*** ***

**UNITED      STATES**

**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 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

**June      30, 2007**

| o | TRANSITION                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934 |
|---|------------------------------------------------------------------------------------------------------------------|

**0-13092**

**SPECTRASCIENCE,      Inc. **

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

**11568      Sorrento Valley Rd., Suite 11**

**San      Diego, California 92121**

**(858)      847-0200**

----

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN**

**BANKRUPTCY      PROCEEDINGS DURING THE**

**PRECEDING      FIVE YEARS**

----

**SpectraScience,      Inc.**

**Index**

|                     |                                                                         | **Page                  No.** |
|--------------------------|------------------------------------------------------------------------------|-------------------------------|
|                     |                                                                         |                          |
| Item                  1. | Financial                  Statements (Unaudited)                            | 4                             |
|                     |                                                                         |                          |
| Item                  3. | Controls                  and Procedures                                     | 19                            |
|                     |                                                                         |                          |
| PART                  II | OTHER                  INFORMATION                                           | 19                            |
|                     |                                                                         |                          |
| Item                  1. | Legal                  Proceedings                                           | 19                            |
|                     |                                                                         |                          |
| Item                  2. | Unregistered                  Sales of Equity Securities and Use of Proceeds | 19                            |
|                     |                                                                         |                          |
| Item                  3. | Defaults                  Upon Senior Securities                             | 19                            |
|                     |                                                                         |                          |
| Item                  4. | Submission                  of Matters to a Vote of Security Holders         | 19                            |
|                     |                                                                         |                          |
| Item                  5. | Other                  Information                                           | 19                            |
|                     |                                                                         |                          |
| Item                  6. | Exhibits                                                                     | 19                            |
|                     |                                                                         |                          |
| SIGNATURES               | 20                                                                           |

----

**PART      I**
**FINANCIAL      INFORMATION**
**:**

**Item      1.**
**Financial      Statements (Unaudited)**

**SpectraScience,      Inc.**

**CONDENSED      BALANCE SHEETS**

|                                                                                                                                                                                                                                       |   | **June                30,****2007** |       |  **December                31,****2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|-----------------------------------------------|--------|
|                                                                                                                                                                                                                                       |   | (Unaudited)                         |       |  (Audited)                               |   |
| ASSETS                                                                                                                                                                                                                                     |   |                                |       |                                     |   |
| Current                assets:                                                                                                                                                                                                             |   |                                |       |                                     |   |
| Cash                and cash equivalents                                                                                                                                                                                                   |   | $                                   | 1,735,000  |                                          | $      | 174,802 |   |
| Inventories                                                                                                                                                                                                                                |   |                                | 126,822    |                                          |   | 123,981 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                                   |   |                                | 37,907     |                                          |   | 50,933 |   |
| Total                current assets                                                                                                                                                                                                        |   |                                | 1,899,729  |                                          |   | 349,716 |   |
| Fixed                assets, net                                                                                                                                                                                                           |   |                                | 10,348     |                                          |   | - |   |
| Patents,                net                                                                                                                                                                                                                |   |                                | 233,350    |                                          |   | 243,062 |   |
|                                                                                                                                                                                                                                       |   |                                |       |                                          |   |   |   |
| TOTAL                ASSETS                                                                                                                                                                                                                |   | $                                   | 2,143,427  |                                          | $      | 592,778 |   |
|                                                                                                                                                                                                                                       |   |                                |       |                                          |   |   |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                  |   |                                |       |                                          |   |   |   |
| Current                liabilities:                                                                                                                                                                                                        |   |                                |       |                                          |   |   |   |
| Accounts                payable                                                                                                                                                                                                            |   | $                                   | 51,774     |                                          | $      | 57,689 |   |
| Accrued                liabilities                                                                                                                                                                                                         |   |                                | 17,067     |                                          |   | 9,286 |   |
| Total                current liabilities                                                                                                                                                                                                   |   |                                | 68,841     |                                          |   | 66,975 |   |
|                                                                                                                                                                                                                                       |   |                                |       |                                          |   |   |   |
| STOCKHOLDERS’                EQUITY                                                                                                                                                                                                  |   |                                |       |                                          |   |   |   |
| Undesignated                capital stock, undesignated par value, 22,750,000 shares authorized,                none                issued                                                                                                 |   |                                | -          |                                          |   | - |   |
| Series                A Convertible Preferred Stock, $.01 par value: Authorized                - 2,250,000 shares Issued                and outstanding - 2,000,000 shares at June 30, 2007 (0                shares at December 31, 2006) |   |                                | 20,000     |                                          |   | - |   |
| Common                stock, $.01 par value:                                                                                                                                                                                               |   |                                |       |                                          |   |   |   |
| Authorized--100,000,000                shares                                                                                                                                                                                              |   |                                |       |                                          |   |   |   |
| Issued                and outstanding—40,650,087 shares at June 30, 2007 (38,370,087 shares at                December 31, 2006)                                                                                                     |   |                                | 406,501    |                                          |   | 383,701 |   |
| Additional                paid-in capital                                                                                                                                                                                                  |   |                                | 6,174,280  |                                          |   | 2,742,888 |   |
| Deficit                accumulated during the development stage                                                                                                                                                                            |   |                                | (4,526,195 | )                                             |   | (2,600,786 | ) |
| TOTAL                STOCKHOLDERS’ EQUITY                                                                                                                                                                                            |   |                                | 2,074,586  |                                          |   | 525,803 |   |
| TOTAL                LIABILITIES AND STOCKHOLDERS’                EQUITY                                                                                                                                                             |   | $                                   | 2,143,427  |                                          | $      | 592,778 |   |

