**U.S.
      SECURITIES AND EXCHANGE COMMISSION**


Washington,
      DC




**FORM
      10-QSB**




**x
      QUARTERLY REPORT
      PURSUANT SECTION 13**


**OR
      15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**




For
      the
      quarterly period ended March 31, 2007




**o
      TRANSITION REPORT
      PURSUANT SECTION 13 OR 15(d)**


**OF
      THE SECURITIES EXCHANGE ACT OF 1934**




For
      the
      transition period from  to




*Commission
      file number 000-51929*




**ESCO,
      INC.**


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





Nevada
            20-3750479(State
                or other jurisdiction of
            (I.R.S.
                employerincorporation
                or organization)
            identification
                number)10330
                Regency Parkway Drive, Suite 100Omaha,
                NE
            68114(Address
                of principal executive offices)
            (Zip
                Code)




Issuer's
      telephone number: (402) 397-2200




No
      change


(Former
      name, former address and former fiscal


year,
      if
      changed since last report)




Facsimile
      number (402) 390-7137








**Copies
      to:**




William
      T. Foley, Esq.


Erickson
      & Sederstrom, P.C.


10330
      Regency Parkway Drive


Omaha,
      NE
      68114


(402)
      390-7117




Check
      whether the issuer (1) filed all reports required to be filed by Section 13
      or
      15(d) of the 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. Yes x  No o




Check
      whether the issuer is a shell company (as defined in Rule 12b-2 of the Exchange
      Act). Yes x No o.




**APPLICABLE
      ONLY TO CORPORATE ISSUERS**




State
      the
      number of shares outstanding of each of the issuer's classes of common equity,
      as of the latest practicable date: 15,500 shares of Common Stock, par value
      $
      .0001 per share, outstanding as of November 1, 2006.




Transitional
      Small Business Disclosure Format (Check one): YES o  NO x











Index





PagePart
                I —
                FINANCIAL INFORMATIONItem
                1. Financial Statements
            1Item
                2. Management's Discussion and Analysis or Plan of
                Operation
            11Item
                3. Controls and Procedures
            12Part
                II — OTHER INFORMATION:Item
                1. Legal Proceedings
            12Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            12Item
                3. Defaults Upon Senior Securities
            12Item
                4. Submission of Matters to a Vote of Security Holders
            12Item
                5. Other Information
            12Item
                6. Exhibits and Reports on Form 8-K
            12Signatures
            13









**PART
      I - FINANCIAL INFORMATION**




**ITEM
      1. FINANCIAL STATEMENTS.**


ESCO,
        INC.
 (A
        Development Stage Company)
 BALANCE
        SHEET
 (Unaudited)
 March
                    31,
                
                December
                    31,2007
                
                2006Assets:Cash
                
                $
                2,942
                
                $
                4,457Total
                    Assets
                
                $
                2,942
                
                $
                4.457Liabilities:Accounts
                    Payable
                
                $
                -
                
                $
                -Stockholders’
                    Equity:Preferred
                      Stock, par value $.001, Authorized
                      100,000,000 shares, Issued 0 shares at
                      March 31, 2007 and December 31,
                      2006
                
                
                -
                
                
                -Common
                      Stock, par value $.001, Authorized
                      1,000,000,000 shares, Issued 15,500 shares at
                      March 31, 2007 and December 31,
                      2006
                
                
                16
                
                
                16Paid-In
                    Capital
                
                
                15,484
                
                
                15,484Deficit
                    Accumulated During the Development Stage
                
                
                (12,558
                )
                
                (11,043
                )Total
                    Stockholders’ Equity
                
                
                2,942
                
                
                4,457Total
                    Liabilities and Stockholders’ Equity
                
                $
                2,942
                
                $
                4,457
  The
        accompanying notes are an integral part of these financial
        statements.
 
