**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**




**FORM
      10-Q**


(Mark
      One)


ý
            **QUARTERLY
                REPORT UNDER SECTION 13 OR 15(****d****)
                OF THE SECURITIES EXCHANGE ACT OF 1934**For
                the quarterly period ended:**March
                31, 2008** ̈
            **TRANSITION
                REPORT UNDER SECTION 13 OR 15(****d****)
                OF THE SECURITIES EXCHANGE ACT OF 1934**For
                the transition period from _________ to
                __________





**Commission
      file number: 333-149995**




**STONE
      CONSULTING SERVICES, INC.**


(Exact
      name of small business issuer as specified in its charter)





**Delaware**
            **20-8066540**(State
                or other jurisdiction of
            (IRS
                Employerincorporation
                or organization)
            Identification
                No.)





18
      Ozone
      Avenue


Venice,
      CA 90291


(Address
      of principal executive offices)




(310)
      399-1114


(Issuer’s
      telephone number)




N/A


(Former
      name, former address and former fiscal year, if changed since last
      report)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.


 ̈ Yes ý No
      *




*
      The
      registrant became subject to Section 15(d) of the Securities Exchange Act of
      1934 upon effectiveness of its Registration Statement on Form S-1 (Registration
      No. 333-149995) on April 10, 2008.




Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated file” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act.





Large
                accelerated filer ̈
            Accelerated
                filer ̈Non-accelerated
                filer ̈(Do
                not check if a smaller reporting company)
            Smaller
                reporting companyý





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


 ̈ Yes ý No




1


APPLICABLE
      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY


PROCEEDINGS
      DURING THE PRECEDING FIVE YEARS:





Indicate
      by check mark whether the registrant has filed all documents and reports
      required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange
      Act
      of 1934 subsequent to the distribution of securities under a plan confirmed
      by a
      court.  ̈ Yes  ̈ No




**APPLICABLE
      ONLY TO CORPORATE ISSUERS**




As
      of May
      19, 2008, the Company had authorized 50,000,000 shares of $.001 par value common
      stock of which 5,000,000 shares of common stock were issued and outstanding,
      and
      the Company had authorized 5,000,000 shares of $.001 par value preferred stock
      of which no shares are issued and outstanding.




2





**Stone
      Consulting Services, Inc.**


**Quarterly
      Report on Form 10-Q**


**Period
      Ended March 31, 2008**




**Table
      of Contents**




PagePART
                I . FINANCIAL INFORMATION
            
            F-1Item
                1. Financial Statements:
            
            F-1Balance
                Sheets as of March 31, 2008 and December 31, 2007
                (audited)
            
            F-1Statements
                of Operations for the three months ended March 31, 2008 and 2007
                and for
                the period from Inception on December 11, 2006 to March 31, 2008
                (Unaudited)
            
            F-2Statement
                of Stockholders’ Equity (Deficit) for the period from Inception on
                December 11, 2006 through March 31, 2008 (Unaudited)
            
            F-3Statements
                of Cash Flows for the three months ended March 31, 2008 and 2007
                and for
                the period from Inception on December 11, 2006 to March 31, 2008
                (Unaudited)
            
            F-4Notes
                to Financial Statements (Unaudited)
            
            F-5Item
                2. Management’s Discussion and Analysis of Financial Condition and Results
                of Operations
            
            4Item
                3. Quantitative and Qualitative Disclosures About Market
                Risk
            
            8Item
                4T. Controls and Procedures
            
            8PART
                II . OTHER INFORMATION
            
            9Item
                1. Legal Proceedings
            
            9Item
                1A. Risk Factors - Not Applicable
            
            9Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            
            9Item
                3. Defaults Upon Senior Securities
            
            9Item
                4. Submission of Matters to a Vote of Security Holders
            
            9Item
                5. Other Information
            
            9Item
                6. Exhibits
            
            9SIGNATURES
            
            11EXHIBIT
                INDEX
            
            12





3





PART
      I.
      FINANCIAL INFORMATION





**Item
      1. Financial Statements**


**Stone
        Consulting Services, Inc.**
 **(A
        Development Stage Company)**
 **Balance
        Sheets**


March
                  31,
              
              December
                  31,2008
              
              2007(Unaudited)
              
              (Audited)**Assets**Current
                  Assets:Cash
              
              $
              2,249
              
              $
              24,656Accounts
                  receivable
              
              
              1,000
              
              
              -Total
                  Assets
              
              $
              3,249
              
              $
              24,656**Liabilities
                  and Stockholders' Equity**Current
                  Liabilities:Accounts
                  payable
              
