U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended June 30, 2005
                                       OR
                  [ ] TRANSITION REPORT PURSUANT TO SECTION 13
                 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
           For the transition period from ____________ to ____________



                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
             (Exact name of registrant as specified in its charter)

    Texas                        0-27359                           74-2653437
    -----                        -------                           ----------
  (state of             (Commission File Number)                  (IRS Employer
incorporation)                                                     I.D. Number)

                   501 North Shoreline Drive, Suite 701 North
                            Corpus Christi, TX 78471
                                 (301) 887-7546
              ----------------------------------------------------
             (Address and telephone number of registrant's principal
               executive offices and principal place of business)


       Securities registered under Section 12(b) of the Exchange Act: None

         Securities registered under Section 12(g) of the Exchange Act:
                         Common Stock, $0.001 par value
                         ------------------------------
                                (Title of Class)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act of 1934  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 [ ]

     As of August 11, 2005, the Company had  25,339,406  shares of its $.001 par
value common stock issued and outstanding.

     Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]


<PAGE>

                                TABLE OF CONTENTS
                                                                           Page

PART I - FINANCIAL INFORMATION                                               3

Item 1.  Financial Statements                                                3

Item 2.  Management's Discussion and Analysis or Plan of Operation           9

Item 3.  Controls and Procedures                                            13

PART II - OTHER INFORMATION                                                 13

Item 6.  Exhibits and Reports on Form 8-K                                   15

SIGNATURES                                                                  17









                                       2
<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

                                                                           Page

      Consolidated Balance Sheets June 30, 2005 (Unaudited)
               and December 31, 2004                                         4
      Consolidated Statement of Operations                                   6
      Consolidated Statement of Cash Flows                                   7
      Notes to the Financial Statements                                      8





















                                       3
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS
                                                    Unaudited        Audited
                                                   Jun 30, 2005    Dec 31, 2004
                                                   ------------    ------------

Current Assets
--------------
Cash                                               $      2,904    $     88,908
                                                   ------------    ------------

        Total Current Assets                              2,904          88,908


Fixed Assets
------------
Furniture and Equipment                                  61,409          61,409
   Less Accumulated Depreciation                        (61,409)        (61,409)
                                                   ------------    ------------
        Total Fixed Assets                                 --              --


Other Assets
------------
Investment - United Engineering Company                 181,343         224,134
Investment - CO2 Equipment                            1,619,446       1,470,881
   Less Accumulated Depreciation                       (149,268)        (96,735)
Deposits                                                  2,300            --
CO2 Equipment Patent                                      8,000           8,000
Tissue Bonding Patent                                   472,144         379,040
   Less Accumulated Amortization                        (46,190)        (30,514)
                                                   ------------    ------------
        Total Other Assets                         $  2,087,775    $  1,954,806


        Total Assets                               $  2,090,679    $  2,043,714
                                                   ============    ============







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

                                        4
<PAGE>
<TABLE>
<CAPTION>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                     CONSOLIDATED BALANCE SHEETS (CONTINUED)

                                   LIABILITIES
                                                      Unaudited        Audited
                                                     Jun 30, 2005    Dec 31, 2004
                                                     ------------    ------------
<S>                                                  <C>             <C>
Current Liabilities
-------------------
Accounts Payable                                     $    538,606    $    317,683
Interest Payable                                          884,832         698,602
Payroll Taxes Payable                                      81,313          79,390
Notes Payable to Stockholders                           4,206,869       3,852,564
CO2 Equipment Payable                                     206,749         206,749
Fee Debenture Payable                                        --           126,000
                                                     ------------    ------------
        Total Current Liabilities                       5,918,369       5,280,988


Long Term Liabilities
---------------------
Long Term Contract IAW                                    300,000         300,000
Fee Debenture Payable                                        --           149,000
                                                     ------------    ------------
        Total Long-Term Liabilities                       300,000         449,000


Total Liabilities                                       6,218,369       5,729,988


Minority Interest in Consolidated Subsidiary              206,000         206,000

                              STOCKHOLDERS' EQUITY

Common stock $.001 par value, 40,000,000 shares
   authorized; 25,339,406 shares issued, 16,702,693
   shares outstanding, 8,556,000 shares subscribed
   at June 30, 2005; and 16,517,580 shares issued,
   13,268,591 shares outstanding, 3,168,276 shares
   subscribed at December 31, 2004                         25,340          16,518
Additional Paid in Capital                              7,258,868       6,721,052
Less - Common Stock Subscriptions Receivable               (8,556)         (3,168)
Accumulated Other Comprehensive (Loss)                   (337,208)       (343,027)
Accumulated (Deficit)                                 (11,239,849)    (10,251,364)
Treasury Stock                                            (32,285)        (32,285)
                                                     ------------    ------------
        Total Stockholders' Equity                     (4,333,690)     (3,892,274)