 1
  ESCO,
        INC.
 (A
        Development Stage Company)
 STATEMENTS
        OF OPERATIONS
 (Unaudited)
 CumulativeSinceFor
                    the Three Months Ended
                
                November
                    4,March
                    31,
                
                20052007
                
                2006
                
                inceptionRevenues:
                
                $
                -
                
                $
                -
                
                $
                -Expenses:General
                    & Administrative
                
                
                1,515
                
                
                15
                
                
                12,558Net
                    Loss
                
                $
                (1,515
                )
                $
                (15
                )
                $
                (12,558
                )Basic
                    & Diluted Loss per Share
                
                $
                (0.10
                )
                $
                -Weighted
                      Average SharesOutstanding
                
                
                15,500
                
                
                15,500
   The
        accompanying notes are an integral part of these financial
        statements.
  2
  ESCO,
        INC.
 (A
        Development Stage Company)
 STATEMENTS
        OF CASH FLOWS
 (Unaudited)
 Cumulative,sinceFor
                    the Three Months Ended
                
                November
                    4,March
                    31,
                
                20052007
                
                2006
                
                inceptionCASH
                      FLOWS FROM OPERATINGACTIVITIES:Net
                    Loss
                
                $
                (1,515
                )
                $
                (15
                )
                $
                (12,558
                )Increase
                    (Decrease) in Accounts Payable
                
                
                -
                
                
                (7,963
                )
                
                -Net
                    Cash Used in operating activities
                
                
                (1,515
                )
                
                (7,978
                )
                
                (12,558
                )CASH
                      FLOWS FROM INVESTINGACTIVITIES:Net
                    cash provided by investing activities
                
                
                -
                
                
                -
                
                
                -CASH
                      FLOWS FROM FINANCINGACTIVITIES:Common
                    Stock Issued for Cash
                
                
                -
                
                
                -
                
                
                15,500Net
                    Cash Provided by Financing Activities
                
                
                -
                
                
                -
                
                
                15,500Net
                    (Decrease) Increase inCash
                    and Cash Equivalents
                
                
                (1,515
                )
                
                (7,978
                )
                
                2,942Cash
                      and Cash Equivalentsat Beginning of Period
                
                
                4,457
                
                
                15,480
                
                
                -Cash
                      and Cash Equivalentsat End of Period
                
                $
                2,942
                
                $
                7,502
                
                $
                2,942SUPPLEMENTAL
                    DISCLOSURE OF CASH FLOW INFORMATION:Cash
                    paid during the year for:Interest
                
                $
                -
                
                $
                -
                
                $
                -Franchise
                    and income taxes
                
                $
                -
                
                $
                -
                
                $
                -
 SUPPLEMENTAL
          DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: None
  The
        accompanying notes are an integral part of these financial
        statements.
 
 3
   ESCO,
        INC.
 (A
        Development Stage Company)
 NOTES
        TO FINANCIAL STATEMENTS
 (Unaudited)
 
 
 **NOTE
        1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
        POLICIES**
 
 This
        summary of accounting policies for ESCO, Inc. (a development stage company)
        is
        presented to assist in understanding the Company’s financial statements. The
        accounting policies conform to generally accepted accounting principles and
        have
        been consistently applied in the preparation of the financial
        statements.
 
 **Interim
        Financial Statements**
 
 The
        unaudited financial statements as of March 31, 2007 and for the three months
        then ended, reflect, in the opinion of management, all adjustments (which
        include only normal recurring adjustments) necessary to fairly state the
        financial position and results of operations for the three months. Operating
        results for interim periods are not necessarily indicative of the results
        which
        can be expected for full years.
 
 **Nature
        of Operations and Going Concern**
 
 The
        accompanying financial statements have been prepared on the basis of accounting
        principles applicable to a “going concern,” which assume that ESCO, Inc. (hereto
        referred to as the Company) will continue in operation for at least one year
        and
        will be able to realize its assets and discharge its liabilities in the normal
        course of operations.
 
