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

**September      30, 2006**

| 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.** |
|--------------------------|----------------------------------------------------------------------------------|-----------------------------|
| PART                  I  | FINANCIAL                  INFORMATION:                                          | 4                           |
|                     |                                                                             |                        |
| Item                  1. | Financial                  Statements (Unaudited)                                | 4                           |
|                     |                                                                             |                        |
| Item                  2. | Management’s                  Discussion and Analysis or Plan of Operation | 14                          |
|                     |                                                                             |                        |
| 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**

|                                                                                                                                             |   | **September                  30,****2006** |       | **December                  31,****2005** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|-------------------------------------------|--------|
|                                                                                                                                             |   | (Unaudited)                                |       | (Audited)                                 |   |
| ASSETS                                                                                                                                           |   |                                       |       |                                      |   |   |   |
| Current                  assets:                                                                                                                 |   |                                       |       |                                      |   |   |   |
| Cash                  and cash equivalents                                                                                                       |   | $                                          | 360,815    |                                      | $      | 441,025 |   |
| Inventories                                                                                                                                      |   |                                       | 127,925    |                                      |   | 140,072 |   |
| Prepaid                  expenses and other current assets                                                                                       |   |                                       | 54,295     |                                      |   | 42,310 |   |
| Total                  current assets                                                                                                            |   |                                       | 543,035    |                                      |   | 623,407 |   |
|                                                                                                                                             |   |                                       |       |                                      |   |   |   |
| Fixed                  assets, net                                                                                                               |   |                                       | —    |                                      |   | 6,397 |   |
| Patents,                  net                                                                                                                    |   |                                       | 247,917    |                                      |   | 262,626 |   |
|                                                                                                                                             |   |                                       |       |                                      |   |   |   |
| TOTAL                  ASSETS                                                                                                                    |   | $                                          | 790,952    |                                      | $      | 892,430 |   |
|                                                                                                                                             |   |                                       |       |                                      |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS’ EQUITY                                                                                      |   |                                       |       |                                      |   |   |   |
| Current                  liabilities:                                                                                                            |   |                                       |       |                                      |   |   |   |
| Accounts                  payable                                                                                                                |   | $                                          | 37,892     |                                      | $      | 17,498 |   |
| Accrued                  compensation and taxes                                                                                                  |   |                                       | 16,847     |                                      |   | 15,205 |   |
| Accrued                  expenses                                                                                                                |   |                                       | 1,000      |                                      |   | — |   |
| Total                  liabilities                                                                                                               |   |                                       | 55,739     |                                      |   | 32,703 |   |
|                                                                                                                                             |   |                                       |       |                                      |   |   |   |
| STOCKHOLDERS’                  EQUITY                                                                                                      |   |                                       |       |                                      |   |   |   |
| Undesignated                  capital stock, undesignated par value, 25,000,000 shares authorized,                  none                  issued |   |                                       | —    |                                      |   | — |   |
| Common                  stock, $.01 par value:                                                                                                   |   |                                       |       |                                      |   |   |   |
| Authorized--100,000,000                  shares                                                                                                  |   |                                       |       |                                      |   |   |   |
| Issued                  and outstanding—38,360,087 shares at September 30, 2006 (37,572,262 shares                  at December 31, 2005)  |   |                                       | 383,601    |                                      |   | 375,723 |   |
| Additional                  paid-in capital                                                                                                      |   |                                       | 2,550,232  |                                      |   | 1,822,123 |   |
| Deferred                  compensation                                                                                                           |   |                                       | —    |                                      |   | (48,140 | ) |
| Deficit                  accumulated during the development stage                                                                                |   |                                       | (2,198,620 | )                                         |   | (1,289,979 | ) |
| TOTAL                  STOCKHOLDERS’ EQUITY                                                                                                |   |                                       | 735,213    |                                      |   | 859,727 |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS’                  EQUITY                                                               |   | $                                          | 790,952    |                                      | $      | 892,430 |   |