Total Liabilities and Stockholders' Equity           $  2,090,679    $  2,043,714
                                                     ============    ============
</TABLE>





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


                                       5
<PAGE>
<TABLE>
<CAPTION>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF OPERATIONS

                                               Unaudited      Unaudited       Unaudited       Unaudited
                                             Apr 1, 2005-    Apr 1, 2004-    Jan 1, 2005-    Jan 1, 2004-
                                             Jun 30, 2005    Jun 30, 2004    Jun 30, 2005    Jun 30, 2004
                                             ------------    ------------    ------------    ------------
<S>                                          <C>             <C>             <C>             <C>
Revenues                                     $        414    $       --      $        414    $       --

   General and Administrative Expenses            365,928         711,826         819,164         957,600
   Funded R & D                                      --              --              --              --
   Cost of Funded R & D                            74,056          78,053         121,185          80,675
   Net R & D Cost                                  74,056          78,053         121,185          80,675
                                             ------------    ------------    ------------    ------------
        Operating (Loss)                     $   (439,570)    $  (789,879)    $  (939,935)   $ (1,038,275)

Interest Income                                        13               8              60              11

Interest in Income (Loss) of
   Unconsolidated Companies                       (31,296)        (20,734)        (48,610)        (41,880)
                                             ------------    ------------    ------------    ------------
        (Loss) from Continuing Operations        (470,853)       (810,605)       (988,485)     (1,080,144)

Income Taxes                                         --              --              --              --

        Net (Loss)                           $   (470,853)   $   (810,605)   $   (988,485)   $ (1,080,144)
                                             ============    ============    ============    ============

Net (Loss) Per Share Common Stock                   (0.03)          (0.08)          (0.07)          (0.10)

Weighted Average
   Common Shares Outstanding                   15,725,507       9,809,756      14,969,319      10,463,601
</TABLE>











Basic and diluted  earnings  (loss) per share are the same.  The  corporation is
reporting  a net loss for the  reporting  periods and any  potentially  dilutive
securities are antidilutive (reduce net loss) and therefore not presented.




                                       6
<PAGE>
<TABLE>
<CAPTION>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENT OF CASH FLOWS

                                                                 Unaudited      Unaudited
                                                               Jan 1, 2005-   Jan 1, 2004-
                                                               Jun 30, 2005   Jun 30, 2004
                                                                -----------    -----------
<S>                                                             <C>            <C>
Cash Flows from Operating Activities
------------------------------------
Net (Loss)                                                      $  (988,485)   $(1,080,144)
Equity Loss from Investee                                            48,610         41,880
Depreciation and Amortization                                        68,208         55,890
Pay (Increase) Fee Debenture                                       (275,000)       395,000
Services / Interest for Common Stock                                  6,500        171,587
Increase (Decrease) Current Liabilities                             222,846        (24,957)
Increase Accrued Interest                                           186,229        257,023
                                                                -----------    -----------
        Net Cash provided by (used in) Operating Activities        (731,092)      (183,721)


Cash Flows from Investing Activities
------------------------------------
Deposits                                                             (2,300)          --
Purchase Equipment and Patent                                      (241,668)       (34,615)
                                                                -----------    -----------
        Net Cash (used in) Investing Activities                    (243,968)       (34,615)


Cash Flows from Financing Activities
------------------------------------
Increase Notes Payable                                              354,305        205,866
Increase Stock Issue                                                534,751          1,240
                                                                -----------    -----------

        Net Cash provided by Financing Activities                   889,056        207,106


Net Increase (Decrease) in Cash and Cash Equivalents                (86,004)       (11,230)

Cash at Beginning of Period                                          88,908         13,118
                                                                -----------    -----------
Cash at End of Period                                           $     2,904    $     1,888
                                                                ===========    ===========
</TABLE>







                                       7
<PAGE>
<TABLE>
<CAPTION>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                                AND SUBSIDIARIES
                          NOTES TO FINANCIAL STATEMENTS
                        JUNE 30, 2005, DECEMBER 31, 2004

                                     NOTE 1
                              BASIS OF PRESENTATION

The accompanying  unaudited interim consolidated  financial statements have been
prepared  in  accordance  with  standards  established  by  the  Public  Company
Accounting Oversight Board (United States). Accordingly, they do not include all
of the  information  and  footnotes  required by generally  accepted  accounting
principles for complete financial statements. In the opinion of management,  all
adjustments  considered  necessary for a fair  presentation  have been included.
Operating  results  for the six  month  period  ending  June  30,  2005  are not
necessarily  indicative  of the results  that may be expected for the year ended
December  31,  2005.  For  further  information,  refer  to the  audited  annual
consolidated  financial  statements  and  footnotes  thereto  for the year ended
December 31, 2004.

