**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**FORM
      10-QSB**





(Mark
      One)





**[X]  
      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE**


**SECURITIES
      EXCHANGE ACT OF 1934**





For
      the
      quarterly period ended **March
      31, 2006**








**[ 
      ]  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE**


**SECURITIES
      EXCHANGE ACT OF 1934**




For
      the
      transition period from _____ to ____





Commission
      File Number: **0-21142**








**SANDSTON
      CORPORATION**


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





**Michigan**
            
            **38-2483796**(State
                or other jurisdiction of incorporation or organization)
            
            (I.R.S.
                Employer Identification No.)








**40950
      Woodward Avenue, Suite 304, Bloomfield Hills, MI 48304**


(Address
      of principal executive offices) (Zip Code)





**(248)
      723-3007**


(Issuer's
      telephone number, including area code)





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





[ **X** ]
      YES
 [  ] No





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). [ **X** ] YES [
      ] No





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




No
      par
      value Common Stock: **8,396,981
      outstanding as of May 10, 2006**





Transitional
      Small Business Disclosure Format: [  ] YES  [ **X** ]
      NO







**PART
      I -- FINANCIAL INFORMATION**





**Item
      1.**  **Financial
      Statements**





**Sandston
      Corporation**


**Condensed
      Balance Sheet**


**March
      31, 2006 and December 31, 2005**





**March
                  31,****2006**
            
            
            **December
                  31,****(Unaudited)**
            
            
            **2005****Assets**Current
                assets:Cash
            
            $
            4,083
            
            $
            10,654Total
                assets
            
            $
            4,083
            
            $
            10,654**Liabilities
                and Shareholders’ Equity**Current
                liabilities:Accounts
                payable
            
            $
            15,396
            
            $
            14,038Accrued
                expenses
            
            
            7,000
            
            
            3,000Total
                current liabilities
            
            
            22,396
            
            
            17,038Shareholders’
                deficit:Common
                stock, no par value, 30,000,000 shares authorized,8,396,981
                shares issued and outstanding
            
            
            33,679,784
            
            
            33,629,784Accumulated
                deficit
            
            
            (33,698,097
            )
            
            (36,686,168
            )Total
                deficit in shareholders’ equity
            
            
            (18,313
            )
            
            (6,384
            )Total
                liabilities and deficit in shareholders’ equity
            
            $
            40,603
            
            $
            42,286



































See
      notes
      to condensed financial statements.


Page
          2


**Sandston
      Corporation**


**Condensed
      Statements of Operations**


**For
      the Three Month Periods Ended March 31, 2006 and 2005**








**Three
                Months Ended March 31,****2006**
            
            
            **2005****(Unaudited)**
            
            
            **(Unaudited)**Net
                revenues
            
            $
            -
            
            $
            -General
                and administrative expenses
            
            
            11,929
            
            
            18,436Operating
                loss
            
            
            (11,929
            )
            
            (18,436
            )Income
                taxes
            
            
            -
            
            
            -Net
                loss
            
            $
            (11,929
            )
            $
            (18,436
            )Per
                share amounts - basic and diluted (Note 2)
            
            $
            0.00
            
            $
            0.00Weighted
                average shares outstanding - basic and diluted (Note 2)
            
            
            8,396,981
            
            
            8,396,981






























































See
      notes
      to condensed financial statements.


Page
          3


**Sandston
      Corporation**


**Condensed
      Statements of Cash Flows**


**For
      the Three Month Periods Ended March 31, 2006 and 2005**








**Three
                Months Ended March 31,**
            ********
            ****
            **2006**
            ****
            **2005**
            ********
            ****
            **(Unaudited)**
            ****
            **(Unaudited)**Cash
                flows from operating activities:Net
                loss
            
            $
            (11,929
            )
            $
            (18,436
            )Adjustments
                  to reconcile net loss to net cash flowsused
                  in operating activities:Changes
                in assets and liabilities that provided cash:Accounts
                payable
            
            
            1,358
            
            
            751Accrued
                expenses
            
            
            4,000
            
            
            16,000Net
                cash used in operating activities
            
            
            (6,571
            )
            
            (1,685
            )Net
                decrease in cash
            
            
            (6,571
            )
            
            (1,685
            )Cash
                at beginning of period
            
            
            10,654
            
            
            42,286Cash
                at end of period
            
            $
            4,083
            
            $
            40,601Supplemental
                disclosures of cash flow information:Cash
                paid for interest by discontinued operations
            
            $
            -
            
            $
            -Cash
                paid for income taxes
            
            
            -
            
            
            -






























































See
      notes
      to condensed financial statements.