*See      accompanying notes to unaudited condensed financial      statements.*

----

**SpectraScience,      Inc.**

**CONDENSED      STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                      |   | **Three                Months Ended****September                30,** |       | **Nine                Months Ended** **September                30****,** |   | **August                2, 2004****(Inception                of** **Successor****Company)                to** |   |
|-----------------------------------------------------------|--------|-----------------------------------------------------------------------|------------|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                      |   | **2006**                                                              |       | **2005****Restated**                                                           |   | **2006**                                                                                                           |   | **2005****Restated** |   | **September                  30,  **2006**** |   |
|                                                      |   |                                                                  |       |                                                                           |   |                                                                                                               |   |   |   |   |   |
| Gross                revenue                              |   | $                                                                     | —    |                                                                           | $      | —                                                                                                            |   | $ | — |   | $ | — |   | $ | — |   |
| Operating                expenses:                        |   |                                                                  |       |                                                                           |   |                                                                                                               |   |   |   |   |   |   |   |   |   |   |
| Research                and development                   |   |                                                                  | 93,725     |                                                                           |   | 58,058                                                                                                             |   |   | 309,274 |   |   | 181,111 |   |   | 578,549 |   |
| General                and administrative                 |   |                                                                  | 241,514    |                                                                           |   | 97,448                                                                                                             |   |   | 609,582 |   |   | 494,204 |   |   | 1,657,272 |   |
| Total                operating expenses                   |   |                                                                  | 335,239    |                                                                           |   | 155,506                                                                                                            |   |   | 918,856 |   |   | 675,315 |   |   | 2,235,821 |   |
| Operating                loss                             |   |                                                                  | (335,239   | )                                                                              |   | (155,506                                                                                                           | )      |   | (918,856 | ) |   | (675,315 | ) |   | (2,235,821 | ) |
| Other                income, net                          |   |                                                                  | 4,994      |                                                                           |   | 6,074                                                                                                              |   |   | 10,215 |   |   | 17,623 |   |   | 37,201 |   |
| Net                loss                                   |   | $                                                                     | (330,245   | )                                                                              | $      | (149,432                                                                                                           | )      | $ | (908,641 | ) | $ | (657,692 | ) | $ | (                2,198,620 | ) |
| Basic                and diluted net loss per share       |   | $                                                                     | (0.01      | )                                                                              | $      | (0.00                                                                                                              | )      | $ | (0.02 | ) | $ | (0.02 | ) |   |   |   |
| Weighted                average common shares outstanding |   |                                                                  | 38,351,754 |                                                                           |   | 37,550,762                                                                                                         |   |   | 37,891,138 |   |   | 37,550,762 |   |   |   |   |