                                     NOTE 2
                                  GOING CONCERN

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company incurred a net loss
of  $(988,485)  for the six months  ended June 30, 2005 and when  combined  with
prior year net losses raises  substantial  doubt as to the Company's  ability to
obtain  debt  and/or  equity  financing  and  achieve   profitable   operations.
Additionally,  on June 30, 2005 the Internal Revenue Service filed a federal tax
lien  on the  Company  for  $87,816  which  raises  additional  doubt  as to the
Company's ability to obtain debt and/or equity finances.

The Company's  management  intends to raise  additional  operating funds through
equity and/or debt offerings and the development and marketing of  technologies.
However,  there  can  be no  assurance  management  will  be  successful  in its
endeavors.  The possible  consequences of not obtaining  additional funds either
through equity offerings,  debt offerings, or sale of technologies is that there
will not be sufficient money to fund the capital projects  required to earn long
term planned revenues of the Company.

The  Company's  ability to continue as a going  concern also involves the carbon
dioxide  separator  equipment  which  is  currently  inactive  due  to  possible
technical problems as stated in Note 1 under Significant  Accounting Policies on
the December 31, 2004 audited  annual  consolidated  financial  statements.  The
technology  has been  successfully  installed  on similar  equipment  in Eastern
Europe and with management  continually monitoring the CO2 project the equipment
is being carried at its original cost less normal  depreciation  with  projected
cash flows still  considered  adequate  to recover the net book value  including
upgrades if the equipment becomes  operational.  It is unclear if this equipment
is within specification and if not additional upgrades estimated to cost between
$200,000 to $300,000  would be required,  however,  with no prior  production at
Chastang there is no assurance that this will be successful.

                                     NOTE 3
                    INCOME (LOSS) FROM UNCONSOLIDATED COMPANY

The  Company's  33%  owned  subsidiary  United  Engineering  Company,  a Ukraine
company, reported the following sales, gross profits and net (loses):

                      Apr 1, 2005-    Apr 1, 2004-    Jan 1, 2005-    Jan 1, 2004-
                      Jun 30, 2005    Jun 30, 2004    Jun 30, 2005    Jun 30, 2004
                      ------------    ------------    ------------    ------------
<S>                   <C>             <C>             <C>             <C>
Sales                 $    359,453    $    254,177    $    440,051    $    457,470
Gross Profit (Loss)        (34,447)           (982)        (35,091)              0
Net (Loss)                 (93,838)        (62,140)       (145,831)       (125,640)
CSMG's 1/3 (Loss)          (31,296)        (20,734)        (48,610)        (41,880)
</TABLE>






                                       8
<PAGE>

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

     The following  discussion and analysis  should be read in conjunction  with
the financial  statements and the accompanying notes thereto and is qualified in
its  entirety  by the  foregoing  and by  more  detailed  financial  information
appearing elsewhere. See "Item 1. Financial Statements."

     Results of Operations - Second  Quarter of 2005 Compared to Second  Quarter
     ---------------------------------------------------------------------------
     of 2004
     -------

     We had $414 revenues in Q2 2005 and none in Q2 2004.

     Operating  expenses  decreased  by  $350,309  to  $439,570  during  Q2 2005
compared to $789,879 in Q2 2004.  The  decrease  is  attributable  primarily  to
decreased financing fees.

     We had a loss from  operations  of $439,570 for Q2 2005  compared to a loss
from  operations of $789,879 for Q2 2004. The $350,309  reduction in loss is due
primarily to a reduction in general and administrative expenses.

     We accrued a loss in Q2 2005 of $31,296  from our joint  venture in Ukraine
with United  Engineering  Company,  as compared with a loss of $20,734 from this
activity in Q2 2004.

     Our net loss for Q2 2005 was $470,853, or $0.03 a share, as compared with a
net loss in Q2 2004 of $810,605  or $0.08 a share,  a decrease  attributable  to
decreased expenses.

     We were able to remain  liquid  during  this  quarter  through  (1) reduced
spending,  (2) a decrease  in notes  payable of  $121,430,  (3) an  increase  in
accrued interest of $135,025, and (4) the sale of $213,044 of common stock under
the Cornell Equity Line of Credit Agreement.

