**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**T**

**CARBON      SCIENCES, INC.**

| **Nevada**                                                                   |   | **20-5451302**                                      |
|------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation ororganization) |   | (I.R.S.                Employer Identification No.) |

**50      Castilian Dr. Suite C, Santa Barbara, California 93117**

**(805)      690-9090**

**WITH      COPIES TO:**

Indicate      by check mark whether the registrant (1) has filed all reports required by      Section 13 or 15(d) of the Securities Exchange Act of 1934 during the      preceding 12 months (or for such shorter period that the registrant was      required to file such reports), and (2) has been subject to such filing      requirements for the past 90 days. Yes **x**  No **o**

| Large                  accelerated filer **o** |   | Accelerated                  filer**o**          |
|------------------------------------------------|--------|--------------------------------------------------|
| Non-accelerated                  filer**o**    |   | Smaller                  reporting company **x** |

**o**
**x**

----

**CARBON      SCIENCES, INC. **

**INDEX**

| **PART                I: FINANCIAL INFORMATION** |   |                                                                                                                      |
|--------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|
| ITEM                1:                           |   | FINANCIAL                STATEMENTS (Unaudited)                                                                           |   | 3 |
|                                             |   | Balance                Sheets                                                                                             |   | 3 |
|                                             |   | Statements                of Operations                                                                                   |   | 4 |
|                                             |   | Statements                of Cash Flows                                                                                   |   | 6 |
|                                             |   | Notes                to the Financial Statements                                                                          |   | 7 |
| ITEM                2:                           |   | MANAGEMENT’S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS |   | 9 |
| ITEM                3 :                          |   | QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                 |   | 12 |
| ITEM                4:                           |   | CONTROLS                AND PROCEDURES                                                                                    |   | 12 |
| **PART                II: OTHER INFORMATION**    |   | 13                                                                                                                        |
| Item                1                            |   | LEGAL                PROCEEDINGS                                                                                          |   | 13 |
| ITEM                1A :                         |   | RISK                FACTORS                                                                                               |   | 13 |
| ITEM                2                            |   | UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                |   | 13 |
| ITEM                3                            |   | DEFAULTS                UPON SENIOR SECURITIES                                                                            |   | 13 |
| ITEM                4                            |   | SUBMISSION                OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                        |   | 13 |
| ITEM                6:                           |   | EXHIBITS                                                                                                                  |   | 13 |
| SIGNATURES                                       |   | 14                                                                                                                        |