*See      accompanying notes to unaudited condensed financial      statements.*

----

**SpectraScience,      Inc.**

**CONDENSED      STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                          |   |    **Three                Months Ended****June                30,**  |       |    **Six                Months Ended****June                30,** |   | **August                2, 2004****(Inception                of****Successor                Company)****to                June 30,** |   |
|-------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|------------|----------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                          |   |                                                                                     |       |                                                                             |   |                                                                                                                                 |   |   |   |   |   |
|                                                                          |   | **2007**                                                                                 |       | **2006**                                                                         |   | **2007**                                                                                                                             |   | **2006** |   | **2007** |   |
|                                                                          |   |                                                                                     |       |                                                                             |   |                                                                                                                                 |   |   |   |   |   |
| Gross                revenue                                                  |   | $                                                                                        | -          |                                                                             | $      | -                                                                                                                                    |   | $ | - |   | $ | - |   | $ | - |   |
| Operating                expenses:                                            |   |                                                                                     |       |                                                                             |   |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Research                and development                                       |   |                                                                                     | 119,856    |                                                                             |   | 118,330                                                                                                                              |   |   | 194,298 |   |   | 215,548 |   |   | 931,373 |   |
| General                and administrative                                     |   |                                                                                     | 278,707    |                                                                             |   | 138,791                                                                                                                              |   |   | 444,622 |   |   | 368,069 |   |   | 2,361,387 |   |
| Sales                and marketing                                            |   |                                                                                     | 273,081    |                                                                             |   | -                                                                                                                                    |   |   | 296,195 |   |   | - |   |   | 296,195 |   |
| Total                operating expenses                                       |   |                                                                                     | 671,644    |                                                                             |   | 257,121                                                                                                                              |   |   | 935,115 |   |   | 583,617 |   |   | 3,588,955 |   |
| Operating                loss                                                 |   |                                                                                     | (671,644   | )                                                                                |   | (257,121                                                                                                                             | )      |   | (935,115 | ) |   | (583,617 | ) |   | (3,588,955 | ) |
|                                                                          |   |                                                                                     |       |                                                                             |   |                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |
| Other                income, net                                              |   |                                                                                     | 8,795      |                                                                             |   | 2,002                                                                                                                                |   |   | 9,706 |   |   | 5,222 |   |   | 62,760 |   |
| Net                Loss                                                       |   |                                                                                     | (662,849   | )                                                                                |   | (255,119                                                                                                                             | )      |   | (925,409 | ) |   | (578,395 | ) |   | (3,526,195 | ) |
| Deemed                dividend on preferred                stock              |   |                                                                                     | (1,000,000 | )                                                                                |   | -                                                                                                                                    |   |   | (1,000,000 | ) |   | - |   |   | (1,000,000 | ) |
| Net                loss applicable to                common stockholders      |   | $                                                                                        | (1,662,849 | )                                                                                | $      | (255,119                                                                                                                             | )      | $ | (1,925,409 | ) | $ | (578,395 | ) | $ | (4,526,195 | ) |
| Basic                and diluted net                loss per share            |   | $                                                                                        | (0.04      | )                                                                                | $      | (0.01                                                                                                                                | )      | $ | (0.05 | ) | $ | (0.02 | ) |   |   |   |
| Weighted                average common                shares outstanding |   |                                                                                     | 40,179,254 |                                                                             |   | 37,725,650                                                                                                                           |   |   | 39,354,254 |   |   | 37,660,831 |   |   |   |   |