     On March 29, 2004, we entered into an Equity Line of Credit  Agreement with
Cornell Capital Partners. Under this agreement, we may issue and sell to Cornell
Capital  Partners  common stock for a total purchase price of up to $10 million.
Subject to certain  conditions,  we are entitled to draw down on the Equity Line
of Credit now that the common stock to be issued under the Equity Line of Credit
is registered with the Securities and Exchange  Commission and the  registration
statement is declared  effective.  The purchase price for the shares is equal to
95% of, or a 5% discount  to, the market  price,  which is defined as the lowest
closing bid price of the common stock during the five trading days following the
notice  date.  We have the right,  but not the  obligation,  to require  Cornell
Capital to  purchase  shares in the  company's  common  stock in amounts  not to
exceed  $140,000  per draw up to a maximum of $420,000 per month with a total of
$10 million over a consecutive  24-month  period.  Cornell Capital Partners will
receive a fee  debenture of  $390,000,  in the form of  convertible  debentures.
Cornell will also receive a $10,000  legal fee of which $5,000 has been paid and
the balance will be paid from the proceeds  from the initial  advance  under the
Equity Line of Credit.  Cornell Capital  Partners is entitled to retain a fee of
5% of each  advance.  The net effect of the 5% discount  and the 5% retainage of
each advance is that Cornell Capital Partners shall pay 90.25% of the applicable



                                       9
<PAGE>

closing  bid price for each  share of our common  stock.  In  addition,  we have
entered into a placement agent agreement with Newbridge Securities, a registered
broker-dealer. Pursuant to the placement agent agreement, we will pay a one-time
placement  agent fee in shares of common  stock equal to  approximately  $10,000
based on the stock price on the date we agreed to engage the placement agent.

     We received  $1,800,000 under a loan agreement with Cornell in July, August
and  December  2004 and January and March 2005 which is being repaid at the rate
of $25,000 per week through the Cornell Equity Line of Credit  Agreement.  These
funds are being used for operations of the parent and subsidiaries.

     As of June 30,  2005 we have  sold  5,999,003  shares  of  common  stock to
Cornell  Capital for $1,800,000  pursuant to the Equity Line of Credit.  We have
escrowed  8,556,000  shares with  Cornell's  escrow agent to use as repayment of
current credit line balance and future credit line use.

     Interim  Results of  Operations - First Half of 2005 Compared to First Half
     ---------------------------------------------------------------------------
     of 2004
     -------

     We had $414 in  revenues  in the  first  half of 2005 and none in the first
half of 2004.

     Operating expenses of $939,935 in the first half of 2005 were 91 percent of
those  of the  first  half of  2004 -  $1,038,275.  The  decrease  is  primarily
attributable to reduction in costs of financing expenses.

     We had an operating  loss of $988,485 in the first half of 2005 as compared
with an operating  loss in the first half of 2004 of $1,080,144 - an 8.5 percent
decrease attributable to decreased financing expenses.

         We recorded accrued losses of $48,610 in the first half of 2005 from
our Ukraine joint venture operations in United Engineering Company, compared to
an accrued loss of $41,880 in the first half of 2004.

     Taking into account our joint venture  operations in Ukraine,  we had a net
loss of $988,485, or $0.07 a share in the first half of 2005 compared with a net
loss of $1,080,144,  or $0.10 a share, in the first half of 2004.  Nevertheless,
we feel that we are on the right course for the company,  that our CO2 separator
project and our human tissue bonding project both hold considerable  promise for
our company in 2005.

         Outlook
         -------

     The  statements  made in this  Outlook  are  based  on  current  plans  and
expectations. These statements are forward-looking,  and actual results may vary
considerably from those that are planned.





                                       10
<PAGE>

     CO2 Separator.  The status of our CO2 separator project in Chastang County,
Alabama is that the installation  was completed during March 2003.  Start-up and
equipment  adjustment  were delayed  while waiting for the landfill gas owner to
complete installation of the end-user pipeline and gas metering system. This was
installed  near the end of March  just as our  Ukraine  supervisory  team had to
return to Ukraine. In addition, the landfill gas quality was well below expected
levels and required  repairs to the gas  gathering  system to reduce air intake.
The landfill gas owner  coordinated  and completed these repairs during the next
few  weeks,  finishing  toward  the end of May.  The  Ukraine  supervisory  team
returned in early June to oversee  service,  start-up and adjust the  equipment.
Poor weather caused some delays but this was completed in about two weeks. As we
prepared to begin start-up operations and equipment adjustment, Waste Management
Inc.  ("WMC",  the  operator  of  the  landfill)  ordered  Resource   Technology
Corporation  "RTC" (the holder of the gas  ownership  contract) off the landfill
and contended that our CO2 separator  equipment  produces methane gas that fails
to meet gas quality specifications and that, therefore, the agreement to buy the
gas is terminated.  This  contention is now being  litigated in RTC's chapter 11
reorganization proceeding. It is possible that our gas collection and conversion
systems  could be  determined  to be out of  specifications  thus  necessitating
installing  upgrades  estimated to cost between  $200,000 and $300,000 to enable
the equipment to meet the gas quality  requirements.  The company is negotiating
with several industrial companies nearby the site that will not require pipeline
quality gas for their  usage.  Currently  the  Company  has a  caretaker  at the
landfill to maintain the equipment.  If additional funds are required to upgrade
the system the  possibility  remains  that the  process  will still not meet the
Mobile Gas  specifications  and if so it will be necessary to move the equipment
from the Chastang landfill. Should this occur it is unclear if any future carbon
dioxide  projects  will be possible  and if so the  continued  existence  of the
Company will depend on live tissue bonding and anaerobic  farm waste  technology
sales.