 Several
        conditions and events cast doubt about the Company’s ability to continue as a
“going concern.” The Company has incurred net losses of approximately $12,558
        for the period from November 4, 2005 (inception) to March 31, 2007, has an
        accumulated deficit, has recurring losses, has no revenues and requires
        additional financing in order to finance its business activities on an ongoing
        basis. The Company’s future capital requirements will depend on numerous factors
        including, but not limited to, continued progress in finding a merger candidate
        and the pursuit of business opportunities. The Company is actively pursuing
        alternative financing and has had discussions with various third parties,
        although no firm commitments have been obtained. Management believes that
        actions presently being taken to revise the Company’s operating and financial
        requirements provide them with the opportunity to continue as a “going
        concern”
 
 
  ESCO,
        INC.
 (A
        Development Stage Company)
 NOTES
        TO FINANCIAL STATEMENTS
 (Unaudited)
 
 
 **NOTE
        1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
        POLICIES** (Continued)
 
 **Nature
        of Operations and Going Concern (continued)**
 
 These
        financial statements do not reflect adjustments that would be necessary if
        the
        Company were unable to continue as a “going concern.” While management believes
        that the actions already taken or planned, will mitigate the adverse conditions
        and events which raise doubt about the validity of the “going concern”
assumption used in preparing these financial statements, there can be no
        assurance that these actions will be successful. If the Company were unable
        to
        continue as a “going concern,” then substantial adjustments would be necessary
        to the carrying values of assets, the reported amounts of its liabilities,
        the
        reported revenues and expenses, and the balance sheet classifications
        used.
 
 **Organization
        and Basis of Presentation**
 
 The
        Company was incorporated under the laws of the State of Nevada on November
        4,
        2005. The Company did not have any operating activities during the period
        from
        its incorporation through March 31, 2007 and was considered
        dormant.
 
 **Nature
        of Business**
 
 The
        Company has no products or services as of March 31, 2007. The company was
        organized as a vehicle to seek merger or acquisition candidates.
 
 **Financial
        Instruments**
 
 The
        Company’s financial assets consist of cash. The Company has no financial
        liabilities. Except as otherwise noted, it is management’s opinion that the
        Company is not exposed to significant interest or credit risks arising from
        these financial instruments. The fair values of these financial instruments
        approximate their carrying values due to the sort-term maturities of these
        instruments.
 
 **Cash
        and Cash Equivalents**
 
 For
        purposes of the statement of cash flows, the Company considers all highly
        liquid
        debt instruments purchased with a maturity of three months or less to be
        cash
        equivalents to the extent the funds are not being held for investment
        purposes.
 
 
  ESCO,
        INC.
 (A
        Development Stage Company)
 NOTES
        TO FINANCIAL STATEMENTS
 (Unaudited)
 
 
 **NOTE
        1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
        POLICIES** (Continued)
 
 **Pervasiveness
        of Estimates**
 
 The
        preparation of financial statements in conformity with generally accepted
        accounting principles required 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 those estimates.
 
 **Loss
        per Share**
 
 Basic
        income (loss) per share has been computed by dividing the income (loss) for
        the
        year applicable to the common stockholders by the weighted average number
        of
        common shares outstanding during the years. There were no common equivalent
        shares outstanding at March 31, 2007 and 2006.
 
 **Concentration
        of Credit Risk**
 
 The
        Company has no significant off-balance-sheet concentrations of credit risk
        such
        as foreign exchange contracts, options contracts or other foreign hedging
        arrangements.
 