*See      accompanying notes to unaudited condensed financial      statements.*

----

*.*

**SpectraScience,      Inc.**

**CONDENSED      STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                  |   | **Nine                Months Ended****September                30,** |               |  **August                2, 2004****(Inception                of **** ****Successor****Company)                to******September                30,**** |   |
|-------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                  |   | **2006**                                                             |               | **2005**                                                                                                                                                               |   | **2006** |   |
| OPERATING                ACTIVITIES:                                                                  |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| Net                loss                                                                               |   | $                                                                    | (908,641           | )                                                                                                                                                                      | $      | (657,692 | ) | $ | (2,198,620 | ) |
| Adjustments                to reconcile net loss to cashused                in operating activities:  |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| Depreciation                and amortization                                                          |   |                                                                 | 21,106             |                                                                                                                                                                   |   | 21,689 |   |   | 61,273 |   |
| Stock-based                compensation employees                                                     |   |                                                                 | 245,786            |                                                                                                                                                                   |   | 59,335 |   |   | 434,227 |   |
| Stock-based                compensation consultants                                                   |   |                                                                 | 30,518             |                                                                                                                                                                   |   | 52,991 |   |   | 132,202 |   |
| Gain                on disposal of fixed assets                                                       |   |                                                                 |                    |                                                                                                                                                                   |   |  |   |   | (9,139 | ) |
| Write-off                of obsolete inventories                                                      |   |                                                                 |                    |                                                                                                                                                                   |   | 2,754 |   |   | 9,097 |   |
| Changes                in operating assets and                liabilities:                            |   |                                                                 |                    |                                                                                                                                                                   |   |  |   |   |   |   |
| Inventories                                                                                           |   |                                                                 | 12,147             |                                                                                                                                                                   |   | (204 | ) |   | 12,148 |   |
| Prepaid                expenses and other current assets                                              |   |                                                                 | (11,985            | )                                                                                                                                                                      |   | 14,260 |   |   | (30,545 | ) |
| Accounts                payable                                                                       |   |                                                                 | 20,394             |                                                                                                                                                                   |   | (11,945 | ) |   | (21,810 | ) |
| Accrued                compensation, taxes and expenses                                               |   |                                                                 | 2,642              |                                                                                                                                                                   |   | 3,810 |   |   | (14,246 | ) |
| Net                cash used in operating activities                                                  |   |                                                                 | (588,033           | )                                                                                                                                                                      |   | (515,002 | ) |   | (1,625,413 | ) |
|                                                                                                  |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| INVESTING                ACTIVITIES:                                                                  |   |                                                                 |                    |                                                                                                                                                                   |   |  |   |   |  |   |
| Acquisition                of property and equipment                                                  |   |                                                                 |                    |                                                                                                                                                                   |   |   |   |   |  |   |
| Proceeds                from the sale of assets                                                       |   |                                                                 |          |                                                                                                                                                                   |   |     |   |   | 13,190 |   |
| Net                cash provided by investing activities                                              |   |                                                                 |     |                                                                                                                                                                   |   | - |   |   | 13,190 |   |
|                                                                                                  |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| FINANCING              ACTIVITIES:                                                                    |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| Proceeds                from issuance of common stock                                                 |   |                                                                 | 502,048            |                                                                                                                                                                   |   |   |   |   | 522,048 |   |
| Proceeds                from exercise of stock options                                                |   |                                                                 | 5,775              |                                                                                                                                                                   |   |     |   |   | 9,000 |   |
| Net                cash provided by financing activities                                              |   |                                                                 | 507,823            |                                                                                                                                                                   |   | - |   |   | 531,048 |   |
|                                                                                                  |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| Net                decrease in cash and cash equivalents                                              |   |                                                                 | (80,210            | )                                                                                                                                                                      |   | (515,002 | ) |   | (1,081,175 | ) |
|                                                                                                  |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT                BEGINNING OF PERIOD                        |   |                                                                 | 441,025            |                                                                                                                                                                   |   | 1,132,505 |   |   | 1,441,990 |   |
|                                                                                                  |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| CASH                AND CASH EQUIVALENTS AT                END OF PERIOD                              |   | $                                                                    | 360,815            |                                                                                                                                                                   | $      | 617,503 |   | $ | 360,815 |   |
| Supplemental                disclosure of non-cash investing and financing                activities: |   |                                                                 |               |                                                                                                                                                                   |   |   |   |   |   |   |
| Conversion                of notes payable and accruedinterest                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**

**September      30, 2006**

**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**

----

|                                   |   | 2006   |                   | 2005   |   |
|----------------------------------------|--------|--------|------------------------|--------|--------|
| Expected                life           |   |   | 5                years |   |   | 5                years |   |
| Risk-free                interest rate |   |   | 4.5                    | %      |   | 4.25 | % |
| Expected                volatility     |   |   | 224                    | %      |   | 219 | % |
| Expected                dividend yield |   |   | 0                      | %      |   | 0 | % |

