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 September 30, 2006

               |_|  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. employer
  incorporation or organization)                  identification number)

10330 Regency Parkway Drive, Suite 100
         Omaha, 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

<PAGE>

                                   Copies to:

                              Gary L. Hoffman, 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

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

                      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 |_|  NO |X|

<PAGE>

                                      Index

                         Part I -- FINANCIAL INFORMATION

                                                                          Page

Item 1. Financial Statements                                                5

Item 2. Management's Discussion and Analysis or Plan of Operation           10

Item 3. Controls and Procedures                                             11

                          Part II -- OTHER INFORMATION:

Item 1. Legal Proceedings                                                   11

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds         11

Item 3. Defaults Upon Senior Securities                                     11

Item 4. Submission of Matters to a Vote of Security Holders                 11

Item 5. Other Information                                                   11

Item 6. Exhibits and Reports on Form 8-K                                    11

Signatures                                                                  11

<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

                                   ESCO, INC.
                          (A Development Stage Company)
                                  BALANCE SHEET

<TABLE>
<CAPTION>
                                                         September 30,    December 31,
                                                             2006             2005
                                                        -------------    -------------
<S>                                                     <C>              <C>
Assets:
Cash                                                    $       7,472    $      15,480
                                                        -------------    -------------

Total Assets                                            $       7,472    $      15,480
                                                        =============    =============

Liabilities:
Accounts Payable                                        $          --    $       7,963
                                                        -------------    -------------

Stockholders' Equity:
Preferred Stock, par value $.001,
Authorized 100,000,000 shares, Issued 0 shares
at June 30, 2006 and December 31, 2005                             --               --

Common Stock, par value $.001,
Authorized 1,000,000,000 shares, Issued 15,500 shares
at June 30, 2006 and December 31, 2005                             16               16

Paid-In Capital                                                15,484           15,484

Deficit Accumulated During the Development Stage               (8,028)          (7,983)
                                                        -------------    -------------

Total Stockholders' Equity                                      7,472            7,517
                                                        -------------    -------------


Total Liabilities and Stockholders' Equity              $       7,472    $      15,480
                                                        =============    =============
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

                                   ESCO, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                                Cumulative
                                                                                                  since
                                          For the Three                  For the Nine           November 4,
                                          Months Ended                   Months Ended              2005
                                          September 30,                  September 30,          inception of
                                         --------------                 --------------          development
                                      2006             2005           2006           2005         stage
                                   ------------   -------------   ------------   -------------  ------------
<S>                                <C>            <C>             <C>            <C>            <C>
Revenues:                          $         --   $          --   $         --   $          --  $         --
Expenses:
General & Administrative                     15              --             45              --         8,028
                                   ------------   ------------    ------------   ------------   ------------
Net Loss                           $        (15)  $          --   $        (45)  $          --  $     (8,028)
                                   ============   =============   ============   =============  ============
Basic & Diluted Loss per Share     $         --   $          --   $         --   $          --
                                   ============   =============   =============  =============
Weighted Average Shares
Outstanding                              15,500              --         15,500              --
                                   ============   =============   =============  =============
</TABLE>

The accompanying notes are an integral part of these financial statements.

<PAGE>

                                   ESCO, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                           Cumulative
                                                                             since
                                                                          November 4,
                                                    For the Nine Months       2005
                                                    Ended September 30,    inception of
                                                    -------------------   development
                                                      2006       2005        stage
                                                    --------   --------   ------------
<S>                                                 <C>        <C>          <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Loss                                            $    (45)  $     --     $(8,028)
Increase (Decrease) in Accounts Payable               (7,963)        --          --
                                                    --------   --------     -------
Net Cash Used in operating activities                 (8,008)        --      (8,028)
                                                    --------   --------     -------

CASH FLOWS FROM INVESTING
ACTIVITIES:
Net cash provided by investing activities                 --         --          --
                                                    --------   --------     -------

CASH FLOWS FROM FINANCING
ACTIVITIES:
Common Stock Issued for Cash                              --         --      15,500
                                                    --------   --------     -------
Net Cash Provided by Financing Activities                 --         --      15,500
                                                    --------   --------     -------
Net (Decrease) Increase in
Cash and Cash Equivalents                             (8,008)        --       7,472
Cash and Cash Equivalents
at Beginning of Period                                15,480         --          --
                                                    --------   --------     -------
Cash and Cash Equivalents
at End of Period                                    $  7,472   $     --     $ 7,472
                                                    ========   ========     =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest                                            $     --   $     --     $    --
Franchise and income taxes                          $     --   $     --     $    --
</TABLE>


SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: None

The accompanying notes are an integral part of these financial statements.
<PAGE>

                                   ESCO, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE PERIOD ENDED SEPTEMBER 30, 2006

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 September 30, 2006 and for the
nine 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 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.

         These financial statements do not reflect adjustments that would be
necessary if the Company were unable to continue as a "going concern." 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 September 30, 2006 and was considered
dormant.

Nature of Business

         The Company has no products or services as of September 30, 2006. The
company was organized as a vehicle to seek merger or acquisition candidates.

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.

<PAGE>

                                   ESCO, INC.
                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE PERIOD ENDED SEPTEMBER 30, 2006
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

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.

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 September 30, 2006 and 2005.

Reclassifications

         Certain reclassifications have been made in the 2005 financial
statements to conform with the September 30, 2006 presentation.

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.

NOTE 2 - INCOME TAXES

         As of December 31, 2005, the Company had a net operating loss
carryforward for income tax reporting purposes of approximately $7,983 that may
be offset against future taxable income through 2025. 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.
<PAGE>

                          (A Development Stage Company)
                          NOTES TO FINANCIAL STATEMENTS
                     FOR THE PERIOD ENDED SEPTEMBER 30, 2006
                                   (Continued)

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 September 30, 2006 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 $15.00 and $45.00 for the three months and
the nine months ended September 30, 2006 respectively, and $8,028.00 for the
period from November 4, 2005 (inception) to September 30, 2006, respectively.
Combined with the fact that the Company has $7,472.00 in working capital as of
September 30, 2006, 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 September 30, 2006, the Company had
assets consisting of $7,472.00 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
September 30, 2006. 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.
<PAGE>

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.

<TABLE>
<CAPTION>
Exhibit No.        Description
<S>                <C>
*3.1               Articles of Incorporation, as filed with the Nevada Secretary State on November
                   4, 2005.

*3.2               By-Laws

31.1               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.
</TABLE>

* 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.

                                   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: November 13, 2006

                                 ESCO, INC.

                                 By: /s/ William T. Foley
                                     ----------------------------------
                                     William T. Foley, President