 **Recent
        Accounting Standards**
  In
        September 2006, the FASB issued SFAS No. 157, "Accounting for Fair Value
        Measurements." SFAS No. 157 defines fair value, and establishes a framework
        for
        measuring fair value in generally accepted accounting principles and expands
        disclosure about fair value measurements. SFAS No. 157 is effective for the
        Company for financial statements issued subsequent to November 15, 2007.
        The
        Company does not expect the new standard to have any material impact on the
        financial position and results of operations.
  In
        September 2006, the staff of the Securities and Exchange Commission issued
        Staff
        Accounting Bulletin No. 108 (“SAB 108”) which provides interpretive guidance on
        how the effects of the carryover or reversal of prior year misstatements
        should
        be considered in quantifying a current year misstatement. SAB 108 becomes
        effective in fiscal 2007. Management is evaluating the financial impact of
        this
        pronouncement.
  In
        October 2005, the FASB issued FSP FAS 123(R)-2, “Practical Accommodation to the
        Application of Grant Date as Defied in FASB Statement No. 123(R)”, which
        provides clarification of the concept of mutual understanding between employer
        and employee with respect to the grant date of a share-based payment award.
        This
        FSP provides that a mutual understanding of the key terms and conditions
        of an
        award shall be presumed to exist on the date the award is approved by management
        if the recipient does not have the ability to negotiate the key terms and
        conditions of the award and those key terms and conditions will be communicated
        to the individual recipient within a relatively short time
  
  ESCO,
        INC.
 (A
        Development Stage Company)
 NOTES
        TO FINANCIAL STATEMENTS
 (Unaudited-)
 
 
 **NOTE
        1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
        POLICIES** (Continued)
 
 **Recent
        Accounting Standards (Continued)**
 
 period
        after the date of approval. This guidance was applicable upon the initial
        adoption of SFAS 123(R). The adoption of this pronouncement did not have
        an
        impact on the Company’s financial position, results of operations, or cash
        flows.
   In
        December 2006, the FASB approved FASB Staff Position (FSP) No. EITF 00-19-2,
        “Accounting for Registration Payment Arrangements” (“FSP EITF 00-19-2”), which
        specifies that the contingent obligation to make future payments or otherwise
        transfer consideration under a registration payment arrangement, whether
        issued
        as a separate agreement or included as a provision of a financial instrument
        or
        other agreement, should be separately recognized and measured in accordance
        with
        SFAS No. 5, “Accounting for Contingencies”. FSP EITF 00-19-2 also requires
        additional disclosure regarding the nature of any registration payment
        arrangements, alternative settlement methods, the maximum potential amount
        of
        consideration and the current carrying amount of the liability, if any. The
        guidance in FSP EITF 00-19-2 amends FASB Statements No. 133, “Accounting for
        Derivative Instruments and Hedging Activities”, and No. 150, “Accounting for
        Certain Financial Instruments with Characteristics of both Liabilities and
        Equity”, and FASB Interpretation No. 45, “Guarantor’s Accounting and Disclosure
        requirement for Guarantees, Including Indirect Guarantees of Indebtedness
        of
        Others”, to include scope exceptions for registration payment
        arrangements.
  
 FSP
        EITF
        00-19-2 is effective immediately for registration payment arrangements and
        the
        financial instruments subject to those arrangements that are entered into
        or
        modified subsequent to the issuance date of this FSP, or for financial
        statements issued for fiscal years beginning after December 15, 2006, and
        interim periods within those fiscal years, for registration payment arrangements
        entered into prior to the issuance date of this FSP. The adoption of this
        pronouncement is not expected to have an impact on the Company’s financial
        position, results of operations or cash flows.
 
 In
        October 2005, the FASB issued FSP FAS 123(R)-2, “Practical Accommodation to the
        Application of Grant Date as Defied in FASB Statement No. 123(R)”, which
        provides clarification of the concept of mutual understanding between employer
        and employee with respect to the grant date of a share-based payment award.
        This
        FSP provides that a mutual understanding of the key terms and conditions
        of an
        award shall be presumed to exist on the date the award is approved by management
        if the recipient does not have the ability to negotiate the key terms and
        conditions of the award and those key terms and conditions will be communicated
        to the individual recipient within a relatively short time period after the
        date
        of approval. This guidance was applicable upon the initial adoption of SFAS
        123(R). The adoption of this pronouncement did not have an impact on the
        Company’s financial position, results of operations, or cash flows.
 