*See      accompanying notes to unaudited condensed financial      statements.*

----

**SpectraScience,      Inc.**

**CONDENSED      STATEMENT OF STOCKHOLDERS’ EQUITY**

**For      the six months ended June 30, 2007**

**(Unaudited)**

|                                                                                                       |   |    **Preferred                Stock** |         |    **Common                Stock** |   |   **Additional****Paid-In** |   | **Deficit****Accumulated****During                The****Development** |         |   **Total****Stockholders’** |   |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------------|---------------------------------------------------|--------|---------------------------------------|--------|------------------------------------------------------------------------|--------------|----------------------------------------------|--------|
|                                                                                                       |   | **Shares**                                           |         | **Amount**                                        |   | **Shares**                            |   | **Amount**                                                             |         | **Capital**                                  |   | **Stage** |   | **Equity** |   |
|                                                                                                       |   |                                                 |         |                                              |   |                                  |   |                                                                   |         |                                         |   |   |   |   |   |
| **Balance,                December 31, 2006**                                                              |   |                                                 | —      |                                              |   | —                               |   |                                                                   | 38,370,087   |                                         | $      | 383,701 |   | $ | 2,742,888 |   | $ | (2,600,786 | ) | $ | 525,803 |   |
|                                                                                                       |   |                                                 |         |                                              |   |                                  |   |                                                                   |         |                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock                based compensation - consultants                                                      |   |                                                 |         |                                              |   |                                  |   |                                                                   |         |                                         |   |   |   |   | 20,816 |   |   |   |   |   | 20,816 |   |
| Stock                based compensation - employees                                                        |   |                                                 |         |                                              |   |                                  |   |                                                                   |         |                                         |   |   |   |   | 343,855 |   |   |   |   |   | 343,855 |   |
| Stock                options exercised                                                                     |   |                                                 |         |                                              |   |                                  |   |                                                                   | 10,000       |                                         |   | 100 |   |   | 1,400 |   |   |   |   |   | 1,500 |   |
| Issuance                of common stock at $0.50 per share                                                 |   |                                                 |         |                                              |   |                                  |   |                                                                   | 2,270,000    |                                         |   | 22,700 |   |   | 1,112,300 |   |   |   |   |   | 1,135,000 |   |
| Issuance                of preferred stock and warrants at $0.50 per share, net of                expenses |   |                                                 | 2,000,000    |                                              |   |                                  |   |                                                                   |         |                                         |   |   |   |   | 973,021 |   |   |   |   |   | 973,021 |   |
| Deemed                dividend on preferred stock                                                          |   |                                                 |         |                                              | $      | 20,000                                |   |                                                                   |         |                                         |   |   |   |   | 980,000 |   |   | (1,000,000 | ) |   | — |   |
| Net                loss                                                                                    |   |                                                 |         |                                              |   |                                  |   |                                                                   |         |                                         |   |   |   |   |   |   |   | (925,409 | ) |   | (925,409 | ) |
|                                                                                                       |   |                                                 |    |                                              |   |                             |   |                                                                   |    |                                         |   |    |   |    |    |   |   |    |   |   |    |   |
| **Balance,                June 30, 2007**                                                                  |   |                                                 | 2,000,000    |                                              | $      | 20,000                                |   |                                                                   | 40,650,087   |                                         | $      | 406,501 |   | $ | 6,174,280 |   | $ | (4,526,195 | ) | $ | 2,074,586 |   |

