UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                  FORM 10-QSB/A

           [X] Quarterly Report Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934
                For the quarterly period ended September 30, 2001
                                       or
            [ ] Transition Report Pursuant to Section 13 or 15 (d) of
                       the Securities Exchange Act of 1934

                           Commission file No. 0-30641

                           L.A.M. PHARMACEUTICAL CORP.
                           ---------------------------
             (Exact name of registrant as specified in its charter)

             Delaware                                52-2278236
        -------------------                  --------------------------
      (State of incorporation)          (I.R.S. Employer Identification Number)


                            800 Sheppard Avenue West,
                                Commercial Unit 1
                 North York, Ontario, Canada M3H 6B4 (address of
                     principal executive offices) (Zip Code)


                                 (416) 633-7047
                           --------- ----------------
              (Registrant's telephone number, including area code)



   Indicate by check mark whether the registrant: (1) has filed all reports
   required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
   of 1934 during the proceeding 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 [ ]


As of November 12, 2001, the Company had 19,515,620 issued and outstanding
shares of common stock.


<PAGE>




                          L.A.M. PHARMACEUTICAL, CORP.
                         (A DEVELOPMENT STAGE COMPANY)
                           (A DELAWARE CORPORATION)
                                Miami, Florida

                     -------------------------------------
                               FINANCIAL REPORTS
                                       AT
                          SEPTEMBER 30, 2001 AND 2000
                     -------------------------------------



<PAGE>














L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida


TABLE OF CONTENTS
------------------------------------------------------------------------------


Independent Accountants' Report on Interim Financial Information        F-2

Balance Sheets at September 30, 2001 (Unaudited) and December 31, 2000  F-3

Statements of Changes in Stockholders' Deficit for the Three
and Nine Months Ended September 30, 2001 and 2000 (Unaudited)       F-4 to F-5

Statements of Operations for the Three Months and Nine Months
Ended September 30, 2001 and 2000 and for the Period From
Date of Inception (February 1, 1994)  through
September 30, 2001 (Unaudited)                                      F-6 to F-7

Statements of Cash Flows for the Nine Months Ended
September 30, 2001 and 2000 and for the Period
From Date of Inception (February 1, 1994) through
September 30, 2001 (Unaudited)                                     F-8 to F-11

Notes to Financial Statements                                     F-12 to F-14








<PAGE>


                         INDEPENDENT ACCOUNTANTS' REPORT


To the Board of Directors
L.A.M. Pharmaceutical, Corp.
Miami, Florida


      We have reviewed the accompanying balance sheet of L.A.M. Pharmaceutical,
Corp. (a Development Stage Company) (A Delaware Corporation) as of September 30,
2001, the related statements of changes in stockholders' deficit and operations
for the three months and nine months ended September 30, 2001 and 2000 and for
the period from date of inception (February 1, 1994) through September 30, 2001,
and the related statements of cash flows for the nine months ended September 30,
2001 and 2000 and for the period from date of inception (February 1, 1994)
through September 30, 2001. These financial statements are the responsibility of
the Company's management.

      We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit in
accordance with auditing standards generally accepted in the United States of
America, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole. Accordingly, we do not express such an
opinion.

      Based on our review, we are not aware of any material modifications that
should be made to such financial statements for them to be in conformity with
accounting principles generally accepted in the United States of America.

      We have previously audited, in accordance with auditing standards
generally accepted in the United States, the balance sheet of L.A.M.
Pharmaceutical, Corp. as of December 31, 2000 (presented herein), and the
related statements of changes in stockholders' deficit, operations, and cash
flows for the year then ended, and for the period from the date of inception
(February 1, 1994) through December 31, 2000 (not presented herein), and in our
report dated February 9, 2001, we expressed an unqualified opinion on those
financial statements. We have not performed any auditing procedures subsequent
to the date of our previous report.

      As stated in Note D, the financial statements have been restated to
reclassify the presentation of the loan receivable-officer and the correction of
an error in the statements of cash flows.

/s/ Rotenberg & Co., LLP



Rotenberg & Co., LLP
Rochester, New York
  November 5, 2001, Except Note D
  Dated December 4, 2001


<PAGE>



L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

BALANCE SHEETS
--------------------------------------------------------------------------------
                                                       (Unaudited)
                                                        September    December
                                                           30,          31,
                                                          2001         2000
--------------------------------------------------------------------------------
ASSETS

Current Assets
Cash and Cash Equivalents                             $  318,705   $ 1,545,692
Cash Held by Broker - Debentures                              --       357,250
Accounts Receivable                                       40,401        75,000
Inventory - Raw Materials                                110,750       121,125
Prepaid Expenses                                              --         2,639
--------------------------------------------------------------------------------

Total Current Assets                                     469,856     2,101,706

Property and Equipment - Net of Accumulated Depreciation 116,367        19,601

Other Assets
Patents and Trademarks - Net of Accumulated Amortization 382,948       336,196
--------------------------------------------------------------------------------
Total Assets                                          $  969,171   $ 2,457,503
--------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
Accounts Payable and Accrued Expenses                 $  344,507     $ 326,762
Convertible Debentures                                        --     1,658,250
--------------------------------------------------------------------------------
Total Current Liabilities                                344,507     1,985,012

