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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-QSB
  þ
    
    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended: JUNE 30, 2007
 o
    
    TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number: 333-142105
 consolidation services, inc.
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    20-8317863
(IRS Employer
Identification No.)
 
 
 
 o þ
 o þ
 APPLICABLE ONLY TO CORPORATE ISSUERS
  o þ
  *
    
    Registrants registration statement No. 333-142105 was declared effective on June 25, 2007




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Consolidation Services, Inc.
Quarterly Report on Form 10-QSB
Period Ended June 30, 2007
 Table of Contents
 PagePART I. FINANCIAL INFORMATIONItem 1. Financial Statements:Report of Independent Registered Public Accounting Firm
    
    
    3Condensed Consolidated Balance Sheet as of June 30, 2007 (Unaudited)
    
    
    4Condensed Consolidated Statement of Operations for the three months ended June 30, 2007
for and the period from Inception on January 26, 2007 through June 30, 2007 (Unaudited)
    
    
    5Condensed Consolidated Statements of Stockholders Equity for the period from Inception
on January 26, 2007 through June 30, 2007 (Unaudited)
    
    
    6Condensed Consolidated Statement of Cash Flow for the period from Inception on
January 26, 2007 through June 30, 2007 (Unaudited)
    
    
    7Notes to Condensed Consolidated Financial Statements (Unaudited)
    
    
    8Item 2. Managements Discussion and Analysis or Plan of Operation
    
    
    9Item 3. Controls and Procedures
    
    
    12PART II. OTHER INFORMATIONItem 1. Legal Proceedings
    
    
    12Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    12Item 3. Defaults Upon Senior Securities
    
    
    13Item 4. Submission of Matters to a Vote of Security Holders
    
    
    13Item 5. Other Information
    
    
    13Item 6. Exhibits
    
    
    13SIGNATURES
    
    
    14EXHIBIT INDEX
    
    
    15EX-31.1: CERTIFICATIONEX-31.2: CERTIFICATIONEX-32.1: CERTIFICATIONEX-32.2: CERTIFICATION
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ACCOUNTANTS AND ADVISORS  PCAOB REGISTERED
 
 Report of Independent Registered Public Accounting Firm
 To the Board of Directors
Consolidation Services, Inc
    /s/ Moore & Associates, Chartered
 
 2675 S. JONES BLVD. SUITE 109, LAS VEGAS, NEVADA 89146
 (702) 253-7499 Fax: (702)253-7501
 -3-




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June 30,2007(Unaudited)ASSETSCURRENT ASSETSCash in bank
    
    $
    19,062Prepaid expenses
    
    
    TOTAL CURRENT ASSETS
    
    
    19,062TOTAL ASSETS
    
    $
    19,062LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    250TOTAL CURRENT LIABILITIES
    
    
    250LONG-TERM DEBT
    
    
    TOTAL LIABILITIES
    
    
    250STOCKHOLDERS EQUITYPreferred stock: $0.001 par value;
20,000,000 shares authorized,
no shares issued and outstanding
    
    
    Common stock: $0.001 par value;
200,000,000 shares authorized,
10,000,000 shares issued and outstanding
    
    
    10,000Additional paid in capital
    
    
    49,000Accumulated deficit
    
    
    (40,188
    )TOTAL STOCKHOLDERS EQUITY
    
    
    18,812TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
    
    $
    19,062
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From Inception OnFor the Three
    
    
    January 26, 2007Months Ended
    
    
    through June 30,June 30, 2007
    
    
    2007REVENUES
    
    $
    
    
    
    $
    COST OF SALES
    
    
    
    
    
    
    GROSS MARGIN
    
    
    
    
    
    
    OPERATING EXPENSESGeneral and administrative
    
    
    17,743
    
    
    
    40,188TOTAL OPERATING EXPENSES
    
    
    17,743
    
    
    
    40,188NET LOSS
    
    $
    (17,743
    )
    
    $
    (40,188
    )BASIC LOSS PER SHARE
    
    $
    (0.00
    )Weighted Average Shares
Outstanding
    
    
    10,000,000
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Preferred Stock
    
    Common Stock

    Additional
    
    
    
    
    
    Total StockholdersShares
    
    Amount
    
    Shares
    
    Amount
    
    Paid in Capital
    
    Accumulated Deficit
    
    EquityBalance January 26,
2007
    
    
    
    
    
    $
    
    
    
    
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Shares issued for
cash at $0.001 per
share
    
    
    
    
    
    
    
    
    
    
    9,000,000
    
    
    
    9,000
    
    
    
    
    
    
    
    
    
    
    
    9,000Shares issued for
cash at $0.05 per
share
    
    
    
    
    
    
    
    
    
    
    1,000,000
    
    
    
