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

                                   FORM 10-QSB/A

(Mark One)

[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

                For the quarterly period ended SEPTEMBER 30, 2001
                                               ------------------

[ ]      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
                   ------------------------------------------
                    (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 November 9, 2001 was 7,153,813.


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


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<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                               SEPTEMBER 30, 2001


                                      INDEX

                                                                            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.........................................6

Part II  Other Information.....................................................8

    ITEM 1.  Legal Proceedings.................................................8
    ITEM 2.  Changes in Securities.............................................8
    ITEM 3.  Defaults Upon Senior Securities...................................8
    ITEM 4.  Submission of Matters to a Vote of Security Holders...............8
    ITEM 5.  Other Information.................................................8
    ITEM 6.  Exhibits and Reports on Form 8-K..................................8

Signatures.....................................................................9


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<PAGE>


PART I -- FINANCIAL INFORMATION
ITEM 1.      FINANCIAL STATEMENTS

                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                       September 30,    December 31,
                                                           2001            2000(1)
                                                       ------------     ------------
                                                        (UNAUDITED)       (AUDITED)
<S>                                                    <C>              <C>
ASSETS
Current assets:
   Cash and cash equivalents                           $  1,847,859     $  3,734,422
   Inventories                                              472,715          258,303
   Other current assets                                      52,939           87,878
                                                       ------------     ------------
Total current assets                                      2,373,513        4,080,603

Net property and equipment                                  220,185          268,692
Other Assets                                                 20,742           20,742
                                                       ------------     ------------

         TOTAL ASSETS                                     2,614,440     $  4,370,037
                                                       ============     ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable                                    $    276,577     $    117,563
   Note payable                                                  --           47,597
   Accrued compensation and taxes                           220,759          249,985
   Accrued expenses                                          90,263           68,020
   Accrued clinical research fees                             6,804           25,662
                                                       ------------     ------------
Total current liabilities                                   594,403          508,827

SHAREHOLDERS' EQUITY
Common stock, $.25 par value:
   Authorized shares--17,000,000
   Issued and outstanding shares--
     7,153,813 on September 30, 2001 and
     7,004,438 shares on December 31, 2000                1,788,453        1,751,110
Additional paid-in capital                               53,797,013       53,249,591
Accumulated deficit                                     (53,565,429)     (51,139,491)
                                                       ------------     ------------
         TOTAL SHAREHOLDERS' EQUITY                       2,020,037        3,861,210
                                                       ------------     ------------
         TOTAL LIABILITIES AND
              SHAREHOLDERS' EQUITY                     $  2,614,440     $  4,370,037
                                                       ============     ============
</TABLE>


(1)  THE BALANCE SHEET ON DECEMBER 31, 2000 HAS BEEN 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)

<TABLE>
<CAPTION>
                                    THREE MONTHS ENDED                NINE MONTHS ENDED
                                        SEPTEMBER 30                     SEPTEMBER 30
                               -----------------------------     -----------------------------
                                   2001             2000             2001             2000
                                   ----             ----             ----             ----
<S>                            <C>              <C>              <C>              <C>
Revenue                        $         --     $         --     $         --     $         --

Cost of products sold                    --               --               --               --
                               ------------     ------------     ------------     ------------
   Gross profit                          --               --               --               --

Operating expenses
   Research and development         481,085          365,130        1,600,245        1,101,135
   Selling, general and
     administrative                 310,013          238,561          920,906          767,585
                               ------------     ------------     ------------     ------------
Total operating expenses            791,098          603,691        2,521,151        1,868,720

Interest and other
   income (expense)                  19,870           54,114           95,212          161,740
                               ------------     ------------     ------------     ------------

Net loss                       $   (771,228)    $   (549,577)    $ (2,425,939)    $ (1,706,980)
                               ============     ============     ============     ============

Net loss per share             $      (0.11)    $      (0.08)    $      (0.34)    $      (0.26)

Weighted average common
   shares outstanding             7,151,748        6,835,808        7,100,380        6,522,224
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.


                                       4
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                             STATEMENTS OF CASH FLOW
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                              NINE MONTHS ENDED
                                                                SEPTEMBER 30
                                                       -----------------------------
                                                           2001              2000
                                                           ----              ----
<S>                                                    <C>              <C>
OPERATING ACTIVITIES
  Net loss                                             $ (2,425,939)    $ (1,706,980)
  Adjustments to reconcile net loss to cash
    used in operating activities:
    Depreciation                                             65,575           50,571
    Changes in operating assets
      and liabilities:
        Increase in inventories                            (214,412)         (14,969)
        Decrease in other current assets                     34,940           66,762
        Increase (decrease) in current liabilities           85,575         (672,802)
                                                       ------------     ------------

        Net cash used in operating activities            (2,454,261)      (2,277,418)

INVESTING ACTIVITIES
  Purchase of property and equipment                        (17,067)         (24,754)
  Decrease in long term commitment                               --          (41,094)
                                                       ------------     ------------
  Net cash used in investing activities                     (17,067)         (65,848)

FINANCING ACTIVITIES
  Proceeds from issuance of common stock                    584,765        1,396,476
                                                       ------------     ------------
        Net cash provided by financing activities           584,765        1,396,476
                                                       ------------     ------------

  Net increase (decrease) in cash and cash
  equivalents                                            (1,886,563)        (946,790)

CASH AND CASH EQUIVALENTS
  AT BEGINNING OF PERIOD                                  3,734,422        4,362,120
                                                       ------------     ------------

CASH AND CASH EQUIVALENTS
  AT END OF PERIOD                                     $  1,847,859     $  3,415,330
                                                       ============     ============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS.