Other Liabilities
Due to Stockholders                                    1,266,837     1,266,837
Deferred Royalty Revenue                                 207,360       207,360
--------------------------------------------------------------------------------
Total Liabilities                                      1,818,704     3,459,209
--------------------------------------------------------------------------------
Stockholders' Deficit
Common Stock - $.0001 Par; 50,000,000 Shares Authorized;
19,515,620 and 13,998,930 Shares Issued
and Outstanding as of September 30, 2001 and               1,952         1,400
December 31, 2000, Respectively
Additional Paid-In Capital                            16,536,552     8,812,199
Less:  Loan Receivable-Officer                          (755,000)
Deficit Accumulated During Development Stage         (16,633,037)   (9,815,305)
--------------------------------------------------------------------------------
Total Stockholders' Deficit                             (849,533)   (1,001,706)
--------------------------------------------------------------------------------
Total Liabilities and Stockholders' Deficit           $  969,171   $ 2,457,503
--------------------------------------------------------------------------------

The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report


<PAGE>

<TABLE>
<S>                                            <C>          <C>          <C>          <C>          <C>           <C>
                                                                                                 Deficit
                                                                                               Accumulated
                                                                     Additional       Loan        During        Total
Three Months and Nine Months Ended            Number       Common      Paid-In     Receivable  Development   Stockholders
   September 30, 2001 and 2000               of Shares     Stock       Capital    from Officer    Stage        Deficit
--------------------------------------------------------------------------------------------------------------------------

Balance - December 31, 1999                 10,392,500     $ 1,039   $3,461,483      $ --      $(5,038,297)   $(1,575,775)

Capital Contribution - Interest Expense            --           --      53,846         --               --         53,846

Conversion Premium on Convertible Debentures       --           --     275,000         --               --        275,000

Net Loss for the Period - Unaudited                --           --          --         --         (916,367)      (916,367)
--------------------------------------------------------------------------------------------------------------------------

Balance - June 30, 2000 (Unaudited)         10,392,500       1,039   3,790,329         --       (5,954,664)    (2,163,296)

Capital Contribution - Interest Expense            --           --      26,920         --               --       26,920

Conversion Premium on Convertible Debentures       --           --      85,260         --               --       85,260

Debentures Converted to Common Stock          780,000           78     439,922         --               --      440,000

Stock Options Exercised                       170,000           17     122,183         --               --      122,200

Net Loss for the Period - Unaudited                --           --          --         --         (425,769)    (425,769)
--------------------------------------------------------------------------------------------------------------------------

Balance - September 30, 2000 (Unaudited)    11,342,500     $ 1,134   $4,464,614      $ --      $(6,380,433) $(1,914,685)
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report


<PAGE>


L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED) - continued
<TABLE>
<S>                                            <C>          <C>          <C>          <C>          <C>           <C>
                                                                                                 Deficit
                                                                                               Accumulated
                                                                     Additional       Loan        During        Total
Three Months and Nine Months Ended            Number       Common      Paid-In     Receivable  Development   Stockholders
   September 30, 2001 and 2000               of Shares     Stock       Capital    from Officer    Stage        Deficit
----------------------------------------------------------------------------------------------------------------------------

Balance - December 31, 2000                 13,998,930    $ 1,400    $8,812,199      $   --   $(9,815,305)   $(1,001,706)


Capital Contribution - Interest Expense             --         --        55,105          --            --        55,105
Debentures Converted to Common Stock           127,333         13       207,714          --            --       207,727
Stock Options Exercised                        173,300         17       112,433          --            --       112,450
Stock Options Issued                                --         --       404,700          --            --       404,700
Common Shares Issued as Compensation for       110,000         11       309,989          --            --       310,000
Services Rendered
Warrants Issued to Hockbury Limited and GKN         --         --     1,100,000          --            --     1,100,000
Securities
Sale of Shares Under the Equity Line of Credit 439,021         44       483,592          --            --       483,636
Agreement
Loan to Officer                                     --         --            --  (1,075,000)           --    (1,075,000)
Loan Repayments from Officer                        --         --            --      90,000            --        90,000
Net Loss for the Period - Unaudited                 --         --            --          --    (2,582,428)   (2,582,428)
----------------------------------------------------------------------------------------------------------------------------

Balance - June 30, 2001 (Unaudited)
(Restated)                                  14,848,284      1,485    11,485,732    (985,000)  (12,397,733)   (1,895,516)

