---

**UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION**
  Washington, D.C. 20549

FORM 10-QSB

x  Quarterly
  Report under Section 13 or 15(d) of the Securities Exchange Act of 1934
  For the quarterly period ended **March 31, 2005**
  or  ̈  Transition
  Report under Section 13 or 15 (d) of the Securities Exchange Act of 1934

Commission file No. 000-30641

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 1Toronto, Ontario, Canada M3H 6B4
  (Address of principal executive offices) (Zip Code)

(877) 526-7717
  (Registrant’s telephone number, including area code)

Check 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 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. 
  YESx  NO ̈

As of May 11, 2005, we had 83,157,389 issued and outstanding
  shares of common stock.

1

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INDEX

|PART I  | FINANCIAL INFORMATION | 3                                                                                                                            |   
|------- | --------------------- | ---------------------------------------------------------------------------------------------------------------------------- | --
|        |                       |                                                                                                                              |   
|        | Item 1                | Financial Statements                                                                                                         | 3 
|        |                       |                                                                                                                              |   
|        |                       | Balance Sheets at March 31, 2005 (Unaudited)
      and December 31, 2004                                                     | 4 
|        |                       |                                                                                                                              |   
|        |                       | Statements of Changes in Stockholders’
      Equity (Deficit) for the Three Months Ended March 31, 2005 and 2004 (Unaudited) | 5 
|        |                       |                                                                                                                              |   
|        |                       | Statements of Operations for the Three Months
      Ended March 31, 2005 and 2004 (Unaudited)                                | 6 
|        |                       |                                                                                                                              |   
|        |                       | Statements of Cash Flows for the Three Months
      Ended March 31, 2005 and 2004 (Unaudited)                                | 7 
|        |                       |                                                                                                                              |   
|        |                       | Notes to Financial Statements                                                                                                | 9 
|        |                       |                                                                                                                              |   
|        | Item 2                | Management’s Discussion and Analysis
      of Financial Condition and Results of Operation                                   | 11
|        |                       |                                                                                                                              |   
|        | Item 3                | Controls and Procedures                                                                                                      | 14
|        |                       |                                                                                                                              |   
|PART II | OTHER INFORMATION     | 15                                                                                                                           |   
|        |                       |                                                                                                                              |   
|        | Item 2                | Changes in Securities                                                                                                        | 15
|        |                       |                                                                                                                              |   
|        | Item 6                | Exhibits                                                                                                                     | 15

2

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PART IFINANCIAL INFORMATION

Item 1             Financial
  Statements

L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION) 
  Lewiston, New York

| | FINANCIAL
      REPORTS 
      AT 
      MARCH 31, 2005 | 
| | ------------------------------------------------------- | 
| |                                                         | 



3

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|L.A.M.
        PHARMACEUTICAL, CORP. 
        (A DELAWARE CORPORATION) 
        Lewiston, New York
      BALANCE SHEETS
|-----------------------------------------------------------------------------------------------------------------------