*See      accompanying notes to unaudited condensed financial      statements.*

----

**SpectraScience,      Inc.**

**CONDENSED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                      |   | **Six                Months Ended June 30,** |      | **August                2, 2004****(Inception                of**** ****Successor****Company)                to** |   |
|-----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|-----------|------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                      |   | **2007**                                     |      | **2006**                                                                                                               |   | **June                30, 2007** |   |
| OPERATING                ACTIVITIES:                                                                      |   |                                         |      |                                                                                                                   |   |   |   |
| Net                loss                                                                                   |   | $                                            | (925,409  | )                                                                                                                      | $      | (578,395 | ) | $ | (3,526,195 | ) |
| Adjustments                to reconcile net loss to net cash used                in operating activities: |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| Depreciation                and amortization                                                              |   |                                         | 10,292    |                                                                                                                   |   | 14,651 |   |   | 76,420 |   |
| Stock-based                compensation employees                                                         |   |                                         | 343,855   |                                                                                                                   |   | 39,558 |   |   | 817,611 |   |
| Stock-based                compensation consultants                                                       |   |                                         | 20,816    |                                                                                                                   |   | 76,617 |   |   | 304,745 |   |
| Gain                on disposal of fixed assets                                                           |   |                                         | -         |                                                                                                                   |   | - |   |   | (21,689 | ) |
| Write-off                of obsolete inventories                                                          |   |                                         | -         |                                                                                                                   |   | 12,147 |   |   | 25,188 |   |
| Changes                in operating assets and                liabilities:                                |   |                                         |           |                                                                                                                   |   |  |   |   |   |   |
| Prepaid                expenses and other current assets                                                  |   |                                         | 10,185    |                                                                                                                   |   | 25,346 |   |   | (16,997 | ) |
| Accounts                payable                                                                           |   |                                         | (5,915    | )                                                                                                                      |   | (697 | ) |   | (7,929 | ) |
| Accrued                liabilities                                                                        |   |                                         | 7,781     |                                                                                                                   |   | 937 |   |   | (15,025 | ) |
| Net                cash used in operating activities                                                      |   |                                         | (538,395  | )                                                                                                                      |   | (409,836 | ) |   | (2,363,871 | ) |
|                                                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| INVESTING                ACTIVITIES:                                                                      |   |                                         |           |                                                                                                                   |   |   |   |   |   |   |
| Purchases                of fixed assets                                                                  |   |                                         | (10,928   | )                                                                                                                      |   | - |   |   | (10,928 | ) |
| Proceeds                from the sale of assets                                                           |   |                                         | -         |                                                                                                                   |   | - |   |   | 25,740 |   |
|                                                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| Net                cash provided by (used in) investing activities                                        |   |                                         | (10,928   | )                                                                                                                      |   | - |   |   | 14,812 |   |
|                                                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| FINANCING                ACTIVITIES:                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| Proceeds                from issuance of common stock                                                     |   |                                         | 1,135,000 |                                                                                                                   |   | 502,048 |   |   | 1,657,048 |   |
| Net                proceeds from issuance of preferred stock                                              |   |                                         | 973,021   |                                                                                                                   |   | - |   |   | 973,021 |   |
| Proceeds                from exercise of stock options                                                    |   |                                         | 1,500     |                                                                                                                   |   | 4,275 |   |   | 12,000 |   |
| Net                cash provided by financing activities                                                  |   |                                         | 2,109,521 |                                                                                                                   |   | 506,323 |   |   | 2,642,069 |   |
|                                                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| Net                increase in cash and cash equivalents                                                  |   |                                         | 1,560,198 |                                                                                                                   |   | 96,487 |   |   | 293,010 |   |
|                                                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT                BEGINNING OF PERIOD                            |   |                                         | 174,802   |                                                                                                                   |   | 441,025 |   |   | 1,441,990 |   |
|                                                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT                END OF PERIOD                                  |   | $                                            | 1,735,000 |                                                                                                                   | $      | 537,512 |   | $ | 1,735,000 |   |
|                                                                                                      |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| Supplemental                disclosure of non-cash investing and financing activities:                    |   |                                         |      |                                                                                                                   |   |   |   |   |   |   |
| Conversion                of notes payable and accrued interest                to common stock            |   |                                         | -         |                                                                                                                   |   | **-** |   | $ | 565,000 |   |
| Issuance                of common stock in settlement of                bankruptcy debt                   |   |                                         | -         |                                                                                                                   |   | **-** |   | $ | 60,000 |   |
| Fresh                start adjustment to fixed assets and Patents                                         |   |                                         | -         |                                                                                                                   |   | **-** |   | $ | 255,379 |   |