----

|   Options                              |   |   Shares |      |  Weighted-Average                Exercise Price |   | Weighted-Average                Remaining Contractual Term (years) |   | Aggregate                Intrinsic Value ($000) |   |
|--------------------------------------------------|--------|--------------------|-----------|------------------------------------------------------|--------|--------------------------------------------------------------------|--------|-------------------------------------------------|--------|
| Outstanding                at January 1, 2006    |   |               | 1,978,500 |                                                 | $      | 0.27                                                               |   |                                            |   |   |   |   |   |
| Granted                                          |   |               | 400,000   |                                                 |   | 1.09                                                               |   |                                            |   |   |   |   |   |
| Exercised                                        |   |               | (38,500   | )                                                    |   | 0.15                                                               |   |                                            |   |   |   |   |   |
| Forfeited                or expired              |   |               | -         |                                                 |   | -                                                                  |   |                                            |   |   |   |   |   |
| Outstanding                at September 30, 2006 |   |               | 2,340,000 |                                                 | $      | 0.42                                                               |   |                                            | 8.31   |   | $ | 781 |   |
| Exercisable                at September 30, 2006 |   |               | 1,840,000 |                                                 | $      | 0.28                                                               |   |                                            | 8.06   |   | $ | 867 |   |

|                           |   | September                30, 2006 |    | December                31, 2005 |   |
|--------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
| Raw                materials   |   | $                                 | 48,770  |                             | $      | 60,917 |   |
| Work                in process |   |                              | -       |                             |   | - |   |
| Finished                goods  |   |                              | 79,155  |                             |   | 79,155 |   |
| Totals                         |   | $                                 | 127,925 |                             | $      | 140,072 |   |

----

|                                                      |   | **As                previously****reported                in the****2005                10-KSB** |       | **After****reclassification**                                                   |   | **As                previously****reported                in the****2005****10-KSB** |   | **After****reclassification** |       |
|-----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                      |   |  **5                  months ended****December                  31, 2004**                  |       |  **5                  months ended****December                  31, 2004** |   | ** ****2005**                                                                   |   | ** 2005**                |       |
|                                                      |   |                                                                                             |       |                                                                            |   |                                                                                 |   |                          |       |
| Gross                revenue                              |   | $                                                                                                | -          |                                                                            | $      | -                                                                                    |   | $                             | -          |   | $ | - |   |
| Operating                expenses:                        |   |                                                                                             |       |                                                                            |   |                                                                                 |   |                          |       |   |   |   |   |
| Research                and development                   |   |                                                                                             | -          |                                                                            |   | 79,892                                                                               |   |                          | 53,122     |   |   | 250,883 |   |
| General                and administrative                 |   |                                                                                             | 388,886    |                                                                            |   | 308,994                                                                              |   |                          | 874,957    |   |   | 677,196 |   |
| Total                operating expenses                   |   |                                                                                             | 388,886    |                                                                            |   | 388,886                                                                              |   |                          | 928,079    |   |   | 928,079 |   |
| Operating                loss                             |   |                                                                                             | (388,886   | )                                                                               |   | (388,886                                                                             | )      |                          | (928,079   | ) |   | (928,079 | ) |
| Other                income, net                          |   |                                                                                             | 11,195     |                                                                            |   | 11,195                                                                               |   |                          | 15,791     |   |   | 15,791 |   |
| Net                loss                                   |   | $                                                                                                | (377,691   | )                                                                               | $      | (377,691                                                                             | )      | $                             | (912,288   | ) | $ | (912,288 | ) |
| Basic                and diluted net loss per share       |   | $                                                                                                | (0.01      | )                                                                               | $      | (0.01                                                                                | )      | $                             | (0.02      | ) | $ | (0.02 | ) |
| Weighted                average common shares outstanding |   |                                                                                             | 32,313,705 |                                                                            |   | 32,313,705                                                                           |   |                          | 37,553,366 |   |   | 37,553,366 |   |

