Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities 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.

		Page No.

PART I	FINANCIAL INFORMATION:	1

Item 1.	Financial Statements (Unaudited)	7

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

Item 3.	Controls and Procedures	12

PART II	OTHER INFORMATION	13

Item 1.	Legal Proceedings	13

Item 2.	Unregistered Sales of Securities and Use of Proceeds	13

Item 3.	Defaults Upon Senior Securities	13

Item 4.	Submission of Matters to a Vote of Security Holders	13

Item 5.	Other Information	13

Item 6.	Exhibits	13

SIGNATURES		14

page 3

	June 30, 2005			December 31, 2004
	(Unaudited)			(Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	802,842		$	1,132,505
Inventories		144,859			149,169
Prepaid expenses and other current assets		24,385			54,400
Total current assets		972,086			1,336,074

Fixed assets, net		11,195			15,992
Patents, net		272,287			281,949

TOTAL ASSETS	$	1,255,568		$	1,634,015

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	16,875		$	12,215
Accrued compensation and taxes		11,493			7,684
Total liabilities		28,368			19,899

STOCKHOLDERS’ EQUITY
Undesignated capital stock, undesignated par value, 25,000,000 shares authorized, none issued
Common stock, $.01 par value:
Authorized--100,000,000 shares
Issued and outstanding--37,550,762 shares		375,508			375,508
Additional paid-in capital		1,825,339			1,780,122
Deferred compensation		(87,696	)		(163,823	)
Deficit accumulated during the development stage		(885,951	)		(377,691	)
TOTAL STOCKHOLDERS’ EQUITY		1,227,200			1,614,116
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,255,568		$	1,634,015

	Three Months Ended June 30,						Six Months Ended June 30,						August 2, 2004 (Inception of Successor Company) to June 30,
	2005			2004			2005			2004			2005

Gross revenue	$	-		$	-		$	-		$	-		$	-
Operating expenses:
Research and development		9,106			-			18,857			-			18,857
General and administrative		309,156			33,842			500,953			71,456			889,839
Total operating expenses		318,262			33,842			519,810			71,456			908,696
Operating loss		(318,262	)		(33,842	)		(519,810	)		(71,456	)		(908,696	)
Other income (expense), net		10,522			(10,690	)		11,550			(21,374	)		22,745
Net loss	$	(307,740	)	$	(44,532	)	$	(508,260	)	$	(92,830	)	$	(885,951	)
Basic and diluted net loss per share	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Weighted average common shares outstanding		37,550,762			7,644,091			37,550,762			7,398,952

	Six Months Ended June 30,						August 2, 2004 (Inception of Successor Company) to
	2005			2004			June 30, 2005
OPERATING ACTIVITIES:
Net loss	$	(508,260	)	$	(92,830	)	$	(885,951	)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization		14,459						25,709
Amortization of deferred compensation		121,344						256,795
Gain on disposal of fixed assets		(4,961	)					(9,150	)
Writeoff of obsolete inventories		4,513						4,513
Changes in operating assets and liabilities:
Inventories		(203	)					(203	)
Prepaid expenses and other current assets		34,976						4,326
Accounts payable		4,660			23,038			(42,827	)
Accrued compensation and taxes		3,809			27,036			(20,600	)
Net cash used in operating activities		(329,663	)		(42,756	)		(667,388	)

INVESTING ACTIVITIES- proceeds from the sale of fixed assets								8,240

FINANCING ACTIVITIES- proceeds from issuance of common stock					353,000			20,000

Net increase (decrease) in cash and cash equivalents		(329,663	)		310,244			(639,148	)

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		1,132,505			73,487			1,441,990

CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	802,842		$	383,731		$	802,842

SpectraScience, Inc. (the “Company”) filed for bankruptcy protection on September 13, 2002 (U.S. Bankruptcy Court, District of Minnesota, Case No. 02-42904). The case was converted from liquidation under Chapter 7 to Chapter 11 reorganization in early 2003. The Company’s Plan of Reorganization was confirmed on July 7, 2004 and became effective on August 23, 2004. The Company received funding and commenced operations effective August 2, 2004. As of August 2, 2004 (for purposes of this Report, the “Effective Date”), the Company became the “Successor Company” and the Company as it existed prior to August 2, 2004 is referred to as the “Predecessor Company.” During the bankruptcy, the Company was under the control of a court appointed trustee and had no management (all officers and directors had resigned), no legal counsel, no outside auditors, no transfer agent, and no operations.