*See      accompanying notes to unaudited condensed financial      statements.*

----

**SpectraScience,      Inc.**

**Notes      to Unaudited Condensed Financial Statements**

**June      30**
**,      2007**

**1.**
**Nature      of Business and Basis of Presentation**

**Description      of Business**

**Basis      of Presentation**

**Liquidity      and Development Stage Enterprise**

----

**2.**
**Summary      of Significant Accounting Policies**

----

|                                     |   | 2007   |                     | 2006   |   |
|------------------------------------------|--------|--------|--------------------------|--------|--------|
| Estimated/contract                  life |   |   | 5                  years |   |   | 5                  years |   |
| Risk-free                  interest rate |   |   | 4.92                     | %      |   | 5.13 | % |
| Expected                  volatility     |   |   | 140                      | %      |   | 220 | % |
| Expected                  dividend yield |   |   | 0                        | %      |   | 0 | % |

|                                         |   | Options                Available For Grant |      | Plan                Options Outstanding |   | Weighted                Average Exercise Price Share |   | Weighted-Average                Remaining Contractual Term (years) |   | Aggregate                Intrinsic Value ($000) |   |
|----------------------------------------------|--------|--------------------------------------------|-----------|-----------------------------------------|--------|------------------------------------------------------|--------|--------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| Outstanding                December 31, 2006 |   |                                       | 3,281,114 |                                    |   | 2,330,000                                            |   | $                                                                  | 0.42   |                                            |   |   |   |   |   |   |
| Options                granted               |   |                                       | (977,000  | )                                       |   | 977,000                                              |   | $                                                                  | 0.95   |                                            |   |   |   |   |   |   |
| Options                exercised             |   |                                       | 10,000    |                                    |   | (10,000                                              | )      | $                                                                  | 0.15   |                                            |   |   |   |   |   |   |
| Additional                options available  |   |                                       | 486,399   |                                    |   | -                                                    |   |                                                               | -      |                                            |   |   |   |   |   |   |
| Forfeited                or expired          |   |                                       | -         |                                    |   | -                                                    |   |                                                               |   |                                            |   |   |   |   |   |   |
| Outstanding                at June 30, 2007  |   |                                       | 2,800,513 |                                    |   | 3,297,000                                            |   | $                                                                  | 0.58   |                                            |   | 8.24 |   | $ | 1,724,750 |   |
| Exercisable                at June 30, 2007  |   |                                       |      |                                    |   | 2,437,333                                            |   | $                                                                  | 0.44   |                                            |   | 7.77 |   | $ | 1,615,583 |   |

