**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-Q**

**For      the      Quarterly Period Ended**
**September 30,      2005**

**1-3952**

**SIBONEY      CORPORATION**

|   | **Maryland**                                                                                               | **73-0629975**                            |   |
|--------|------------------------------------------------------------------------------------------------------------|-------------------------------------------|--------|
|   | (State                or                other jurisdiction ofincorporation                or organization) | (I.R.S.                Employer I.D. No.) |   |

**325      North      Kirkwood Road, Suite 300, St. Louis, MO 63122 **

**314-822-3163**

| Title                  of                  class of | Number                  of                  shares outstanding  |
|-----------------------------------------------------|-----------------------------------------------------------------|
| common                  stock                       | as                  of the                  date of this report |
|                                                |                                                            |
| **Common                  stock, par value**        | **17,030,419**                                                  |
| **$.10                  per share**                 |                                                            |

----

| **INDEX**                                                                                                                                                                            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                 |   |
| **PART                  I   FINANCIAL INFORMATION**                                                                                                                        |   |
|                                                                                                                                                                                 |   |
| **Item                  1. Unaudited Financial                  Statements**                                                                                                         |   |
|                                                                                                                                                                                 |   |
| Consolidated                  Balance Sheet, September 30, 2005 and                  December 31, 2004                                                                               | 3      |
|                                                                                                                                                                                 |   |
| Consolidated                  Statement of Operations, Three                  and Nine Months Ended September 30, 2005 and September 30,                  2004                       | 4      |
|                                                                                                                                                                                 |   |
| Consolidated                  Statement of Stockholders’ Equity, Nine                  Months Ended September 30, 2005                                                         | 5      |
|                                                                                                                                                                                 |   |
| Consolidated                  Statement of Cash Flows, Nine Months Ended                  September 30, 2005 and September 30, 2004                                                  | 6      |
|                                                                                                                                                                                 |   |
| Notes                  to Unaudited Consolidated Financial                  Statements                                                                                               | 7      |
|                                                                                                                                                                                 |   |
| **Item                  2. Management’s                  Discussion                  and Analysis of Financial** **Condition and Results of                  Operations** | 10     |
|                                                                                                                                                                                 |   |
| **Item** **3.                  Quantitative and                  Qualitative Disclosures About Market Risk**                                                                    | 14     |
|                                                                                                                                                                                 |   |
| **Item                  4. Controls and Procedures**                                                                                                                                 | 14     |
|                                                                                                                                                                                 |   |
| **PART                  II   OTHER INFORMATION**                                                                                                                           |   |
|                                                                                                                                                                                 |   |
| **Item                  5. Other Information**                                                                                                                                       | 15     |
|                                                                                                                                                                                 |   |
| **Item                  6.** **Exhibits**                                                                                                                                       | 15     |
|                                                                                                                                                                                 |   |
| **SIGNATURES**                                                                                                                                                                       | 16     |
|                                                                                                                                                                                 |   |
| **INDEX                  TO EXHIBITS**                                                                                                                                               | 17     |

