____________________________________________________________________________

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 10-QSB

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

For the quarterly period ended February 29, 2008

[  ] 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.
(Exact name of Small Business Issuer as Specified in its Charter)

Nevada                                                                                          20-2718075
(State or Other Jurisdiction                                                       (I.R.S. Employer
of Incorporation or                                                                          Identification
Organization)                                                                                        Number)

939 Davie Street, Vancouver, BC V6Z 1B9
(Address of Principal Executive Offices)

Tel: 604-628-4658 Fax:  425-920-1020
(Issuer’s Telephone Number, Including Area Code)

Check whether the Issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  [X]     No  [  ]

Indicate by check mark whether the Issuer is a shell company (as defined by Rule 12b-2 of the Exchange Act).

Yes  [  ]     No  [X]

State the number of shares outstanding of each of the Issuers classes of common equity, as of the latest practicable date:

Common, $.001 par value per share: 9,300,000 outstanding as of April 1, 2008.


____________________________________________________________________________

LID HAIR STUDIOS INTERNATIONAL, INC.



TABLE OF CONTENTS

PART I ‑ FINANCIAL INFORMATION...................................................................................		1
	Item 1.      Financial Statements......................................................................................	1
	Item 2.      Management’s Discussion and Analysis or Plan of Operation..........................	15
	Item 3.      Controls and Procedures...............................................................................	20
PART II ‑ OTHER INFORMATION..........................................................................................		21
	Item 1.      Legal Proceedings..........................................................................................	21
	Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds..........................	21
	Item 3.      Defaults Upon Senior Securities.....................................................................	21
	Item 4.      Submission of Matters to a Vote of Security‑Holders....................................	21
	Item 5.      Other Information..........................................................................................	21
	Item 6.      Exhibits.........................................................................................................	21
SIGNATURES.............................................................................................................................		22

LID HAIR STUDIOS INTERNATIONAL, INC.

PART I ‑ FINANCIAL INFORMATION

Item 1.     Financial Statements.

          The consolidated financial statements of Lid Hair Studios International, Inc. and subsidiary (collectively, the “Company”), included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission.  Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company as included in the Company’s Form 10-KSB for the year ended May 31, 2007.

Page 1

LID HAIR STUDIOS INTERNATIONAL, INC.


LID HAIR STUDIOS INTERNATIONAL, INC.
(formerly Belford Enterprises, Inc.)

CONSOLIDATED FINANCIAL STATEMENTS

February 29, 2008
Unaudited

US Funds

CONTENTS	Page
Consolidated Balance Sheets	F - 1
Consolidated Statements of Stockholder’s Equity	F - 2
Consolidated Statements of Operations	F - 3
Consolidated Statements of Cash Flows	F - 4
Notes to the Consolidated Financial Statements	F – 5 to F – 12

Page 2

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)

ASSETS	February 29, 2008 (Unaudited)			May 31 2007 (See Note 1)
Current
Cash	$	10,886	$	78,629
Inventory		1,359		1,348
		12,245		79,977
Property and equipment, net of depreciation (Note 7)		27,776		29,422
Lease rights, net of amortization (Note 8)		12,756		12,821
Prepaid expenses and deposits		1,533		8,898
	$	54,310	$	131,118
LIABILITIES
Current
Accounts payable	$	4,048	$	25,630
Accrued liabilities		7,000		9,000
Due to shareholder (Note 5a)		1,033		942
		12,081		35,572
Commitments and contingencies (Notes 2, 5, 6, 8 and 9)
STOCKHOLDERS’ EQUITY
Capital stock (Note 4)
Authorized:  75,000,000 common shares at $0.001 par value
Issued, allotted and outstanding:  9,300,000 common shares		9,300		9,300
Additional paid-in capital		227,200		227,200
Accumulated comprehensive income		5,714		1,812
Deficit		(199,985)		(142,766)
		42,229		95,546
	$	54,310	$	131,118

See notes to the consolidated financial statements

F- 1

Page 3

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)

	Common Stock				Additional Paid-in			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)
Balance – May 31, 2005	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
Loss for the period ended      February 29, 2008	-		-		-		(57,219)		-		(57,219)
Foreign currency translation      Adjustment	-		-		-		-		3,902		3,902
Balance – February 29, 2008	9,300,000	$	9,300	$	227,200	$	(199,985)	$	5,714	$	42,229

See notes to the consolidated financial statements

F- 2

Page 4

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)