              $
              4,141
              
              $
              -Accrued
                  liabilites
              
              
              2,681
              
              
              5,754Income
                  tax payable
              
              
              800
              
              
              800Total
                  Current Liabilities
              
              
              7,622
              
              
              6,554Long-Term
                  DebtShareholder
                  loan
              
              
              500
              
              
              500Total
                  Liabilities
              
              
              8,122
              
              
              7,054Stockholders'
                  EquityCommon
                  stock, $.001 par value 50,000,000 authorized5,000,000 and 4,500,000 issued and outstanding
              
              
              5,000
              
              
              5,000Additional
                  Paid in Capital
              
              
              32,500
              
              
              32,500Deficit
                  Accumulated in the Development Stage
              
              
              (42,373
              )
              
              (19,898
              )Total
                  Stockholders' Equity (Deficit)
              
              
              (4,873
              )
              
              17,602Total
                  Liabilities and Stockholders' Equity
              
              $
              3,249
              
              $
              24,656




The
        Accompanying Notes are an Integral Part of the Financial Statements
  F-1


**Stone
        Consulting Services, Inc.**
 **(A
        Development Stage Company)**
 **Statements
        of Operations**
 **(Unaudited)**
 FromDecember
                    11, 2006For
                    the Three Months Ended
                
                (Date
                    of Inception)March
                    31,
                
                to
                    March 31,2008
                
                2007
                
                2008Consulting
                    Revenue
                
                $
                1,000
                
                $
                -
                
                $
                5,500General
                    administrative expenses
                
                
                23,475
                
                
                1,277
                
                
                49,647Income
                    (loss) before provision for income tax
                
                
                (22,475
                )
                
                (1,277
                )
                
                (44,147
                )Income
                    tax expense
                
                
                -
                
                
                -
                
                
                (1,035
                )Net
                    Income (Loss)
                
                $
                (22,475
                )
                $
                (1,277
                )
                $
                (45,182
                )Basic
                    and Diluted (Loss) per Common Share
                
                $
                -
                
                $
                -Basic
                    and Diluted Weigted AverageCommon
                    Shares Outstanding
                
                
                5,000,000
                
                
                4,500,000




The
        Accompanying Notes are an Integral Part of the Financial
        Statements




F-2


**Stone
        Consulting Services, Inc.**
 **(A
        Development Stage Company)**
 **Statement
        of Stockholders’ Equity (Deficit)**
 **(Unaudited)**
  AccumulatedCommon
              
              
              
              
              
              in
                  the
              
              TotalStock
              
              
              
              Paid
                  in
              
              Development
              
              Stockholders'Shares
              
              Amount
              
              Capital
              
              Stage
              
              EquityBalances,
                  December 11, 2006(Date
                  of Inception)
              
              
              -
              
              $
              -
              
              $
              -
              
              $
              -
              
              $
              -Shares
                  issued to founder at $.001 per share, December 11, 2006
              
              
              4,500,000
              
              
              4,500
              
              
              -
              
              
              -
              
              
              4,500Net
                  Income
              
              
              -
              
              
              -
              
              
              -
              
              
              749
              
              
              749Balance,
                  December 31, 2006
              
              
              4,500,000
              
              
              4,500
              
              
              -
              
              
              749
              
              
              5,249Net
                  proceeds from sale of common stock, August 2007
              
              
              500,000
              
              
              500
              
              
              32,500
              
              
              -
              
              
              33,000Net
                  Loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (20,647
              )
              
              (20,647
              )Balances,
                  December 31, 2007
              
              
              5,000,000
              
              
              5,000
              
              
              32,500
              
              
              (19,898
              )
              
              17,602Net
                  Loss
              
              
              -
              
              
              -
              
              
              -
              
              
              (22,475
              )
              
              (22,475
              )Balances,
                  March 31, 2008
              
              
              5,000,000
              
              $
              5,000
              
              $
              32,500
              
              $
              (42,373
              )
              $
              (4,873
              )




The
        Accompanying Notes are an Integral Part of the Financial Statements
  F-3


**Stone
        Consulting Services, Inc.**
 **(A
        Development Stage Company)**
 **Statements
        of Cash Flows**
 **(Unaudited)**
 For
                    the PeriodDecember
                    11, 2006Three
                    Months Ended
                