----

|                           |   | June                30, 2007 |    | December                31, 2006 |   |
|--------------------------------|--------|------------------------------|---------|----------------------------------|--------|
| Raw                materials   |   | $                            | 53,717  |                             | $      | 50,876 |   |
| Work                in process |   |                         | -       |                             |   | - |   |
| Finished                goods  |   |                         | 73,105  |                             |   | 73,105 |   |
| Totals                         |   | $                            | 126,822 |                             | $      | 123,981 |   |

----

|                                                                                                   |   | **As                previously reported in the 2006****10-QSB**        |       | **After                re-classification**                     |   | **As                previously reported in****the                2006****10-QSB** |   | **After                re-classification**                             |       |
|--------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|----------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|
|                                                                                                   |   |  **Quarter                ended****June                30, 2006** |       | **Quarter****ended**** ****June                30, 2006** |   | **Six                Months****ended****June                30, 2006**            |   | **Six                Months****ended****June                30, 2006** |       |
| Gross                revenue                                                                           |   | $                                                                      | -          |                                                           | $      | -                                                                                 |   | $                                                                      | -          |   | $ | - |   |
| Operating                expenses:                                                                     |   |                                                                   |       |                                                           |   |                                                                              |   |                                                                   |       |   |   |   |   |
| Research                and                development                                                 |   |                                                                   | 67,690     |                                                           |   | 118,330                                                                           |   |                                                                   | 104,590    |   |   | 215,548 |   |
| General                and administrative                                                              |   |                                                                   | 189,431    |                                                           |   | 138,791                                                                           |   |                                                                   | 479,027    |   |   | 368,069 |   |
| Total                operating expenses                                                                |   |                                                                   | 257,121    |                                                           |   | 257,121                                                                           |   |                                                                   | 583,617    |   |   | 583,617 |   |
| Operating                loss                                                                          |   |                                                                   | (257,121   | )                                                              |   | (257,121                                                                          | )      |                                                                   | (583,617   | ) |   | (583,617 | ) |
| Other                income, net                                                                       |   |                                                                   | 2,002      |                                                           |   | 2,002                                                                             |   |                                                                   | 5,222      |   |   | 5,222 |   |
| Net                loss                                                                                |   | $                                                                      | (255,119   | )                                                              | $      | (255,119                                                                          | )      | $                                                                      | (578,395   | ) | $ | (578,395 | ) |
| Basic                and diluted                net loss                per share                      |   | $                                                                      | (0.01      | )                                                              | $      | (0.01                                                                             | )      | $                                                                      | (0.02      | ) | $ | (0.02 | ) |
| Weighted                Average                Common                Shares                outstanding |   |                                                                   | 37,725,650 |                                                           |   | 37,725,650                                                                        |   |                                                                   | 37,660,831 |   |   | 37,660,831 |   |