----

| **PART                  I - FINANCIAL INFORMATION**                                                                                                                  |   |                                  |      |                              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|-----------------------------------|--------|
|                                                                                                                                                                 |   |                                  |      |                              |   |
| **ITEM                  1. UNAUDITED FINANCIAL                  STATEMENTS**                                                                                         |   |                                  |      |                              |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |
| **SIBONEY                  CORPORATION AND SUBSIDIARIES CONSOLIDATED                  BALANCE SHEET**                                                                |   |
| **Assets**                                                                                                                                                           |   |
|                                                                                                                                                                 |   | **September                  30,**    |      | **December                  31,** |   |
|                                                                                                                                                                 |   | **2005                  (Unaudited)** |      | **2004**                          |   |
| **Current                  Assets**                                                                                                                                  |   |                                  |      |                              |   |
| Cash                                                                                                                                                                 |   | $                                     | 149,408   |                              | $      | 686,642 |   |
| Accounts                  receivable                                                                                                                                 |   |                                  | 1,009,002 |                              |   | 1,379,006 |   |
| Inventories                                                                                                                                                          |   |                                  | 407,911   |                              |   | 314,947 |   |
| Refundable                  income taxes                                                                                                                             |   |                                  | 293,578   |                              |   | 620,769 |   |
| Prepaid                  expenses                                                                                                                                    |   |                                  | 214,347   |                              |   | 164,305 |   |
| Deferred                  tax asset                                                                                                                                  |   |                                  | 153,000   |                              |   | 116,000 |   |
| **Total                  Current Assets**                                                                                                                            |   |                                  | 2,227,246 |                              |   | 3,281,669 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Property                  and Equipment, Net**                                                                                                                     |   |                                  | 343,994   |                              |   | 432,500 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Goodwill,                  Net**                                                                                                                                   |   |                                  | 1,045,015 |                              |   | 1,045,015 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Other                  Assets**                                                                                                                                    |   |                                  | 2,155,750 |                              |   | 1,627,648 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Total                  Assets**                                                                                                                                    |   | $                                     | 5,772,005 |                              | $      | 6,386,832 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Liabilities                  and Stockholders’                  Equity**                                                                                     |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Current                  Liabilities**                                                                                                                             |   |                                  |      |                              |   |   |   |
| Notes                  payable                                                                                                                                       |   | $                                     | 725,000   |                              | $      | 6,771 |   |
| Current                  portion of capitalized lease obligation                                                                                                     |   |                                  | 17,668    |                              |   | 25,686 |   |
| Accounts                  payable                                                                                                                                    |   |                                  | 216,313   |                              |   | 173,660 |   |
| Accrued                  bonuses                                                                                                                                     |   |                                  | —   |                              |   | 88,677 |   |
| Accrued                  commissions                                                                                                                                 |   |                                  | 39,708    |                              |   | 36,817 |   |
| Accrued                  vacation                                                                                                                                    |   |                                  | 105,941   |                              |   | 87,223 |   |
| Accrued                  royalties                                                                                                                                   |   |                                  | 136,491   |                              |   | 311,886 |   |
| Accrued                  severance                                                                                                                                   |   |                                  | 101,450   |                              |   | ― |   |
| Other                  accrued expenses                                                                                                                              |   |                                  | 70,119    |                              |   | 48,093 |   |
| Accrued                  litigation liability                                                                                                                        |   |                                  | 100,000   |                              |   | 100,000 |   |
| **Total                  Current Liabilities**                                                                                                                       |   |                                  | 1,512,690 |                              |   | 878,813 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Long-Term                  Liabilities**                                                                                                                           |   |                                  |      |                              |   |   |   |
| Long-term                  litigation liability                                                                                                                      |   |                                  | —   |                              |   | 100,000 |   |
| Capitalized                  lease obligation                                                                                                                        |   |                                  | —   |                              |   | 11,116 |   |
| Deferred                  tax liability                                                                                                                              |   |                                  | 55,000    |                              |   | 360,000 |   |
| **Total                  Long-Term Liabilities**                                                                                                                     |   |                                  | 55,000    |                              |   | 471,116 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Commitments                  and Contingencies (Note 6)**                                                                                                          |   |                                  |      |                              |   |   |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Stockholders’                  Equity**                                                                                                                      |   |                                  |      |                              |   |   |   |
| Common                  stock:                                                                                                                                       |   |                                  |      |                              |   |   |   |
| Authorized                  100,000,000 shares at $0.10 par value; issued and                                                                                        |   |                                  |      |                              |   |   |   |
| outstanding                  17,030,419 at September 30, 2005 and 17,407,919 at                                                                                      |   |                                  |      |                              |   |   |   |
| December                  31, 2004                                                                                                                                   |   |                                  | 1,703,042 |                              |   | 1,740,792 |   |
| Retained                  earnings                                                                                                                                   |   |                                  | 2,501,273 |                              |   | 3,296,111 |   |
| **Total                  Stockholders’                  Equity**                                                                                               |   |                                  | 4,204,315 |                              |   | 5,036,903 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| **Total                  Liabilities and Stockholders’                  Equity**                                                                               |   | $                                     | 5,772,005 |                              | $      | 6,386,832 |   |
|                                                                                                                                                                 |   |                                  |      |                              |   |   |   |
| Note:                  The balance sheet at December 31, 2004 has been derived from the                  audited                  financial statements at that date. |
|                                                                                                                                                                 |
| See                  accompanying notes to unaudited consolidated financial                  statements.                                                             |   |                                  |      |                              |   |   |   |

