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

| Large accelerated filer       o                 | Accelerated filer                 o |
|------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------|
|                                                                               |                                                                                                                     |
| Non-accelerated filer          o | Smaller reporting company       x                                                     |

----

| PART I     | FINANCIAL INFORMATION:                                                                      |   |   |                                                                      |   |
|------------|---------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------|--------|
|       |                                                                                        |   |   |                                                                      |   |
| Item 1.    | Financial Statements (Unaudited)                                                            |   |   |             1 |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |   | 10                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 3.    | Quantitative and Qualitative Disclosures About Market Risk                                  |   |   | 12                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 4.    | Controls and Procedures                                                                     |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| PART II    | OTHER INFORMATION                                                                           |   |   |                                                                      |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 1.    | Legal Proceedings                                                                           |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 1A.   | Risk Factors                                                                                |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 3.    | Defaults Upon Senior Securities                                                             |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 4.    | (Removed and Reserved)                                                                      |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 5.    | Other Information                                                                           |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| Item 6.    | Exhibits                                                                                    |   |   | 13                                                                        |   |
|       |                                                                                        |   |   |                                                                      |   |
| SIGNATURES |                                                                                        |   | 14     |                                                                      |

----

|                                                                                                                                                                                                                                                                                                 |   | June 30,2011 |         |   | December 31,2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                                                                                                 |   |         |         |   |                  |   |
| ASSETS                                                                                                                                                                                                                                                                                               |   |         |         |   |                  |   |
| Current assets:                                                                                                                                                                                                                                                                                      |   |         |         |   |                  |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                            |   | $            | 2,578,773    |   |                  | $      | 1,764,803 |   |
| Certificates of deposit                                                                                                                                                                                                                                                                              |   |         | -            |   |                  |   | 1,998,974 |   |
| Inventories                                                                                                                                                                                                                                                                                          |   |         | 485,492      |   |                  |   | 491,133 |   |
| Prepaid expenses and other current assets                                                                                                                                                                                                                                                            |   |         | 17,033       |   |                  |   | 69,384 |   |
| Total current assets                                                                                                                                                                                                                                                                                 |   |         | 3,081,298    |   |                  |   | 4,324,294 |   |
|                                                                                                                                                                                                                                                                                                 |   |         |         |   |                  |   |   |   |
| Fixed assets, net                                                                                                                                                                                                                                                                                    |   |         | 25,286       |   |                  |   | 59,082 |   |
| Patents, net                                                                                                                                                                                                                                                                                         |   |         | 2,546,459    |   |                  |   | 2,666,417 |   |
| TOTAL ASSETS                                                                                                                                                                                                                                                                                         |   | $            | 5,653,043    |   |                  | $      | 7,049,793 |   |
|                                                                                                                                                                                                                                                                                                 |   |         |         |   |                  |   |   |   |
| LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                           |   |         |         |   |                  |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                 |   |         |         |   |                  |   |   |   |
| Accounts payable                                                                                                                                                                                                                                                                                     |   | $            | 221,487      |   |                  | $      | 205,266 |   |
| Accrued expenses                                                                                                                                                                                                                                                                                     |   |         | 244,135      |   |                  |   | 117,569 |   |
| Total liabilities                                                                                                                                                                                                                                                                                    |   |         | 465,622      |   |                  |   | 322,835 |   |
|                                                                                                                                                                                                                                                                                                 |   |         |         |   |                  |   |   |   |
| COMMITMENTS                                                                                                                                                                                                                                                                                          |   |         |         |   |                  |   |   |   |
|                                                                                                                                                                                                                                                                                                 |   |         |         |   |                  |   |   |   |
| SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                           |   |         |         |   |                  |   |   |   |
| Series B Convertible Preferred Stock, $.01 par value:                                                                                                                                                                                                                                                |   |         |         |   |                  |   |   |   |
| Authorized – 2,585,000 shares; shares issued and outstanding – 2,585,000 shares at June 30, 2011 and December 31, 2010, liquidation value of $517,000 and $517,000 plus accumulated and unpaid dividends of $97,550 and $106,931 as of June 30, 2011 and December 31, 2010, respectively |   |         | 25,850       |   |                  |   | 25,850 |   |
| Series C Convertible Preferred Stock, $.01 par value:                                                                                                                                                                                                                                                |   |         |         |   |                  |   |   |   |
|        Authorized – 1,000,000 shares; shares issued and outstanding 1,000,000                                                                                                                                                                               |   |         |         |   |                  |   |   |   |
|            shares at June 30, 2011 and December 31, 2010, $200,000                                                                                                                                                                            |   |         |         |   |                  |   |   |   |
|            liquidation value                                                                                                                                                                                                                  |   |         |  10,000 |   |                  |   |  10,000 |   |
| Common stock, $.01 par value:                                                                                                                                                                                                                                                                        |   |         |         |   |                  |   |   |   |
| Authorized — 175,000,000 shares                                                                                                                                                                                                                                                                |   |         |         |   |                  |   |   |   |
| Issued and outstanding—108,041,084 and 107,994,529 shares at June 30, 2011 and December 31, 2010, respectively                                                                                                                                                                                 |   |         | 1,080,411    |   |                  |   | 1,079,945 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                           |   |         | 30,656,520   |   |                  |   | 30,380,879 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                                  |   |         | (26,585,360  | )      |                  |   | (24,769,716 | ) |
| TOTAL SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                                     |   |         | 5,187,421    |   |                  |   | 6,726,958 |   |
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                                                                                                                                                                                                                                                     |   | $            | 5,653,043    |   |                  | $      | 7,049,793 |   |