|                                                         |   | (Unaudited) |   |   |              |  
|-------------------------------------------------------- | - | ----------- | - | - | ------------ | -
|                                                         |   | March 31,   |   |   | December 31, |  
|                                                         |   | 2005        |   |   | 2004         |  
|                                                         |   |             |   |   |              |  
|ASSETS                                                   |   |             |   |   |              |  
|                                                         |   |             |   |   |              |  
|Current Assets                                           |   |             |   |   |              |  
|Cash and Cash Equivalents                                | $ | 29,722      |   | $ | 65,866       |  
|Accounts Receivable, net                                 |   | 163,648     |   |   | 4,795        |  
|Inventory                                                |   | 72,230      |   |   | 440,746      |  
|Prepaid Expenses                                         |   | 77,480      |   |   | 75,879       |  
|                                                         |   |             |   |   |              |  
|Total Current Assets                                     |   | 343,080     |   |   | 587,286      |  
|                                                         |   |             |   |   |              |  
|Property and Equipment - Net of Accumulated Depreciation |   | 66,979      |   |   | 73,587       |  
|                                                         |   |             |   |   |              |  
|Other Assets                                             |   |             |   |   |              |  
|Patents and Trademarks - Net of Accumulated Amortization |   | 634,037     |   |   | 634,629      |  
|                                                         |   |             |   |   |              |  
|Total Assets                                             | $ | 1,044,096   |   | $ | 1,295,502    |  
|                                                         |   |             |   |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)           |   |             |   |   |              |  
|                                                         |   |             |   |   |              |  
|Current Liabilities                                      |   |             |   |   |              |  
|Accounts Payable and Accrued Expenses                    | $ | 766,393     |   | $ | 864,525      |  
|Current Portion of Deferred Licensing Revenue            |   | 132,360     |   |   | 131,250      |  
|                                                         |   |             |   |   |              |  
|Total Current Liabilities                                |   | 898,753     |   |   | 995,775      |  
|                                                         |   |             |   |   |              |  
|Other Liabilities                                        |   |             |   |   |              |  
|Due to Stockholders                                      |   | 149,545     |   |   | 149,545      |  
|Deferred Licensing Revenue                               |   | —           |   |   | 19,860       |  
|                                                         |   |             |   |   |              |  
|Total Liabilities                                        |   | 1,048,298   |   |   | 1,165,180    |  
|                                                         |   |             |   |   |              |  
|Stockholders' Equity (Deficit)                           |   |             |   |   |              |  
|Common Stock - $.0001 Par; 150,000,000 Shares            |   |             |   |   |              |  
|Authorized; 78,348,713 and 66,115,713                    |   |             |   |   |              |  
|Shares Issued and Outstanding,
      Respectively        |   | 7,835       |   |   | 6,611        |  
|Additional Paid-In Capital                               |   | 34,351,351  |   |   | 33,234,036   |  
|Accumulated Deficit                                      |   | (34,363,388 | ) |   | (33,110,325  | )
|                                                         |   |             |   |   |              |  
|Total Stockholders' Equity (Deficit)                     |   | (4,202      | ) |   | 130,322      |  
|                                                         |   |             |   |   |              |  
|Total Liabilities and Stockholders' Equity (Deficit)     | $ | 1,044,096   |   | $ | 1,295,502    |  

The accompanying notes are an integral part of these financial
  statements.

4

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|L.A.M.
        PHARMACEUTICAL, CORP. 
        (A DELAWARE CORPORATION) 
        Lewiston, New York
      STATEMENTSOFCHANGESINSTOCKHOLDERS'EQUITY(DEFICIT)
|----------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                  |            |  |   |        |  |   | Additional |  |   |             |   |   | Total            |  
|----------------------------------------------------------------- | ---------- |  | - | ------ |  | - | ---------- |  | - | ----------- | - | - | ---------------- | -
|                                                                  | Number     |  |   | Common |  |   | Paid-In    |  |   | Accumulated |   |   | Stockholders'    |  
|                                                                  | of Shares  |  |   | Stock  |  |   | Capital    |  |   | Deficit     |   |   | Equity (Deficit) |  
|Balance - December 31, 2003                                       | 45,809,364 |  | $ | 4,581  |  | $ | 29,022,904 |  | $ | (29,130,093 | ) | $ | (102,608         | )
|                                                                  |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Capital Contribution – Interest Expense                           | —          |  |   | —      |  |   | 1,869      |  |   | —           |   |   | 1,869            |  
|Stock Options Granted -                                           |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services Rendered                                | —          |  |   | —      |  |   | 12,188     |  |   | —           |   |   | 12,188           |  
|Common Shares Issued -                                            |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services Rendered                                | 607,560    |  |   | 61     |  |   | 110,979    |  |   | —           |   |   | 111,040          |  
|Sale of Shares Under the Stock Subscription Agreements            | 300,000    |  |   | 30     |  |   | 958,480    |  |   | —           |   |   | 958,510          |  
|Proceeds from Warrant Exercise                                    | 2,133,549  |  |   | 213    |  |   | 259,160    |  |   | —           |   |   | 259,373          |  
|Premium on the Issuance of Warrants                               | —          |  |   | —      |  |   | 624,707    |  |   | —           |   |   | 624,707          |  
|Lawsuit Accrual                                                   | —          |  |   | —      |  |   | 560,000    |  |   | —           |   |   | 560,000          |  
|Collection of Receivable on Option Exercise                       | —          |  |   | —      |  |   | 580        |  |   | —           |   |   | 580              |  
|Collection of Receivable on Sale of Stock Subscription Agreements | —          |  |   | —      |  |   | 32,000     |  |   | —           |   |   | 32,000           |  
|Net Loss for the Period (Unaudited)                               | —          |  |   | —      |  |   | —          |  |   | (1,583,780  | ) |   | (1,583,780       | )
|                                                                  |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Balance – March 31, 2004 (Unaudited)                              | 48,850,473 |  | $ | 4,885  |  | $ | 31,582,867 |  | $ | (30,713,873 | ) | $ | 873,879          |  
|                                                                  |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Balance - December 31, 2004                                       | 66,115,713 |  | $ | 6,611  |  | $ | 33,234,036 |  | $ | (33,110,325 | ) | $ | 130,322          |  
|                                                                  |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Capital Contribution – Interest Expense                           | —          |  |   | —      |  |   | 2,430      |  |   | —           |   |   | 2,430            |  
|Stock Options Granted -                                           |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services
      Rendered                          | —          |  |   | —      |  |   | 1,811      |  |   | —           |   |   | 1,811            |  
|Common Shares Issued -                                            |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services
      Rendered                          | 12,233,000 |  |   | 1,224  |  |   | 929,259    |  |   | —           |   |   | 930,483          |  
|Sale of Shares Under the Stock Subscription Agreements            | —          |  |   | —      |  |   | 183,815    |  |   | —           |   |   | 183,815          |  
|Net Loss for the Period (Unaudited)                               | —          |  |   | —      |  |   | —          |  |   | (1,253,063  | ) |   | (1,253,063       | )
|                                                                  |            |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Balance – March 31, 2005 (Unaudited)                              | 78,348,713 |  | $ | 7,835  |  | $ | 34,351,351 |  | $ | (34,363,388 | ) | $ | (4,202           | )