     Live Tissue  Bonding.  The status of our tissue bonding  project is clouded
somewhat by recent  events.  We have started the  development  of equipment from
prototype model to a commercial  model.  The equipment bonds the soft biological
tissue with a special  miniature  surgical tool. No glues,  sutures,  staples or
other  foreign  matter  are used.  The  process is best  described  as a welding
process.  The scar tissue is either minimal or non-existent.  Tests conducted in
Louisville,  Kentucky by U.S.  surgeons on  rabbits'  stomachs  resulted in scar
tissue only forty  microns  wide six months after  surgery.  It appears that the
Ukraine  scientists have developed a superior,  all-purpose,  seamless method of
bonding  soft  biological  tissues,  which  method  is  characterized  by simple
manipulation   applicable  to  different   surgical   operations  and  the  fast
restoration of tissues without the formation of coarse scars.  Apparently  there
is no need for prolonged special training of surgeons and surgical personnel.

     In 2002 we formed  Live  Tissue  Connect,  Inc.,  a  Delaware  corporation,
through  which we propose to develop our Tissue  Bonding  technology.  We own 86
percent of Live Tissue Connect, Inc.

     We estimate  that in excess of $2 million have been  expended in developing
the project and that $2.5 million of additional  funds must be expended to bring
this product to market.  The first surgical  equipment  could be manufactured in
the U.S.  during the next 12 months now that the U.S.  patent  applications  are
approved and patents are issued.



                                       11
<PAGE>

     This project is still in the development  stage, even though the Ukrainians
have  created a  finished  product in their  special  miniature  surgical  tool.
Improvements  in the tool are possible,  and testing on live tissue of humans to
U.S. testing standards is required. Approval of the process and equipment by the
Federal Drug Administration is required.

     On March 8, 2005 our majority-owned subsidiary,  Live Tissue Connect, Inc.,
entered into a Joint  Development  and Exclusive  License  Agreement with ConMed
Corporation.  On May 31, 2005 the agreement  terminated by its terms.  There was
and is no material relationship between our company or its affiliates and ConMed
Corporation other than in respect of the agreement.

     The Agreement  provided for an exclusive  world-wide  product licensing and
marketing agreement (subject to due diligence) with ConMed  Corporation,  Utica,
N.Y. to bring Live Tissue  Connect's  patented  platform live biological  tissue
bonding/welding technology to the United States and world markets.

     The agreement  provided that if ConMed had not  communicated to Live Tissue
Connect ConMed's satisfaction with further due diligence review on or before May
31, 2005,  then the Agreement would have no binding effect upon either party and
both parties would thereupon be released from all liabilities hereunder.

     ConMed did not communicate,  to Live Tissue Connect,  ConMed's satisfaction
with further due diligence  review on or before May 31, 2005.  So, the agreement
terminated by its own provisions.  No termination penalties were incurred by our
company or its subsidiary, Live Tissue Connect.

     Anaerobic  Farm Waste  Project.  With  regard to our  anaerobic  farm waste
project  we have  not  been  successful  in  developing  contracts.  We have met
resistance  from  swine,  dairy and  poultry  farmers in our efforts to sell our
anaerobic  farm waste plant,  due to the long period of time  required for small
farms to recover  the costs of the plant and due to falling  producer  prices in
these industries.

     The company's  future results of operations  and the other  forward-looking
statements   contained   in  this   Outlook   involve  a  number  of  risks  and
uncertainties.  Among the  factors  that could  cause  actual  results to differ
materially  are  the  following:  inability  of the  company  to  obtain  needed
additional  capital,  loss of personnel - particularly  Chief Executive  Officer
Donald S.  Robbins or other key  executives  as result of accident or for health
reasons,  interruptions  in the supply of equipment  from  manufacturers  of the
equipment,   the   development   of  competing   products  by   well-capitalized
competitors,  and an accident  involving life or serious bodily harm that fairly
or  unfairly  would  bring  into  question  the  safety of using  the  company's
products.