Capital Contribution - Interest Expense             --         --        30,642          --            --        30,642
Debentures Converted to Common Stock         2,689,230        269     1,403,514          --            --     1,403,783
Common Shares Issued - Debenture Conversion  1,143,106        114       777,198          --            --       777,312
Premium                                        835,000         84       567,716          --            --       567,800
Common Shares Issued as Compensation for
Services Rendered
Stock Options Issued                                --         --     2,271,750          --            --     2,271,750
Loan Repayments from Officer                        --         --            --     230,000            --       230,000
Net Loss for the Period - Unaudited                 --         --            --          --    (4,235,304)   (4,235,304)
----------------------------------------------------------------------------------------------------------------------------

Balance - September 30, 2001 (Unaudited)    19,515,620    $ 1,952   $16,536,552   $(755,000) $(16,633,037)   $ (849,533)
(Restated)
----------------------------------------------------------------------------------------------------------------------------
</TABLE>

The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report


<PAGE>

L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------

                                          Date of          Three Months Ended
                                         Inception
                                     (February 1, 1994)        September 30,
                                          Through
                                     September 30, 2001     2001         2000
--------------------------------------------------------------------------------
Revenues
Licensing Revenue                       $  500,000       $    --      $    --
--------------------------------------------------------------------------------
Expenses
Interest Expense                           868,624        82,265       58,600
General and Administrative               2,858,746       349,991      181,980
Research and Development                 2,353,264       193,470       97,575
--------------------------------------------------------------------------------
                                         6,080,634       625,726      338,155
Financial Accounting Expenses
   Not Requiring the Use of Cash During
the Period:
Depreciation and Amortization              107,250        10,831        8,785
Stock Options and Awards Granted to
   Officers, Directors, Investors and
   Investor Relations Consultants        5,285,592     2,839,550           --
Conversion Premium on Convertible        4,424,405       777,312       85,260
Debentures
Warrants Issued on Equity Line of Credit 1,100,000            --           --
--------------------------------------------------------------------------------
Total Expenses                          16,997,881     4,253,419      432,220
--------------------------------------------------------------------------------
Loss Before Other Income
 and (Expenses)                        (16,497,881)   (4,253,419)    (432,220)
--------------------------------------------------------------------------------
Other Income and (Expenses)
Interest Income                             72,204        18,115        6,431
Loss on Investment in Affiliate           (207,360)           --           --
--------------------------------------------------------------------------------
Total Other Income and (Expenses)         (135,156)       18,115        6,431
--------------------------------------------------------------------------------
Net Loss for the Period               $(16,633,037)  $(4,235,304)   $(425,769)
--------------------------------------------------------------------------------
Weighted Average Number
   of Common Shares Outstanding                       15,366,725   10,929,910

Loss per Common Share - Basic and                    $     (0.28) $     (0.04)
Diluted
--------------------------------------------------------------------------------

The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report


<PAGE>

L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

STATEMENTS OF OPERATIONS (UNAUDITED) - continued
--------------------------------------------------------------------------------

                                                          Nine Months Ended
                                                            September 30,
                                                      --------------------------
                                                            2001         2000
--------------------------------------------------------------------------------
Revenues
Licensing Revenue                                     $  300,000      $    --
--------------------------------------------------------------------------------
Expenses
Interest Expense                                         203,601      178,976
General and Administrative                             1,159,621      553,525
Research and Development                                 334,195      247,564
--------------------------------------------------------------------------------
                                                       1,697,417      980,065
Financial Accounting Expenses
   Not Requiring the Use of Cash During
the Period:
Depreciation and Amortization                             28,332       21,907
Stock Options and Awards Granted to
   Officers, Directors, Investors and
   Investor Relations Consultants                      3,554,250           --
Conversion Premium on Convertible                        777,312      360,260
Debentures
Warrants Issued on Equity Line of Credit               1,100,000           --
--------------------------------------------------------------------------------
Total Expenses                                         7,157,311    1,362,232
--------------------------------------------------------------------------------
Loss Before Other Income and (Expenses)               (6,857,311)  (1,362,232)
--------------------------------------------------------------------------------
Other Income and (Expenses)
Interest Income                                           39,579       20,095
Loss on Investment in Affiliate                               --           --
--------------------------------------------------------------------------------
Total Other Income and (Expenses)                         39,579       20,095
--------------------------------------------------------------------------------
Net Loss for the Period                             $ (6,817,732) $(1,342,137)
--------------------------------------------------------------------------------
Weighted Average Number
   of Common Shares Outstanding - Basic and Diluted   14,673,967   10,572,944

Loss per Common Share - Basic and                   $      (0.47) $     (0.13)
Diluted
--------------------------------------------------------------------------------


The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report


<PAGE>


L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

STATEMENTS OF CASH FLOWS (UNAUDITED)
--------------------------------------------------------------------------------

                                            Date of          Three Months Ended
                                           Inception
                                      (February 1, 1994)        September 30,
                                            Through
                                      September 30, 2001     2001         2000
--------------------------------------------------------------------------------
Cash Flows from Operating Activities

Net Loss for the Period
                                        $(16,633,037)   $(4,235,304)  $(425,769)