----

|                                                                                                   |   | **As                previously reported in the****2005                10-QSB**      |       | **After****reclassification**                                                   |   | **As                previously reported in the****2005                10-QSB**           |   | **After****reclassification**                                                      |       | **As                previously reported in the****2005                10-QSB**  |   | **After****reclassification**                                                            |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   | ** ****Quarter                    ended****March                    31, 2005** |       | ** ****Quarter                  ended****March                  31, 2005** |   | ** ****Quarter                    ended** **June                    30, 2005** |   | ** ****Quarter                    ended****June                    30, 2005** |       | ** ****6                  Months ended****June                  30, 2005** |   | ** ****6** **Months                  ended****June                  30, 2005** |   |
| Gross                revenue                                                                           |   | $                                                                                   | -          |                                                                            | $      | -                                                                                        |   | $                                                                                  | -          |                                                                            | $      | -                                                                                        |   | $ | - |   | $ | - |   |
| Operating                expenses:                                                                     |   |                                                                                |       |                                                                            |   |                                                                                     |   |                                                                               |       |                                                                            |   |                                                                                     |   |   |   |   |   |   |   |
| Research                and                development                                                 |   |                                                                                | 36,900     |                                                                            |   | 97,218                                                                                   |   |                                                                               | 67,690     |                                                                            |   | 118,330                                                                                  |   |   | 104,590 |   |   | 215,548 |   |
| General                and administrative                                                              |   |                                                                                | 289,596    |                                                                            |   | 229,278                                                                                  |   |                                                                               | 189,431    |                                                                            |   | 138,791                                                                                  |   |   | 479,027 |   |   | 368,069 |   |
| Total                operating expenses                                                                |   |                                                                                | 326,496    |                                                                            |   | 326,496                                                                                  |   |                                                                               | 257,121    |                                                                            |   | 257,121                                                                                  |   |   | 583,617 |   |   | 583,617 |   |
| Operating                loss                                                                          |   |                                                                                | (326,496   | )                                                                               |   | (326,496                                                                                 | )      |                                                                               | (257,121   | )                                                                               |   | (257,121                                                                                 | )      |   | (583,617 | ) |   | (583,617 | ) |
| Other                income, net                                                                       |   |                                                                                | 3,220      |                                                                            |   | 3,220                                                                                    |   |                                                                               | 2,002      |                                                                            |   | 2,002                                                                                    |   |   | 5,222 |   |   | 5,222 |   |
| Net                loss                                                                                |   | $                                                                                   | (323,276   | )                                                                               | $      | (323,276                                                                                 | )      | $                                                                                  | (255,119   | )                                                                               | $      | (255,119                                                                                 | )      | $ | (578,395 | ) | $ | (578,395 | ) |
| Basic                and diluted                net loss                per share                      |   | $                                                                                   | (0.01      | )                                                                               | $      | (0.01                                                                                    | )      | $                                                                                  | (0.01      | )                                                                               | $      | (0.01                                                                                    | )      | $ | (0.02 | ) | $ | (0.02 | ) |
| Weighted                Average                Common                Shares                outstanding |   |                                                                                | 37,596,012 |                                                                            |   | 37,596,012                                                                               |   |                                                                               | 37,725,650 |                                                                            |   | 37,725,650                                                                               |   |   | 37,660,831 |   |   | 37,660,831 |   |