Theaccompanyingnotes are anintegralpart of thesefinancialstatements.

5

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|L.A.M.
        PHARMACEUTICAL, CORP. 
        (A DELAWARE CORPORATION) 
        Lewiston, New York
      STATEMENTS OF OPERATIONS (UNAUDITED)
|---------------------------------------------------------------------------------------------------------------------------------------------

|                                              |   | Three Months Ended |  
|--------------------------------------------- | - | ------------------ | -
|                                              |   | March 31,          |  
|                                              |   | 2005               |  
|                                              |   |                    |  
|Revenues                                      |   |                    |  
|Licensing and Royalty Revenue                 | $ | 37,500             |  
|Net Sales                                     |   | 175,220            |  
|                                              |   |                    |  
|Total Revenue                                 |   | 212,720            |  
|                                              |   |                    |  
|Expenses                                      |   |                    |  
|Cost of Sales                                 |   | 363,606            |  
|General and Administrative                    |   | 202,772            |  
|Marketing and Business Development            |   | 862,476            |  
|Research and Development                      |   | 16,037             |  
|Depreciation and Amortization                 |   | 18,462             |  
|                                              |   |                    |  
|Total Expenses                                |   | 1,463,353          |  
|                                              |   |                    |  
|Loss Before Other Expenses                    |   | (1,250,633         | )
|                                              |   |                    |  
|Other Expenses                                |   |                    |  
|Interest Expense                              |   | 2,430              |  
|Premium on Issuance of Warrants               |   | —                  |  
|Provision for Lawsuit Settlement              |   | —                  |  
|                                              |   |                    |  
|Total Other Expenses                          |   | 2,430              |  
|                                              |   |                    |  
|Net Loss for the Period                       | $ | (1,253,063         | )
|                                              |   |                    |  
|Net Loss per Common Share - Basic and Diluted | $ | (0.02              | )
|                                              |   |                    |  
|                                              |   |                    |  
|Weighted Average Number of Common Shares      |   |                    |  
|Outstanding – Basic and Diluted               |   | 74,641,191         |  

The accompanying notes are an integral part of these financial
  statements.