Adjustments to Reconcile Net Loss for
the Period
   to Cash Flows from Operating
Activities:
Depreciation and Amortization                107,250        10,831        8,785
Capital Contributions:
   Interest Expense                          553,908        30,642       26,920
   Stock Options and Awards - Officers,                                      --
Directors,
       Investors and Investor Relations    5,285,592     2,839,550           --
Consultants
Warrants Issued - Equity Line of Credit    1,100,000            --           --
Conversion Premium on Convertible          4,424,405       777,312       85,260
Debentures
Loss on Investment in Affiliate              207,360            --           --

Changes in Assets and Liabilities:
Accounts Receivable                          (40,401)      (19,470)          --
Inventory - Raw Materials                   (110,750)        4,000     (100,375)
Prepaid Expenses                                  --            --        2,639
Accounts Payable and Accrued Expenses        420,929       (85,801)     101,770
--------------------------------------------------------------------------------
Net Cash Flows from Operating Activities  (4,684,744)     (678,240)    (300,770)
--------------------------------------------------------------------------------
Cash Flows from Investing Activities
Purchases of Property and Equipment         (128,237)         (383)      (5,319)
(Purchases of) Disposals of
   Patents and Trademarks, Net              (369,305)      (77,660)     (47,760)
--------------------------------------------------------------------------------
Net Cash Flows from Investing Activities    (497,542)      (78,043)     (53,079)
--------------------------------------------------------------------------------

                                                                - continued -

The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report


<PAGE>


L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

STATEMENTS OF CASH FLOWS (UNAUDITED) - continued
--------------------------------------------------------------------------------

                                            Date of          Three Months Ended
                                           Inception
                                      (February 1, 1994)        September 30,
                                            Through
                                      September 30, 2001     2001         2000
--------------------------------------------------------------------------------
Cash Flows from Financing Activities
Cash Capital Contributions                $ 162,200        $   --       $   --
Distributions to Stockholders               (68,660)           --           --

Proceeds from Issuance of Common Stock      438,785            --           --
Proceeds from (Repayment of) Convertible
Debentures                                3,671,593      (108,500)   1,420,500

Proceeds from Exercise of Stock Options     301,600            --      122,200
Proceeds from Sale of Shares Under
   the Equity Line of Credit Agreement      483,636            --           --
(Issuance of) Repayment of
   Loan Receivable - Officer, Net          (755,000)      230,000           --

(Repayment to) Advances from Stockholders 1,266,837        25,000           --
--------------------------------------------------------------------------------
Net Cash Flows from Financing Activities  5,500,991       146,500    1,542,700
--------------------------------------------------------------------------------
Net Increase (Decrease)
   in Cash and Cash Equivalents             318,705      (609,783)   1,188,851

Cash and Cash Equivalents - Beginning of         --       928,488      655,174
Period
--------------------------------------------------------------------------------
Cash and Cash Equivalents - End of Period $ 318,705     $ 318,705   $1,844,025
--------------------------------------------------------------------------------
NON-CASH INVESTING AND FINANCING ACTIVITIES
--------------------------------------------------------------------------------
Issuance of Common Stock in
   Exchange for Property and Equipment    $  34,020     $      --   $       --
Debentures Converted to Common Stock    $ 3,651,593    $1,404,510   $  440,000
Investment in Affiliate                   $ 207,360        $   --       $   --
Deferred Royalty Revenue                 $ (207,360)       $   --       $   --
--------------------------------------------------------------------------------


The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report

<PAGE>


L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

STATEMENTS OF CASH FLOWS (UNAUDITED)
--------------------------------------------------------------------------------

                                                       Nine Months Ended
                                                         September 30,
                                                 -------------------------------

                                                      2001            2000
--------------------------------------------------------------------------------

Cash Flows from Operating Activities

Net Loss for the Period                         $ (6,817,732)    $ (1,342,137)

Adjustments to Reconcile Net Loss for
the Period
   to Cash Flows from Operating
Activities:
Depreciation and Amortization                         28,332           21,907
Capital Contributions:
   Interest Expense                                   85,747           80,766
   Stock Options and Awards - Officers,
Directors,
        Investors and Investor                     3,554,250               --
Relations Consultants
Warrants Issued - Equity Line of Credit            1,100,000               --
Conversion Premium on Convertible                    777,312          360,260
Debentures
Loss on Investment in Affiliate                           --               --

Changes in Assets and Liabilities:
Accounts Receivable                                   34,599               --
Inventory - Raw Materials                             10,375         (125,375)
Prepaid Expenses                                       2,639           (5,278)
Accounts Payable and Accrued Expenses                139,505          259,373
--------------------------------------------------------------------------------
Net Cash Flows from Operating Activities          (1,084,973)        (750,484)
--------------------------------------------------------------------------------
Cash Flows from Investing Activities
Purchases of Property and Equipment                 (107,998)         (17,165)
(Purchases of) Disposals of
   Patents and Trademarks, Net                      (63,852)         (105,736)
--------------------------------------------------------------------------------
Net Cash Flows from Investing Activities            (171,850)        (122,901)
--------------------------------------------------------------------------------