----

| **SIBONEY                  CORPORATION AND SUBSIDIARIES**                                                |   |
|----------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENT OF OPERATIONS                  (Unaudited)**                   |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   | **Three                  Months Ended September 30,** |   | **Nine                  Months Ended September 30,** |   |
|                                                                                                     |   | **2005** |   | **2004** |   | **2005** |   | **2004** |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |
| **Revenues**                                                                                             |   | $ | 1,435,446 |   | $ | 1,930,092 |   | $ | 6,008,948 |   | $ | 8,235,729 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Cost                  of Product Sales**                                                               |   |   | 529,364 |   |   | 429,001 |   |   | 1,502,260 |   |   | 1,654,717 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Selling,                  General and Administrative**                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Expenses**                                                                                             |   |   | 1,616,200 |   |   | 2,003,819 |   |   | 5,619,100 |   |   | 5,460,332 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Litigation                  Settlement Expense**                                                       |   |   | — |   |   | 615,000 |   |   | — |   |   | 615,000 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  (Loss) From Operations**                                                       |   |   | (710,118 | ) |   | (1,117,728 | ) |   | (1,112,412 | ) |   | 505,680 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Other                  Income (Expense)**                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  expense, net                                                                   |   |   | (10,751 | ) |   | 2,527 |   |   | (21,725 | ) |   | 2,389 |   |
| Gain                  on sale of asset                                                                   |   |   | — |   |   | — |   |   | — |   |   | 219,780 |   |
| Miscellaneous                                                                                            |   |   | 136 |   |   | 6,331 |   |   | 1,535 |   |   | 7,166 |   |
| **Total                  Other Income (Expense)**                                                        |   |   | (10,615 | ) |   | 8,858 |   |   | (20,190 | ) |   | 229,335 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  (Loss) Before Income Taxes**                                                   |   |   | (720,733 | ) |   | (1,108,870 | ) |   | (1,132,602 | ) |   | 735,015 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Income                  Tax Benefit (Expense)**                                                        |   |   | 174,000 |   |   | 444,193 |   |   | 421,000 |   |   | (271,234 | ) |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  Income (Loss)**                                                                   |   | $ | (546,733 | ) | $ | (664,677 | ) | $ | (711,602 | ) | $ | 463,781 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Earnings                  (Loss) Per Common Share - Basic**                                            |   | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | 0.03 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Earnings                  (Loss) Per Common Share - Diluted**                                          |   | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | $ | 0.03 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Weighted                  Average Number of Common**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Shares                  Outstanding - Basic**                                                          |   |   | 17,030,419 |   |   | 17,560,908 |   |   | 17,149,291 |   |   | 17,582,348 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Weighted                  Average Number of Common**                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Shares                  Outstanding - Diluted**                                                        |   |   | 17,244,960 |   |   | 18,108,073 |   |   | 17,556,828 |   |   | 18,008,820 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See                  accompanying notes to unaudited consolidated financial                  statements. |   |   |   |   |   |   |   |   |   |