The Company was incorporated in the State of Minnesota on May 4, 1983 as GV Medical, Inc. In October 1992, GV Medical discontinued its prior business, refocused its development efforts and changed its name to SpectraScience, Inc. From 1996 until filing for bankruptcy reorganization in 2002, the Company primarily focused on developing the WavSTAT™ Optical Biopsy System (“WavSTAT™ System”). The WavSTAT™ System is a proprietary, minimally invasive technology that optically scans tissue in real-time to distinguish between normal and pre-cancerous or cancerous tissue, without the need to remove tissue from the body.

The accompanying unaudited condensed financial statements of SpectraScience, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-QSB and Item 310 of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to make the financial statements not misleading have been included. Operating results for the six month period ended June 30, 2005 are not necessarily indicative of the results that may be expected for the year ended December 31, 2005. These statements should be read in conjunction with the financial statements and related notes which are included in the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2004.

The Company is a development stage enterprise. Since August 2, 2004, it has not generated any revenue from the sale of its products and, through June 30, 2005, its efforts have been principally devoted to restarting the Company as it emerged from bankruptcy. As of June 30, 2005, the Company had working capital of $943,718 and cash and cash equivalents of $802,842. The Company believes funds are sufficient to sustain operations through 2005. However, additional capital will be required after that time since insignificant revenues are anticipated from operations for the near future. Additional capital will come from venture capitalists or other private investors, but there can be no assurance that such investments will be available on terms acceptable to the Company. Through June 30, 2005, the Company's financing has been through the sale of common stock. Until the Company's operations generate adequate revenue, the Company will attempt to continue to fund operations from cash on hand and through other sources of capital that may be available to it.

The Company adopted fresh-start reporting, as of August 2, 2004 in accordance with the American Institute of Certified Public Accountants Statement of Position 90-7, Financial Reporting by Entities in Reorganization Under the Bankruptcy Code (“SOP 90-7”). Under fresh-starting reporting, a new entity has been deemed created for financial reporting purposes. The results of operations are presented on a traditional comparative basis and compare the Successor Company for the period from January 1, 2005 to June 30, 2005 to the Predecessor Company for the period from January 1, 2004 to June 30, 2004. Management believes that the Predecessor and Successor Company periods are not comparable for accounting purposes.

The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America, which require management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Significant estimates made by management include, among others, realization of long-lived assets. Actual results could differ from those estimates.

At June 30, 2005, the Company has one stock-based employee compensation plan (the “Option Plan"). Prior to August 2004, the Company accounted for the Option Plan under the recognition and measurement provisions of Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB 25”), and related interpretations. No stock-based employee compensation cost is reflected in net loss for the six months ended June 30, 2004, as all options granted under the Option Plan had an exercise price equal to the market value of the underlying common stock on the date of grant. Effective August 2, 2004, the Company adopted the fair value recognition provisions of Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation”, (“SFAS 123”) prospectively to all employee awards granted, modified, or settled by the Successor Company. Awards under the Company’s Option Plan vest over three years. Therefore, the cost related to stock-based employee compensation included in the determination of net loss for the six months ended June 30, 2004 is less than that which would have been recognized if the fair value based method had been applied to all awards since the original effective date of SFAS 123. The following table illustrates the effect on net loss and loss per share if the fair value based method had been applied to all outstanding and unvested awards in each period.

	3 months ended June 30, 2005			6 months ended June 30, 2005			3 months ended June 30, 2004			6 months ended June 30, 2004			August 2, 2004 (Inception of Successor Company) to June 30, 2005

Net loss as reported	$	(307,740	)	$	(508,260	)	$	(44,532	)	$	(92,830	)	$	(885,951	)
Stock-based compensation expense included in reported net loss		96,341			121,344			-			-			256,795
Stock-based compensation		(96,341	)		(121,344	)		( 64,871	)		(127,855	)		(256,795	)
Pro forma net loss	$	(307,740	)	$	(508,260	)	$	(109,403	)	$	(220,685	)	$	(885,951	)
As reported loss per share	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.01	)
Pro forma loss per share	$	(0.01	)	$	(0.01	)	$	(0.01	)	$	(0.03	)

