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

                                   FORM 10-QSB

(Mark One)

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

                  For the quarterly period ended JUNE 30, 2002
                                                 -------------

[ ]      TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
         ACT OF 1934

             For the transition period from __________ to __________


                         Commission file number 0-13092

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

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

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

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


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
YES __X__  NO _____


The number of shares of the Registrant's common stock, par value $.25 per share,
outstanding on August 9, 2002 was 7,153,813.


Transitional Small Business Disclosure Format (Check one): Yes _____  No __X__

<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                                  JUNE 30, 2002


                                      INDEX

                                                                            PAGE
                                                                             NO.

Part I -- Financial Information................................................3

      ITEM 1. Financial Statements.............................................3

      ITEM 2. Management's Discussion and Analysis of Financial Condition
              and Results of Operations........................................7


Part II -- Other Information...................................................9

      ITEM 1. Legal Proceedings................................................9

      ITEM 2. Changes in Securities............................................9

      ITEM 3. Defaults Upon Senior Securities.................................10

      ITEM 4. Submission of Matters to a Vote of Security Holders.............10

      ITEM 5. Other Information...............................................10

      ITEM 6. Exhibits and Reports on Form 8-K................................10

Signatures....................................................................11


                                     Page 2
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB
                                  BALANCE SHEET

<TABLE>
<CAPTION>
                                                        JUNE 30,       DECEMBER 31,
                                                         2002            2001(1)
                                                      ------------     ------------
                                                       (Unaudited)       (Audited)
<S>                                                   <C>              <C>
ASSETS
Current assets:
   Cash and cash equivalents                          $     86,911     $    969,861
   Inventory                                               497,085          510,141
   Other current assets                                     70,001           86,780
                                                      ------------     ------------
Total current assets                                       653,997        1,566,782

Net fixed assets                                           154,254          197,728
Other assets                                                85,922           70,936
                                                      ------------     ------------

         TOTAL ASSETS                                 $    894,173     $  1,835,446
                                                      ============     ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
   Accounts payable                                   $     82,156     $    178,086
   Note payable - trade creditors                            8,514           50,209
   Accrued compensation and taxes                          144,947           58,259
   Accrued expenses                                         86,585           71,913
   Accrued clinical research fees                               --            1,304
                                                      ------------     ------------
Total current liabilities                                  322,202          359,771

SHAREHOLDERS' EQUITY
Common stock, $.25 par value:
   Authorized--17,000,000 shares
   Issued and outstanding--
     7,153,813 shares on June 30, 2002
                      and December 31, 2001              1,788,454        1,788,454
Additional paid-in capital                              53,797,013       53,797,013
Accumulated deficit                                    (55,013,496)     (54,109,792)
                                                      ------------     ------------
         TOTAL SHAREHOLDERS' EQUITY                        571,971        1,475,675
                                                      ------------     ------------
         TOTAL LIABILITIES AND
              SHAREHOLDERS' EQUITY                    $    894,173     $  1,835,446
                                                      ============     ============
</TABLE>


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

SEE NOTES TO FINANCIAL STATEMENTS.


                                     Page 3
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                    THREE MONTHS ENDED                 SIX MONTHS ENDED
                                          JUNE 30                          JUNE 30
                               -----------------------------     -----------------------------
                                   2002             2001             2002             2001
                                   ----             ----             ----             ----
<S>                            <C>              <C>              <C>              <C>
Operating expenses:
   Research and development         229,326          508,728          488,917        1,119,160
   Selling, general and
     administrative                 196,510          319,100          418,159          610,892
                               ------------     ------------     ------------     ------------
Total operating expenses            425,836          827,828          907,076        1,730,052

Interest and other income             1,000           29,685            3,373           75,342
                               ------------     ------------     ------------     ------------

Net loss                       $   (424,836)    $   (798,143)    $   (903,703)    $ (1,654,710)
                               ============     ============     ============     ============

Net loss per share             $      (0.06)    $      (0.11)    $      (0.13)    $      (0.23)

Weighted average common
   shares outstanding             7,153,813        7,143,335        7,153,813        7,074,270
</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS.


                                     Page 4
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                             STATEMENTS OF CASH FLOW
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                      SIX MONTHS ENDED
                                                          JUNE 30
                                               -----------------------------
                                                    2002             2001
                                                    ----             ----
<S>                                            <C>              <C>
OPERATING ACTIVITIES
  Net loss                                     $   (903,703)    $ (1,654,710)
  Adjustments to reconcile net loss to cash
    used in operating activities:
    Depreciation                                     43,473           43,299
    Changes in operating assets
       and liabilities:
       Decrease in inventories                       13,056         (177,253)
         Decrease in other current assets             1,793           28,035
         Decrease in current liabilities            (37,569)        (117,467)
                                               ------------     ------------

    Net cash used in operating activities          (882,950)      (1,878,096)

INVESTING ACTIVITIES
  Purchase of property and equipment                     --          (12,100)
                                               ------------     ------------
  Net cash used in investing activities                  --          (12,100)

FINANCING ACTIVITIES
  Proceeds from issuance of common stock                 --          557,247
                                               ------------     ------------
  Net cash provided by financing activities              --          557,247
                                               ------------     ------------

  Net decrease in cash and cash equivalents        (882,950)      (1,332,949)

CASH AND CASH EQUIVALENTS
  AT BEGINNING OF PERIOD                            969,861        3,734,422
                                               ------------     ------------

CASH AND CASH EQUIVALENTS
  AT END OF PERIOD                             $     86,911     $  2,401,473
                                               ============     ============
</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS.