----

**PART I**
** ****–      FINANCIAL INFORMATION**** **

**ITEM      1. FINANCIAL STATEMENTS**

|                                                                     |   | (unaudited)June                  30, 2008 |       | December                  31, 2007 |   |
|--------------------------------------------------------------------------|--------|-------------------------------------------|------------|------------------------------------|--------|
|                                                                     |   |                                      |       |                               |   |
| ASSETS                                                                   |   |                                      |       |                               |   |
|                                                                     |   |                                      |       |                               |   |
| CURRENT                  ASSETS                                          |   |                                      |       |                               |   |   |   |
| Cash                                                                     |   | $                                         | 94,524     |                               | $      | 9,539 |   |
| Certificate                  of deposits                                 |   |                                      | 335,831    |                               |   | 821,505 |   |
| Other                  receviable                                        |   |                                      | 12,000     |                               |   | - |   |
| Prepaid                  expenses                                        |   |                                      | 39,664     |                               |   | 122,488 |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| Total                  Current Assets                                    |   |                                      | 482,019    |                               |   | 953,532 |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| PROPERTY                  & EQUIPMENT, at cost                       |   |                                      |       |                               |   |   |   |
| Machinery                  & equipment                               |   |                                      | 20,599     |                               |   | 20,599 |   |
| Computer                  equipment                                      |   |                                      | 17,559     |                               |   | 17,559 |   |
| Mobile                  vehicle                                          |   |                                      | 40,252     |                               |   | 40,252 |   |
|                                                                     |   |                                      | 78,410     |                               |   | 78,410 |   |
| Less                  accumulated depreciation                           |   |                                      | (18,061    | )                                  |   | (9,637 | ) |
|                                                                     |   |                                      |       |                               |   |   |   |
| Net                  Property and Equipment                              |   |                                      | 60,349     |                               |   | 68,773 |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| OTHER                  ASSETS                                            |   |                                      |       |                               |   |   |   |
| Patent                                                                   |   |                                      | 3,000      |                               |   | - |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| Total                  Other Assets                                      |   |                                      | 3,000      |                               |   | - |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| TOTAL                  ASSETS                                            |   | $                                         | 545,368    |                               | $      | 1,022,305 |   |
|                                                                     |   |                                      |       |                               |   |   |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| LIABILITIES                  AND SHAREHOLDERS' EQUITY                    |   |                                      |       |                               |   |   |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| CURRENT                  LIABILITIES                                     |   |                                      |       |                               |   |   |   |
| Accounts                  payable                                        |   | $                                         | -          |                               | $      | 2,676 |   |
| Accrued                  expenses                                        |   |                                      | 4,451      |                               |   | 8,074 |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| TOTAL                  CURRENT LIABILITIES                               |   |                                      | 4,451      |                               |   | 10,750 |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| SHAREHOLDERS'                  EQUITY EQUITY                             |   |                                      |       |                               |   |   |   |
| Common                  Stock, $0.001 par value;                         |   |                                      |       |                               |   |   |   |
| 500,000,000                  authorized common shares                    |   |                                      |       |                               |   |   |   |
| 148,342,000                  shares issued and outstanding, respectively |   |                                      | 148,342    |                               |   | 148,342 |   |
| Additional                  paid in capital                              |   |                                      | 2,155,533  |                               |   | 2,155,533 |   |
| Accumulated                  deficit during the development stage        |   |                                      | (1,762,958 | )                                  |   | (1,292,320 | ) |
|                                                                     |   |                                      |       |                               |   |   |   |
| TOTAL                  SHAREHOLDERS' EQUITY                              |   |                                      | 540,917    |                               |   | 1,011,555 |   |
|                                                                     |   |                                      |       |                               |   |   |   |
| TOTAL                  LIABILITIES AND SHAREHOLDERS' EQUITY              |   | $                                         | 545,368    |                               | $      | 1,022,305 |   |