                                                                 - continued -

The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report

<PAGE>


L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

STATEMENTS OF CASH FLOWS (UNAUDITED) - continued
--------------------------------------------------------------------------------

                                                       Nine Months Ended
                                                         September 30,
                                                 -------------------------------

                                                      2001            2000
--------------------------------------------------------------------------------

Cash Flows from Financing Activities
Cash Capital Contributions                          $   --          $   --
Distributions to Stockholders                           --              --
Proceeds from Issuance of Common Stock                  --              --
Proceeds from (Repayment of)
Convertible   Debentures                          (168,500)      1,695,500

Proceeds from Exercise of Stock Options            112,450         122,200
Proceeds from Sale of Shares Under
   the Equity Line of Credit Agreement             483,636              --
(Issuance of) Repayment of
   Loan Receivable - Officer, Net                 (755,000)             --

(Repayment to) Advances from Stockholders               --        (124,000)
--------------------------------------------------------------------------------
Net Cash Flows from Financing Activities          (327,414)      1,693,700
--------------------------------------------------------------------------------
Net Increase (Decrease)
   in Cash and Cash Equivalents                 (1,584,237)        820,315


Cash and Cash Equivalents - Beginning of         1,902,942       1,023,710
Period
--------------------------------------------------------------------------------
Cash and Cash Equivalents - End of Period        $ 318,705     $ 1,844,025
--------------------------------------------------------------------------------
NON-CASH INVESTING AND FINANCING ACTIVITIES
--------------------------------------------------------------------------------
Issuance of Common Stock in
   Exchange for Property and Equipment           $      --     $        --
Debentures Converted to Common Stock           $ 1,611,510     $   440,000
Investment in Affiliate                          $      --     $        --
Deferred Royalty Revenue                         $      --     $        --
--------------------------------------------------------------------------------


The  accompanying  notes are an integral part of this financial  statement.  See
Accountants' Review Report


<PAGE>

L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

Note A -Basis of Presentation
        The financial statements of L.A.M. Pharmaceutical, Corp. (L.A.M.)
        included herein have been prepared by L.A.M., without audit, pursuant to
        the rules and regulations of the Securities and Exchange Commission (the
        "SEC"). Certain information and footnote disclosures normally included
        in financial statements prepared in conjunction with generally accepted
        accounting principles have been condensed or omitted pursuant to such
        rules and regulations, although L.A.M. believes that the disclosures are
        adequate to make the information presented not misleading. These
        condensed financial statements should be read in conjunction with the
        annual audited financial statements and the notes thereto included in
        L.A.M.'s annual report on Form 10-KSB.

        The accompanying unaudited interim financial statements reflect all
        adjustments of a normal and recurring nature that are, in the opinion of
        management, necessary to present fairly the financial position, results
        of operations and cash flows of L.A.M. for the interim periods
        presented. The results of operations for these periods are not
        necessarily comparable to, or indicative of, results of any other
        interim period or for the fiscal year taken as a whole. Factors that
        affect the comparability of financial data from year to year and for
        comparable interim periods include non-recurring expenses associated
        with L.A.M.'s registration with the Securities and Exchange Commission,
        costs incurred to raise capital, acquisitions of patents and trademarks
        and stock options and awards.

        Reclassifications
        Certain amounts in the prior year financial statements have been
        reclassified to conform with the current year presentation.

Note B -Loan Receivable - Director
        Between February and April 2001, Alan Drizen, the Company's President,
        borrowed $1,075,000 from L.A.M. The amounts borrowed were used by Mr.
        Drizen to purchase shares of L.A.M.'s common stock in an effort to
        stabilize the share price in the face of extensive short selling of the
        shares. Mr. Drizen has agreed to pay this amount to L.A.M., together
        with interest at 6% per year, in accordance with the terms of a
        promissory note. The note provides for a series of periodic payments
        with the unpaid amount of the note, together with any accrued and unpaid
        interest, due on March 31, 2002.

        Although Mr. Drizen agreed to secure the repayment of this note,
        L.A.M.'s Board of Directors, in view of the fact that proceeds from the
        sale of Mr. Drizen's shares of L.A.M.'s common stock would be the
        primary source of funds which would be used to repay the Note, did not
        require Mr. Drizen to secure the repayment of the Note. Accordingly, the
        Note from Mr. Drizen is unsecured. As of September 30, 2001, all
        payments required under the terms of Mr. Drizen's promissory note have
        been paid and the outstanding principal balance of the note was
        $755,000.

        As a result of Mr. Drizen's purchases and sales of L.A.M.'s common stock
        between October, 2000 and May 2001, L.A.M. is entitled to a recoverable
        profit from Mr. Drizen, computed in accordance with 16(b) of the
        Securities Exchange Act of 1934, in the amount of $443,565.