                (Date
                    of Inception)March
                    31,
                
                to
                    March 31,2008
                
                2007
                
                2008**Operating
                    Activities:**Net
                    loss
                
                $
                (22,475
                )
                $
                (1,277
                )
                $
                (42,373
                )Adjustments
                    to reconcile net loss to net cashProvided
                    (used) by operating activities:
                
                
                -
                
                
                -
                
                
                -Changes
                    in Assets and Liabilities:Accounts
                    receivable
                
                
                (1,000
                )
                
                
                
                
                (1,000
                )Prepaid
                    expenses
                
                
                -
                
                
                (3,266
                )
                
                3,265Accrued
                    liabilities
                
                
                (3,073
                )
                
                -
                
                
                2,681Accounts
                    payable
                
                
                4,141
                
                
                
                
                
                4,141Income
                    tax payable
                
                
                -
                
                
                -
                
                
                800Net
                    Cash Used by Operating Activities
                
                
                (22,407
                )
                
                (4,543
                )
                
                (32,486
                )**Financing
                    Activities:**Proceeds
                    from sale of common stock
                
                
                -
                
                
                -
                
                
                37,500Proceeds
                    from shareholder loan
                
                
                -
                
                
                -
                
                
                500Net
                    Cash Provided by Financing Activities
                
                
                -
                
                
                -
                
                
                38,000-
                
                
                -Net
                    Increase in Cash
                
                
                (22,407
                )
                
                (4,543
                )
                
                5,514Cash
                    at Beginning of Year
                
                
                24,656
                
                
                6,309
                
                
                -Cash
                    at End of Year
                
                $
                2,249
                
                $
                1,766
                
                $
                5,514Supplemental
                    Disclosures:Cash
                    paid for income taxes
                
                $
                -
                
                $
                -
                
                $
                235Cash
                    paid for interest
                
                $
                -
                
                $
                -
                
                $
                -Non
                    Cash Transactions:
                
                $
                -
                
                $
                -
                
                $
                -
  The
          Accompanying Notes are an Integral Part of the Financial
          Statements




F-4


**STONE
        CONSULTING SERVICES, INC.**
 **NOTES
        TO FINANCIAL STATEMENTS**
 **(Unaudited)**


**NOTE
        1: Summary of Significant Accounting Policies, Nature of Operations and Use
        of
        Estimates:**
 
 ***Nature
        of Business and Basis of Presentation and Interim Financial
        Statements***
 
 Stone
        Consulting Services, Inc. (a development stage company) (“the Company”) was
        incorporated in the State of Delaware on December 11, 2006, to provide
“management consulting” and “strategy consulting” services and to assist in the
        areas of business development and operational management for small business
        owners, professionals, and companies within the pharmaceutical,
        medical (including psychology), and health-care sectors.
 
 The
        Company is considered to be a development stage company and as such the
        financial statements presented herein are presented in accordance with Statement
        of Financial Accounting Standards (“SFAS”) No. 7. *“Accounting
        and Reporting By Development Stage Enterprises.”* The
        Company is subject to the risks associated with activities of development
        stage
        companies.
 