Page
          4


**Sandston
      Corporation**


**Notes
      To Condensed Financial Statements**


**For
      The Three Month Periods Ended March 31, 2006 and 2005**





**Note
      1 - Basis of Presentation**




Pursuant
      to a recommendation of Nematron Corporation’s Board of Directors and approval by
      its shareholders on January 13, 2004, on March 31, 2004 Nematron sold to NC
      Acquisition Corporation ("Purchaser") all of its tangible and intangible assets,
      including its real estate, accounts, equipment, intellectual property,
      inventory, goodwill and other intangibles, except for $30,000 in cash, (the
      "Net
      Asset Sale"). The Purchaser also assumed all of Nematron’s liabilities pursuant
      to the Net Asset Sale. Following the Net Asset Sale, Nematron’s only remaining
      assets were $30,000 in cash; it retained no liabilities. On April 1, 2004
      Nematron amended its Articles of Incorporation to change its name to Sandston
      Corporation (the “Company”) and implemented a shareholder approved one-for-five
      reverse stock split of the Company’s common stock, whereby every five issued and
      outstanding shares of the Company’s common stock became one share. Also, on
      April 1, 2004 Nematron sold a total of 5,248,257 post-split shares to Dorman
      Industries, LLC (“Dorman Industries”) for $50,000. Dorman Industries is a
      Michigan limited liability company wholly owned by Mr. Daniel J. Dorman, who
      became the Company’s Chairman of the Board, CEO and President following such
      stock purchase. By virtue of its purchase of common stock, Dorman Industries
      owns 62.5% of the outstanding common stock of the Company.




Although
      the Company does not currently have any revenue generating activities, the
      Company intends to build long-term shareholder value by acquiring and/or
      investing in and operating strategically positioned companies. The Company
      expects to target companies in several industry groups. The targeted companies
      are generally expected to have the following characteristics: sales volume
      of
      between $20 million and $250 million; value added manufacturing, distribution
      and business services; fragmented industries; experienced management; and
      consistent historical financial performance. The Company has yet to acquire,
      or
      enter into an agreement to acquire, any company.




In
      the
      opinion of management, all adjustments considered necessary for a fair
      presentation of the consolidated financial statements for the interim periods
      have been included. Certain information and footnote disclosures normally
      included in financial statements prepared in accordance with generally accepted
      accounting principles have been condensed or omitted pursuant to the Securities
      and Exchange Commission’s rules and regulations, although the Company believes
      that the disclosures are adequate to make the information presented not
      misleading. These condensed consolidated financial statements should be read
      in
      conjunction with the consolidated financial statements and notes thereto
      included in the Company’s latest annual report on Form 10-KSB.




The
      results of the operations for the three month periods ended March 31, 2006
      and
      2005 are not necessarily indicative of the results to be expected for the full
      year. Additionally, since the Net Asset Sale, which was effective April 1,
      2004,
      the Company has no revenue generating activities.





Page
          5


**Note
      2 - Earnings Per Share**




The
      weighted average shares outstanding used in computing basic loss per share
      for
      the three month periods ended March 31, 2006 and 2005 have been adjusted to
      give
      effect to the five-for-one reverse stock split discussed in Note 1. Pursuant
      to
      the terms of the agreements underlying the Net Asset Sale, all outstanding
      dilutive securities, including stock options, warrants and conversion rights
      under all employee and director option plans and various warrant and note
      agreements, were cancelled effective March 31, 2004 and are no longer
      outstanding.