                                       12
<PAGE>

Off-Balance Sheet Arrangements

         Our company has not entered into any transaction, agreement or other
contractual arrangement with an entity unconsolidated with us under which we
have

o    an obligation under a guarantee contract,
o    a  retained  or   contingent   interest  in  assets   transferred   to  the
     unconsolidated  entity  or  similar  arrangement  that  serves  as  credit,
     liquidity or market risk support to such entity for such assets,
o    any obligation,  including a contingent  obligation,  under a contract that
     would be accounted for as a derivative instrument, or
o    any  obligation,  including  a  contingent  obligation,  arising  out  of a
     variable  interest  in an  unconsolidated  entity  that  is  held by us and
     material to us where such entity provides financing, liquidity, market risk
     or credit risk  support to, or engages in leasing,  hedging or research and
     development services with us.

Item 3. Controls and Procedures

     Evaluation of disclosure controls and procedures. The Company's management,
with the  participation  of the  Company's  Chief  Executive  Officer  and Chief
Financial Officer,  has evaluated the effectiveness of the Company's  disclosure
controls and  procedures  as of June 30,  2005.  Based on this  evaluation,  the
Company's Chief Executive Officer and Chief Financial Officer concluded that the
Company's disclosure controls and procedures are effective.

                           PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

     The following exhibits are filed, by incorporation by reference, as part of
this Form 10-QSB:

 Exhibit No.                                 Description
 ----------                                  -----------

    3               -    Amended  and  Restated  Articles  of  Incorporation  of
                         Consortium Service Management Group, Inc.*

    3.1             -    Bylaws of Consortium Service Management Group, Inc.*

   10               -    Founders' Agreement of United Engineering Company*

   10.1             -    Statutes (Bylaws) of United Engineering Company*

   10.2             -    Agreement of April 24, 1996 between  Consortium Service
                         Management Group, Inc. and The L Group, Inc. concerning
                         tissue bonding technology* (rescinded in January 2000)

   10.3             -    Agreement  of July 9, 1996 between  Consortium  Service
                         Management  Group,   Inc.  and  International   Welding
                         concerning tissue bonding technology*





                                       13
<PAGE>

   10.4             -    Agreement among Consortium  Service  Management  Group,
                         Inc., United Engineering Company and Ivan V. Semenenko,
                         the inventor of the anaerobic farm waste technology*

   10.5             -    Agreement  of June 9,  1998  among  Consortium  Service
                         Management   Group,   Inc.,  The  Sumy  Frunze  Machine
                         Building Science and Production Association, and United
                         Engineering Company concerning the anaerobic farm waste
                         technology*

   10.6             -    Agreement between  Consortium Service Management Group,
                         Inc. and Western Waste Management,  Inc. concerning the
                         anaerobic farm waste technology*

   10.7             -    Agreement between  Consortium Service Management Group,
                         Inc. and Aardema Dairy  concerning  the anaerobic  farm
                         waste technology*

   10.8             -    Agreement between  Consortium Service Management Group,
                         Inc. and John and Ruth Beukers concerning the anaerobic
                         farm waste technology*

   10.9             -    Agreement  of  December   1998  between   International
                         Welding  Association  of Kiev,  Ukraine and  Consortium
                         Service  Management Group,  Inc.  concerning the carbon
                         dioxide separator technology*

   10.10            -    Operating Agreement of June 14, 2001 between Consortium
                         Service Management Group, Inc. and Resource  Technology
                         Corporation***

   10.11            -    Contract  Agreement  Effective  August 14, 2000 between
                         Consortium  Service  Management   Group/Anaerobic  Farm
                         Waste Co. and Rondeau Anaerobic***

   10.12            -    Contract     IAW-USA      002-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.13            -    Contract     IAW-USA      003-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***







                                       14
<PAGE>

   10.14            -    Contract     IAW-USA      004-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.15            -    Contract     IAW-USA      005-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.16            -    Contract     IAW-USA      006-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.17            -    Contract     IAW-USA      007-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.18            -    Contract    IAW-USA   008-PR   between    International
                         Association  Welding,   Kiev,  Ukraine  and  Consortium
                         Service Management Group, Inc.***

   10.19            -    Natural Gas Purchase Agreement of June 20, 2000 between
                         Texas  Energy  Transfer  Company,   Ltd.  and  Resource
                         Technology Corp.****

   10.20            -    Agency  Agreement  between  Joint Stock  Company  "Sumy
                         Frunze   Machine-Building    Science   and   Production
                         Association"   of  Ukraine   and   Consortium   Service
                         Management Group, Inc.+

   10.21            -    2003  Stock   Option  Plan  adopted  by  the  board  of
                         directors  of  Consortium   Service  Management  Group,
                         Inc.++

   10.22            -    Joint  Development and Exclusive  License  Agreement of
                         March 8, 2005  between  Live Tissue  Connect,  Inc. and
                         ConMed Corporation.+*



                                       15
<PAGE>

   10.23            -    Standby Equity Distribution Agreement of March __, 2004
                         between  Cornell  Capital  Partners,  LP and Consortium
                         Service Management Group, Inc.++*

   14               -    Code of Ethics  for the  Chief  Executive  Officer  and
                         Senior Financial Officers.++*

   16               -    Letter dated January 29, 2000 from Jaak (Jack) Olesk to
                         Consortium   Service   Management   Group,   Inc.   Re:
                         Termination as Auditor**

   31               -    Certification of Chief Executive Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 302
                         of the Sarbanes-Oxley Act of 2002.