                                       5
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                               SEPTEMBER 30, 2001

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

         Certain statements in this Form 10-QSB constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Words or phrases such as "may," "expects," "will continue," "is
anticipated," "management believes," "estimate," "projects," "hope" or similar
expressions or the negatives thereof identify forward-looking statements. Such
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from historical, currently
anticipated or projected results. We caution you not to place undue reliance on
forward-looking statements. Please refer to Exhibit 99 of the Company's Annual
Report on Form 10-KSB for the year ended December 31, 2000, for certain
important cautionary factors, risks and uncertainties related to investing in
the Company.


                          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 nine month period ended September 30, 2001 are not necessarily
indicative of the results that may be expected for the year ended December 31,
2001. 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, 2000.


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.


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 Optical Biopsy System is
SPECTRASCIENCE's first fully developed product to incorporate its proprietary
Laser Induced Fluorescence technology for worldwide clinical use. SPECTRASCIENCE
received FDA approval and European CE mark approval in the last quarter of the
year 2000.


                                       6
<PAGE>


         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)      RESULTS OF OPERATIONS

         The Company recorded no revenue for the three and nine months ended
September 30, 2001 and September 30, 2000. The Company had no cost of products
sold or gross profit for the same periods.

         Overall research and development expenses for the three and nine months
ended September 30, 2001 were $481,085 and $1,600,245, compared to $365,130 and
$1,101,135 for the same periods in 2000. Research and development expenses
related specifically to new product and application development for the three
and nine months ended September 30, 2001 were $404,596 and $1,377,897, compared
to $365,130 and $1,101,135 for the same periods in 2000, reflecting an increase
in expenses of 10.8% and 25.1% respectively. For the three month period ended
September 30, 2001, the Company continued to see increased expenses related to
its ongoing cost-effectiveness and outcome based clinical studies, as well as
increased expenses for consulting services related to development of a next
generation product and an additional application. The 25.1% increase for the
nine months ended September 30, 2001 was primarily due to increased consulting
expenses, expenses related to the above mentioned clinical studies, and new
product/application development. The increase was partially offset by reduced
travel and legal expenses.

         Research and development expenses related to the development of
manufacturing operations and processes for the three and nine months ended
September 30, 2001 were $76,489 and $222,348, compared to $0 for the same
periods in 2000. The increase is primarily due to increased expenses related to
manufacturing process consulting services, an increase in tools and supplies
expense, the hiring of an assembler, and the cost of maintaining ISO 9001
certification. We expect to continue to have increased expenses for
manufacturing operations as we prepare for anticipated sales.

         Selling, general and administrative expenses for the three month period
ended September 30, 2001 were $310,013, a 30% increase, and for the nine month
period ended September 30, 2001 were $920,906, a 20% increase, compared to the
same periods in 2000. The third quarter increase was due primarily to increased
salary expense for the Director of Marketing position which was vacant during
the third quarter of 2000. The 20% increase for the nine month period was
primarily due to increased salary expense for the reason stated above. The
increase was partially offset by reduced legal, convention and travel, and
consulting expenses.

         Interest and other income for the three and nine month periods ended
September 30, 2001 were $19,870 and $95,212, respectively, a substantial
decrease compared to the same periods in 2000. The decrease was primarily due to
lower balances in cash and cash equivalents.

         As a result of the above, the net loss for the three and nine months
ended September 30, 2001 was $771,228 and $2,425,939, compared to a net loss of
$549,577 and $1,706,980 for the same periods in 2000. The net loss per share for
the three and nine months ended September 30, 2001 was $0.11 and $0.34 compared
to $0.08 and $0.26 for the same periods in 2000.


                                       7
<PAGE>


(c)      LIQUIDITY AND SOURCES OF CAPITAL

         Cash and cash equivalents on September 30, 2001 were $1,847,859,
compared to $3,734,422 on December 31, 2000. The decrease in the cash position
from December 31, 2000 to September 30, 2001 was primarily due to the net loss
incurred during the period.

         The working capital of the Company on September 30, 2001 was
$1,779,110, compared to $3,571,776 on December 31, 2000. The decrease in working
capital was primarily due to the reduction of cash and cash equivalents used for
operations.

         Net cash used in operating activities for the nine months ended
September 30, 2001 was $2,454,261, a $176,843 increase compared to the same
period in 2000. The increase was primarily due to the higher net loss for
period.

         Net cash used in investing activities for the nine months ended
September 30, 2001 was $17,067, a $48,417 decrease compared to the same period
in 2000. The decrease was primarily due to not having a long-term commitment to
reduce during 2001.

         Net cash provided by financing activities for the nine month period
ended September 30, 2001 was $584,765, a $811,711 decrease compared to the same
period in 2000. The Company had fewer stock options exercised during this period
in 2001, compared to the same period in 2000.

         Management believes that the amount of cash and cash equivalents is
adequate to fund operations at least through December 2001. Management believes
additional cash will be required to fund continued operations and sales and
manufacturing ramp up. The amount and timing of any future financing will be
impacted by market conditions as well as other factors.

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

         The three clinical studies initiated during the first quarter of 2001
were ongoing during the third quarter of 2001.


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K

Exhibit 10.1:*  International Distributor Agreement between the Company and
                Endoscopy U.K., Ltd. dated August 22, 2001.

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

*Confidential information has been omitted from such Exhibit and filed
 separately with the Commission pursuant to a confidential treatment request
 under Rule 24b-2 of the Exchange Act.


                                       8
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                               SEPTEMBER 30, 2001


                                   SIGNATURES


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




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



   SEPTEMBER 4, 2002            /s/ SCOTT G. ANDERSON
------------------------        ----------------------------------
         Date                   SCOTT G. ANDERSON
                                President and Chief Executive Officer
                                (Principal Executive Officer,
                                Principal Financial and Accounting Officer)


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