----

| **SIBONEY                  CORPORATION AND SUBSIDIARIES**                                                        |   |
|------------------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENT OF STOCKHOLDERS’                  EQUITY (Unaudited)** |

|                                                                                                         |   |                                |       |         |   |                    |   | **Total**  |      |
|--------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------------|--------|-------------------------|--------|------------|-----------|
|                                                                                                         |   | **Common                    Stock** |       | **Retained** |   | **Stockholders’** |   |
|                                                                                                         |   | **Shares**                          |       | **Amount**   |   | **Earnings**            |   | **Equity** |      |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |
| **Balance                    - December 31, 2004**                                                           |   |                                | 17,407,919 |         | $      | 1,740,792               |   | $          | 3,296,111 |   | $ | 5,036,903 |   |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Stock                    Repurchase**                                                                      |   |                                | (62,500    | )            |   | (6,250                  | )      |       | (19,806   | ) |   | (26,056 | ) |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Net                    Loss**                                                                              |   |                                | —    |         |   | —                 |   |       | (361,303  | ) |   | (361,303 | ) |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Balance                    - March 31, 2005**                                                              |   |                                | 17,345,419 |         |   | 1,734,542               |   |       | 2,915,002 |   |   | 4,649,544 |   |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Stock                    Repurchase**                                                                      |   |                                | (315,000   | )            |   | (31,500                 | )      |       | (63,430   | ) |   | (94,930 | ) |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Net                    Income**                                                                            |   |                                | —    |         |   | —                 |   |       | 196,434   |   |   | 196,434 |   |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Balance                    - June 30, 2005**                                                               |   |                                | 17,030,419 |         | $      | 1,703,042               |   | $          | 3,048,006 |   | $ | 4,751,048 |   |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Net                    Loss**                                                                              |   |                                | —    |         |   | —                 |   |       | (546,733  | ) |   | (546,733 | ) |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| **Balance                    - September 30, 2005**                                                          |   |                                | 17,030,419 |         | $      | 1,703,042               |   | $          | 2,501,273 |   | $ | 4,204,315 |   |
|                                                                                                         |   |                                |       |         |   |                    |   |       |      |   |   |   |   |
| See                    accompanying notes to unaudited consolidated financial                    statements. |   |                                |       |         |   |                    |

----

| **SIBONEY                  CORPORATION AND SUBSIDIARIES**                                                |   |
|----------------------------------------------------------------------------------------------------------|--------|
| **CONSOLIDATED                  STATEMENT OF CASH FLOWS                  (Unaudited)**                   |   |
|                                                                                                     |   |   |   |   |   |
|                                                                                                     |   | **                    Nine Months Ended September 30,** |   |
|                                                                                                     |   | **2005** |   | **2004** |   |
| **Cash                  Flows From Operating Activities**                                                |   |   |   |   |   |
| Net                  income (loss)                                                                       |   | $ | (711,602 | ) | $ | 463,781 |   |
| Adjustments                  to reconcile net income (loss) to net                                       |   |   |   |   |   |   |   |
| cash                  provided by (used in) operating activities:                                        |   |   |   |   |   |   |   |
| Depreciation                                                                                             |   |   | 175,265 |   |   | 161,961 |   |
| Amortization                                                                                             |   |   | 465,243 |   |   | 453,367 |   |
| Deferred                  income taxes                                                                   |   |   | (342,000 | ) |   | (13,800 | ) |
| Change                  in assets and liabilities:                                                       |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                     |   |   | 370,004 |   |   | 454,752 |   |
| Inventories                                                                                              |   |   | (92,964 | ) |   | 23,323 |   |
| Refundable                  income taxes                                                                 |   |   | 327,191 |   |   | (437,380 | ) |
| Prepaid                  expenses                                                                        |   |   | (50,042 | ) |   | (84,266 | ) |
| Accrued                  litigation liability                                                            |   |   | (100,000 | ) |   | 615,000 |   |
| Accounts                  payable and accrued expenses                                                   |   |   | (76,334 | ) |   | (94,894 | ) |
| **Net                  Cash Provided By (Used In) Operating Activities**                                 |   |   | (35,239 | ) |   | 1,541,844 |   |
|                                                                                                     |   |   |   |   |   |   |   |
| **Cash                  Flows From Investing Activities**                                                |   |   |   |   |   |   |   |
| Payments                  for equipment                                                                  |   |   | (86,758 | ) |   | (150,207 | ) |
| Payments                  for software development costs                                                 |   |   | (993,345 | ) |   | (377,336 | ) |
| **Net                  Cash Used In Investing Activities**                                               |   |   | (1,080,103 | ) |   | (527,543 | ) |
|                                                                                                     |   |   |   |   |   |   |   |
| **Cash                  Flows From Financing Activities**                                                |   |   |   |   |   |   |   |
| Proceeds                  from issuance of common stock                                                  |   |   | — |   |   | 4,918 |   |
| Payments                  under stock buy back program                                                   |   |   | (120,986 | ) |   | (65,378 | ) |
| Borrowings                  on line of credit                                                            |   |   | 1,075,000 |   |   | — |   |
| Repayments                  on line of credit                                                            |   |   | (350,000 | ) |   | — |   |
| Principal                  payments on capital lease obligation                                          |   |   | (19,135 | ) |   | (18,135 | ) |
| Principal                  payments on long-term debt                                                    |   |   | (6,771 | ) |   | (161,852 | ) |
| **Net                  Cash Provided By (Used In) Financing Activities**                                 |   |   | 578,108 |   |   | (240,447 | ) |
|                                                                                                     |   |   |   |   |   |   |   |
| **Net                  Increase (Decrease) In Cash**                                                     |   |   | (537,234 | ) |   | 773,854 |   |
|                                                                                                     |   |   |   |   |   |   |   |
| **Cash                  - Beginning of Period**                                                          |   |   | 686,642 |   |   | 1,102,608 |   |
|                                                                                                     |   |   |   |   |   |   |   |
| **Cash                  - End of Period**                                                                |   | $ | 149,408 |   | $ | 1,876,462 |   |
|                                                                                                     |   |   |   |   |   |   |   |
| **Supplemental                  Disclosure of Cash Flow Information**                                    |   |   |   |   |   |   |   |
| Interest                  paid                                                                           |   | $ | 22,562 |   | $ | 5,853 |   |
| Income                  taxes paid                                                                       |   | $ | 837 |   | $ | 696,403 |   |
|                                                                                                     |   |   |   |   |   |   |   |
| See                  accompanying notes to unaudited consolidated financial                  statements. |   |   |   |   |   |   |   |