        Section 16(b) of the Exchange Act allows a corporation to recover any
        profits realized by officers, directors, and principal shareholders of a
        corporation from the purchase and sale (or sale and purchase) of equity
        securities of the corporation within a six-month period. Although
        Section 16(b) was designed to prevent the unfair use of information that
        may have been obtained by insiders through their relationship to a
        corporation, Section 16(b) nevertheless imposes strict liability which
        does not depend upon the actual use or possession of inside information
        by an insider.



<PAGE>


L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida


NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

        The formula most frequently used by a corporation to recover profits is
        known as the "lowest price in/highest price out" method, by which profit
        is computed by matching the highest sale price with the lowest purchase
        price within six months, the next highest sale price with the next
        lowest purchase price within six months, and so forth, until all shares
        have been included in the computation. Although this profit computation
        allows for the maximum recovery to the corporation, in the case of
        multiple sales and purchases within a six month period, it often results
        in a higher profit than the profit actually realized by the insider, and
        in some cases may result in a profit when the insider actually incurred
        losses from the sales and purchases.

Note C -Equity Line of Credit Agreement
        On January 24, 2001, L.A.M. entered into an equity line of credit
        agreement with Hockbury Limited in order to establish a source of
        funding for the development of L.A.M.'s technology. The equity line of
        credit agreement establishes what is sometimes also referred to as an
        equity drawdown facility.

     Under the equity line of credit  agreement,  Hockbury Limited has agreed to
     provide L.A.M.  with up to  $20,000,000 of funding during the  twenty-month
     period following the date of an effective  registration  statement.  During
     this  twenty-month  period,  L.A.M. may request a drawdown under the equity
     line of credit by selling  shares of its common stock to Hockbury  Limited,
     and Hockbury  Limited will be obligated to purchase the shares.  L.A.M. may
     request a drawdown once every 27 trading days,  although L.A.M. is under no
     obligation to request any drawdowns under the equity line of credit. L.A.M.
     has issued  439,021  shares of common  stock and  received  $483,636 in net
     proceeds  as of  September  30,  2001  under  the  equity  line  of  credit
     agreement.

        During the 22 trading days following a drawdown request, L.A.M. will
        calculate the amount of shares it will sell to Hockbury Limited and the
        purchase price per share. The purchase price per share of common stock
        is based on the daily volume weighted average price of L.A.M.'s common
        stock during each of the 22 trading days immediately following the
        drawdown date, less a discount of 10%. L.A.M. will receive the purchase
        price less a placement agent fee payable to GKN Securities equal to 7%
        of the aggregate purchase price. Hockbury Limited may then resell all or
        a portion of these shares. GKN Securities is the placement agent which
        introduced Hockbury Limited to L.A.M. and is a registered broker-dealer.

     The minimum  amount L.A.M.  can draw down at any one time is $100,000.  The
     maximum  amount  L.A.M.  can  draw  down at any one time is the  lesser  of
     $1,000,000 or the amount equal to:

o    4.5% of the weighted  average price of L.A.M.'s  common stock for the sixty
     calendar days prior to the date of the drawdown request

o    multiplied  by the total  trading  volume of L.A.M.'s  common stock for the
     sixty calendar days prior to the date of the drawdown request.

     Upon  closing  of the  equity  line of  credit  Agreement,  L.A.M.  paid to
     Hockbury  Limited's legal  counsel,Epstein  Becker & Green P.C., $25,000 to
     cover its legal and administrative expenses.

        Grant of Warrants
        As consideration for extending the equity line of credit, L.A.M. granted
        Hockbury Limited warrants to purchase 482,893 shares of common stock at
        a price of $ 4.56 per share at any time prior to January 24, 2004. As
        partial consideration for GKN Securities' services as placement agent in
        connection with this offering, L.A.M. granted GKN Securities warrants to
        purchase 455,580 shares of


<PAGE>


L.A.M. PHARMACEUTICAL, CORP.
(A DEVELOPMENT STAGE COMPANY)
(A DELAWARE CORPORATION)
Miami, Florida

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

        common stock at a price of $4.83 per share at any time prior to January
        24, 2006. GKN Securities subsequently assigned warrants to purchase
        209,500 shares to four employees of GKN Securities.

        The fair value of these warrants using customary pricing models was
        approximately $1,100,000 on January 24, 2001 and is reflected in
        L.A.M.'s financial statements and recorded as an expense during the
        three months ended March 31, 2001.

Note D -Restatement
        Statement of Cash Flows for the Nine Months Ended September 30, 2001 The
        investing activities section of the statement of cash flows has been
        restated to correct a clerical error in which the corresponding numbers
        for the three month period were incorrectly repeated for the nine month
        period ended September 30, 2001 as illustrated below:

        ------------------------------------------------------------------------
                                                          As Originally
                                                            Reported    Restated
        ------------------------------------------------------------------------
        Purchases of Property and Equipment                 $ (383)   $(107,998)
        (Purchases of) Disposals of Patents
        and Trademarks - Net                                (2,660)      11,148
        ------------------------------------------------------------------------
        Net Cash Flows from Investing Activities           $(3,043)    $(96,850)
        ------------------------------------------------------------------------

        Additional reclassifications on the Balance Sheet and Statements of Cash
        Flow for the three and nine months ended September 30, 2001 were made in
        the following accounts: Patents and Trademarks, Accounts Payable, and
        Accrued Expenses, and Convertible Debentures.

