report on Form 10-QSB of Creative Beauty Supply of New Jersey Corporation; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 12a-14) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting. Date: April 11, 2005 /s/Daniel Generelli ---------------------------- Daniel Generelli, CFO EX-32 3 creativenj10q2q04am1ex32.txt 906 CERTIFICATIONS CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Creative Supply of New Jersey Corporation (the "Company") on Form 10-QSB for the six months ending September 30, 2004 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Carmine Catizone, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. /s/Carmine Catizone - ----------------------------- Carmine Catizone Chief Executive Officer April 11, 2005 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Creative Supply of New Jersey Corporation (the "Company") on Form 10-QSB for the six months ending September 30, 2004 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Daniel Generelli, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. /s/Daniel Generelli - ----------------------------- Daniel Generelli Chief Financial Officer April 11, 2005 -----END PRIVACY-ENHANCED MESSAGE-----