Inventories are valued at the lower of cost, determined on the first-in, first-out (FIFO) basis, or market value. Cost includes direct material, labor and overhead. On August 2, 2004, inventories were adjusted to market value in accordance with the requirements of Fresh Start Reporting. Inventories consist of the following:

Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period of computation. Diluted earnings (loss) per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and only if the additional common shares would be dilutive. Basic and diluted loss per share are the same for the six months ended June 30, 2005 and 2004, since any additional common stock equivalents would be antidilutive. Potentially dilutive shares of common stock that have been excluded from the calculation of the weighted average number of dilutive common shares for the six months ended June 30, 2005 are options to purchase 2,250,000 shares of common stock. For the six months ended June 30, 2004, potentially dilutive shares of common stock that have been excluded from the calculation of weighted average number of dilutive common shares totaled 1,436,742 comprised of warrants to purchase 36,030 shares of common stock and options to purchase 1,400,712 shares of common stock.

This Report on Form 10-QSB contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this Report, or in our future filings with the SEC, in our press releases and in oral statements made with the approval of an authorized executive officer, the words or phrases “anticipates,”“estimates,”“expects,”“will likely result,”“projects,”“believes,”“intends,” or similar expressions are intended to identify such forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve risks and uncertainties that may cause our actual results to differ materially from the results discussed in the forward-looking statements.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date made. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances after the date of such statements. Readers are urged to carefully review and consider the various disclosures made by us in this Report and other reports we file with the SEC that attempt to advise interested parties of the risks and factors that may affect our business. Such forward-looking statements are qualified in their entirety by the cautions and risk factors set forth in our Annual Report on Form 10-KSB covering the years ended December 31, 2004, 2003 and 2002.

SpectraScience, Inc., develops and manufactures innovative, Laser Induced Fluorescence spectrophotometry systems capable of determining whether tissue is normal, pre-cancerous or cancerous without removing tissue from the body. The WavStat’ Optical Biopsy System (“WavStat’”) is SpectraScience's first fully developed product to incorporate its proprietary Laser Induced Fluorescence technology for worldwide clinical use. It is approved by the FDA for use during endoscopy of the colon when screening for colon cancer. The Company’s second application of this technology for detecting esophageal cancer is ready to begin a clinical trial at three institutions. SpectraScience believes its core technology is a platform technology that can be developed for use in many areas of the human body.

Our principal executive offices are located at 11568 Sorrento Valley Rd., Suite 11, San Diego, CA 92121. We can be reached by telephone at (858) 847-0200; by fax at (858) 847-0880; or by email at info@spectrascience.com. We have a web-site at http://www.spectrascience.com. The information contained on our web site shall not be deemed to be a part of this Report.

We are a development stage medical device company that has not yet engaged in significant commercial activities. During 2005 we intend to complete a Phase II clinical trial with our WavSTAT™ system for the detection of Barrett’s syndrome, thought to be a pre-cancerous condition of the esophagus. The progression toward esophageal cancer begins with several pre-cancerous stages. It is critical for the physician to be able to identify these various stages of the disease in order to deliver the most appropriate treatment. As with colorectal cancer, early and accurate detection of esophageal cancer results in less invasive, more cost effective treatments with a greater chance for long term patient survival.

Barrett’s esophagus is a condition of the lining of the lower esophagus thought to be caused primarily by Gastro Esophageal Reflux Disease (“GERD”), more commonly known as chronic heartburn. Physicians typically recommend that persons with chronic heartburn should have an endoscopy to look for Barrett’s esophagus. Some Barrett’s patients will advance further to a stage where additional abnormal tissue called dysplasia is present. Dysplasia is known to be the next progressive step toward esophageal cancer and is categorized in stages of low grade and high grade. Barrett’s esophagus, dysplasia and esophageal cancer patients are currently diagnosed by an endoscopy of the esophagus with multiple biopsies of the inner lining.

High-grade dysplasia is a critical stage to correctly diagnose because physicians frequently recommend surgical resection or removal of the esophagus if Barrett's esophagus with high-grade dysplasia is present. Unfortunately for the patient, dysplasia is not easily visible to the physician during standard endoscopy. Because early diagnosis is critical, multiple biopsies (as many as 20 at once) may be performed either randomly or in a geometric pattern in the esophagus in the hope of finding the most appropriate tissue to biopsy.