----

|                                                                          |   |                                |        |                              |   |                            |   |      |        | From                  Inception on |   |
|-------------------------------------------------------------------------------|--------|-------------------------------------|-------------|-----------------------------------|--------|---------------------------------|--------|-----------|-------------|------------------------------------|--------|
|                                                                          |   | Three                  Months Ended |        | Six                  Months Ended |   | August                  25,2006 |   |
|                                                                          |   | 6/30/2008                           |        | 6/30/2007                         |   | 6/30/2008                       |   | 6/30/2007 |        | June                  30, 2008     |   |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |
| REVENUE                                                                       |   | $                                   | -           |                              | $      | -                               |   | $         | -           |                               | $      | - |   | $ | - |   |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| OPERATING                  EXPENSES                                           |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| Selling                  and marketing expenses                               |   |                                | 158,446     |                              |   | 116,521                         |   |      | 308,082     |                               |   | 409,047 |   |   | 1,294,654 |   |
| General                  and administrative expenses                          |   |                                | 46,167      |                              |   | 83,574                          |   |      | 78,008      |                               |   | 125,194 |   |   | 323,330 |   |
| Research                  and development                                     |   |                                | 48,192      |                              |   | 4,500                           |   |      | 90,451      |                               |   | 5,500 |   |   | 161,133 |   |
| Depreciation                  expense                                         |   |                                | 4,212       |                              |   | 1,463                           |   |      | 8,424       |                               |   | 2,927 |   |   | 18,061 |   |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| TOTAL                  OPERATING EXPENSES                                     |   |                                | 257,017     |                              |   | 206,058                         |   |      | 484,965     |                               |   | 542,668 |   |   | 1,797,178 |   |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| LOSS                  FROM OPERATIONS BEFORE OTHER INCOME/(EXPENSES)          |   |                                | (257,017    | )                                 |   | (206,058                        | )      |      | (484,965    | )                                  |   | (542,668 | ) |   | (1,797,178 | ) |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| OTHER                  INCOME/(EXPENSE)                                       |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| Interest                  income                                              |   |                                | 5,767       |                              |   | -                               |   |      | 14,327      |                               |   | - |   |   | 35,831 |   |
| Interest                  expense                                             |   |                                | -           |                              |   | (265                            | )      |      | -           |                               |   | (1,202 | ) |   | (1,611 | ) |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
|                                                                          |   |                                | 5,767       |                              |   | (265                            | )      |      | 14,327      |                               |   | (1,202 | ) |   | 34,220 |   |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| NET                  LOSS                                                     |   |                                | (251,250    | )                                 |   | (206,323                        | )      |      | (470,638    | )                                  |   | (543,870 | ) |   | (1,762,958 | ) |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| BASIC                  AND DILUTED LOSS PER SHARE                             |   | $                                   | (0.00       | )                                 | $      | (0.00                           | )      | $         | (0.00       | )                                  | $      | (0.00 | ) |   |   |   |
|                                                                          |   |                                |        |                              |   |                            |   |      |        |                               |   |   |   |   |   |   |
| WEIGHTED-AVERAGE                  COMMON SHARES OUTSTANDING BASIC AND DILUTED |   |                                | 148,342,000 |                              |   | 132,752,857                     |   |      | 148,342,000 |                               |   | 130,950,856 |   |   |   |   |

----

|                                                  |   |                          |        |          |   |        |   | Deficit                     |      |   |   |
|-------------------------------------------------------|--------|-------------------------------|-------------|---------------|--------|------------------|--------|-----------------------------|-----------|--------|--------|
|                                                  |   |                          |        |          |   |        |   | Accumulated                 |      |   |   |
|                                                  |   |                          |        |          |   |  Additional |   | during                  the |      |   |   |
|                                                  |   | Common                  stock |        |  Paid-in |   | Development      |   |                        |      |
|                                                  |   | Shares                        |        | Amount        |   |  Capital    |   | Stage                       |      | Total  |   |
|                                                  |   |                          |        |          |   |        |   |                        |      |   |   |
| Balance                  at December 31, 2007         |   |                          | 148,342,000 |          | $      | 148,342          |   | $                           | 2,155,533 |   | $      | (1,292,320 | ) | $ | 1,011,555 |   |
|                                                  |   |                          |        |          |   |             |   |                        |      |   |   |   |   |   |   |   |
| Net                  Loss (unaudited)                 |   |                          | -           |          |   | -                |   |                        | -         |   |   | (470,638 | ) |   | (470,638 | ) |
|                                                  |   |                          |        |          |   |             |   |                        |      |   |   |   |   |   |   |   |
| Balance                  at June 30, 2008 (unaudited) |   |                          | 148,342,000 |          | $      | 148,342          |   | $                           | 2,155,533 |   | $      | (1,762,958 | ) | $ | 540,917 |   |