6

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|L.A.M.
        PHARMACEUTICAL, CORP. 
        (A DELAWARE CORPORATION) 
        Lewiston, New York
      STATEMENTS OF CASH FLOWS (UNAUDITED)
|---------------------------------------------------------------------------------------------------------------------------------------------

|                                                 |   | Three Months Ended |  
|------------------------------------------------ | - | ------------------ | -
|                                                 |   | March 31,          |  
|                                                 |   | 2005               |  
|Cash Flows from Operating Activities             |   |                    |  
|                                                 |   |                    |  
|Net Loss for the Period                          | $ | (1,253,063         | )
|                                                 |   |                    |  
|Adjustments to Reconcile Net Loss for the Period |   |                    |  
|to Net Cash Flows from Operating Activities:     |   |                    |  
|Depreciation and Amortization                    |   | 18,462             |  
|Capital Contributions:                           |   |                    |  
|Premium on the Issuance of Warrants              |   | —                  |  
|Deemed Interest Expense on                       |   |                    |  
|Loans from Stockholders                          |   | 2,430              |  
|Deferred Licensing Revenue                       |   | (18,750            | )
|Share and Option Grants to Consultants           |   | 830,294            |  
|Provision for Lawsuit Settlement                 |   | —                  |  
|Inventory Obsolescence Reserve                   |   | 257,063            |  
|                                                 |   |                    |  
|Changes in Assets and Liabilities:               |   |                    |  
|Accounts Receivable                              |   | (158,853           | )
|Inventory                                        |   | 111,453            |  
|Prepaid Expenses                                 |   | (1,601             | )
|Accounts Payable and Accrued Expenses            |   | 3,868              |  
|Net Cash Flows from Operating Activities         |   | (208,697           | )
|                                                 |   |                    |  
|Cash Flows from Investing Activities             |   |                    |  
|Investment in Patents and Trademarks – Net       |   | (11,262            | )
|Net Cash Flows from Investing Activities         |   | (11,262            | )
|                                                 |   |                    |  
|Cash Flows from Financing Activities             |   |                    |  
|Proceeds from Exercise of Stock Options          |   | —                  |  
|Proceeds from the Sale of Shares Under           |   |                    |  
|Stock Subscription Agreements                    |   | 183,815            |  
|Proceeds from Exercise of Warrants               |   | —                  |  
|Net Cash Flows from Financing Activities         |   | 183,815            |  
|                                                 |   |                    |  
|Net Change in Cash and Cash Equivalents          |   | (36,144            | )
|Cash and Cash Equivalents - Beginning of Period  |   | 65,866             |  
|Cash and Cash Equivalents - End of Period        | $ | 29,722             |  

The accompanying notes are an integral part of these financial
  statements.

-continued-

7

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|L.A.M.
        PHARMACEUTICAL, CORP. 
        (A DELAWARE CORPORATION) 
        Lewiston, New York
      STATEMENTS OF CASH FLOWS (UNAUDITED) – continued
|---------------------------------------------------------------------------------------------------------------------------------------------------------

|                        |   | Three Months Ended | 
|----------------------- | - | ------------------ | 
|                        |   | March 31,          | 
|                        |   | 2005               | 
|                        |   |                    | 
|                        |   |                    | 
|SUPPLEMENTAL DISCLOSURE |   |                    | 
|Interest Paid           | $ | —                  | 
|Income Taxes Paid       | $ | —                  | 

The accompanying notes are an integral part of these financial
  statements.

8

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|L.A.M.
        PHARMACEUTICAL, CORP. 
        (A DELAWARE CORPORATION) 
        Lewiston, New York
      NOTES TO FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------------------------------------------------------------