 
  ESCO,
        INC.
 (A
        Development Stage Company)
 NOTES
        TO FINANCIAL STATEMENTS
 (Unaudited-)
 
 
 **NOTE
        1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
        POLICIES** (Continued)
 
 **Recent
        Accounting Standards (Continued)**
 
 The
        FASB
        has indicated it believes that SFAS 159 helps to mitigate this type of
        accounting-induced volatility by enabling companies to report related assets
        and
        liabilities at fair value, which would likely reduce the need for companies
        to
        comply with detailed rules for hedge accounting. SFAS 159 also establishes
        presentation and disclosure requirements designed to facilitate comparisons
        between companies that choose different measurement attributes for similar
        types
        of assets and liabilities.
 
 SFAS
        159
        does not eliminate disclosure requirements included in other accounting
        standards, including requirements for disclosures about fair value measurements
        included in SFAS 157 and SFA No. 107, “Disclosures about Fair Value of Financial
        Instruments.” SFAS 159 is effective for the Company as of the beginning of
        fiscal year 2009. The adoption of this pronouncement is not expected to have
        an
        impact on the Company’s financial position, results of operations or cash
        flows.
  **NOTE
        2 - INCOME TAXES**
 
 As
        of
        December 31, 2006, the Company had a net operating loss carryforward for
        income
        tax reporting purposes of approximately $11,043 that may be offset against
        future taxable income through 2025 and 2026. Current tax laws limit the amount
        of loss available to be offset against future taxable income when a substantial
        change in ownership occurs. Therefore, the amount available to offset future
        taxable income may be limited. No tax benefit has been reported in the financial
        statements, because the Company believes there is a 50% or greater chance
        the
        carryforwards will expire unused. Accordingly, the potential tax benefits
        of the
        loss carryforwards are offset by a valuation allowance of the same
        amount.
 
 
 2006
              
              2005Net
                  Operating Losses
              
              $
              1656
              
              $
              1197Valuation
                  Allowance
              
              
              (1656
              )
              
              (1197
              )$
              -
              
              $
              -
 
 The
        provision for income taxes differs from the amount computed using the federal
        US
        statutory income tax rate as follows:
 
 2006
              
              2005Provision
                  (Benefit) at US Statutory Rate
              
              $
              459
              
              $
              1197Increase
                  (Decrease) in Valuation Allowance
              
              
              (459
              )
              
              (1197
              )$
              -
              
              $
              -
  
  ESCO,
        INC.
 (A
        Development Stage Company)
 NOTES
        TO FINANCIAL STATEMENTS
 (Unaudited-)
 
 
 **NOTE
        2 - INCOME TAXES (Continued)**
 
 The
        Company evaluates its valuation allowance requirements based on projected
        future
        operations. When circumstances change and causes a change in management's
        judgment about the recoverability of deferred tax assets, the impact of the
        change on the valuation is reflected in current income.
 
 **NOTE
        3 - DEVELOPMENT STAGE COMPANY**
 
 The
        Company has not begun principal operations and as is common with a development
        stage company, the Company has had recurring losses during its development
        stage. The Company’s financial statements are prepared using generally accepted
        accounting principles applicable to a going concern which contemplates the
        realization of assets and liquidation of liabilities in the normal course
        of
        business. However, the Company does not have significant cash or other material
        assets, nor does it have an established source of revenues sufficient to
        cover
        its operating costs and to allow it to continue as a going concern. In the
        interim, shareholders of the Company have committed to meeting its minimal
        operating expenses.
 
 **NOTE
        4 - COMMITMENTS**
 
 As
        of
        March 31, 2007 corporate officers from either their homes or business offices
        have conducted all activities of the Company. Currently, there are no
        outstanding debts owed by the company for the use of these facilities and
        there
        are no commitments for future use of the facilities.
 
