**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 **September
      30, 2006**





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


**SECURITIES
      EXCHANGE ACT OF 1934**




For
      the
      transition period from _____ to ____




Commission
      File Number: **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   o No





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). x YES   o
      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
      shares outstanding as of November 13, 2006.**





Transitional
      Small Business Disclosure Format: o
      YES   x NO








**PART
      I -- FINANCIAL INFORMATION**





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





**Sandston
      Corporation**


**Condensed
      Balance Sheets**


**September
      30, 2006 and December 31, 2005**





September
                30,2006
            
            December
                31,(Unaudited)
            
            2005AssetsCurrent
                assets:Cash
            
            $
            2,136
            
            $
            10,654Liabilities
                and Deficit in Shareholders’ EquityCurrent
                liabilities:Accounts
                payable
            
            $
            8,462
            
            $
            14,038Accrued
                expenses
            
            
            3,000
            
            
            3,000Advance
                from majority shareholder (Note 3)
            
            
            15,000
            
            
            -Total
                current liabilities
            
            
            26,462
            
            
            17,038Deficit
                in Shareholders’ Equity:Common
                stock, no par value, 30,000,000 sharesauthorized,
                8,396,981 shares outstanding
            
            
            33,679,784
            
            
            33,679,784Accumulated
                deficit
            
            
            (33,704,110
            )
            
            (36,686,168
            )Total
                deficit in shareholders’ equity
            
            
            (24,326
            )
            
            (6,384
            )Total
                liabilities and deficit in shareholders’ equity
            
            $
            2,136
            
            $
            10,654





See
      notes
      to condensed financial statements.


Page
          2


**Sandston
      Corporation**


**Condensed
      Statements of Operations**


**For
      The Three- and Nine-Month Periods Ended September 30, 2006 and
      2005**





Three
                Months Ended Sept. 30,
            
            Nine
                Months Ended Sept. 30,2006
            
            2005
            
            2006
            
            2005(Unaudited)
            
            (Unaudited)
            
            (Unaudited)
            
            (Unaudited)Net
                revenues
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -General
                and administrative expenses
            
            
            3,677
            
            
            6,373
            
            
            17,942
            
            
            28,759Loss
                before income taxes
            
            
            (3,677
            )
            
            (6,373
            )
            
            (17,942
            )
            
            (28,759
            )Income
                taxes
            
            
            -
            
            
            -
            
            
            -
            
            
            -Net
                loss
            
            $
            (3,677
            )
            $
            (6,373
            )
            $
            (17,942
            )
            $
            (28,759
            )Loss
                per share amounts - basicand
                diluted (Note 2):
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -Weighted
                average sharesoutstanding
                - basic anddiluted
                (Note 2):
            
            
            8,396,981
            
            
            8,396,981
            
            
            8,396,981
            
            
            8,396,981





See
      notes
      to condensed financial statements.


Page
          3


**Sandston
      Corporation**


**Condensed
      Statements of Cash Flows**


**For
      The Nine-Month Periods Ended September 30, 2006 and 2005**





Nine
                Months Ended Sept. 30,2006
            
            2005(Unaudited)
            
            (Unaudited)Cash
                flows from operating activities:Net
                loss
            
            $
            (17,942
            )
            $
            (28,759
            )Adjustments
                to reconcile net loss to net cash flowsused
                in operating activities:Changes
                in assets and liabilities that provided (used) cash:Accounts
                payable
            
            
            (5,576
            )
            
            1,334Accrued
                expenses
            
            
            -
            
            
            1,000Net
                cash used in operating activities
            
            
            (23,518
            )
            
            (26,425
            )Cash
                flows from financing activities:Advance
                from majority shareholder (Note 3)
            
            
            15,000
            
            
            -Net
                decrease in cash
            
            
            (8,518
            )
            
            (26,425
            )Cash
                at beginning of period
            
            
            10,654
            
            
            42,286Cash
                at end of period
            
            $
            2,136
            
            $
            15,861Supplemental
                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 Consolidated Condensed Financial Statements**


**For
      The Three- and Nine Month Periods Ended September 30, 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
      became the owner of 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 operating
      various companies and/or assets. The Company has yet to acquire, or enter into
      an agreement to acquire, any company or assets.





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- and nine- month periods ended September
      30, 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 had no revenue generating
      activities.





**Note
      2 - Earnings Per Share**





The
      weighted average shares outstanding used in computing basic loss per share
      for
      the three- and nine-month periods ended September 30, 2006 and 2005 have been
      adjusted to give effect to the one-for-five reverse stock split discussed in
      Note 1. Pursuant to the terms of the agreements underlying the Net Asset Sale,
      all dilutive securities, including stock options, warrants and conversion rights
      under all employee and director option plans and various warrant and note
      agreements that were outstanding at the date of the Net Asset Sale, were
      cancelled effective March 31, 2004, and such dilutive securities are no longer
      outstanding.