                                     Page 5
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                                  JUNE 30, 2002

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

         This Quarterly Report on Form 10-QSB contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
When used in this Quarterly Report, or in our future filings with the SEC, in
our press releases and in oral statements made with the approval of an
authorized executive officer, the words or phrases "anticipates," "estimates,"
"expects," "will likely result," "projects," "believes," "intends," or similar
expressions are intended to identify such forward-looking statements, but are
not the exclusive means of identifying such statements. These forward-looking
statements involve risks and uncertainties that may cause our actual results to
differ materially from the results discussed in the forward-looking statements.


         We caution you not to place undue reliance on these forward-looking
statements, which speak only as of the date made. We undertake no obligation to
revise any forward-looking statements in order to reflect events or
circumstances after the date of such statements. Readers are urged to carefully
review and consider the various disclosures made by us in this report and other
reports we file with the SEC that attempt to advise interested parties of the
risks and factors that may affect our business. Such forward-looking statements
are qualified in their entirety by the cautions and risk factors set forth under
the "Cautionary Statement" filed as exhibit 99.1 to the Company's Annual Report
on Form 10-KSB for the year ended December 31, 2001.


                          NOTES TO FINANCIAL STATEMENTS


NOTE A   BASIS OF PRESENTATION

         The accompanying unaudited financial statements of SPECTRASCIENCE, Inc.
(the "Company" or "we") have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB and Article 10 of Regulation S-X. Accordingly, they
do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the six month period ended June 30, 2002 are not necessarily
indicative of the results that may be expected for the year ended December 31,
2002. These statements should be read in conjunction with the financial
statements and related notes which are incorporated by reference in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2001.

NOTE B   NET LOSS PER SHARE

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


                                     Page 6
<PAGE>


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

(a)      BUSINESS

         SPECTRASCIENCE, Inc. (the "Company" or "SPECTRASCIENCE") develops and
manufactures innovative, Laser Induced Fluorescence spectrophotometry systems
capable of determining whether tissue is normal, pre-cancerous or cancerous
without removing tissue from the body. The WavSTAT(TM) Optical Biopsy System
("WavSTAT(TM) ) is SPECTRASCIENCE's first fully developed product to incorporate
its proprietary Laser Induced Fluorescence technology for worldwide clinical
use. It is approved for use during endoscopy of the colon when screening for
colon cancer. The Company's second application of this technology for detecting
esophageal cancer is ready to begin a Phase II clinical trial. SPECTRASCIENCE
believes its core technology is a platform technology that can be developed for
use in many areas of the human body.

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

(b)      CRITICAL ACCOUNTING POLICIES

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

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

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

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

(c)      RESULTS OF OPERATIONS

         The Company recorded no revenue for the three and six months ended June
30, 2002 and June 30, 2001.


                                     Page 7
<PAGE>


         Overall research and development expenses for the three and six months
ended June 30, 2002 were $229,326 and $488,917, compared to $508,728 and
$1,119,160 for the same periods in 2001. Research and development expenses
related specifically to new product and application development for the three
and six months ended June 30, 2002 were $179,027 and $394,225, compared to
$429,386 and $973,301 for the same periods in 2001, reflecting expense decreases
of 58.3% and 59.5% respectively. For the three month period ended June 30, 2002,
the Company's decreased expenses were related primarily to (i) reduced
consulting expenses, (ii) reduced expenses related to clinical studies, and
(iii) reduced expenses related to design research and development. During this
same period in 2001 the Company was still developing and testing the WavSTAT(TM)
III System; incurring research and development design expenses and utilizing
increased consulting services. During this period in 2002 the Company had
completed the design process for WavSTAT(TM) III reducing the need for certain
continuing consulting services. The Company also reduced salary expenses and
reduced legal expenses related to regulatory filings and intellectual property.
The 59.5% decrease for the six months ended June 30, 2002 was primarily due to
reduced expenses related to clinical studies, new product development and
related consulting expenses, and reduced salary expenses.

         Research and development expenses related to the development of
manufacturing operations and processes for the three and six months ended June
30, 2002 were $50,299 and $94,692, compared to $79,342 and 145,859 for the same
periods in 2001. The decrease was primarily due reduced salary, consulting, and
tools and supplies expenses.

         Selling, general and administrative expenses for the three and six
months ended June 30, 2002 were $196,510 and $418,160 compared to $319,100 and
$610,892 for the same periods in 2001. The 38.4% and 31.5% decrease for the
three and six months ended June 30, 2001 was primarily due to reduced salary and
consulting expenses in the sales and marketing department, and reduced travel
and convention expenses. The decrease was partially offset by increased legal
and insurance expenses.