----

|                                                                                                        |   |                              |     |                           |   | From                  Inception on |   |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------|--------------------------------|--------|------------------------------------|--------|
|                                                                                                        |   |                              |     |                           |   | August                  25,2006    |   |
|                                                                                                        |   | Six                  Months Ended |     | through                        |   |
|                                                                                                        |   | June                  30, 2008    |     | June                  30, 2007 |   | June                  30, 2008     |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                      |   |                              |     |                           |   |                               |   |
| Net                  loss                                                                                   |   | $                                 | (470,638 | )                              | $      | (543,870                           | )      | $ | (1,762,958 | ) |
| Adjustment                  to reconcile net loss to net cash used in operating                  activities |   |                              |     |                           |   |                               |   |   |   |   |
| Depreciation                  expense                                                                       |   |                              | 8,424    |                           |   | 2,927                              |   |   | 18,061 |   |
| Stock                  issuance for services                                                                |   |                              | -        |                           |   | -                                  |   |   | 75,000 |   |
| (Increase)                  Decrease in:                                                                    |   |                              |     |                           |   |                               |   |   |   |   |
| Other                  receivable                                                                           |   |                              | (12,000  | )                              |   | -                                  |   |   | (12,000 | ) |
| Prepaid                  expenses                                                                           |   |                              | 82,824   |                           |   | 45,111                             |   |   | (39,664 | ) |
| Other                  asset                                                                                |   |                              | (3,000   | )                              |   | -                                  |   |   | (3,000 | ) |
| Increase                  (Decrease) in:                                                                    |   |                              |     |                           |   |                               |   |   |   |   |
| Accounts                  payable                                                                           |   |                              | (2,676   | )                              |   | -                                  |   |   | - |   |
| Accrued                  expenses                                                                           |   |                              | (3,623   | )                              |   | 15,135                             |   |   | 4,451 |   |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| NET                  CASH USED IN OPERATING ACTIVITIES                                                      |   |                              | (400,689 | )                              |   | (480,697                           | )      |   | (1,720,110 | ) |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| CASH                  FLOWS PROVIDED/(USED) IN INVESTING ACTIVITIES:                                        |   |                              |     |                           |   |                               |   |   |   |   |
| Investment                  in certificates of deposit                                                      |   |                              | 485,674  |                           |   | -                                  |   |   | (335,831 | ) |
| Purchase                  of equipment                                                                      |   |                              | -        |                           |   | -                                  |   |   | (78,410 | ) |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| NET                  CASH PROVIDED/(USED) IN INVESTING ACTIVITIES                                           |   |                              | 485,674  |                           |   | -                                  |   |   | (414,241 | ) |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                      |   |                              |     |                           |   |                               |   |   |   |   |
| Advances                  from officer                                                                      |   |                              | -        |                           |   | -                                  |   |   | 73,000 |   |
| Loan                  from investor                                                                         |   |                              | -        |                           |   | -                                  |   |   | 160,000 |   |
| Repayment                  of advances and loans                                                            |   |                              | -        |                           |   | -                                  |   |   | (233,000 | ) |
| Proceeds                  from issuance of common stock                                                     |   |                              | -        |                           |   | 637,500                            |   |   | 2,228,875 |   |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| NET                  CASH PROVIDED BY FINANCING ACTIVITIES                                                  |   |                              | -        |                           |   | 637,500                            |   |   | 2,228,875 |   |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| NET                  INCREASE/(DECREASE) IN CASH                                                            |   |                              | 84,985   |                           |   | 156,803                            |   |   | 94,524 |   |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| CASH,                  BEGINNING OF PERIOD                                                                  |   |                              | 9,539    |                           |   | 75,142                             |   |   | - |   |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| CASH,                  END OF PERIOD                                                                        |   | $                                 | 94,524   |                           | $      | 231,945                            |   | $ | 94,524 |   |
|                                                                                                        |   |                              |     |                           |   |                               |   |   |   |   |
| SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION                                          |   |                              |     |                           |   |                               |   |   |   |   |
| Interest                  paid                                                                              |   | $                                 | -        |                           | $      | 265                                |   | $ | 1,611 |   |
| Taxes                  paid                                                                                 |   | $                                 | -        |                           | $      | 800                                |   | $ | 800 |   |

----

| 1. | Basis                    of Presentation |
|----|------------------------------------------|

| 2. | SUMMARY                    OF SIGNIFICANT ACCOUNTING POLICIES |
|----|---------------------------------------------------------------|