 The
        accompanying unaudited financial statements of Stone Consulting Services,
        Inc.
        have been prepared in accordance with generally accepted accounting principles
        (“GAAP”), pursuant to the rules and regulations of the Securities and
        Exchange Commission, and are unaudited.  Accordingly, they do not include
        all the information and footnotes required by GAAP for complete financial
        statements.  In the opinion of management, all adjustments (which include
        only normal recurring adjustments) necessary for a fair presentation of the
        results for the interim periods presented have been made.  The results for
        the three month period ended March 31, 2008, may not be indicative of the
        results for the entire year.  These financial statements should be read in
        conjunction with the Company’s Registration Statement on Form S-1 (No.
        333-149995).
  The
        preparation of financial statements in conformity with GAAP requires management
        to make estimates and assumptions that affect the reported amounts of assets
        and
        liabilities and disclosure of contingent assets and liabilities at the date
        of
        the financial statements and the reported amounts of revenues and expenses
        during the reporting period.  Actual results could differ from these
        estimates.
  ***Income
        (Loss) Per Share:***
  In
        accordance with SFAS No. 128, “Earnings Per Share”, the basic net loss per
        common share is computed by dividing net loss available to common stockholders
        by the weighted average  number of common shares outstanding. Diluted
        net loss per common share is computed similar to basic net loss per common
        share
        except that the denominator is increased to include the number of additional
        common shares that would have been outstanding if the potential common shares
        had been issued and if the additional common shares were dilutive. As at
        March
        31, 2008, diluted net loss per share is equivalent to basic net loss per
        share as there
        were no dilutive securities outstanding and as dilutive securities are not
        included in the weighted average number of shares when inclusion would increase
        the income per share or decrease the loss per share.
  ***Recent
        Accounting Pronouncements***
  In
        June
        2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation
        No. (FIN) 48, “Accounting for Uncertainty in Income Taxes - An Interpretation of
        FASB Statement No. 109”, which prescribes a recognition threshold and
        measurement attribute for the financial statement recognition and measurement
        of
        a tax position taken or expected to be taken in a tax return. The adoption
        of
        FIN 48 is not expected to have a material affect on our financial position
        or
        results of operations.
  In
        February 2006, the FASB issued SFAS No. 155, “Accounting for Certain Hybrid
        Financial Instruments, an amendment of FASB statements No. 133 and
        140” ** (“SFAS
        155”). SFAS No. 155 allows financial instruments that have embedded
        derivatives to be accounted for as a whole (eliminating the need to bifurcate
        the derivative from its host) as long as the entire instrument is valued
        on a
        fair value basis. The  statement
        also resolves and clarifies other specific SFAS No. 133 and SFAS
        No. 140 related issues. SFAS No. 155 is effective for all financial
        instruments acquired or issued after the beginning of an entity’s first fiscal
        year that begins after September 15, 2006. The adoption of SFAS 155 is not
        expected to have a material affect on our financial position or results of
        operations.
  F-5
 **STONE
          CONSULTING SERVICES, INC.**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **(Unaudited)**
  In
        March
        2006, the FASB issued SFAS No. 156, “Accounting for Servicing of Financial
        Assets—an amendment of FASB Statement No. 140” (“SFAS 156”). SFAS 156
        requires an entity to recognize a servicing asset or servicing liability
        each
        time it undertakes an obligation to service a financial asset by entering
        into a
        servicing contract in specific situations. Additionally, the servicing asset
        or
        servicing liability shall be initially measured at fair value, if practicable.
        SFAS 156 permits an entity to choose either the amortization method or fair
        value measurement method for subsequent measurement of the servicing asset
        or
        servicing liability. SFAS 156 is effective for our fiscal year ending
        June 30, 2008. The adoption of SFAS 156 is not expected to have a material
        affect on our financial position or results of operations.
  In
        September 2006, the FASB issued SFAS No. 157 (“SFAS 157”).
        The Statement defines fair value, establishes a framework for measuring fair
        value in generally accepted accounting principles (GAAP), and expands
        disclosures about fair value measurements.  This Statement is effective for
        financial statements issued for fiscal years beginning after November 15,
        2007, and interim periods within those fiscal years. The adoption of SFAS
        157 is
        not expected to have a material affect on our financial position or results
        of
        operations.
  In
        February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
        Financial Assets and Financial Liabilities—Including an amendment of Statement
        of Financial Accounting Standards Statement No. 115” (“SFAS 159”), which
        permits entities to choose to measure many financial instruments and certain
        other items at fair value at specified election dates. A business entity is
        required to report unrealized gains and losses on items for which the fair
        value
        option has been elected in earnings at each subsequent reporting date. This
        statement is expected to expand the use of fair value measurement. SFAS 159
        is
        effective for financial statements issued for fiscal years beginning after
        November 15, 2007, and interim periods within those fiscal years. The
        Company has not determined the impact of SFAS 159 on its financial
        position.
  **NOTE
        2: Related Party Transactions**
 
 On
        December 11, 2006, in connection with the formation of the Company, the founder
        of the Company purchased 4,500,000 shares of common stock from the Company
        for an aggregate of $4,500, or $.001 per share.
 
 On
        December 11, 2006, also in connection with the formation of the Company,
        Michael
        Stone, the Company’s sole officer and director, advanced $500 to the Company in
        the form of a loan on an interest-free basis.
 
 On
        August
        24, 2007, the Company completed an unregistered private offering under the
        Securities Act relying upon the exemption from registration afforded by
        Rule 506 of Regulation D promulgated there under. In the July 2007
        private placement, the Company sold 500,000 shares of its $.001 par
        value common stock at a price of $.10 per share for $50,000 in cash.
        Included in the investors were Lore E. Stone (100,000 shares) and Deborah
        E.
        Stone (100,000 shares), mother and sister, respectively, of Michael Stone.
 