In addition, we may (if funding permits) seek to heighten market acceptance of our colon cancer technology by demonstrating to managed care organizations that using our optical biopsy technique is faster, more accurate and less expensive than the current technique of removing all suspicious polyps.

We believe that we have sufficient funds to sustain operations for the remainder of 2005. However, additional capital will be required after that time since we anticipate insignificant revenues from operations for the near future and the cost to market a newly approved product for the detection of Barrett’s esophagus will be considerably more than the cash we will have on hand. We believe that this funding will come from venture capitalists or other private investors, but there can be no assurance that such investments will be available on terms acceptable to us.

The Company adopted fresh-start reporting, as of August 2, 2004 in accordance with the American Institute of Certified Public Accountants Statement Of Position 90-7, Financial Reporting by Entities in Reorganization Under the Bankruptcy Code (“SOP 90-7”). Under fresh-starting reporting, a new entity has been deemed created for financial reporting purposes. The results of operations are presented on a traditional comparative basis and compare the Successor Company for the period from January 1, 2005 to June 30, 2005 to the Predecessor Company for the period from January 1, 2004 to June 30, 2004. Management believes that the Predecessor and Successor Company periods are not comparable for accounting purposes.

Overall research and development expenses for the three months ended June 30, 2005 and 2004 were $9,106 and $0, respectively. Research and development expenses for the period ended June 30, 2005 relate specifically to new product and application development in preparation for a clinical trial.

General and administrative expenses for the three months ended June 30, 2005 and 2004 were $309,156 and $33,842, respectively. The increase for the three months ended June 30, 2005 compared to June 30, 2004 was primarily due to increased salary, professional fees and insurance required to re-start the Company. The Company was in bankruptcy during the 2004 period.

Other income (expense), net for the three months ended June 30, 2005 and 2004 was $10,522 and ($10,690), respectively. The increase was primarily from interest income due to higher balances in cash and cash equivalents from a stockholders’ rights offering and a private placement of common stock in the third quarter of 2004.

As a result of the above, the net loss for the three months ended June 30, 2005 and 2004 was $307,740 and $44,532, respectively. The increase in losses was primarily due to general and administrative expenses to re-start the Company. The net loss per share for the three months ended June 30, 2005 and 2004 was $0.01 and $0.01 respectively.

General and administrative expenses for the six months ended June 30, 2005 and 2004 were $500,953 and $71,456, respectively. The increase for the six months ended June 30, 2005 compared to June 30, 2004 was primarily due to increased salary, professional fees and insurance required to re-start the Company. The Company was in bankruptcy during the 2004 period.

Other income (expense), net, for the six months ended June 30, 2005 and 2004 was $11,550 and ($21,374), respectively. The increase was primarily from interest income due to higher balances in cash and cash equivalents from a stockholders’ rights offering and a private placement of common stock in the third quarter of 2004.

As a result of the above, the net loss for the six months ended June 30, 2005 and 2004 was $508,260 and $92,830, respectively. The increase in losses was primarily due to general and administrative expenses to re-start the Company. The net loss per share for the six months ended June 30, 2005 and 2004 was $0.01 and $0.01 respectively.

As required by Rule 13a-15 under the Exchange Act as of the end of the period covered by this Report, the Company carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures. This included a thorough investigation of accounting controls and presentation. This evaluation was carried out under the supervision and with the participation of the Company's management, including the Company's President, Chief Executive Officer and Chief Financial Officer. Based upon that evaluation, the Company's President, Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures are effective in timely alerting the Company’s management to material information relating to the Company and required to be included in its periodic SEC filings.

Minnesota	41-1448837
(State or other jurisdiction	(I.R.S. Employer Identification Number)
of incorporation or organization)

	June 30, 2005		December 31, 2004
Raw materials	$	62,129	$	98,346
Work in process		-		4,832
Finished goods		82,730		45,991
Totals	$	144,859	$	149,169


	SpectraScience, Inc. (Registrant)

August 11, 2005		/s/ James Hitchin
Date		James Hitchin President, Chief Executive Officer and Chief Financial Officer (Principal executive officer, principal financial officer, and principal accounting officer)