----

|                                                                                    |   | **As                previously****reported                in the****2005                10-QSB** |       | **After****reclassification**                                         |   | **As                previously****reported****in                the****2005                  10-QSB** |   | **After****reclassification**                                          |       |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|------------|-----------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|------------|
|                                                                                    |   |                                                                                             |       |                                                                  |   |                                                                                                  |   |                                                                   |       |
|                                                                                    |   | **Quarter                ended****September                30, 2005**                            |       | **Quarter                ended****September                30, 2005** |   | **9                Months ended****September                30, 2005**                                |   | **9                Months ended****September                30, 2005** |       |
|                                                                                    |   |                                                                                             |       |                                                                  |   |                                                                                                  |   |                                                                   |       |
| Gross                revenue                                                            |   | $                                                                                                | -          |                                                                  | $      | -                                                                                                     |   | $                                                                      | -          |   | $ | - |   |
| Operating                Expenses:                                                      |   |                                                                                             |       |                                                                  |   |                                                                                                  |   |                                                                   |            |   |   |   |   |
| Research                and development                                                 |   |                                                                                             | 7,320      |                                                                  |   | 58,058                                                                                                |   |                                                                   | 26,177     |   |   | 181,111 |   |
| General                and administrative                                               |   |                                                                                             | 148,186    |                                                                  |   | 97,448                                                                                                |   |                                                                   | 649,138    |   |   | 494,204 |   |
| Total                operating expenses                                                 |   |                                                                                             | 155,506    |                                                                  |   | 155,506                                                                                               |   |                                                                   | 675,315    |   |   | 675,315 |   |
| Operating                loss                                                           |   |                                                                                             | (155,506   | )                                                                     |   | (155,506                                                                                              | )      |                                                                   | (675,315   | ) |   | (675,315 | ) |
| Other                income, net                                                        |   |                                                                                             | 6,074      |                                                                  |   | 6,074                                                                                                 |   |                                                                   | 17,623     |   |   | 17,623 |   |
| Net                loss                                                                 |   | $                                                                                                | (149,432   | )                                                                     | $      | (149,432                                                                                              | )      | $                                                                      | (657,692   | ) | $ | (657,692 | ) |
| Basic                and diluted                net loss per                share       |   | $                                                                                                | (0.00      | )                                                                     | $      | (0.00                                                                                                 | )      | $                                                                      | (0.02      | ) | $ | (0.02 | ) |
| Weighted                Average                common                shares outstanding |   |                                                                                             | 37,550,762 |                                                                  |   | 37,550,762                                                                                            |   |                                                                   | 37,550,762 |   |   | 37,550,762 |   |

**3.      Stockholders’ Equity**

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**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**

**Reclassification/Restatement**

|                                                      |   | **As                previously****reported                in the****2005                10-KSB** |       | **After****reclassification**                                                       |   | **As                previously****reported                in the****2005                10-KSB** |   | **After****reclassification** |       |
|-----------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|
|                                                      |   |                                                                                             |       |                                                                                |   |                                                                                             |   |                          |       |
|                                                      |   | ** ****5                  months ended****December                  31, 2004**              |       | ** ****5                  months ended****December                  31, 2004** |   | **2005**                                                                                         |   | **2005**                      |       |
|                                                      |   |                                                                                             |       |                                                                                |   |                                                                                             |   |                          |       |
| Gross                revenue                              |   | $                                                                                                | -          |                                                                                | $      | -                                                                                                |   | $                             | -          |   | $ | - |   |
| Operating                expenses:                        |   |                                                                                             |       |                                                                                |   |                                                                                             |   |                          |       |   |   |   |   |
| Research                and development                   |   |                                                                                             | -          |                                                                                |   | 79,892                                                                                           |   |                          | 53,122     |   |   | 250,883 |   |
| General                and administrative                 |   |                                                                                             | 388,886    |                                                                                |   | 308,994                                                                                          |   |                          | 874,957    |   |   | 677,196 |   |
| Total                operating expenses                   |   |                                                                                             | 388,886    |                                                                                |   | 388,886                                                                                          |   |                          | 928,079    |   |   | 928,079 |   |
| Operating                loss                             |   |                                                                                             | (388,886   | )                                                                                   |   | (388,886                                                                                         | )      |                          | (928,079   | ) |   | (928,079 | ) |
| Other                income, net                          |   |                                                                                             | 11,195     |                                                                                |   | 11,195                                                                                           |   |                          | 15,791     |   |   | 15,791 |   |
| Net                loss                                   |   | $                                                                                                | (377,691   | )                                                                                   | $      | (377,691                                                                                         | )      | $                             | (912,288   | ) | $ | (912,288 | ) |
| Basic                and diluted net loss per share       |   | $                                                                                                | (0.01      | )                                                                                   | $      | (0.01                                                                                            | )      | $                             | (0.02      | ) | $ | (0.02 | ) |
| Weighted                average common shares outstanding |   |                                                                                             | 32,313,705 |                                                                                |   | 32,313,705                                                                                       |   |                          | 37,553,366 |   |   | 37,553,366 |   |