----

**3.      Stockholders Equity**

----

----

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

**Safe      Harbor Statement Under the Private Securities Litigation Reform Act of      1995**

**Business**

**Plan      of Operation**

----

**Results      of Operations**

----

|                                                                                                   |   | **As                previously reported in the 2006****10-QSB**  |       | **After                re-classification**                     |   | **As                previously reported in****the                2006****10-QSB** |   | **After                re-classification**                             |       |
|--------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|----------------------------------------------------------------|--------|-----------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|
|                                                                                                   |   | **Quarter                ended****June                30, 2006** |       | **Quarter****ended**** ****June                30, 2006** |   | **Six                Months****ended****June                30, 2006**            |   | **Six                Months****ended****June                30, 2006** |       |
| Gross                revenue                                                                           |   | $                                                                | -          |                                                           | $      | -                                                                                 |   | $                                                                      | -          |   | $ | - |   |
| Operating                expenses:                                                                     |   |                                                             |       |                                                           |   |                                                                              |   |                                                                   |       |   |   |   |   |
| Research                and                development                                                 |   |                                                             | 67,690     |                                                           |   | 118,330                                                                           |   |                                                                   | 104,590    |   |   | 215,548 |   |
| General                and administrative                                                              |   |                                                             | 189,431    |                                                           |   | 138,791                                                                           |   |                                                                   | 479,027    |   |   | 368,069 |   |
| Total                operating expenses                                                                |   |                                                             | 257,121    |                                                           |   | 257,121                                                                           |   |                                                                   | 583,617    |   |   | 583,617 |   |
| Operating                loss                                                                          |   |                                                             | (257,121   | )                                                              |   | (257,121                                                                          | )      |                                                                   | (583,617   | ) |   | (583,617 | ) |
| Other                income, net                                                                       |   |                                                             | 2,002      |                                                           |   | 2,002                                                                             |   |                                                                   | 5,222      |   |   | 5,222 |   |
| Net                loss                                                                                |   | $                                                                | (255,119   | )                                                              | $      | (255,119                                                                          | )      | $                                                                      | (578,395   | ) | $ | (578,395 | ) |
| Basic                and diluted                net loss                per share                      |   | $                                                                | (0.01      | )                                                              | $      | (0.01                                                                             | )      | $                                                                      | (0.02      | ) | $ | (0.02 | ) |
| Weighted                Average                Common                Shares                outstanding |   |                                                             | 37,725,650 |                                                           |   | 37,725,650                                                                        |   |                                                                   | 37,660,831 |   |   | 37,660,831 |   |

***For      the Three Months ended June 30, 2007 and 2006***

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***For      the Six Months ended June 30, 2007 and 2006***

**Liquidity      and Capital Resources**

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**Item      3.**
** **
**Controls      and Procedures**

| **PART                  II**     |   | **OTHER                  INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|----------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Item                  1.**     |   | **Legal                  Proceedings**                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                  |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Item                  2.**     |   | **Unregistered                  Sales of Equity Securities and Use of Proceeds**                                                                                                                                                                                                                                                                                                                                                                                                  |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   | The                  Company made Rule 506 Regulation D offering of 1,320,000 common                  shares and                  2,000,000 preferred series A shares at $0.50 per share to accredited                  investors during the second quarter of 2007, netting $1,660,000.                  The                  Company recorded approximately $26,000 in costs of issuance related                  to the                  Series A Convertible Preferred Stock. |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Item                  3.**     |   | **Defaults                  Upon Senior Securities**                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Item                  4.**     |   | **Submission                  of Matters to a Vote of Security Holders**                                                                                                                                                                                                                                                                                                                                                                                                          |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Item                  5.**     |   | **Other                  Information**                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Item                  6.**     |   | **Exhibits**                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Exhibit                  4.1** |   | Preferred                  Series A Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Exhibit                  4.2** |   | Warrant                  Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Exhibit                  31**  |   | Certification                  of Chief Executive Officer and Chief Financial Officer pursuant                  to Section                  302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                |
|                             |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Exhibit                  32**  |   | Certification                  of Chief Executive Officer and Chief Financial Officer pursuant                  to Section                  906 of the Sarbanes-Oxley Act of                  2002.                                                                                                                                                                                                                                                                               |

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**SpectraScience,      Inc.**

**FORM      10-QSB**

**June      30, 2007**

**SIGNATURES**

|                                          |                                                                                                                                                                                                                   |                           |
|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                                          | **SpectraScience,                Inc.**(Registrant)                                                                                                                                                                    |
|                                     |                                                                                                                                                                                                              |                      |
| **August              14,              2007** |                                                                                                                                                                                                                        | /s/              James Hitchin |
| Date                                          | **J****AMES****H****ITCHIN**                                                                                                                                                                                           |
|                                          | President,                Chief Executive Officer and Chief                Financial Officer(Principal                executive officer, principal financial officer, and                principal accounting officer) |

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