|Note A - | Basis of Presentation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | The condensed financial
        statements of L.A.M. Pharmaceutical, Corp. (the “Company”)
        included herein have been prepared by the Company, 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 the Company 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 the Company’s Form 10-KSB and other reports filed with the SEC.
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|         | The accompanying unaudited
        interim financial statements reflect all adjustments of a normal and recurring
        nature, which are, in the opinion of management, necessary to present
        fairly the financial position, results of operations and cash flows of
        the Company 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 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 market launch of new products, 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. The reclassifications made to the prior year have no
        impact on the net loss, or overall presentation of the financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Note B - | Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|         | Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|         | Royalty Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|         | The Company recognizes royalty
        revenue based on royalty reports or related information received from
        the licensee and when collectibility is reasonably assured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|         | Sales Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|         | The Company recognizes sales
        revenue when it is realized or realizable and earned. The Company considers
        revenue realized or realizable when the product has been shipped to the
        customer, the sales price is fixed or determinable and collectibility
        is reasonably assured. The Company reduces revenue for estimated customer
        returns.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|         | Method of Accounting                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|         | The Company maintains its
        books and prepares its financial statements on the accrual basis of accounting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|Note C - | Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|         | Inventory is comprised of
        finished goods and raw materials and is stated at the lower of cost or
        market. Cost is determined by the first-in, first-out method and market
        is based on the lower of replacement cost or net realizable value. If
        the cost of the inventories exceeds expected market value, provisions
        are recorded currently for the difference between the cost and the market
        value. These provisions are determined based on estimates. The valuation
        of inventories also requires the Company to estimate excess inventories
        and inventories that are not saleable. The determination of excess or
        non-saleable inventories requires the Company to estimate the future demand
        for the Company’s product and consider                                                                                         
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|         | -continued-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

9

---

|L.A.M.
        PHARMACEUTICAL, CORP. 
        (A DELAWARE CORPORATION) 
        Lewiston, New York
      NOTES TO FINANCIAL STATEMENTS
|--------------------------------------------------------------------------------------------------------------------------------------

|Note C - | Inventory - continued                                                                                                                                                                                                                                                      
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | the shelf life of the inventory.
        The Company has revised its estimate of the demand for the Company’s 
        product and recorded an inventory obsolescence provision for the estimated
        excess inventory as at March  31, 2005 in the amount of $257,063.

| | March 31,              |   | 2005     |   |   | 2004   
| | ---------------------- | - | -------- | - | - | -------
| |                        |   |          |   |   |        
| | IPM Wound GelTM         | $ | 329,293  |   | $ | 438,621
| | Raw Materials          |   | —        |   |   | 2,125  
| |                        |   | 329,293  |   |   | 440,746
| | Inventory Obsolescence |   | (257,063 | ) |   | —      
| |                        |   |          |   |   |        
| | Inventories            | $ | 72,230   |   | $ | 440,746

|Note D - | Share and Option Grants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|-------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | The Company has stock option
        plans under which employees, non-employee directors, consultants and investors
        may be granted options to purchase shares of the Company’s common
        stock. Options have varying vesting and expiration dates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|         | The Company has elected to
        follow Accounting Principles Board Opinion (APB) No. 25 and related interpretations
        in accounting for its stock-based compensation made to its employees.
        APB No. 25 requires no recognition of compensation expense for most of
        the stock-based compensation arrangements provided by the Company, namely,
        broad-based employee stock purchase plans and option grants where the
        exercise price is equal to or less than the market value at the date of
        grant. However, APB No. 25 requires recognition of compensation expense
        for variable award plans over the vesting periods of such plans, based
        upon the then-current market values of the underlying stock. In contrast,
        Statement of Financial Accounting Standards (SFAS) No. 123, Accounting
        for Stock-Based Compensation, as amended by SFAS No. 148, Accounting for
        Stock-Based Compensation – Transition and Disclosure – an
        amendment of FASB Statement No. 123, requires recognition of compensation
        expense for grants of stock, stock options, and other equity instruments,
        over the vesting periods of such grants, based on the estimated grant-date
        fair values of those grants. The Company generally uses the straight-line
        method of amortization for stock based compensation.
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|         | Had compensation cost for these
        plans been determined consistent with SFAS No. 123, the Company’s
        net loss and net loss per share would have been adjusted to the following
        pro forma amounts:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

|                   |   | For the Three Months ended
|------------------ | - | --------------------------
|                   |   | March 31,                 
|                   |   | 2005                      
|Net loss           |   |                           
|As reported        | $ | 1,253,063                 
|Pro forma          | $ | 1,253,063                 
|Net Loss per share |   |                           
|As reported        |   | $0.02                     
|Pro forma          |   | $0.02                     

|Note E - | Concentrations                                                                                                                            
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------
|         |                                                                                                                                           
|         | During the period ended March 31, 2005,
        the Company generated sales from one customer representing 91% of total
        net sales.