		Three Months Ended February 29, 2008		Three Months Ended February 28, 2007		Nine Months Ended February 29, 2008		Nine Months Ended February 28, 2007
REVENUE
Hair salon services	$	17,635	$	16,651	$	55,748	$	48,076
Retail sales		1,332		716		4,552		2,433
Cost of goods sold		(799)		(397)		(2,731)		(1,359)
Gross profit from retail         Sales		533		319		1,821		1,074
Net revenue		18,168		16,970		57,569		49,150
EXPENSES
Advertising and promotion		-		-		95		405
Amortization and depreciation		1,882		1,933		5,581		5,805
Director’s fees		4,500		-		22,000		-
Insurance		278		250		831		700
Interest and bank         charges		509		569		1,591		1,578
Professional fees		5,599		5,975		28,349		25,079
Rent		4,659		4,090		13,759		12,275
Supplies		1,136		346		4,055		3,060
Telephone		119		99		330		335
Transfer agent and printing		301		627		1,124		1,695
Utilities		1,265		1,088		2,379		2,400
Wages		11,628		15,848		34,694		36,840
		31,876		30,825		114,788		90,172
LOSS FOR THE PERIOD	$	(13,708)	$	(13,855)	$	(57,219)	$	(41,022)
Weighted average shares          outstanding		9,300,000		9,300,000		9,300,000		8,860,440
Loss per share	$	(0.00)	$	(0.00)	$	(0.01)	$	(0.00)
OTHER COMPREHENSIVE    LOSS
Loss for the period	$	(13,708)	$	(13,855)	$	(57,219)	$	(41,022)
Foreign currency         translation adjustment		392		49		3,902		(131)
	$	(13,316)	$	(13,806)	$	(53,317)	$	(41,153)

See notes to the consolidated financial statements

F-3

Page 5

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)

Cash flows from (used by):	February 29, 2008		February 28, 2007
OPERATING ACTIVITIES
Loss for the period	$	(57,219)	$	(41,022)
Items not involving cash:
Amortization and depreciation		5,581		5,805
		(51,638)		(35,217)
Changes in non-cash working capital:
Prepaid expenses and deposits		7,365		70
Inventory		(11)		100
Accounts payable and accrued liabilities		(23,582)		(11,012)
		(67,866)		(46,059)
FINANCING ACTIVITIES
Shares issued		-		200,000
Due to (from) shareholder		91		(56,981)
		91		143,019
Foreign currency adjustment		32		1,285
Increase (decrease) in cash		(67,743)		98,245
Cash – beginning of period		78,629		4,085
CASH – END OF PERIOD	$	10,886	$	102,330
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid	$	-	$	-
Income taxes paid	$	-	$	-
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES		-
Purchase of property and equipment funded by       shareholder	$	-	$	-
Foreign currency translation adjustment included in       property and equipment	$	3,870	$	1,416

See notes to the consolidated financial statements

F – 4

Page 6

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
1.       SUMMARY OF SIGNFICANT ACCOUNTING POLICIES

Unaudited Statements

While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented.  Except as disclosed below, these interim financial statements follow the same accounting policies and methods of their application as the Company’s audited May 31, 2007 annual financial statements.  It is suggested that these interim financial statements be read in conjunction with the Company’ audited financial statements for the year ended May 31, 2007, included in the annual report previously filed with the Securities and Exchange Commission on Form 10-KSB.  The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.

The information as of May 31, 2007 is taken from the audited financial statements of that date.

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, 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.

The Company is in the hair salon and personal services business and provides related personal service 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.

F - 5

Page 7

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
1.       SUMMARY OF SIGNFICANT ACCOUNTING POLICIES – Continued

Concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents.  At February 29, 2008, the Company had approximately $2,617 of cash or cash equivalents which are not insured by agencies of the U.S. government.

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.

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.

F – 6

Page 8

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
1.       SUMMARY OF SIGNFICANT ACCOUNTING POLICIES – Continued

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 February 29, 2008.  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.

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 Compensation”, 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”.

F – 7

Page 9

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
1.       SUMMARY OF SIGNFICANT ACCOUNTING POLICIES – Continued

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 February 29, 2008, 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. 104, "Revenue Recognition in Financial Statements." Under SAB 104, 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 collectability is reasonably assured.

The Company's future revenues are to be derived principally from hair styling fees, sales of hair products and other related charges. Revenue is recognized from services when performed and billed.

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.

F – 8

Page 10

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
1.       SUMMARY OF SIGNFICANT ACCOUNTING POLICIES – Continued

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 period presented.
The Company’s operating assets are principally located in Canada.

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 at February 29, 2008, the Company has a loss from operations of $57,219 and an accumulated deficit of $199,985. 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 – 9

Page 11

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
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 allotted 5,000,000 common shares to its sole shareholder for $25,000.  These shares were issued during the period.
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.