**Note
      3. Legal Proceedings**




On
      March
      31, 2004, Nematron entered into an Asset Purchase Agreement with NC Acquisition
      Corp., pursuant to which NC Acquisition Corp. acquired all of Nematron’s assets
      and assumed all of Nematron’s liabilities existing as of that date. In addition,
      under the Asset Purchase Agreement, NC Acquisition Corp. agreed to assume and
      indemnify and hold us harmless of and from any and all liabilities “of any kind,
      fixed or contingent, known or unknown, matured or unmatured, liquidated or
      unliquidated, secured or unsecured” arising prior to the date of the Asset
      Purchase Agreement.




According
      to recently filed court documents described below, however, on November 6,
      2002,
      the Official Receiver in the bankruptcy of Nematron Europe, B.V., a Dutch
      company (the “Judgment Creditor”), obtained a default judgment in the amount of
      approximately the equivalent of $200,000, plus statutory interest, from the
      District Court (Third Single-Judge Division) in Amsterdam, The Netherlands
      against Nematron, relating to certain debts allegedly owed by Nematron to the
      Judgment Creditor dating back to 1996. None of our current officers or directors
      knew about the claim or the litigation at the time they became officers and
      directors.




On
      March
      15, 2005, Judgment Creditor instituted an action against us in Washtenaw Circuit
      Court in the state of Michigan to enter the foreign default judgment issued
      by
      the court in Amsterdam. We notified NC Acquisition Corp. and its owners of
      this
      action and demanded that it comply with its obligation to pay the claim, but
      it
      has not yet done so. The Judgment Creditor later added NC Acquisition Corp.,
      as
      well its affiliate, Nemaco, Inc., as an additional defendant in the Michigan
      action.




At
      the
      present time, based on the Asset Purchase Agreement provisions described above,
      in addition to the substantive merits of the claim, we believe we have no
      liability in this case, and have made it clear to the Judgment Creditor that
      we
      do not intend to pay any amount to settle this claim, as NC Acquisition Corp.
      and its successors in interest and owners are responsible for the entire matter.
      We are waiting for a response from NC Acquisition Corp. We intend to vigorously
      defend ourselves in this action and to enforce our rights against NC Acquisition
      Corp.





Page
          6


**Item
      2.**  **Management's
      Discussion and Analysis of Results of Operations**





**Three
      Month Period Ended March 31, 2006 Compared with**


**Three
      Month Period Ended March 31, 2005**





*Continuing
      Operations*




Readers
      should refer to a description of the Net Asset Sale described in Note 1 to
      the
      condensed financial statements included in this Form 10-QSB. As described
      therein, the net assets and industrial controls businesses of the Company were
      sold effective as of the close of business on March 31, 2004. Since April 1,
      2004, the Company has not engaged in any revenue generating activities, although
      it has considered various investment opportunities and it has incurred
      administrative expenses related to legal, accounting and administrative
      activities. The Company has had no employees since that date. The administrative
      activities of the Company are performed by the Chairman, who also serves as
      the
      CEO, President and Principal Financial Officer. Direct administrative expenses
      of the Company totaled $11,929 and $18,436 for the three-month periods ended
      March 31, 2006 and 2005, respectively. The decrease of $6,507, or 35.3%, is
      due
      primarily to fewer administrative services required in the current period
      compared to the year earlier period.





**Liquidity
      and Capital Resources**





Primary
      sources of liquidity are cash balances that have been used to pay administrative
      expenses since the April 1, 2004 Net Asset Sale. Following the Net Asset Sale,
      the Company became what is commonly known as a “public shell.” The
      Company intends to use its “public shell” as a platform to build long-term
      shareholder value by acquiring and/or investing in, and operating strategically
      positioned companies. No assurances can be given that the Company will
      be successful in connection with its future plans.




Current
      operating expenses of the Company are being funded with available cash retained
      from the Net Asset Sale and from cash generated by the sale of additional shares
      of common stock to Dorman Industries. While it is the Company's objective to
      ultimately be able to use the securities of the Company as a currency in the
      acquisition of portfolio businesses, it is clear that the initial acquisitions
      of portfolio businesses will require the Company to be infused with capital
      thereby diluting the Company's shareholders, including Dorman Industries to
      the
      extent that it does not participate in the capital infusion.