         Interest and other income for the three and six months ended June 30,
2002 was $1,000 and $3,374, compared to $29,685 and $75,342 for the same periods
in 2001. The decreases were primarily due to lower balances in cash and cash
equivalents.

         As a result of the above, the net loss for the three and six months
ended June 30, 2002 was $424,836 and $903,703, compared to a net loss of
$798,143 and $1,654,710 for the same periods in 2001. The net loss per share for
the three and six months ended June 30, 2002 was $0.06 and $0.13 compared to
$0.11 and $0.23 for the same periods in 2001.

(d)      LIQUIDITY AND SOURCES OF CAPITAL

         Cash and cash equivalents on June 30, 2002 were $86,911, compared to
$969,861 on December 31, 2001. The decrease in the cash position from December
31, 2001 to June 30, 2002 was primarily due to the net loss incurred during the
period.

         The working capital of the Company on June 30, 2002 was $331,795,
compared to $1,207,011 on December 31, 2001. The decrease in working capital was
primarily due to the reduction of cash and cash equivalents used for operations.

         Net cash used in operating activities for the six months ended June 30,
2002 was $882,950, compared to $1,878,096 for the same period in 2001. This
decrease was primarily due to the lower net loss for the six months ended June
30, 2002, and to a lesser extent, a decrease in inventory purchased.


                                     Page 8
<PAGE>


         Net cash used in investing activities for the six months ended June 30,
2002 was $0, compared to $12,100 for the same period in 2001. The decrease was
primarily due to no fixed asset purchases during this period in 2002.

         Net cash provided by financing activities for the six months ended June
30, 2002 was $0, compared to $557,247 for the same period in 2001. The cash
provided for this period in 2001 was a result of warrant and stock option
exercises to purchase shares of common stock.

         The Company raised gross proceeds of $535,000 during July 2002 in
connection with a private placement offering of the Company's convertible
promissory notes and warrants. The applicable conversion or exercise price of
the promissory notes and warrants is based on the average of the closing sale
price of the Company's common stock for the consecutive fifteen day period
immediately preceeding the applicable date of issuance of such promissory notes
and warrants. Unless converted earlier, the promissory notes
will mature on and be payable on demand at any time after
December 31, 2002, together with interest at 8% per annum. The promissory
notes will be automatically converted prior to such time
upon the occurrence of certain change in control events involving the Company.
 Management anticipates that the Company may issue additional
warrants and notes in connection with the same offering prior to September 30,
2002. Management believes that the Company currently has sufficient cash to fund
operations through September 30, 2002, without accessing additional funding.
However, management estimates that the proceeds from such additional issuance
will only be sufficient to fund Company operations for an additional one to two
months after September 30, 2002.

         Additional cash will be required to fund continued operations. The
amount and timing of any future financing will be impacted by market conditions
as well as other factors. Financing efforts were initiated in August 2001,
however, an economic recession accelerated by the events of September 11, 2001,
changed the availability of equity financing. The Company continues to explore
all viable options with regards to strategic partnerships and additional
financing. In addition to the aforementioned private placement offering,
SPECTRASCIENCE will need to complete another financing transaction in 2002 in
order to be able to financially execute the current business plan.

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

         *  complete outcome based clinical studies, both in the United States
            and the United Kingdom,
         *  publish in peer-reviewed journals,
         *  submit to HCFA, an application for reimbursement codes for use of
            the WavSTAT(TM) System upon completion of the outcome based clinical
            study in the United States,
         *  begin Phase II clinical studies with our Barrett's esophagus
            application,
         *  continue to develop the market with key physician opinion leaders,
            both international and domestic, for our approved product as well as
            for a Barrett's esophagus application,
         *  begin sales both domestically and internationally, and
         *  continue to develop strategic relationships for distribution and
            marketing.


PART II -- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

         Not Applicable

ITEM 2. CHANGES IN SECURITIES

         Not Applicable


                                     Page 9
<PAGE>


ITEM 3. DEFAULTS UPON SENIOR SECURITIES

         Not Applicable

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

         Not Applicable

ITEM 5. OTHER INFORMATION

         Not Applicable

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

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

Exhibit 99.1  Certification of Chief Executive Officer pursuant to Section 906
              of the Sarbanes-Oxley Act of 2002.

Exhibit 99.2  Certification of Chief Financial Officer pursuant to Section 906
              of the Sarbanes-Oxley Act of 2002.


                                    Page 10
<PAGE>


                              SPECTRASCIENCE, INC.

                                   FORM 10-QSB

                                  JUNE 30, 2002


                                   SIGNATURES


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




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



   AUGUST 14, 2002                   /s/ SCOTT G. ANDERSON
---------------------------          -----------------------------------
        Date                         SCOTT G. ANDERSON
                                     President, Chief Executive Officer
                                     (Principal Executive and Financial Officer)


                                    Page 11