5.       RELATED PARTY BALANCES AND TRANSACTIONS  

a)	As at February 29, 2008, the amount due to shareholder of $1,033 is uncollateralized, non-interest bearing and due on demand.
b)	During the period ended February 29, 2008, the Company paid directors and officers of the Company $9,352 for the three months ended and $37,622 for the nine months ended 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 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 – 10

Page 12

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
7.       PROPERTY AND EQUIPMENT

The Company applies the following amortization policies:

Leasehold improvements                    9 years straight line
Furniture and equipment                     20% declining balance over 5 years
Computer equipment                          30% declining balance over 3 years

Balances as of February 29, 2008 and May 31, 2007 are as follows:

	February 29, 2008			May 31, 2007
	Cost	Accumulated Depreciation	Net Book Value	Cost	Accumulated Depreciation	Net Book Value
Leasehold improvements	$        11,120	$           2,780	$        8,340	$         10,140	$          1,690	$           8,450
Furniture and equipment	29,830	11,574	18,256	27,200	7,616	19,584
Computer equipment	2,555	1,375	1,180	2,330	942	1,388
	$       43,505	$         15,729	$       27,776	$         39,670	$        10,248	$         29,422
======================================================================

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 $40,850 ($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 was $423 for three months ended February 29, 2008 and $1,256 for nine months ended February 29, 2008.  The net book value of the lease rights at February 29, 2008 was $12,756.

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 – 11

Page 13

LID HAIR STUDIOS INTERNATIONAL, INC.
(FORMERLY BELFORD ENTERPRISES, INC.)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(EXPRESSED IN UNITED STATES DOLLARS)
(UNAUDITED)
NINE MONTHS ENDED FEBRUARY 29, 2008
9.       INCOME TAXES

The Company is subject to foreign and domestic income taxes.  The Company has had no taxable 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 various years through 2025 and 2028.  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:

Period Ending	Estimated NOL Carry-forward	NOL Expires	Estimated Tax Benefit from NOL	Valuation Allowance	Change in Valuation Allowance	Net Tax Benefit
May 31, 2007	142,766	2027	35,691	(35,691)	(20,833)	-
February 29, 2008	199,985	2028	49,996	(49,996)	(14,305)	-

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- 12

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LID HAIR STUDIOS INTERNATIONAL, INC.

Item 2.     Management’s Discussion and Analysis or Plan of Operation.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes thereto contained elsewhere in this Form 10-QSB.

Forward-Looking Statements

This discussion contains forward-looking statements that involve risks and uncertainties. All statements regarding future events, our future financial performance and operating results, our business strategy and our financing plans are forward-looking statements. In many cases, you can identify forward-looking statements by terminology, such as “may”, “should”, “expects”, “intends”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of such terms and other comparable terminology.  These statements are only predictions.  Known and unknown risks, uncertainties and other factors could cause our actual results to differ materially from those projected in any forward-looking statements.  We do not intend to update these forward-looking statements.

Overview

Lid Hair Studios International, Inc. (referred to herein as the “Company”, “we”, “us” and “our”) is primarily engaged in the hair salon business in city of Vancouver, British Columbia.  Since 2005, the Company, through its subsidiary, Belford Enterprises B.C. Ltd. doing business as Lid Hair Studios International, Inc. has been developing business for its hair salon and looking for opportunities to expand its existing business and looking for opportunities to buy existing salons or leasing space to set up new salons.

Lid Hair Studios International, Inc. was established on April 20, 2005 in the state of Nevada.  The company was originally incorporated under the name Belford Enterprises, Inc. and changed its name to Lid Hair Studios International Inc. on August 15, 2005.  Our operating subsidiary Belford Enterprises B.C. Ltd., doing business as Lid Hair Studio was established June 7, 2005, in the City of Vancouver, British Columbia Canada.  There are no bankruptcy, receivership, or similar proceedings against the parent or operating subsidiary.

On June 18, 2005, the company purchased hair salon equipment and the rights to an office lease from Farideh Jafari in the amount of approximately $39,150US ($45,000CDN).  

On July 4, 2005 we entered into a lease agreement by way of Assignment of Lease by Tenant with Landlord’s Consent. The lease commenced July 1, 2005 and terminates June 30, 2015.    

Our accumulated deficit as of our period ended on February 29, 2008 was $199,985 and as of May 31, 2007, the accumulated deficit was $142,766.  During the period ended February 29, 2008, the deficit increased by $57,219.  The discussion below provides an overview of our operations, discusses our results of operations, our plan of operations and our liquidity and capital resources.