        Loan Receivable-Officer
        The financial statements have been restated to reclassify the loan
        receivable-officer from a current asset to a reduction of stockholders'
        equity pursuant to the interpretation of "Staff Accounting Bulletin"
        4(G). As repayment of the loan is received capital will be credited
        accordingly.

        These restatements have no effect on net income (loss) for the periods
restated.


<PAGE>


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

This Quarterly Report on Form 10-QSB contains certain statements of a
forward-looking nature relating to future events or the future financial
performance of L.A.M. Such statements are only predictions and the actual events
or results may differ materially from the results discussed in the
forward-looking statements. Factors that could cause or contribute to such
differences include those discussed below as well as those discussed in other
filings made by L.A.M. with the Securities and Exchange Commission, including
L.A.M.'s Annual Report included in its annual filing on Form 10-KSB.


                                    Overview

The Company's principal present business activities comprise:

o    Development of  proprietary  wound healing and  trans-dermal  drug delivery
     systems; and

o    Conducting related pre-clinical studies and clinical trials.

All of L.A.M's products are in the development stage. As a result, L.A.M. has
not generated any significant revenues from the sale of pharmaceutical products.
It could be several years, if ever, before the Company realizes significant
revenue from royalties received pursuant to any license agreements.

Due to the lack of any significant revenues, L.A.M. has relied upon proceeds
realized from the public and private sale of its common stock and convertible
debentures to meet its funding requirements. Funds raised by L.A.M. have been
expended primarily in connection with research, development, clinical studies
and administrative costs. L.A.M. does not anticipate realizing revenues until
such time as it begins the commercial sale of its products or enters into
licensing arrangements regarding these products, and in the interim it will be
required to fund its operations through the sale of securities, debt financing
or other arrangements. However, there can be no assurance that such financing
will be available or be available on favorable terms.

Results of Operations

Three  months  ended  September  30, 2001 as compared to the three  months ended
September 30, 2000

Research and Development Expenses

Research and development expenses increased during the three months ended
September 30, 2001 as compared with the three months ended September 30, 2000,
primarily as a result of increased clinical studies activity. Costs associated
with these activities tend to fluctuate from period to period depending on the
status and timing of the individual projects in progress.



<PAGE>


General and Administrative Expenses

General and administrative expenses increased for the three months ended
September 30, 2001 as compared with the three months ended September 30, 2000,
primarily as a result of costs incurred in connection with additions to senior
management personnel, additional investor relations costs and general overhead
expenses.

The primary components of general and administrative expenses for the three
months ended September 30, 2001 and 2000 were as follows:

                                          2001              2000
                                          ----              ----

      Officers' salaries             $   105,500        $   30,000
      Employee salaries and benefits      34,665            16,287
      Less: Salaries classified as
         Research & Development          (40,000)          (18,000)
      Investor Relations                  99,208            14,505
      Commissions paid on sales of
         Convertible Notes                16,697            14,000
      Financial Banking and Consulting    10,000             7,000
      Filing and Registration Fees         2,541                --
      Legal and Auditing                   7,977            74,763
      Marketing and Business Development  55,662             8,257
      Other Supplies and Expenses         57,741            35,168
                                       ---------       -----------
         Total                         $ 349,991         $ 181,980
                                       =========         =========

Liquidity and Sources of Capital

L.A.M's primary source of liquidity as of September 30, 2001 is cash and cash
equivalent investments of $318,705. Working capital, exclusive of convertible
debentures expected to be converted, decreased from approximately $1,775,000 as
of December 31, 2000 to $125,350 as of September 30, 2001.

L.A.M.'s operations and reductions in current liabilities used approximately
$678,000 in cash during the three months ended September 30, 2001. During this
period L.A.M. also spent $78,043 for patents, trademarks, and equipment
purchases.

Cash required during the three months ended September 30, 2001 came from the use
of existing cash balances and repayment of advances to an officer in the amount
of $230,000. L.A.M. converted the balance of the outstanding debentures into
common shares and issued additional shares and options as an incentive to those
debenture holders that elected to convert during the three months ended
September 30, 2001.

During the three months ended September 30, 2000 L.A.M.'s operations used
$300,770 in cash and spent $53,079 for patent, trademarks, and equipment
purchases. Cash required during this period was generated through sales of
L.A.M.'s convertible debentures of $1,420,500 and $122,200 in proceeds from the
exercise of stock options and the use of existing cash balances.

Results of Operations

Nine months ended September 30, 2001 as compared to the nine months ended
September 30, 2000

Research and Development Expenses

Research and development expenses increased during the nine months ended
September 30, 2001 as compared with the nine months ended September 30, 2000 due
to a higher level of clinical studies activity during the first quarter of the
current year compared with the same quarter in the previous year.



