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

                                   FORM 10-QSB

(Mark One)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
         EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 2002
                                                             --------------

[]       TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934 For the transition period from            to
                                                    ----------    -----------


                         Commission file number 0-13092
                                                -------

                              SPECTRASCIENCE, INC.
                              --------------------
                      (Exact name of small business issuer
                          as specified in its charter)

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

                         14405 21ST AVENUE N, SUITE 111
                        MINNEAPOLIS, MINNESOTA 55447-4638
                        ---------------------------------
                    (Address of principal executive offices)

                                 (763) 745-4120
                                 --------------
                           (Issuer's telephone number)


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.
YES _X_   NO ___

The number of shares of the Registrant's common stock, par value $.25 per share,
outstanding on May 10, 2002 was 7,153,813.

Transitional Small Business Disclosure Format (Check one):  Yes ___  No _X_


<PAGE>


                              SPECTRASCIENCE, INC.
                                   FORM 10-QSB

                                 MARCH 31, 2002
                                TABLE OF CONTENTS


                                                                            PAGE
                                                                             NO.

PART I -- FINANCIAL INFORMATION...............................................3
   ITEM 1.     FINANCIAL STATEMENTS...........................................3
   ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATIONS............................7

PART II -- OTHER INFORMATION..................................................9
   ITEM 1.     LEGAL PROCEEDINGS..............................................9
   ITEM 2.     CHANGES IN SECURITIES..........................................9
   ITEM 3.     DEFAULTS UPON SENIOR SECURITIES................................9
   ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS............9
   ITEM 5.     OTHER INFORMATION..............................................9
   ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K...............................9

SIGNATURES...................................................................10




                                       2
<PAGE>


PART I -- FINANCIAL INFORMATION

                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                           BALANCE SHEETS (UNAUDITED)

                                                  March 31,        December 31,
                                                    2002             2001(1)
                                                ------------       ------------
                                                 (Unaudited)         (Audited)
ASSETS
Current assets:
   Cash and cash equivalents                    $    401,400       $    969,861
   Inventory                                         505,401            510,141
   Other current assets                               66,450             86,780
                                                ------------       ------------
Total current assets                                 973,251          1,566,782
Net fixed assets                                     175,930            197,728
Other assets                                          75,277             70,936
                                                ------------       ------------
         TOTAL ASSETS                           $  1,224,458       $  1,835,446
                                                ============       ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable                             $     25,365       $    178,086
   Note payable - trade creditors                     31,792             50,209
   Accrued compensation and taxes                     96,780             58,259
   Accrued expenses                                   72,409             71,913
   Accrued clinical research fees                      1,304              1,304
                                                ------------       ------------
Total current liabilities                            227,650            359,771

SHAREHOLDERS' EQUITY
Common stock, $.25 par value:
   Authorized--17,000,000 shares
   Issued and outstanding--
     7,153,813 shares on March 31, 2002 and
     December 31, 2001                             1,788,454          1,788,454
Additional paid-in capital                        53,797,013         53,797,013
Accumulated deficit                              (54,588,659)       (54,109,792)
                                                ------------       ------------
         TOTAL SHAREHOLDERS' EQUITY                  996,808          1,475,675
                                                ------------       ------------
         Total liabilities and
            shareholders' equity                $  1,224,458       $  1,835,446
                                                ============       ============

(1)      THE BALANCE SHEET ON DECEMBER 31, 2001 IS DERIVED FROM THE AUDITED
         FINANCIAL STATEMENTS AT THAT DATE BUT DOES NOT INCLUDE ALL OF THE
         INFORMATION AND FOOTNOTES REQUIRED BY GENERALLY ACCEPTED ACCOUNTING
         PRINCIPLES FOR COMPLETE FINANCIAL STATEMENTS.

SEE NOTES TO FINANCIAL STATEMENTS.


                                       3
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)


                                                      THREE MONTHS ENDED
                                                           MARCH 31
                                                -----------------------------
                                                    2002              2001
                                                -----------       -----------
Operating expenses
   Research and development                     $   259,591       $   610,828
   Selling, general and administrative              221,649           291,397
                                                -----------       -----------
Total operating expenses                            481,240           902,225

Interest and other income                             2,373            45,657
                                                -----------       -----------

Net loss                                        $  (478,867)      $  (856,568)
                                                ===========       ===========

Net loss per common share                       $     (0.07)      $     (0.12)

Weighted average common shares outstanding        7,153,813         7,004,438

SEE NOTES TO FINANCIAL STATEMENTS.