----

|                                               |   | Three Months Ended June 30, |        |    | Six Months EndedJune 30, |   |
|----------------------------------------------------|--------|-------------------------------------------------|-------------|---------|-----------------------------------------|--------|
|                                               |   | 2011                                            |        |    | 2010                                    |   |   | 2011 |   |   | 2010 |   |
|                                               |   |                                            |        |    |                                    |   |   |   |   |   |   |   |
| Revenue                                            |   | $                                               | -           |    |                                    | $      | 8,100 |   |   | $ | - |   |   | $ | 19,250 |   |
| Cost of revenue                                    |   |                                            | -           |    |                                    |   | 1,269 |   |   |   | - |   |   |   | 3,748 |   |
| Gross profit                                       |   |                                            | -           |    |                                    |   | 6,831 |   |   |   | - |   |   |   | 15,502 |   |
|                                               |   |                                            |        |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                |   |                                            |        |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Research and development                           |   |                                            | 288,601     |    |                                    |   | 463,604 |   |   |   | 500,280 |   |   |   | 687,996 |   |
| General and administrative                         |   |                                            | 514,387     |    |                                    |   | 481,625 |   |   |   | 1,061,498 |   |   |   | 992,913 |   |
| Sales and marketing                                |   |                                            | 158,556     |    |                                    |   | 111,080 |   |   |   | 254,455 |   |   |   | 203,183 |   |
| Total operating expenses                           |   |                                            | 961,544     |    |                                    |   | 1,056,309 |   |   |   | 1,816,233 |   |   |   | 1,884,092 |   |
| Operating (loss)                                   |   |                                            | (961,544    | )       |                                    |   | (1,049,478 | ) |   |   | (1,816,233 | ) |   |   | (1,868,590 | ) |
|                                               |   |                                            |        |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Other expense (income), net                        |   |                                            | (2,479      | )  |                                    |   | 1,106 |   |   |   | 2,311 |   |   |   | 2,312 |   |
| Net (Loss)                                         |   |                                            | (959,065    | )       |                                    |   | (1,050,584 | ) |   |   | (1,813,911 | ) |   |   | (1,870,902 | ) |
|                                               |   |                                            |        |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Deemed Dividend on Preferred Stock                 |   |                                            | -           |    |                                    |   | (1,836,319 | )  |   |   | - |   |   |   | (1,836,319 | )  |
| Accumulated but unpaid dividend on preferred stock |   |                                            |        |    |                                    |   | (24,484 | )  |   |   |   |   |   |   | (81,760 | )  |
| Net (loss) applicable to common stockholders       |   | $                                               | (959,544    | )       |                                    |   | (2,911,387 | ) |   | $ | (1,813,911 | ) |   | $ | (3,788,981 | ) |
| Basic and diluted net (loss) per share             |   | $                                               | (0.01       | )       |                                    | $      | (0.03 | ) |   | $ | (0.02 | ) |   | $ | (0.05 | ) |
| Weighted average common shares outstanding         |   |                                            | 108,041,084 |    |                                    |   | 91,754,282 |   |   |   | 108,030,167 |   |   |   | 83,280,115 |   |