 The
        Company has been provided office space, telephone and secretarial services
        from
        our Chief Executive Officer, without charge. The Company intends to rent
        office
        space and hire administrative personnel when the Company expands its commercial
        operations.
 
 F-6
 **STONE
          CONSULTING SERVICES, INC.**
 **NOTES
          TO FINANCIAL STATEMENTS**
 **(Unaudited)**
 **NOTE
        3** **:** **Stockholders’
        Equity:**
  At
        March
        31, 2008, the authorized capital of the Company consists of 55,000,000 shares
        of
        capital stock comprising 50,000,000 shares of $.001 par value common stock
        and
        5,000,000 shares of preferred stock. Both classes of stock have a par value
        of
        $0.001 per share. The preferred stock has voting and other rights and
        preferences as may be determined by the Board of Directors from time-to-time.
        As
        of March 31, 2008, there are 5,000,000 shares of common stock issued and
        outstanding. No shares of preferred stock have been issued.
  Between
        July and August of 2007, the Company sold 500,000 Shares of its common
        stock at a purchase price of $.10 per share, or an aggregate of $50,000,
        pursuant to Rule 506 of Regulation D under the Securities Act of 1933,
        as amended. The Company received net proceeds from the offering of $33,000.
 
 **NOTE
        4: Going Concern**
  The
        Company is an early stage development company and has minimal operating history
        in the field of consulting. Michael Stone, President, and sole Director,
        who
        despite having a background in managing and forming companies within the
        targeted business sectors and industries, now seeks to function as a consultant
        and has no formal training or professional experience in the consulting
        industry.
  The
        future success of the Company currently depends on the continued services
        of
        Michael Stone. Mr. Stone is critical to the overall management of the Company
        as
        well as the development of the business strategy. The loss or unavailability
        of
        Mr. Stone will seriously impede the ability of the Company to continue its
        current operational plan.
  At
        March
        31, 2008, the Company has an accumulated deficit of $42,373. The Company
        has not
        generated significant revenues, and has generated operating losses while
        in the
        development stage.
  The
        Company requires and is pursuing additional capital for growth and strategic
        plan implementation. Accordingly, the accompanying consolidated financial
        statements have been prepared assuming the Company will continue to operate
        and
        do not include any adjustments that might be necessary if the Company is
        unable
        to continue as a going concern.


F-7


**Item
        2.** **Management’s
        Discussion of Financial Condition and Results of Operations.**




Forward-Looking
      Statements




Statements
      contained in this Item 2. “Management’s Discussion and Analysis or Plan of
      Operation” and elsewhere in this document that are not historical or current
      facts may constitute “forward-looking statements” within the meaning of such
      term in Section 27A of the Securities Act of 1933, as amended (the “Securities
      Act”) and section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). Such forward-looking statements involve known and unknown
      risks, uncertainties and other factors that could cause the actual financial
      or
      operating results of the Company to be materially different from the historical
      results or from any future results expressed or implied by such forward-looking
      statements. Factors that could cause actual results to differ materially from
      those predicated in any such forward-looking statements include: our ability
      to
      raise funds; our business strategies and future plans of operations; our ability
      to attract and retain qualified personnel; our ability to identify and
      successfully consummate and manage future acquisitions; our ability to compete
      against much larger companies; general economic conditions in the United States
      as well as the economic conditions affecting the industry in which we operate;
      the amount of sales of our products and services; our current operating losses;
      and the competitive environment within the industry in which we compete. Such
      forward-looking statements are based on our best estimates of future results,
      performance or achievements, based on current conditions and the most recent
      results of the Company. In addition to statements that explicitly describe
      such
      risks and uncertainties, readers are urged to consider statements labeled with
      the terms “may,” “will,” “potential,” “opportunity,” “believes,” “expects,”
“intends,” “estimates,” “anticipates” or “plans” to be uncertain and
      forward-looking. The forward-looking statements contained herein are also
      subject generally to other risks and uncertainties that are described from
      time
      to time in the Company’s reports and registration statements filed with the SEC. The
      terms
      "we", "our", "us", or any derivative thereof, as used herein refer to Services,
      Inc., a Delaware corporation, and its predecessors.





Plan
      of Operations





Management
      of the Company intends to provide “management consulting” and “strategy
      consulting” services and to assist in the areas of business development and
      operational management for small business owners, professionals, and companies
      within the pharmaceutical, medical (including psychology), and health-care
      sectors (the “Services”). These were chosen because of management’s knowledge
      and experience in managing and forming companies within the aforementioned
      sectors.