                                       4
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                       STATEMENTS OF CASH FLOW (UNAUDITED)

<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED
                                                                 MARCH 31
                                                       -----------------------------
                                                          2002              2001
                                                       -----------       -----------
<S>                                                    <C>               <C>
OPERATING ACTIVITIES
Net loss                                               $  (478,867)      $  (856,568)
Adjustments to reconcile net loss to cash used in
  operating activities:
    Depreciation                                            21,797            21,852
    Changes in operating assets and liabilities:
       (Increase) decrease in inventories                    4,740          (148,571)
       Decrease in other current assets                     15,989             8,834
       Decrease in current liabilities                    (132,120)         (122,858)
                                                       -----------       -----------
Net cash used in operating activities                     (568,461)       (1,097,311)

INVESTING ACTIVITIES
Purchase of fixed assets                                        --            (6,729)
                                                       -----------       -----------
Net cash used in investing activities                           --            (6,729)

FINANCING ACTIVITIES
Proceeds from issuance of common stock                          --                --
                                                       -----------       -----------
Net cash provided by financing activities                       --                --

Net increase in cash and cash equivalents                 (568,461)       (1,104,040)

Cash and cash equivalents at beginning of period           969,861         3,734,422
                                                       -----------       -----------

Cash and cash equivalents at end of period             $   401,400       $ 2,630,382
                                                       ===========       ===========
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.



                                       5
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                                 MARCH 31, 2002


          SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
                               REFORM ACT OF 1995

         This Quarterly 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 Quarterly 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 under
the "Cautionary Statement" filed as exhibit 99.1 to the Company's Annual Report
on Form 10-KSB for the year ended December 31, 2001.


NOTES TO FINANCIAL STATEMENTS


NOTE A            BASIS OF PRESENTATION

         The accompanying unaudited financial statements of SPECTRASCIENCE, Inc.
(the "Company" or "we") have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB and Article 10 of Regulation S-X. 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 (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three month period ended March 31, 2002 are not necessarily
indicative of the results that may be expected for the year ended December 31,
2002. These statements should be read in conjunction with the financial
statements and related notes which are incorporated by reference in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2001.


NOTE B            NET LOSS PER SHARE
         Basic earnings per share is based on weighted average shares
outstanding and excludes any dilutive effects of options, warrants and
convertible securities. Diluted earnings per share for the Company is the same
as basic earnings per share because the effect of options and warrants is
anti-dilutive.


                                       6
<PAGE>


ITEM 2.           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                  AND RESULTS OF OPERATIONS

(a)      BUSINESS

         SPECTRASCIENCE, Inc. (the "Company" or "SPECTRASCIENCE") 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(TM) Optical Biopsy System
("WavSTAT(TM) ) is SPECTRASCIENCE's first fully developed product to incorporate
its proprietary Laser Induced Fluorescence technology for worldwide clinical
use. It is approved 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 Phase II clinical trial. SPECTRASCIENCE
believes its core technology is a platform technology that can be developed for
use in many areas of the human body.

         The Company's corporate offices are located at 14405 21st Avenue N,
Suite 111, Minneapolis, Minnesota 55447. The Company's telephone number is (763)
745-4120, its fax number is (763) 745-4126, and its e-mail address is
INFO@SPECTRASCIENCE.COM. The Company also has a web-site that can be accessed at
http://www.spectrascience.com. The Company's Common Stock is traded on the
Over-The-Counter Bulletin Board under the symbol SPSI.

(b)      CRITICAL ACCOUNTING POLICIES

         We have identified the policies below as critical to our business
operations and the understanding of our results of operations. For a detailed
discussion on the application of these and other accounting policies, see Note 3
in the Notes to the Consolidated Financial Statements in Item 7 of the Company's
Annual Report on Form 10-KSB for the year ended December 31, 2001, beginning on
page F-6. Note that our preparation of this Quarterly Report on Form 10-QSB
requires us to make estimates and assumptions that affect the reported amount of
assets and liabilities, disclosure of contingent assets and liabilities at the
date of our financial statements, and the reported amount of revenue, if any,
and expenses during the reporting period. There can be no assurance that actual
results will not differ from those estimates.

         Research and Development Costs: Our current policy classifies all
current research and development expenses as expenses when incurred.

         Inventory: The Company uses certain estimates and judgments to properly
value inventory. The Company's inventories are recorded at the lower of cost or
market. Each quarter, the Company evaluates its ending inventories for
obsolescence. This evaluation primarily includes analyses of inventory levels
and obsolescence of product due to technology changes or regulatory changes.
Inventories that are considered obsolete are written off.

         Other Long-Lived Assets: Property, plant and equipment and certain
other long-lived assets are amortized over their useful lives. Useful lives are
based on management's estimates of the period that the assets will generate
revenue.

(c)      RESULTS OF OPERATIONS

         The Company recorded no revenue for the three months ended March 31,
2002 and March 31, 2001. As a result, the Company had no cost of products sold
or gross profit for the same periods.