<PAGE>


General and Administrative Expenses

General and administrative expenses increased for the nine months ended
September 30, 2001 as compared with the nine months ended September 30, 2000
primarily as a result of costs incurred in connection with obtaining the equity
line of credit and commissions on the sale of convertible notes, additions to
senior management personnel, professional fees, additional investor relations
costs and general overhead expenses.

The primary components of general and administrative expenses for the nine
months ended September 30, 2001 and 2000 were as follows:

                                          2001              2000
                                          ----              ----

      Officers' salaries            $    162,612        $   90,000
      Employee salaries and benefits     125,582            66,899
      Less: Salaries classified as
         Research & Development          (76,000)          (54,000)
      Investor Relations                 323,050            84,239
      Commissions paid on sales of
         Convertible Notes                77,551            88,600
      Financial Banking and Consulting   194,333            31,500
      Filing and Registration Fees        25,550                --
      Legal and Auditing                 113,061           133,109
      Marketing and Business Development 111,606            29,376
      Other Supplies and Expenses        102,276            83,802
                                   -------------       -----------
         Total                       $ 1,159,621         $ 553,525
                                     ===========         =========

Plan of Operations

During the next twelve months ending September 30, 2002 L.A.M. will continue:

o    To seek and develop strategic  relationships  with companies  interested in
     using L.A.M.'s  technology in conjunction with existing and future ethical,
     OTC and cosmetic products

o     Its program to commercialize its wound healing technology, including:
o     completing negotiations for first manufacture;
o     seeking distribution channels; and
o     seeking licensees and other strategic partners

o    To develop its motion  sickness  patch  systems in  cooperation  with major
     multinational partners

o    Supporting  the next phase of Ixora's  program  to  commercialize  L.A.M.'s
     sexual dysfunction products

o    Testing  L.A.M.'s  skin  care  products  with a view to  licensing  the IPM
     technology to third parties for use in products which will be classified as
     cosmetics or OTC drugs.

During this twelve-month period L.A.M.  anticipates hiring up to four additional
technical and marketing employees.


<PAGE>



During the next twelve months, L.A.M. expects that it will spend between
$300,000 and $400,000 on research, development, and clinical studies relating to
L.A.M.'s IPM Matrix technology. As of September 30, 2001, L.A.M. had working
capital of approximately $125,350. L.A.M. plans to use its existing financial
resources as well as the proceeds from the sale of its common stock under the
equity line of credit agreement with Hockbury Limited to fund its capital
requirements during this period. It should be noted that substantial funds may
be needed for more extensive research and clinical studies before L.A.M. will be
able to sell any of its products on a commercial basis.

Other than funding its research and development activities and operating losses,
L.A.M. does not have any material capital commitments.

Due to the lack of any significant revenues, L.A.M. has relied upon proceeds
realized from the public and private sale of its common stock and convertible
debentures to meet its funding requirements. Funds raised by L.A.M. have been
expended primarily in connection with research, development, clinical studies
and administrative costs. L.A.M. does not anticipate realizing revenues until
such time as it begins the commercial sale of its products or enters into
licensing arrangements regarding these products, and in the interim it will be
required to fund its operations through the sale of securities, debt financing
or other arrangements. However, there can be no assurance that such financing
will be available or be available on favorable terms.




<PAGE>

                                     PART II
                                OTHER INFORMATION

Item 2.       Changes in Securities

      During the three months ending September 30, 2001, the Company:

1.   Issued  3,832,336  shares of common stock as a result of the  conversion of
     certain notes previously sold by the Company and

2.   Issued  835,000  shares  of  common  stock to eleven  persons  for  service
     rendered.

      The shares issued upon the conversion of the notes were issued in reliance
upon the exemption provided by Section 3(a)(9) of the Securities Act of 1933.

      The shares issued for services rendered during the quarter ending
September 30, 2001 were not registered under the Securities Act of 1933 but were
sold in reliance upon the exemption provided by Section 4(2) of the Act. The
persons who acquired these shares were familiar with the business and affairs of
the Company. The shares of common stock were acquired for investment purposes
only and without a view to distribution. The certificates representing the
shares of common stock bear a legend stating that the shares may not be offered,
sold or transferred other than pursuant to an effective registration statement
under the Securities Act of 1933, or pursuant to an applicable exemption from
registration. The shares are "restricted" securities as defined in Rule 144 of
the Securities and Exchange Commission.

Item 6.  Exhibits and Reports on Form 8-K

(a)   Exhibits

        No exhibits are filed with this report

(b)   Reports on Form 8-K

      The Company did not file any reports on Form 8-K during the quarter ending
September 30, 2001.


<PAGE>



                                   SIGNATURES

Pursuant to the requirements of Section 12 of the Securities Exchange Act of
1934, the registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized


                           L.A.M. PHARMACEUTICAL CORP.



                              By:  /s/ Joseph Slechta
                                  --------------------------------------------
                                     Joseph Slechta, President and Principal
                                     Financial Officer


                              Date:     December 12, 2001