----

|                                         |   | Preferred Stock |    |    | Common Stock |    |    | AdditionalPaid-In |    |    | Accumulated |    |    | TotalShareholders’ |   |
|----------------------------------------------|--------|----------------------|--------------|--------------|-------------------|--------------|--------------|-------------------|--------------|--------------|-------------|--------------|--------------|--------------------------|--------|
|                                         |   | Shares               |         | Amount       |              |         | Shares       |              |         | Amount       |        |         | Capital      |                     |   | Deficit |   |   | Equity |   |
| Balance, December 31, 2010                   |   | 3,585,000            |         | $            | 35,850            |         |         |              | 107,994,529  |         |        | $            | 1,079,945    |                     |   | $ | 30,380,879 |   |   | $ | (24,769,716 | ) |   | $ | 6,726,958 |   |
|                                         |   |                 |         |         |              |         |         |              |         |         |        |         |         |                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Stock based compensation – consultants |   |                 |         |         |              |         |         |              |         |         |        |         |         |                     |   |   | 9,233 |   |   |   |   |   |   |   | 9,233 |   |
| Stock based compensation – employees   |   |                 |         |         |              |         |         |              |         |         |        |         |         |                     |   |   | 257,141 |   |   |   |   |   |   |   | 257,141 |   |
| Common stock issued for services             |   |                 |         |         |              |         |         |              | 42,222       |         |        |         | 422          |                     |   |   | 7,578 |   |   |   |   |   |   |   | 8,000 |   |
| Accrued dividend paid in common stock        |   |                 |         |         |              |         |         |              | 4,333        |         |        |         | 44           |                     |   |   | 1,689 |   |   |   | (1,733 | )  |   |   | - |   |
| Net loss                                     |   |                 |         |         |              |         |         |              |         |         |        |         |         |                     |   |   |   |   |   |   | (1,813,911 | ) |   |   | (1,813,911 | ) |
| Balance, June 30, 2011                       |   | 3,585,000            |         |  $      | 35,850            |         |         |              | 108,041,084  |         |        | $            | 1,080,411    |                     |   | $ | 30,656,520 |   |   | $ | (26,585,360 | ) |   | $ | 5,187,421 |   |

----

|                                                                                      |   | Six Months Ended June 30, |       |
|-------------------------------------------------------------------------------------------|--------|--------------------------------|------------|
|                                                                                      |   | 2011                           |       |   | 2010 |   |
| OPERATING ACTIVITIES:                                                                     |   |                           |       |   |   |   |
| Net loss                                                                                  |   | $                              | (1,813,911 | ) |   | $ | (1,870,902 | ) |
| Adjustments to reconcile net loss to cash used in operating activities:                   |   |                           |       |   |   |   |   |   |
| Depreciation and amortization                                                             |   |                           | 153,754    |   |   |   | 163,945 |   |
| Stock-based compensation employees                                                        |   |                           | 257,141    |   |   |   | 96,065 |   |
| Stock-based compensation consultants                                                      |   |                           | 9,233      |   |   |   | 13,709 |   |
| Amortization of prepaid financing costs                                                   |   |                           | 12,363     |   |   |   | 76,440 |   |
| Impairment of LUMA Equipment                                                              |   |                           | -          |   |   |   | 205,406 |   |
| Fair market value of common stock issued for services                                     |   |                           | 8,000      |   |   |   | 58,100 |   |
|                                                                                      |   |                           |       |   |   |   |   |   |
| Changes in operating assets and liabilities:                                              |   |                           |       |   |   |   |   |   |
| Accounts receivable                                                                       |   |                           | -          |   |   |   | 11,165 |   |
| Inventory                                                                                 |   |                           | 5,641      |   |   |   | (46,766 | )  |
| Prepaid expenses and other assets                                                         |   |                           | 39,988     |   |   |   | 16,430 |   |
| Accounts payable                                                                          |   |                           | 16,221     |   |   |   | 11,366 |   |
| Accrued expenses                                                                          |   |                           | 126,566    |   |   |   | (94,303 | )  |
| Net cash (used in) operating activities                                                   |   |                           | (1,185,004 | ) |   |   | (1,329,345 | ) |
|                                                                                      |   |                           |       |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                     |   |                           |       |   |   |   |   |   |
| Redemption of certificates of deposit                                                     |   |                           | 1,998,974  |   |   |   | - |   |
| Purchases of fixed assets                                                                 |   |                           | -          |   |   |   | (3,315 | )  |
| Net cash from (used in) investing activities                                              |   |                           | 1,998,974  |   |   |   | (3,315 | )  |
|                                                                                      |   |                           |       |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                     |   |                           |       |   |   |   |   |   |
|         Proceeds from issuance of Preferred Stock |   |                           | -          |   |   |   | 2,699,736 |   |
|     Net cash provided by financing activities                         |   |                           |  -    |   |   |   |  2,699,736 |   |
|                                                                                      |   |                           |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                      |   |                           | 813,970    |   |   |   | 1,367,076 |   |
|                                                                                      |   |                           |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                          |   |                           | 1,764,803  |   |   |   | 3,408,237 |   |
|                                                                                      |   |                           |       |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                |   | $                              | 2,578,773  |   |   | $ | 4,775,313 |   |