         Overall research and development expenses for the three months ended
March 31, 2002 were $259,591, compared to $610,828 for the same period in 2001,
a decrease of 57.5%. Research and development expenses related specifically to
new product and application development for the three


                                       7
<PAGE>


months ended March 31, 2002 were $215,198, compared to $543,915 for the same
period in 2001. During this period our research and development resources were
focused on preparing and submitting the PMA supplement for the WavSTAT(TM) III
System, further development of the application for use in detecting esophageal
cancer, and preparation for a Phase II clinical study for the detection of
Barrett's esophagus/esophageal cancer. The decrease was primarily due to lower
expenses related to (i) consulting and design expenses for next generation
product development, (ii) outcome-based cost-effectiveness studies, and (iii)
salaries, travel and legal. During the three month period ended March 31, 2001
the company had substantial consulting and design expenses related to
development and testing of the WavSTAT(TM) III System, as well as software
application development. These development processes were substantially
completed in 2001 and not ongoing during the three month period ended March 31,
2002. Lower expenses for the outcome based cost-effectiveness studies were due
to the studies being put on hold in order to ensure the Company has sufficient
resources to complete the process of locating a strategic partner.

         Research and development expenses related to the development of
manufacturing operations and processes for the three months ended March 31, 2002
were $44,393, compared to $66,913 for the same period in 2001. The decrease was
primarily due to lower consulting and salary expense.

         Selling, general and administrative expenses for the three months ended
March 31, 2002 were $221,649, compared to $291,397 for the same period in 2001.
The decrease of 23.9% was primarily due to lower salary, travel and convention
expenses. During the period from December 1, 2001 to January 31, 2002, the
Company reduced its workforce by six full-time and part-time employees (40%) in
response to changing economic and market conditions. Three of these employees
were involved with research and development, one was in manufacturing, and the
remaining two were in marketing and administration.

         Interest and other income for the three months ended March 31, 2002 was
$2,373, compared to $45,657 for the same period in 2001. The decrease of 94.8%
was due to lower balances in cash and cash equivalents.

         As a result of the above factors, the net loss for the three months
ended March 31, 2002 was $478,867, compared to a net loss of $856,568 for the
same period in 2001. This represents a decrease of 44.1% from the same period in
2001. The net loss per share for the three months ended March 31, 2002 was $.07
compared to $.12 for the same period in 2001.

(d)      LIQUIDITY, SOURCES OF CAPITAL, AND PLAN OF OPERATION

         Cash and cash equivalents on March 31, 2002 were $401,400, compared to
$969,861 on December 31, 2001. The decrease in our cash position from December
31, 2001 to March 31, 2002 was a result of the net losses attributable to our
research and development activities and our general corporate operations.

         The working capital of the Company on March 31, 2002 was $745,601,
compared to $1,207,011 on December 31, 2001. This decrease of 38.2% was
primarily due to the net attributable to our research and development activities
and our general corporate operations.

         Net cash used in operating activities for the three months ended March
31, 2002 was $568,461, compared to $1,097,311 for the same period in 2001. The
reduced use of cash was primarily due to the lower net loss for the current
period, and a slight reduction in inventory levels compared to increasing
inventory levels for the same period last year.

         Net cash used in investing activities for the three months ended March
31, 2002 was $0 compared to net cash used of $6,729 for the same period in 2001.
The Company did not purchase any fixed assets during the current period as
compared to the same period last year.

         There was no cash provided by financing activities for the three months
ended March 31, 2002 or March 31, 2001.


                                       8
<PAGE>


         Management believes that the amount of cash and cash equivalents is
adequate to fund operations through June 30, 2002. Additional cash will be
required to fund continued operations. The amount and timing of any future
financing will be impacted by market conditions as well as other factors.
Financing efforts were initiated in August 2001, however, an economic recession
accelerated by the events of September 11, 2001, changed the availability of
equity financing. As a result, management retained Greene, Holcomb & Fisher, LLC
to assist the Company in its review and evaluation of strategic alternatives.
SPECTRASCIENCE will need to complete a financing transaction in 2002 in order to
be able to financially execute the current business plan.

         Assuming SPECTRASCIENCE obtains financing sufficient to fund continuing
business operations and research and development activities, it intends to:

         *    complete outcome based clinical studies, both in the United States
              and the United Kingdom,

         *    publish in peer-reviewed journals,

         *    submit to HCFA, an application for reimbursement codes for use of
              the WavSTAT(TM) System upon completion of the outcome based
              clinical study in the United States,

         *    begin Phase II clinical studies with our Barrett's esophagus
              application,

         *    continue to develop the market with key physician opinion leaders,
              both international and domestic, for our approved product as well
              as for a Barrett's esophagus application,

         *    begin sales both domestically and internationally, and

         *    continue to develop strategic relationships for distribution and
              marketing.


PART II -- OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         Not Applicable


ITEM 2.  CHANGES IN SECURITIES

         Not Applicable


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         Not Applicable


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

         Not Applicable


ITEM 5.  OTHER INFORMATION

         Not Applicable

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

FORM 8-K:    No reports on Form 8-K were filed by the Company during the quarter
             covered by this report.


                                       9
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                                 MARCH 31, 2002

                                   SIGNATURES


          Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.




                                           SPECTRASCIENCE, INC.
                                        -------------------------
                                               (Registrant)



      MAY 14, 2002                         /S/ SCOTT G. ANDERSON
    ----------------                       ------------------------------
            Date                           SCOTT G. ANDERSON
                                           President and Chief Executive Officer
                                           (Principal Executive Officer)





                                       10