The
      consulting industry is highly fragmented and highly competitive. Within the
      industry, the pharmaceutical, medical (including psychology), and health-care
      sectors represent smaller, niche sub-areas. In particular, the Company intends
      to focus on small to mid-sized businesses within the aforementioned
      sectors, which tend to be ignored by larger consulting firms and represent
      an opportunity for the company to provide the Services and advise clients.
      The
      Company’s management may consider any other sector or industry outside its
      primary focus, if future evaluations lead us to a sector or industry focus,
      from
      time to time, which management believes is in the Company’s best interest.





4


In
      providing the Services, the Company intends to focus mainly on handling
      management issues, improving management processes, and provides “best practices”
recommendations, as well as strategic planning, financial planning and
      budgeting, internal controls planning, organizational and human resource
      planning. The Company also intends to advise clients on scientific and technical
      issues. The Company intends to use its broad network of contacts and experts
      within the pharmaceutical, medical (including psychology), and health-care
      sectors in connection with (1) product and customer development
      (pharmaceuticals), (2) investments in or by small medical or psychology practice
      groups, or (3) acquisition or divestiture strategies with respect to the
      client’s businesses.





The
      Company intends to engage clients on a project-by-project basis or on a
“retainer” basis, depending on the nature of services requested. The Company
      expects to face competition mainly from smaller, “boutique” consultants, and, to
      a lesser degree, specialized departments of larger consulting firms.





The
      Company plans to engage local or regional clientele, due to its current size.
      The nature of the pharmaceutical and heathcare sectors, in particular, would
      permit the Company to engage projects on the national level. It intends to
      develop clients on the national level as business matures.





The
      consulting business lies within the private sector and is not subject to
      significant governmental regulation. There are currently no registration or
      licensing fees associated with the particular kind of consulting business in
      which the Company is engaged. As such, the Company does not anticipate
      significant costs or other effects in terms of compliance with governmental
      regulation (existing or probable) with respect to its business. In addition,
      as
      the Company does not own any real property and does not engage in a business
      that is typically subjected to significant environmental law (federal, state,
      and local) compliance burdens, such as the oil, manufacturing, or computer
      industries, it does not anticipate significant costs of compliance or other
      effects with respect to such environmental laws.





Liquidity
      and Capital Resources




The
      Company was initially capitalized by the purchase of 4,500,000 shares of the
      Company’s common stock, $.001 per share (the “Common Stock”) by its founder for
      an aggregate purchase price of $4,500 and a $500 note from its founder on an
      interest-free basis (the “First Advance”).





Between
      July and August of 2007, the Company sold 500,000 shares of it Common Stock
      at a
      purchase price of $.10 per share or an aggregate of $50,000 pursuant to Rule
      506
      of Regulation D under the Securities Act of 1933, as amended (the “July 2007
      Private Placement”). Of the $50,000 gross proceeds from the July 2007 Private
      Placement, the Company received a net amount of $33,000.





5


Pursuant
      to a Registration Statement of Form S-1 (Reg. No. 333-149945) which was declared
      effective by the Securities and Exchange Commission on April 10, 2008, the
      Company registered the offering by certain selling shareholders of 500,000
      shares of Common Stock (the “Initial Offering”). The Company received no
      proceeds from the Initial Offering.





The
      Company has relied on the First Advance of $500 and the $33,000 net proceeds
      of
      the July 2007 Private Placement, as well as an aggregate of $4,500 in revenues
      from clients. The Company is using these proceeds to pay its organizational
      expenses, audit, legal expenses and advisory fees as well as fees and expenses
      in connection with the preparation and filing of the Registration Statement.





The
      Company does not have any material commitments for expenditures. It
      is not
      anticipated that the Company will expend significant resources on research
      and
      development activities with respect to the Services until its operations
      become more firmly established. While
      the
      Company will seek potential acquisitions for which it would then seek financing,
      it currently has no agreements, arrangements or understanding to acquire any
      other company.





The
      Company needs to raise approximately $110,000 in working capital in order to
      pursue its business strategy over the next 12 months. Management believes that
      it will be able to obtain sufficient funding to carry out its business strategy
      based on revenues from the Services in addition to financings through the sale
      of the Company’s securities and/or other sources of financing. Management
      believes that if the Company can establish a public market for its securities,
      it can raise sufficient funds to implement its business strategy. Management
      is continuing to do extensive research and evaluation to finalize a specific
      business plan that will be used to seek permanent funding.