----

**SIBONEY      CORPORATION AND SUBSIDIARIES**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL      STATEMENTS**

**SEPTEMBER        30, 2005 AND 2004**

**1.        BASIS OF        PRESENTATION**

**2.        REVENUE        RECOGNITION**

**3.        INVENTORIES**

|                                                                |   | **September                  30, 2005** |    |   | **December                  31,                  2004** |   |
|---------------------------------------------------------------------|--------|-----------------------------------------|---------|--------|---------------------------------------------------------|--------|
| Raw                  materials                                      |   | $                                       | 290,241 |   |                                                    | $      | 259,998 |   |
| Finished                  goods                                     |   |                                    | 170,770 |   |                                                    |   | 94,549 |   |
|    Reserve                for                obsolescence |   |                                    | (53,100 | )      |                                                    |   | (39,600 | ) |
|                                                                |   | $                                       | 407,911 |   |                                                    | $      | 314,947 |   |

----

**4.        OTHER        ASSETS**

| Other                    assets                    consist of:                                                                                                   |   |                                      |       |                                     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|------------|------------------------------------------|--------|
|                                                                                                                                                             |   | **September                    30, 2005** |       | **December                    31, 2004** |
| Software                    development costs, net of accumulated amortizationof                    $2,290,908                    in 2005 and $1,825,665 in 2004 |   |                                      | $2,144,557 |                                     |   | $1                    ,616,455 |
| Deposits                    and                    other                                                                                                         |   |                                      |       | 11,193                                   |   |   |   | 11,193 |
|                                                                                                                                                             |   |                                      |       | $2,155,750                               |   |   |   | $1,627,648 |