Page
          5


**Note
      3 - Advance from Shareholder**





In
      June
      2006, the Company’s majority shareholder advanced the Company $15,000 that
      permitted the Company to pay its outstanding charges for administrative
      expenses. The Company and the majority shareholder have not determined the
      terms
      of the advance, but such terms may, when concluded, include the right to convert
      the advance into equity at no less a conversion rate than the quoted market
      price of the Company’s common stock during June 2006. If the advance was to be
      so converted, a total of 300,000 shares of stock would be issued to the majority
      shareholder, which would increase the majority stockholder’s interest from 62.5%
      of the outstanding common stock currently to 63.8% after
      conversion.





**Note
      4 - Legal Proceedings**





As
      discussed in Note 1, on March 31, 2004, Nematron sold to NC Acquisition Corp.
      (“NCAC”) all of Nematron’s assets and NCAC further assumed all of Nematron’s
      liabilities existing as of that date. In addition, under the Asset Purchase
      Agreement, NCAC 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 the court documents filed in 2005 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 NCAC 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 NCAC as well its affiliate, Nemaco,
      Inc., as an additional defendant in the Michigan action.





Based
      on
      the Asset Purchase Agreement provisions described above, in addition to the
      substantive merits of the claim, our belief and position has been that we have
      no liability in this case, and we made it clear to the Judgment Creditor that
      we
      do not intend to pay any amount to settle this claim, as NCAC and its successors
      in interest and owners are responsible for the entire matter. Recently, in
      accordance with our position, the Company and the Judgment Creditor entered
      into
      an Assignment of Claims and Indemnity Agreement and Covenant Not to Enforce
      Judgment (“Agreement”). Pursuant to the Agreement, the Company assigned to the
      Judgment Creditor all of its rights and claims that the Company may have against
      NCAC and its affiliates, in return for which the Judgment Creditor agreed not
      to
      enforce or otherwise seek to pursue the foreign judgment against the
      Company.





The
      Agreement was approved by the District Court in The Netherlands and signed
      by
      both the Company and the Judgment Creditor on October 10, 2006. We believe
      the
      Agreement releases the Company from this proceeding and that we will have no
      further involvement in the proceedings.


Page
          6


**Item
      2.**  **Management's
      Discussion and Analysis of Results of 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 the 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 of the Board of
      Directors, and who also serves as the CEO, President and Principal Financial
      Officer.





**Three-Month
      Periods Ended September 30, 2006 and 2005**





Direct
      administrative expenses of the Company for the three-month periods ended
      September 30, 2006 and 2005 totaled $3,677 and $6,373, respectively. The
      decrease in expenses during the current period results primarily from fewer
      administrative activities required in the current period.





**Nine-Month
      Periods Ended September 30, 2006 and 2005**





Direct
      administrative expenses of the Company for the nine-month periods ended
      September 30, 2006 and 2005 totaled $17,942 and $28,759, respectively. The
      decrease in expenses during the current period results primarily from fewer
      administrative activities required in the current 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 by operating companies and/or
      assets. No assurances can be given that the Company will be successful in
      connection with its future plans.





The
      financial activities of the Company since April 1, 2004 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. Such operating expenses incurred
      while
      it has been a “public shell” have been funded with $30,000 cash retained from
      the Net Asset Sale, from $50,000 generated by the sale of additional shares
      of
      common stock to Dorman Industries, and from the $15,000 advance from Dorman
      Industries in June 2006. 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.





As
      reflected in the accompanying balance sheet as of September 30, 2006, cash
      totals $2,136 while accounts payable and accrued expenses total $11,462. 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 yet
      identified 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 additional
      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. Dorman Industries is not obligated to advance funds to the Company and
      there can be no assurance that Dorman Industries or any other party will advance
      any additional 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”;




·
            Unforeseen
                increases in operating expenses;




·
            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;




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




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





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





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





Based
      on
      his evaluation as of September 30, 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 September 30, 2006 that have
      materially affected, or are reasonably likely to materially affect, our internal
      control over financial reporting.


Page
          8


**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.





**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****November
              13, 2006**
            
            **/s/
              Daniel J. Dorman****Date**
            
            **President, CEO and Principal
              Financial Officer**


Page
          9


**INDEX
      TO EXHIBITS**





Exhibit
              Number
            Description
                of Exhibit




31.1
            Certification
                of the Principal Executive Officer Pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002




31.2
            Certification
                of the Principal Financial Officer Pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002




32.0
            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