The
      Company became a "public shell" corporation on April 1, 2004 following the
      Net
      Asset Sale and since that date its financial activities have been limited to
      incurring certain administrative activities related to incurring expenditures
      for accounting, legal, filing, printing, office and auditing services
      exclusively from unrelated third parties. These expenditures have been paid
      with
      the $30,000 cash retained from the businesses that were sold and from $50,000
      of
      proceeds from the sale of common stock on April 1, 2004 to Dorman Industries.
      As
      reflected in the accompanying balance sheet, cash totals $4,083 and accounts
      payable and accrued expenses total $22,396. Based on such balances and
      management’s forecast of activity levels while it remains a “pubic shell”
corporation, and based upon the fact that the Company has not identified as
      yet
      potential acquisition candidates, the present cash balance will not be
      sufficient to pay its current liabilities and its administrative costs projected
      to be incurred in the next twelve months. Management intends to obtain such
      administrative funds from Dorman Industries in the form of loans or through
      equity sales in an amount sufficient to sustain operations at their current
      level. Dorman Industries owns 62.5% of the Company’s outstanding common stock.
      There can be no assurance that Dorman Industries or any other party will advance
      needed funds on any terms.




Page
            7




**Uncertainties
      Relating to Forward Looking Statements**





"Item
      2 -
      Management's Discussion and Analysis of Results of Operation" and other parts
      of
      this Form 10-QSB contain certain "forward-looking statements" within the meaning
      of the Securities Act of 1934, as amended. While the Company believes any
      forward-looking statements it has made are reasonable, actual results could
      differ materially since the statements are based on current management
      expectations  and
      are
      subject to risks and uncertainties. These risks and uncertainties include,
      but
      are not limited to the following:




·
            Uncertainties
                discussed elsewhere in “Management's Discussion and Analysis of Results of
                Operations”;


·
            The
                potential inability of the Company to locate potential businesses
                and to
                negotiate the closing of identified businesses so as they become
                businesses of the Company;


·
            Unforeseen
                increases in operating expenses;


·
            The
                inability to attract or retain management, sales and/or engineering
                talent
                for any acquired business;


·
            The
                inability to continue financing the administrative expenses of the
                Company out of available funds and the inability to raise additional
                funds
                to cover any shortfall.





**Item
      3.**  **Controls
      and Procedures**





*(a)*  *Evaluation
      of disclosure controls and procedures.*




Based
      on
      his evaluation as of March 31, 2006, our principal executive officer and
      principal financial officer concluded that our disclosure controls and
      procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities
      Exchange Act of 1934, as amended) are effective to ensure that the information
      required to be disclosed in our reports filed or submitted under the Securities
      Exchange Act of 1934 is recorded, processed, summarized and reported within
      the
      requisite time periods.





*(b)*  *Changes
      in internal controls.*




There
      have been no changes in our internal control over financial reporting (as
      defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act
      of
      1934, as amended) during the quarter ended March 31, 2006 that have materially
      affected, or are reasonably likely to materially affect, our internal control
      over financial reporting.








**PART
      II - OTHER INFORMATION**





**Item
      6.**  **Exhibits
      and Reports on Form 8-K**





Exhibits
      included herewith are set forth on the Index to Exhibits, which is incorporated
      herein by reference.








Page
          8


**SIGNATURES**





In
      accordance with the requirements of the Securities Exchange Act of 1934, the
      registrant has caused this report to be signed on its behalf by the undersigned,
      thereunto duly authorized.








**Sandston
                Corporation******
            ********
            ******May
                10, 2006**
            **/s/
                Daniel J.
                Dorman****Date**
            **President,
                CEO and Principal Financial
                Officer**







Page
          9


**INDEX
      TO EXHIBITS**








Exhibit
                Number
            
            Description
                of Exhibit31.0
            
            Certification
                of the Principal Executive Officer and Principal Financial Officer
                Pursuant to Section 302 of the Sarbanes-Oxley Act of
                200232.0
            
            Certification
                of President, CEO (Principal Executive Officer) and Principal Financial
                Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to
                Section
                906 of the Sarbanes-Oxley Act of
                2002





Page
          10