    1,000
    
    
    
    49,000
    
    
    
    
    
    
    
    50,000Net loss for the
period ended June
30, 2007
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (40,188
    )Balance June 30,
2007
    
    
    
    
    
    $
    
    
    
    
    10,000,000
    
    
    $
    10,000
    
    
    $
    49,000
    
    
    $
    (40,188
    )
    
    $
    18,812
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From Inception OnJanuary 26, 2007through June 30,2007CASH FLOWS FROM OPERATING ACTIVITIESNet loss
    
    $
    (40,188
    )Adjustments to reconcile net income to
net cash provided by operating activities:Common stock issued for services
    
    
    Changes in operating assets and liabilities:(Increase) decrease in prepaid expenses
    
    
    Increase (decrease) in accounts payable
    
    
    250NET CASH PROVIDED BY OPERATING ACTIVITES
    
    
    (39,938
    )CASH FLOWS FROM INVESTING ACTIVITIESPurchase of property and equipment
    
    
    NET CASH (USED) BY INVESTING ACTIVITIES
    
    
    CASH FLOWS FROM FINANCING ACTIVITIESProceeds from common stock issued
    
    
    59,000NET CASH PROVIDED BY FINANCING ACTIVITIES
    
    
    59,000NET INCREASE IN CASH
    
    
    19,062CASH  BEGINNING OF PERIOD
    
    
    CASH  END OF PERIOD
    
    $
    19,062SUPPLEMENTAL CASH FLOW DISCLOSURE:CASH PAID FOR:Interest
    
    $
    Income taxes
    
    $
    NON CASH FINANCING ACTIVITIES:
    
    $
    
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CONSOLIDATION SERVICES, INC.
(A DEVELOPMENT STAGE COMPANY)
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 AS OF JUNE 30, 2007
 (UNAUDITED)
 NOTE 2
    
    CONDENSED FINANCIAL STATEMENTSThe accompanying financial statements have been prepared by the Company without
audit. In the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flows at June 30, 2007 and for all periods
presented have been made.Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted. It is suggested
that these condensed financial statements be read in conjunction with the
financial statements and notes thereto included in the Companys February 28,
2007 audited financial statements. The results of operations for the period
ended June 30, 2007 are not necessarily indicative of the operating results for
the full years.NOTE 3
    
    GOING CONCERNThe Companys financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. The Company has had no revenues and has generated losses from
operations.In order to continue as a going concern and achieve a profitable level of
operations, the Company will need, among other things, additional capital
resources and to develop a consistent source of revenues. Managements plans
include of investing in and developing all types of businesses related to the
food service industry.The ability of the Company to continue as a going concern is dependent upon its
ability to successfully accomplish the plan described in the preceding
paragraph and eventually attain profitable operations. The accompanying
financial statements do not include any adjustments that might be necessary if
the Company is unable to continue as a going concern.
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Item 2. Managements Discussion and Analysis or Plan of Operation.
 Forward-Looking Statements
  Plan of Operations
     -9-




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Critical Accounting Policies
  Revenue Recognition
  Stock based Compensation Expense.
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Material Changes in Results of Operations For the period ended June 30, 2007
 Revenues.
 Operating expenses.
 Net loss.
 Material Changes in Financial Condition, Liquidity and Capital Resources as of June 30, 2007
        -11-




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Item 3. Controls and Procedures.
   
 PART II. OTHER INFORMATION
 
 Item 1. Legal Proceedings.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
   -12-




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Item 3. Defaults Upon Senior Securities.
  
 Item 4. Submission of Matters to a Vote of Security Holders.
  
 Item 5. Other Information.
  
 Item 6. Exhibits.
   ExhibitNumber
    
    Description31.1
    
    Certification of the Chief Executive Officer pursuant to
Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of the Chief Financial Officer pursuant to
Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of the Chief Executive Officer pursuant to 18
U.S.C. 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.32.2
    
    Certification of the Chief Financial Officer pursuant to 18
U.S.C. 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
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SIGNATURES
  Dated:  August 14, 2007
    Consolidation Services, Inc.By:
    /s/ Johnny R. ThomasJohnny R. Thomas, Chief ExecutiveOfficer (Principal Executive
Officer)By:
    /s/ John C. FrancisJohn C. Francis, Vice President andChief Financial Officer (Principal
Financial Officer) -14-




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EXHIBIT INDEX
 ExhibitNumber
    
    Description31.1
    
    Certification of the Chief Executive Officer pursuant to
Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.31.2
    
    Certification of the Chief Financial Officer pursuant to
Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.32.1
    
    Certification of the Chief Executive Officer pursuant to 18
U.S.C. 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.32.2
    
    Certification of the Chief Financial Officer pursuant to 18 U.S.C.
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
 -15-