Most
      of
      management’s time immediately going forward will be focused on capital formation
      and generating new clients. Currently, the Company’s only employee is our
      founder and Chief Executive Officer, Michael Stone. The Company intends
      to hire qualified employees in the future. However, the Company  does
      not
      intend to hire any additional employees, enter into an office lease or make
      any
      other significant expenditures until it commences principle operations.





Results
      of Operations





During
      the first quarter of 2008, the Company incurred a net loss of $22,475 resulting
      from Consulting Revenues of $1,000 and General Administrative Expenses of
      $23,475.





Off-Balance
      Sheet Arrangements





The
      Company has no off-balance sheet arrangements that have or are reasonably likely
      to have a current or future effect on the Company’s financial condition, changes
      in financial condition, revenues or expenses, results of operations, liquidity,
      capital expenditures or capital resources that is material to investors.





6


Going
      Concern





The
      financial statements included in this filing have been prepared in conformity
      with generally accepted accounting principles that contemplate the continuance
      of us as a going concern. The
      Company has not generated significant revenues, and has generated operating
      losses while in the development stage. The Company requires and is pursuing
      additional capital for growth and strategic plan implementation. The
      financial statements do not include any adjustments relating to the
      recoverability and classification of recorded assets and classification of
      liabilities that might be necessary should we be unable to continue
      existence.





Critical
      Accounting Policies





We
      have
      identified the policies outlined below as critical
      to our business operations and an understanding of our results of operations.
      The list is not intended to be a comprehensive list of all of our accounting
      policies. In many cases, the accounting treatment of a particular transaction
      is
      specifically dictated by accounting principles generally accepted in the United
      States, with no need for management’s judgment in their application. The impact
      and any associated risks related to these policies on our business operations
      is
      discussed throughout Management’s Discussion and Analysis of Financial Condition
      and Results of Operations where such policies affect our reported and expected
      financial results. Note that our preparation of the financial statements
      requires us to make estimates and assumptions that affect the reported amount
      of
      assets and liabilities, disclosure of contingent assets and liabilities at
      the
      date of our financial statements, and the reported amounts of revenue and
      expenses during the reporting period. There can be no assurance that actual
      results will not differ from those estimates.





We
      believe our most critical accounting policies are revenue recognition and
      allowance for potentially uncollectible accounts receivable.




Revenue
      Recognition




The
      Company earns its revenues from client engagements. These engagements generally
      may last from three weeks to six months. The Company may receive a retainer,
      bill work as completed, or bill upon completion. Revenue from consulting
      services are billed on an hourly, daily or monthly rate. Revenue is recognized
      at the time the services are provided.





Allowance
      for Potentially Uncollectible Accounts





The
      Company provides for potentially uncollectible accounts receivable by use of
      an
      allowance method. The allowance is provided for based upon a review of the
      individual accounts outstanding and how recently payments have been received.




7




**Material
      Changes in Results of Operations For the Three Months Ended March 31, 2008
      compared with March 31, 2007**




*Revenues.* During
      the three months ended March 31, 2007 and March 31, 2008, revenues were none
      and
      $1,000, respectively.




*General
      administrative expenses.* During the three month periods ended March 31, 2007 and March 31, 2008, the
      Company incurred general administrative expenses of $1,277 and $23,475
      respectively. General administrative expenses are comprised primarily of
      professional fees for legal and accounting services.




*Net
      loss.* During
      the three month periods ended March 31, 2007 and March 31, 2008, the Company
      incurred a net loss of $1,277 and $22,475 respectively.




**Material
      Changes in Financial Condition, Liquidity and Capital Resources as of March
      31,
      2008 compared with December 31, 2007**





As
      of
      March 31, 2008, the Company had total assets of $3,249 as compared to $24,656
      total assets as of December 31, 2007. The difference in asset balances
      represents the Company’s use of cash for operating expenses during the three
      month period offset by $1,000 revenues during the same three month period.




As
      of
      March 31, 2008, the Company had total liabilities of $8,122 as compared to
      $7,054 as of December 31, 2007 due in part to an increase in accounts payable
      to
      $4,141 as of March 31, 2008 as compared to $0 as of January 31, 2007.