 **NOTE
        5 - COMMON STOCK TRANSACTIONS**
 
 On
        November 29, 2005 the company issued 15,500 shares of common stock for $1.00
        per
        share.


**ITEM
      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
      OPERATION.**




The
      Company incurred a net loss of $1,515 for the three months ended March 31,
      2007,
      and $12,588 for the period from November 4, 2005 (inception) to March 31, 2007.
      It is management's assertion that these circumstances may hinder the Company's
      ability to continue as a going concern.




Plan
      of
      Operation. The Company has not realized any revenues from operations since
      November 4, 2005 (inception), and its plan of operation for the next twelve
      months shall be to continue its efforts to locate suitable acquisition
      candidates. The Company can provide no assurance that it can continue to satisfy
      its cash requirements for at least the next twelve months.




Liquidity
      and Capital Resources. As of March 31, 2007, the Company had assets consisting
      of $2,942 in cash.




Results
      of Operations. The Company has not conducted any active operations since
      inception, except for its efforts to locate suitable acquisition candidates.
      No
      revenue has been generated by the Company from November 4, 2005 (inception)
      to
      March 31, 2007. It is unlikely the Company will have any revenues unless it
      is
      able to effect an acquisition, or merger with an operating company, of which
      there can be no assurance.




11





**ITEM
      3. CONTROLS AND PROCEDURES.**




Evaluation
      of disclosure controls and procedures.




We
      maintain disclosure controls and procedures that are designed to ensure that
      information required to be disclosed in our reports filed pursuant to the
      Securities Exchange Act of 1934, as amended (the "Exchange Act"), is recorded,
      processed, summarized and reported within the time periods specified in the
      Securities and Exchange Commission's rules, regulations and related forms,
      and
      that such information is accumulated and communicated to the our principal
      executive officer and principal financial officer, as appropriate, to allow
      timely decisions regarding required disclosure.




Within
      the 90 days prior to the filing date of this quarterly report, we carried out
      an
      evaluation, under the supervision and with the participation of our management,
      including our principal executive officer and principal financial officer,
      of
      the effectiveness of the design and operation of our disclosure controls and
      procedures. Based on this evaluation, our principal executive officer and
      principal financial officer concluded that our disclosure controls and
      procedures were effective.




Changes
      in internal controls.




There
      have been no significant changes in our internal controls or in other factors
      that could significantly affect these controls and procedures subsequent to
      the
      date we completed our evaluation. Therefore, no corrective actions were
      taken.




**PART
      II — OTHER INFORMATION**




**ITEM
      1. LEGAL PROCEEDINGS.** To
      the
      best knowledge of the officers and directors, the
      Company is not a party to any legal proceeding or litigation.




**ITEM
      2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
      None.**




**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.**





Exhibit
                No.
            
            Description*3.1
            
            Articles
                of Incorporation, as filed with the Nevada Secretary State on November
                4,
                2005.*3.2
            
            By-Laws31.1
            
            Certification
                of the Company's Principal Executive Officer to Section 302 of the
                Sarbanes-Oxley Act of 2002, with respect to the Quarterly Report
                on Form
                10-QSB for the quarter ended September 30, 2006.32.1
            
            Certification
                of the Company's Principal Executive Officer pursuant to 18 U.S.C.
                Section
                1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
                of
                2002.




*
      Filed
      as an exhibit to the Company's Registration Statement on Form 10-SB, as filed
      with the Securities and Exchange Commission on April 25, 2006, and incorporated
      herein by this reference.


12




**SIGNATURES**




Pursuant
      to the requirements of the Securities Exchange Act of 1934, as amended, the
      Registrant has duly caused the Report to be signed on its behalf by the
      undersigned thereunto duly authorized.




Dated:
      May 15, 2007


**ESCO, INC.**By:
            /s/ William T. FoleyWilliam
                T. Foley, President







13