-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
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 S5K+TJlGD1hmoyX+Ky0VPw==

<SEC-DOCUMENT>0001001277-05-000833.txt : 20051128
<SEC-HEADER>0001001277-05-000833.hdr.sgml : 20051128
<ACCEPTANCE-DATETIME>20051128171622
ACCESSION NUMBER:		0001001277-05-000833
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050809
FILED AS OF DATE:		20051128
DATE AS OF CHANGE:		20051128

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			KAI INTERNATIONAL LLC
		CENTRAL INDEX KEY:			0001162838

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-00497
		FILM NUMBER:		051228954

	BUSINESS ADDRESS:	
		STREET 1:		190 WOODLANDS DR
		CITY:			THORNLANDS QUEENSLAND
		STATE:			C3
		ZIP:			4157

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CHAM BILL E
		CENTRAL INDEX KEY:			0001162532

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-00497
		FILM NUMBER:		051228953

	BUSINESS ADDRESS:	
		STREET 1:		1645 LPSWICH ROAD, UNIT 14
		CITY:			ROCKLEA
		STATE:			A1
		ZIP:			00000
		BUSINESS PHONE:		61732744452

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Chase Tania R
		CENTRAL INDEX KEY:			0001344988

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-00497
		FILM NUMBER:		051228952

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		61-7-32060791

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 7031
		CITY:			PORT VILA
		STATE:			2L
		ZIP:			0000

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			LIPID SCIENCES INC/
		CENTRAL INDEX KEY:			0000071478
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				430433090
		STATE OF INCORPORATION:			AZ
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		7068 KOLL CENTER PARKWAY
		STREET 2:		SUITE 401
		CITY:			PLEASANTON
		STATE:			CA
		ZIP:			94566
		BUSINESS PHONE:		925-249-4000

	MAIL ADDRESS:	
		STREET 1:		7068 KOLL CENTER PARKWAY
		STREET 2:		SUITE 401
		CITY:			PLEASANTON
		STATE:			CA
		ZIP:			94566

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NZ CORP
		DATE OF NAME CHANGE:	20000810

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NEW MEXICO & ARIZONA LAND CO
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>for080905_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-08-09</periodOfReport>

    <notSubjectToSection16>1</notSubjectToSection16>

    <issuer>
        <issuerCik>0000071478</issuerCik>
        <issuerName>LIPID SCIENCES INC/</issuerName>
        <issuerTradingSymbol>LIPD</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001162838</rptOwnerCik>
            <rptOwnerName>KAI INTERNATIONAL LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>P.O. BOX 7031</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>PORT VILA</rptOwnerCity>
            <rptOwnerState>2L</rptOwnerState>
            <rptOwnerZipCode></rptOwnerZipCode>
            <rptOwnerStateDescription>VANUATU</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001162532</rptOwnerCik>
            <rptOwnerName>CHAM BILL E</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>P.O. BOX 7031</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>PORT VILA</rptOwnerCity>
            <rptOwnerState>2L</rptOwnerState>
            <rptOwnerZipCode>0000</rptOwnerZipCode>
            <rptOwnerStateDescription>VANUATU</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001344988</rptOwnerCik>
            <rptOwnerName>Chase Tania R</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>P.O. BOX 7031</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>PORT VILA</rptOwnerCity>
            <rptOwnerState>2L</rptOwnerState>
            <rptOwnerZipCode>0000</rptOwnerZipCode>
            <rptOwnerStateDescription>VANUATU</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-08-09</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>50000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.2649</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>4705013</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-08-10</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>200000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.2355</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>4505013</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2005-11-22</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>G</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3180000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1325013</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Bill E. Cham and Tania R. Chase are the sole members of KAI International, LLC, the entity who owns the reported securities.
 Bill E. Cham disclaims beneficial ownership of these securities except to the extent of his pecuniary interest therein.
 Tania R. Chase is the sole managing member of KAI International, LLC.  Effective as of November 22, 2005, KAI International,
 LLC and Tania R. Chase ceased to be reporting persons.  Bill E. Cham resigned as managing member of KAI International, LLC
 on April 14, 2005 and as of such date he ceased to be a reporting person.  Following the disposition of 3,180,000 shares on
 November 22, 2005, neither KAI International, LLC, Tania R. Chase nor Bill E. Cham are ten percent owners of common stock in
 Lipid Science, Inc.  As such, this Form 4 is being filed to reflect that as of the date of this filing neither KAI
 International, LLC, Tania R. Chase nor Bill E. Cham are subject to Section 16 reporting requirements.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Tania R. Chase, Managing Member, KAI International, LLC</signatureName>
        <signatureDate>2005-11-23</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Tania R. Chase</signatureName>
        <signatureDate>2005-11-23</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Bill E. Cham</signatureName>
        <signatureDate>2005-11-23</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----