----

|                                                                                                   |   | **As                previously reported in the****2005                10-QSB** |       | **After****reclassification**                                         |   | **As                previously reported in the****2005                10-QSB**       |   | **After****reclassification**                                                        |       | **As                previously reported in the****2005                10-QSB**  |   | **After****reclassification**                                                            |   |
|--------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|------------|-----------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|------------|---------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   |                                                                           |       |                                                                  |   |                                                                                 |   |                                                                                 |       |                                                                            |   |                                                                                     |   |
|                                                                                                   |   | **Quarter                  ended****March                  31, 2005**          |       | **Quarter                  ended****March                  31, 2005** |   | ** ****Quarter                  ended** **June                  30, 2005** |   | ** ****Quarter                  ended** **June                  30, 2005** |       | ** ****6                  Months ended****June                  30, 2005** |   | ** ****6** **Months                  ended****June                  30, 2005** |   |
| Gross                revenue                                                                           |   | $                                                                              | -          |                                                                  | $      | -                                                                                    |   | $                                                                                    | -          |                                                                            | $      | -                                                                                        |   | $ | - |   | $ | - |   |
| Operating                expenses:                                                                     |   |                                                                           |       |                                                                  |   |                                                                                 |   |                                                                                 |       |                                                                            |   |                                                                                     |   |   |   |   |   |   |   |
| Research                and                development                                                 |   |                                                                           | 36,900     |                                                                  |   | 97,218                                                                               |   |                                                                                 | 67,690     |                                                                            |   | 118,330                                                                                  |   |   | 104,590 |   |   | 215,548 |   |
| General                and administrative                                                              |   |                                                                           | 289,596    |                                                                  |   | 229,278                                                                              |   |                                                                                 | 189,431    |                                                                            |   | 138,791                                                                                  |   |   | 479,027 |   |   | 368,069 |   |
| Total                operating expenses                                                                |   |                                                                           | 326,496    |                                                                  |   | 326,496                                                                              |   |                                                                                 | 257,121    |                                                                            |   | 257,121                                                                                  |   |   | 583,617 |   |   | 583,617 |   |
| Operating                loss                                                                          |   |                                                                           | (326,496   | )                                                                     |   | (326,496                                                                             | )      |                                                                                 | (257,121   | )                                                                               |   | (257,121                                                                                 | )      |   | (583,617 | ) |   | (583,617 | ) |
| Other                income, net                                                                       |   |                                                                           | 3,220      |                                                                  |   | 3,220                                                                                |   |                                                                                 | 2,002      |                                                                            |   | 2,002                                                                                    |   |   | 5,222 |   |   | 5,222 |   |
| Net                loss                                                                                |   | $                                                                              | (323,276   | )                                                                     | $      | (323,276                                                                             | )      | $                                                                                    | (255,119   | )                                                                               | $      | (255,119                                                                                 | )      | $ | (578,395 | ) | $ | (578,395 | ) |
| Basic                and diluted                net loss                per share                      |   | $                                                                              | (0.01      | )                                                                     | $      | (0.01                                                                                | )      | $                                                                                    | (0.01      | )                                                                               | $      | (0.01                                                                                    | )      | $ | (0.02 | ) | $ | (0.02 | ) |
| Weighted                Average                Common                Shares                outstanding |   |                                                                           | 37,596,012 |                                                                  |   | 37,596,012                                                                           |   |                                                                                 | 37,725,650 |                                                                            |   | 37,725,650                                                                               |   |   | 37,660,831 |   |   | 37,660,831 |   |