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LID HAIR STUDIOS INTERNATIONAL, INC.

Results of Operations

Hair salon service revenues were $55,748 for the nine months ended February 29, 2008 compared to $48,076 in revenues for the nine months ended February 28, 2007.

Gross profit, defined as sales less cost of sales, was $1,821 for the nine months ended February 29, 2008, compared to $1,074 gross profit for the nine months ended February 28, 2007.

Our operating expenses were $114,788 for the nine months ended February 29, 2008 compared to operating expenses of $90,172 for the nine months ended February 28, 2007.   Operating expense increased primarily as a result of an increase in directors’ fees and professional fees for the nine months ended February 29, 2008 compared to the prior year period.

We achieved a net loss of $57,219 for the nine months ended February 29, 2008 compared to a net loss of $41,022 for the nine months ended February 28, 2007.

Operations Outlook

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. 

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 have enough revenue, when added to our cash on hand, to pay our operating expenses for the next twelve months. We anticipate that we will raise additional capital to expand our operations. We cannot guarantee that we will be able to raise that capital, in which event, our operations may be required to be curtailed.

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LID HAIR STUDIOS INTERNATIONAL, INC.

Liquidity and Capital Resources

Overview – Nine months ended February 29, 2008

For the nine months ended February 29, 2008, cash used by operating activities was $67,866. Cash used by operating activities for the nine months ending February 28, 2007 was $46,059.

Cash used by investing activities during the nine months ended February 29, 2008 and February 28, 2007 was $Nil.

Net cash provided by financing activities for the nine months ended February 29, 2008 was $91. Cash provided by financing activities for the nine months ended February 28, 2007 was $143,019. The change in cash provided by financing activities is due to the $200,000 received from the issuance of shares during the nine month period ended February 28, 2007.  In August 2006, the issuer raised $200,000 by selling 2,000,000 registered shares to individual investors.

At February 29, 2008 we had $10,886 in cash, compared to $78,629 as at May 31, 2007.  We had a positive working capital of $164 compared to positive working capital of $44,405 as at May 31, 2007.

We expect our salary expenses to remain the same for the next quarter.

We anticipate that professional fees will increase next year because of our reporting status and the requested filings for requisite quarterly and annual reports with the Securities and Exchange Commission. We expect that we will have additional filings whereby our auditors may be required to prepare further financial reports. We are aware that audit fees have generally increased as a function of the increased reporting requirements mandated by the recently enacted Sarbanes-Oxley Act. We are optimistic that our business activities will increase, which will require auditing procedures over a greater transaction base. 

We expect our rent expenses to remain at the current level.

We expect our depreciation expense to increase in the next quarter due to the depreciation of the equipment.

We expect our other administrative expenses to increase in the next quarter 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 comparable development-stage 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.

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LID HAIR STUDIOS INTERNATIONAL, INC.

Other Information - 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 in section Part III Item 12.  Certain Relationships and Related Transactions.

As noted in Note 5 of the Consolidated Financial Statements of February 29, 2008:

The amount due from shareholder of $1,033 is non-interest bearing and due on demand.


During the period, the Company paid directors and officers of the Company $9,352 for the three months ended and $37,622 for the nine months ended in wages and directors’ fees.

Recent Accounting Pronouncements

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 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.

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LID HAIR STUDIOS INTERNATIONAL, INC.

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.

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LID HAIR STUDIOS INTERNATIONAL, INC.

Item 3.     Controls and Procedures.

Management has evaluated, with the participation of our Principal Executive Officer and Principal Financial Officer, the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) as of the end of the period covered by this report.  Based upon this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms.  There have been no significant changes in our internal controls over financial reporting that occurred during the fiscal quarter covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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LID HAIR STUDIOS INTERNATIONAL, INC.

PART II ‑ OTHER INFORMATION

Item 1.     Legal Proceedings.

          There are no material pending legal proceedings to which the Company is a party or to which any of its property is subject.

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds.

          None

Item 3.     Defaults Upon Senior Securities.

          None.

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

          None.

Item 5.     Other Information.

          None.

Item 6.     Exhibits.

31.1	Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rules 13a-14 and 15d-14 of the Exchange Act)
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

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LID HAIR STUDIOS INTERNATIONAL, INC.

SIGNATURES

          In accordance with the requirements 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)


Dated:   April 9, 2008                                                 By:   /s/ Eric Steven Anderson
                                                                                          Eric Steven Anderson, Chief Executive Officer
                                                                                          (Principal Executive Officer) Chief Financial
                                                                                          Officer, Chief Accounting Officer (Principal
                                                                                          Financial Officer)

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