As
      of
      March 31, 2008, the Company had stockholders’ deficit of $4,873 as compared to
      stockholders’ equity of $17,602 as of December 31, 2007. The reduction in
      stockholders’ equity is due to the increase of the deficit accumulated in the
      development stage to $42,373 as of March 31, 2008 from $19,898 as of December
      31, 2007.




**Item
      3. Quantitative and Qualitative Disclosures About Market
      Risk.**





In
      accordance with the provision of Item 305 of Regulation S-K, the Company ,
      as a
      smaller reporting company, is not required to make disclosure under this
      item.




**Item
      4T. Controls and Procedures.**




EVALUATION
      OF DISCLOSURE CONTROLS AND PROCEDURES




Under
      the
      supervision and with the participation of our management, including our
      principal executive officer and principal financial officer, we conducted an
      investigation of our disclosure controls and procedures, as such term is defined
      under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Exchange Act,
      as
      of March 31, 2008. Based on this evaluation, our principal executive officer
      and
      principal financial officer has concluded that our disclosure controls and
      procedures are effective to ensure that information required to be disclosed
      by
      us in the reports we file or submit under the Exchange Act is recorded,
      processed, summarized, and reported within the time periods specified in the
      SEC’s rules and forms and that our disclosure and controls are designed to
      ensure that information required to be disclosed by us in the reports that
      we
      file or submit under the Exchange Act is accumulated and communicated to our
      management, including our principal executive officer and principal financial
      officer, or persons performing similar functions, as appropriate to allow timely
      decisions regarding required disclosure.





8


CHANGES
      IN INTERNAL CONTROL OVER FINANCIAL REPORTING




There
      were no changes (including corrective actions with regard to significant
      deficiencies or material weaknesses) in our internal controls over financial
      reporting that occurred during the period ended March 31, 2008 that has
      materially affected, or is reasonably likely to materially affect, our internal
      control over financial reporting.




**PART
        II.** **OTHER
        INFORMATION**




**Item
        1.** **Legal
        Proceedings.**


As
      of the
      date of this quarterly report on Form 10-Q, we are not a party to any legal
      proceedings.




**Item
      1A. Risk Factors**





In
      accordance with the requirements of Form 10-Q, the Company, as a smaller
      reporting company, is not required to make disclosure under this
      item.





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




Pursuant
      to a Registration Statement (Reg. No. 333-149995), declared effective by the
      Securities and Exchange Commission on April 10, 2008, the Company registered
      500,000 shares of its common stock, par value $.001 per share, for sale by
      selling shareholders. None of the proceeds of such offering were received by
      the
      Company.





**Item
        3.** **Defaults
        Upon Senior Securities.**




None.




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




None.




**Item
        5.** **Other
        Information.**




None.




**Item
        6.** **Exhibits.**




Exhibits.




9


Set
      forth
      below is a list of the exhibits to this quarterly report on Form
      10-Q.




Exhibit
              Number
            Description3.1
            Certificate
                of Incorporation of the Company (1)3.2
            By-Laws
                of the Company(1)4.1
            Form
                of Common Stock Certificate (1)4.2
            Form
                of Subscription Agreement, dated between July and August 2007
                (1)10.1
            Note
                in the principal amount of $500, dated December 11, 2006, between
                the
                Company and Michael Stone. (1)10.2
            Consulting
                Agreement, dated December 14, 2006, between the Company and Orlando
                J.
                Ledon y Cartaya MD, Inc. (1)10.3
            Consulting
                Agreement, dated December 14, 2006, between the Company and Lore
                E. Stone,
                PhD d/b/a “Center For Personal Growth.” (1)31.1
            Certification
                of the Chief Executive Officer and 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 and Chief Financial Officer pursuant
                to 18
                U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
                Act
                of 2002.


_______________





(1)
                Incorporated
                    by reference to the Company’s Registration Statement on Form S-1
                    (Registration No. 333-149995) filed on March 31,
                    2008.




10


**SIGNATURES**




In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.




Dated:
                May 19, 2008
            STONE
                CONSULTING SERVICES, INC.By:
            /s/
                Michael StoneMichael
                Stone, President and Chief Executive Officer (Principal Executive
                Officer
                and Principal Financial Officer)




11




Stone
      Consulting Services, Inc.




Quarterly
      Report on Form 10-Q


Quarter
      Ended March 31, 2008




**EXHIBITS**




Exhibit
              Number
            Description31.1
            Certification
                of the Chief Executive Officer and 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 and Chief Financial Officer pursuant
                to 18
                U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
                Act
                of 2002.




12