----

|                                                                                    |   | **As                previously****reported                in the****2005                10-QSB** |       | **After****reclassification**                                                             |   | **As                previously****reported                in the****2005                10-QSB** |   | **After****reclassification**                                                                       |       |
|-----------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|------------|-------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------|------------|
|                                                                                    |   |                **Quarter                ended****September                30, 2005**        |       |                **Quarter                ended****September                30, 2005** |   |                **9                Months ended****September                30, 2005**  |   |                **9                Months ended****S****eptember                30, 2005** |       |
| Gross                revenue                                                            |   | $                                                                                                | -          |                                                                                      | $      | -                                                                                                |   | $                                                                                                   | -          |   | $ | - |   |
| Operating                Expenses:                                                      |   |                                                                                             |       |                                                                                      |   |                                                                                             |   |                                                                                                |            |   |   |   |   |
| Research                and development                                                 |   |                                                                                             | 7,320      |                                                                                      |   | 58,058                                                                                           |   |                                                                                                | 26,177     |   |   | 181,111 |   |
| General                and administrative                                               |   |                                                                                             | 148,186    |                                                                                      |   | 97,448                                                                                           |   |                                                                                                | 649,138    |   |   | 494,204 |   |
| Total                operating expenses                                                 |   |                                                                                             | 155,506    |                                                                                      |   | 155,506                                                                                          |   |                                                                                                | 675,315    |   |   | 675,315 |   |
| Operating                loss                                                           |   |                                                                                             | (155,506   | )                                                                                         |   | (155,506                                                                                         | )      |                                                                                                | (675,315   | ) |   | (675,315 | ) |
| Other                income, net                                                        |   |                                                                                             | 6,074      |                                                                                      |   | 6,074                                                                                            |   |                                                                                                | 17,623     |   |   | 17,623 |   |
| Net                loss                                                                 |   | $                                                                                                | (149,432   | )                                                                                         | $      | (149,432                                                                                         | )      | $                                                                                                   | (657,692   | ) | $ | (657,692 | ) |
| Basic                and diluted                net loss per                share       |   | $                                                                                                | (0.00      | )                                                                                         | $      | (0.00                                                                                            | )      | $                                                                                                   | (0.02      | ) | $ | (0.02 | ) |
| Weighted                Average                common                shares outstanding |   |                                                                                             | 37,550,762 |                                                                                      |   | 37,550,762                                                                                       |   |                                                                                                | 37,550,762 |   |   | 37,550,762 |   |

***For      the Three Months ended September 30, 2006 and 2005***

----

***For      the Nine Months ended September 30, 2006 and 2005***

**Liquidity      and Capital Resources**

----

**Item      3.  Controls      and Procedures**

**PART      II**
**OTHER      INFORMATION**

**Item      1.**
**Legal      Proceedings**

**Item      2.**
**Unregistered      Sales of Equity Securities and Use of Proceeds**

**Item      3.**
**Defaults      Upon Senior Securities**

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

**Item      5.**
**Other      Information**

**Item      6.**
**Exhibits**

|  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**

**September      30, 2006**

**SIGNATURES**

|                                     |   |   |  **SpectraScience,                Inc.**(Registrant)                                                                                                                                                                             |
|------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |   |   |                                                                                                                                                                                                                                  |
| **November              14, 2006**  |   |   | /s/              James Hitchin                                                                                                                                                                                                        |
|                    Date   |   |   | **JAMES              HITCHIN**President,                Chief Executive Officer and Chief Financial Officer(Principal                executive officer, principal financial officer, and principal                accounting officer) |

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