----

| 2. | SUMMARY                    OF SIGNIFICANT ACCOUNTING POLICIES                    (Continued) |
|----|----------------------------------------------------------------------------------------------|

| 3. | CAPITAL                    STOCK |
|----|----------------------------------|

| 4. | INCOME                    TAXES |
|----|---------------------------------|

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

**OVERVIEW**

**–**

----

**Critical      Accounting Policies**

**Revenue      Recognition **

**Use      of Estimates **

**Fair      Value of Financial Instruments **

**Recently      Issued Accounting Pronouncements**

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**RESULTS      OF OPERATIONS – THREE AND SIX MONTHS ENDED JUNE 30, 2008 COMPARED TO THE THREE      AND SIX MONTHS ENDED JUNE 30, 2007**

**.**

**Liquidity      and Capital Resources **

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**PLAN      OF OPERATION AND FINANCING NEEDS**

We      are      developing a technology to transform harmful carbon dioxide (CO2) into high      value, earth-friendly products. We call this technology GreenCarbon Technology.       The Company’s management believes that energy and CO2 intensive      industries, such as paper production, will welcome this innovative clean      technology because it offers two very important benefits **–**      lower      cost and carbon neutrality.

**Off-Balance      Sheet Arrangements**

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

**ITEM      4T. CONTROLS AND PROCEDURES **

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**PART II      - OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      1A. RISK FACTORS**

**ITEM      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF      PROCEEDS**

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES **

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM      6. EXHIBITS**

| Exhibit                No. |   | Description                                                                                                                                                                                                                                                                                                                                   |
|----------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 3.1                        |   | Articles                of Incorporation of Carbon Sciences, Inc. filed with the Nevada                Secretary of State on August 25, 2007. (Incorporated by reference                to the                Company’s Registration Statement on Form SB-2 filed on July 27,                2007)                                 |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 3.2                        |   | Articles                of Amendment of Articles of Incorporation of Carbon Sciences, Inc.                filed                with the Nevada Secretary of State on April 9, 2007 (Incorporated                by                reference to the Company’s Registration Statement on Form SB-2 filed on                July 27, 2007) |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 3.4                        |   | Bylaws                of Carbon Sciences, Inc. (Incorporated by reference to the Company’s                Registration Statement on Form SB-2 filed on July 27,                2007)                                                                                                                                                    |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 5.1                        |   | Opinion                of Sichenzia Ross Friedman Ference LLP. (Incorporated by reference                to the                Company’s Registration Statement on Form SB-2 filed on July 27,                2007)                                                                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 10.1                       |   | Form                of Subscription Agreement dated as of September 18, 2006 (Incorporated                by                reference to the Company’s Registration Statement on Form SB-2 filed on                July 27, 2007)                                                                                                       |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 10.2                       |   | Form                of Subscription Agreement dated as of October 2, 2006(Incorporated                by                reference to the Company’s Registration Statement on Form SB-2 filed on                July 27, 2007)                                                                                                           |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 10.3                       |   | Form                of Subscription Agreement dated as of March 1, 2007(Incorporated                by                reference to the Company’s Registration Statement on Form SB-2 filed on                July 27, 2007)                                                                                                             |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 10.4                       |   | Form                of Subscription Agreement dated as of April 16, 2007(Incorporated                by                reference to the Company’s Registration Statement on Form SB-2 filed on                July 27, 2007)                                                                                                            |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 31.1                       |   | Certification                by Chief Executive Officer and Chief Financial Officer pursuant to                Sarbanes-Oxley Section 302 (filed herewith).                                                                                                                                                                                   |
|                       |   |                                                                                                                                                                                                                                                                                                                                          |
| 32.1                       |   | Certification                by Chief Executive Officer and Acting Chief Financial Officer pursuant                to                18 U.S.C. Section 1350 (filed                herewith).                                                                                                                                                  |

----

**SIGNATURES**

|   |   | **CARBON                SCIENCES, INC.**                                                                                                                                                                           |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                               |
|   | By:    | /s/                Derek W. McLeish                                                                                                                                                                                |   |
|   |   | Chief                Executive Officer (Principal Executive Officer                ) and Acting Chief Financial Officer(Principal                Financial Officer and PrincipalAccounting                Officer) |

----