   31.1             -    Certification of Chief Financial Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 302
                         of the Sarbanes-Oxley Act of 2002.

   32               -    Certification of Chief Executive Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 906
                         of the Sarbanes-Oxley Act of 2002.

   32.1             -    Certification of Chief Financial Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 906
                         of the Sarbanes-Oxley Act of 2002.

   99               -    Ukraine   Ministry   of   Health,   State   Department,
                         Certificate of State Registration No. 1105-193***

   99.1             -    Extract of U.S. Patent No. 6,562,037 May 13, 2003.+++

   99.2             -    Extract of U.S. Patent No. 6,733,498 May 11, 2004.+++


     *Previously filed with Form 10-SB; Commission File No. 0-27359 incorporated
     herein.

     **Previously filed with Amendment No. 1 to Form 10-SB;  Commission File No.
     0-27359 incorporated herein.

     ***Previously filed with Amendment No. 2 to Form 10-SB; Commission File No.
     0-27359 incorporated herein.

     ****Previously  filed with  Amendment  No. 1 to Form  10-QSB for the period
     ended September 30, 2002; Commission File No. 0-27359 incorporated herein.








                                       16
<PAGE>

     +Previously  filed with Form 10-KSB for the year ended  December  31, 2002;
     Commission File No. 0-27359 incorporated herein.

     ++Previously filed with Amendment No. 1 to Form 10-QSB for the period ended
     March 31, 2003; Commission File No. 0-27359 incorporated herein.

     +++Previously  filed with Form 10-QSB for the period  ended June 30,  2004;
     Commission File No. 0-27359 incorporated herein.

     +*Previously  filed  with  Form 8-K (Date of Report  March 8,  2005)  filed
     03-09-05, Commission File No. 0-27359 incorporated herein.

     ++*Previously   filed  with  Form  10-KSB  for  the  year  ended  12-31-04,
     Commission File No. 0-27359 incorporated herein.



                                   SIGNATURES

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

Dated:  August 15, 2005                  CONSORTIUM SERVICE MANAGEMENT
                                         GROUP, INC.



                                         By /s/ Donald S. Robbins
                                           ---------------------------
                                           Donald S. Robbins, President










                                       17
<PAGE>

                    CONSORTIUM SERVICE MANAGEMENT GROUP, INC.
                         Commission File Number 0-27359


                              Index to Exhibits to
                              Form 10-QSB 06-30-05

     The following exhibits are filed, by incorporation by reference, as part of
this Form 10-QSB:

Exhibit No.                                 Description
----------                                  -----------

    3               -    Amended  and  Restated  Articles  of  Incorporation  of
                         Consortium Service Management Group, Inc.*

    3.1             -    Bylaws of Consortium Service Management Group, Inc.*

   10               -    Founders' Agreement of United Engineering Company*

   10.1             -    Statutes (Bylaws) of United Engineering Company*

   10.2             -    Agreement of April 24, 1996 between  Consortium Service
                         Management Group, Inc. and The L Group, Inc. concerning
                         tissue bonding technology* (rescinded in January 2000)

   10.3             -    Agreement  of July 9, 1996 between  Consortium  Service
                         Management  Group,   Inc.  and  International   Welding
                         concerning tissue bonding technology*

   10.4             -    Agreement among Consortium  Service  Management  Group,
                         Inc., United Engineering Company and Ivan V. Semenenko,
                         the inventor of the anaerobic farm waste technology*

   10.5             -    Agreement  of June 9,  1998  among  Consortium  Service
                         Management   Group,   Inc.,  The  Sumy  Frunze  Machine
                         Building Science and Production Association, and United
                         Engineering Company concerning the anaerobic farm waste
                         technology*

   10.6             -    Agreement between  Consortium Service Management Group,
                         Inc. and Western Waste Management,  Inc. concerning the
                         anaerobic farm waste technology*



                                       1
<PAGE>


   10.7             -    Agreement between  Consortium Service Management Group,
                         Inc. and Aardema Dairy  concerning  the anaerobic  farm
                         waste technology*