**5.        STOCK        BASED COMPENSATION**

----

|                                                                                                                                                                              |   | **Three                      Months Ended****September                      30,** |     | **Nine                      Months Ended****September                      30,** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|----------|----------------------------------------------------------------------------------|--------|
|                                                                                                                                                                              |   |                                                                              |     |                                                                             |   |   |   |   |   |
|                                                                                                                                                                              |   | **2005**                                                                          |     |  **2004**                                                                   |   | **2005** |   |  **2004** |   |
|                                                                                                                                                                              |   |                                                                              |     |                                                                             |   |   |   |   |   |
| Reported                      net income (loss)                                                                                                                                   |   | $                                                                                 | (546,733 | )                                                                                | $      | (664,677 | ) | $ | (711,602 | ) | $ | 463,781 |   |
|                                                                                                                                                                              |   |                                                                              |     |                                                                             |   |   |   |   |   |   |   |   |   |
| Stock-based                      employee compensation expense determined under the fair value                      based                      method, net of related tax effects |   |                                                                              | (18,626  | )                                                                                |   | (12,928 | ) |   | (44,978 | ) |   | (28,109 | ) |
|                                                                                                                                                                              |   |                                                                              |     |                                                                             |   |   |   |   |   |   |   |   |   |
| Pro                      forma net income (loss)                                                                                                                                  |   | $                                                                                 | (565,359 | )                                                                                | $      | (677,605 | ) | $ | (756,580 | ) | $ | 435,672 |   |
|                                                                                                                                                                              |   |                                                                              |     |                                                                             |   |   |   |   |   |   |   |   |   |
| Earnings                      (loss) per share (basic and diluted):                                                                                                               |   |                                                                              |     |                                                                             |   |   |   |   |   |   |   |   |   |
| As                    reported                                                                                                                                                    |   | $                                                                                 | (0.03    | )                                                                                | $      | (0.04 | ) | $ | (0.04 | ) | $ | 0.03 |   |
| Pro                      forma                                                                                                                                                    |   | $                                                                                 | (0.03    | )                                                                                | $      |  (0.04 | ) | $ | (0.04 | ) | $ | 0.03 |   |

**6.        COMMITMENTS AND CONTINGENCIES**

** **

----

**7.        SUBSEQUENT EVENT **

**ITEM        2.**
**MANAGEMENT’S        DISCUSSION AND        ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS **

**Overview**

----

----

**Results        of        Operations**

**Three        Months Ended September 30, 2005 Compared To September 30,        2004**

----

**Nine        Months        Ended September 30, 2005 Compared to September 30, 2004**

**Liquidity        and Capital Resources**

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**ITEM        3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET        RISK**

**ITEM          4. CONTROLS AND PROCEDURES**

**FORWARD-LOOKING        STATEMENTS**

----

**PART        II -        OTHER INFORMATION**

**ITEM        5. OTHER INFORMATION**

**ITEM        6. EXHIBITS **

----

**SIGNATURES**

| ** SIBONEY                  CORPORATION**      |
|-----------------------------------------------------|
|                                                |   |
|                                                |   |
|  By:                                      | /s/                  William D. Edwards,                  Jr.                            |
|                                                | William                  D.                  Edwards, Jr. |
|                                                | President |
|                                                | (Authorized                  officer and principal financial officer) |
|                                                |   |
|                                                |   |
| November                  10,                  2005 |   |
|                                                |   |

----

**Index          to Exhibits**

**Exhibits**

| 10     | Promissory                    Note between Siboney Corporation and Southwest Bank dated October                    19,                    2005.                                           |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                      |
| 31.1   | Certification                    by Chief Executive Officer pursuant to Rule 13a - 14(a) or Rule                    15d -                    14(a) of the Securities Exchange Act of 1934 |
|   |                                                                                                                                                                                      |
| 31.2   | Certification                    by Chief Financial Officer pursuant to Rule 13a - 14(a) or Rule                    15d -                    14(a) of the Securities Exchange Act of 1934 |
|   |                                                                                                                                                                                      |
| 32.1   | Certification                    Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                    906 of                    the Sarbanes-Oxley Act of 2002           |
|   |                                                                                                                                                                                      |
| 32.2   | Certification                    Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                    906 of                    the Sarbanes-Oxley Act of 2002           |