----

----

----

|                    |   | 2011   |   |   | 2010   |   |
|-------------------------|--------|--------|--------|--------|--------|--------|
| Expected life           |   |   | -      |   |   |   | 5 Years |   |
| Risk-free interest rate |   |   | -      |   |   |   | 2.02% |   |
| Expected volatility     |   |   | -      |   |   |   | 118% |   |
| Expected dividend yield |   |   | -      |   |   |   | 0% |   |

----

|                           |   |                      |       |   | Outstanding Options     |   |
|--------------------------------|--------|---------------------------|------------|--------|-------------------------|--------|
|                           |   | OptionsAvailable ForGrant |       |   | Plan OptionsOutstanding |   |   | WeightedAverageExercise PricePer Share |   | Weighted-AverageRemainingContractual Term(years) |   | AggregateIntrinsicValue |   |
| December 31, 2010              |   |                      | 1,504,179  |   |                    |   | 14,695,000 |   |   | $ | 0.37 |   | 8.66 |   | - |   |
| Options granted                |   |                      | (2,600,000 | )      |                    |   | 2,600,000 |   |   | $ | 0.11 |   | 9.67 |   |   |   |
| Options exercised              |   |                      | -          |   |                    |   | - |   |   |   |   |   |   |   |   |   |
| Options forfeited              |   |                      | 2,000,000  |   |                    |   | (2,000,000 | ) |   | $ | 0.50 |   | 7.27 |   |   |   |
| Options expired under 2001 EIP |   |                      | (3,504,179 | )      |                    |   | - |   |   |   |   |   |   |   |   |   |
| Additional options authorized  |   |                      | 5,000,000  |   |                    |   | - |   |   |   |   |   |   |   |   |   |
| Outstanding at June 30, 2011   |   |                      | 2,400,000  |   |                    |   | 15,295,000 |   |   | $ | 0.22 |   | 8.57 |   | - |   |
| Exercisable at June 30, 2011   |   |                      |       |   |                    |   | 4,500,000 |   |   | $ | 0.37 |   | 6.55 |   | - |   |

|           |   | June 30,2011 |    |   | December 31,2010 |   |
|----------------|--------|--------------|---------|--------|------------------|--------|
| Raw materials  |   | $            | 186,563 |   |             | $      | 192,204 |   |
| Finished goods |   |         | 298,929 |   |             |   | 298,929 |   |
| Totals         |   | $            | 485,492 |   |             | $      | 491,133 |   |

----

----

|   | · | Roll-out the WavSTAT 4 System in international markets for the detection and treatment of pre-cancer and cancer of the colon. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Attempt to secure an international strategic distribution partner presently conducting business in the gastrointestinal endoscope market. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Complete WavSTAT System clinical trials related to the diagnosis of esophageal cancers. |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | Continue the design and planning for the next generation of our light-based systems to incorporate additional (“multi-modal”) non-invasive light-based technologies. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| PART II  | OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 1.  | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|     | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 1A. | Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|     | There have been no material changes in our risk factors from those disclosed in Part I, Item 1A, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2010.                                                                                                                                                                                                                                                                                                 |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                     |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|     | None                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 3.  | Defaults Upon Senior Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|     |  None                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 4.  | (Removed and Reserved)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 5.  | Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Item 6.  | Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.1     | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.2     | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32.1     | Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 32.2     | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                             |
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 101*     | Financial statements from the quarterly report on Form 10-Q of the Company for the quarter ended June 30, 2011, formatted in XBRL: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Shareholders’ Equity, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) the Notes to the Condensed Consolidated Financial Statements tagged as blocks of text. |

----

----

|                  |   | SpectraScience, Inc.(Registrant)                               |   |
|-----------------------|--------|----------------------------------------------------------------|--------|
|                  |   |                                                           |   |
| Date: August 15, 2011 |   | /s/ Michael P. Oliver                                          |   |
|                  |   | Michael P. Oliver                                              |
|                  |   | President and Chief Executive Officer                          |
|                  |   | (Principal executive officer)                                  |
|                  |   |                                                           |
| Date: August 15, 2011 |   | /s/ James Dorst                                                |   |
|                  |   | James Dorst                                                    |
|                  |   | Chief Financial Officer and Chief Operating Officer            |
|                  |   | (Principal financial officer and principal accounting officer) |

----