   10.8             -    Agreement between  Consortium Service Management Group,
                         Inc. and John and Ruth Beukers concerning the anaerobic
                         farm waste technology*

   10.9             -    Agreement  of  December   1998  between   International
                         Welding  Association  of Kiev,  Ukraine and  Consortium
                         Service  Management Group,  Inc.  concerning the carbon
                         dioxide separator technology*

   10.10            -    Operating Agreement of June 14, 2001 between Consortium
                         Service Management Group, Inc. and Resource  Technology
                         Corporation***

   10.11            -    Contract  Agreement  Effective  August 14, 2000 between
                         Consortium  Service  Management   Group/Anaerobic  Farm
                         Waste Co. and Rondeau Anaerobic***

   10.12            -    Contract     IAW-USA      002-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.13            -    Contract     IAW-USA      003-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.14            -    Contract     IAW-USA      004-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.15            -    Contract     IAW-USA      005-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***



                                       2
<PAGE>

   10.16            -    Contract     IAW-USA      006-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.17            -    Contract     IAW-USA      007-PR-19.04.2000     between
                         International  Association Welding, Kiev and E.O. Paton
                         Electric  Welding  Institute  National  Academy Science
                         Ukraine  and  Consortium   Service   Management  Group,
                         Inc.***

   10.18            -    Contract    IAW-USA   008-PR   between    International
                         Association  Welding,   Kiev,  Ukraine  and  Consortium
                         Service Management Group, Inc.***

   10.19            -    Natural Gas Purchase Agreement of June 20, 2000 between
                         Texas  Energy  Transfer  Company,   Ltd.  and  Resource
                         Technology Corp.****

   10.20            -    Agency  Agreement  between  Joint Stock  Company  "Sumy
                         Frunze   Machine-Building    Science   and   Production
                         Association"   of  Ukraine   and   Consortium   Service
                         Management Group, Inc.+

   10.21            -    2003  Stock   Option  Plan  adopted  by  the  board  of
                         directors  of  Consortium   Service  Management  Group,
                         Inc.++

   10.22            -    Joint  Development and Exclusive  License  Agreement of
                         March 8, 2005  between  Live Tissue  Connect,  Inc. and
                         ConMed Corporation.+*

   10.23            -    Standby Equity Distribution Agreement of March __, 2004
                         between  Cornell  Capital  Partners,  LP and Consortium
                         Service Management Group, Inc.++*

   14               -    Code of Ethics  for the  Chief  Executive  Officer  and
                         Senior Financial Officers.++*

   16               -    Letter dated January 29, 2000 from Jaak (Jack) Olesk to
                         Consortium   Service   Management   Group,   Inc.   Re:
                         Termination as Auditor**

   31               -    Certification of Chief Executive Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 302
                         of the Sarbanes-Oxley Act of 2002.


                                       3
<PAGE>


   31.1             -    Certification of Chief Financial Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 302
                         of the Sarbanes-Oxley Act of 2002.

   32               -    Certification of Chief Executive Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 906
                         of the Sarbanes-Oxley Act of 2002.

   32.1             -    Certification of Chief Financial Officer pursuant to 18
                         U.S.C. Section 1350, as adopted pursuant to Section 906
                         of the Sarbanes-Oxley Act of 2002.

   99               -    Ukraine   Ministry   of   Health,   State   Department,
                         Certificate of State Registration No. 1105-193***

   99.1             -    Extract of U.S. Patent No. 6,562,037 May 13, 2003.+++

   99.2             -    Extract of U.S. Patent No. 6,733,498 May 11, 2004.+++


     *Previously filed with Form 10-SB; Commission File No. 0-27359 incorporated
     herein.

     **Previously filed with Amendment No. 1 to Form 10-SB;  Commission File No.
     0-27359 incorporated herein.

     ***Previously filed with Amendment No. 2 to Form 10-SB; Commission File No.
     0-27359 incorporated herein.

     ****Previously  filed with  Amendment  No. 1 to Form  10-QSB for the period
     ended September 30, 2002; Commission File No. 0-27359 incorporated herein.

     +Previously  filed with Form 10-KSB for the year ended  December  31, 2002;
     Commission File No. 0-27359 incorporated herein.

     ++Previously filed with Amendment No. 1 to Form 10-QSB for the period ended
     March 31, 2003; Commission File No. 0-27359 incorporated herein.

     +++Previously  filed with Form 10-QSB for the period  ended June 30,  2004;
     Commission File No. 0-27359 incorporated herein.

     +*Previously  filed  with  Form 8-K (Date of Report  March 8,  2005)  filed
     03-09-05, Commission File No. 0-27359 incorporated herein.

     ++*Previously   filed  with  Form  10-KSB  for  the  year  ended  12-31-04,
     Commission File No. 0-27359 incorporated herein.



                                       4