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Item 2             Management’s
  Discussion and Analysis of Financial Condition or Plan of Operation

The
  following sets forth certain financial data with respect to us and is qualified
  in its entirety by reference to the more detailed financial statements and notes
  included elsewhere in this quarterly report on form 10-QSB. The following contains
  statements that constitute “forward looking statements” within the
  meaning of Section 21E of the Securities Exchange Act of 1934. In some cases,
  you can also identify forward-looking statements by terminology such as “may,”
  “should,” “could,” “would,” “predicts,”
  “potential,” “continue,” “expects,” “anticipates,”
  “future,” “intends,” “plans,” “believes,”
  “estimates” and similar expressions. All forward-looking statements
  are based on assumptions that we have made based on our experience and perception
  of historical trends, current conditions, expected future developments and other
  factors that we believe are appropriate. These statements are subject to numerous
  risks and uncertainties, many of which are beyond our control. No forward-looking
  statement can be guaranteed, and actual results may differ materially from those
  projected. We undertake no obligation to publicly update any forward-looking
  statement, whether as a result of new information, future events or otherwise.

Overview

We
  are the owner of a proprietary wound healing and transdermal drug delivery technology
  that involves the use of an original L.A.M. Ionic Polymer MatrixTM technology
  that we developed for the purpose of delivering, enhancing and sustaining the
  action of certain established therapeutic agents. Our corporate objective is
  to develop, market and license wound healing and transdermally delivered drugs,
  both prescription and over-the-counter, using our patented L.A.M. Ionic Polymer
  MatrixTM technology. We intend to seek out corporate alliances and co-marketing
  partnerships where other drugs and topical products can be enhanced by our L.A.M.
  IPMTM technology. We intend to acquire complementary products, technologies or
  companies by identifying and evaluating potential products and technologies
  developed by third parties that we believe fit within our overall objective.
  Acquisitions may be funded through a combination of issuance of shares and/or
  cash, in which case we would be required to raise additional funding through
  debt instruments or equity financing. We currently do not have any agreements
  to acquire any complementary products, technologies or companies.

We
  received clearance of our L.A.M. IPM Wound GelTM 510(k) pre-market notification
  from the FDA in April 2002 and commenced limited commercial sales in August
  of 2002. Since August 2002, we have continued efforts to develop commercial
  sales in the United States market. In addition, we have pursued a strategy of
  seeking regulatory approval to sell our L.A.M. IPM Wound GelTM in additional
  markets outside of the United States.

In
  March 2004, we received regulatory approval to import and sell our L.A.M. IPM
  Wound GelTM in China. We also entered into an agreement with a distributor
  in the Chinese market. In December 2003 we entered in an agreement with a distributor
  in the Latin America market and in March 2005 we received regulatory approval
  to market and sell our LAM IPM Wound GelTM in Ecuador. The approval was
  granted by the Instituto Nacional de Higiene y Medicina Tropical Leopoldo Izquieta
  Perez (the Ecuadorian Ministry of Health), approval number “26291-03-05.”

In
  May 2004, Ixora Bio-Medical Co. (“Ixora”) announced that it had
  commenced commercial sales of IxoraTM for Women. Upon commencement of commercial
  sales of this OTC product, Ixora is required to pay us royalties of 6.5% of
  all net sales with a minimum royalty payment of $75,000 for the first year
  and $150,000 for the second year of sales. As of March 31, 2005 we have
  received royalty payments of $75,000.

In
  January 2004, we announced the veterinary application of our L.A.M. IPM Wound
  GelTM targeting Pyotraumatic dermatitis, commonly known as hot spots suffered
  by dogs. We are currently seeking licensing or partnership opportunity with
  companies already well established in the veterinary field and presently do
  not intend on marketing this application under our own brand.

Our
  revenue in the first three months of 2005 increased to $213,000 compared
  to $19,000 in the same period in the prior year. This increase in revenue
  is primarily attributable to increased sales of our IPM Wound GelTM to our distributor
  in China and licensing and royalty revenue that did not occur in the first quarter
  of 2004. Our operating expenses increased from $416,000 in 2004 to $1,463,000
  in 2005 primarily as a result of non-cash consulting expenses relating to sourcing
  and due diligence activities regarding potential acquisitions and partnering
  opportunities in China as well as the United States and an inventory obsolescence
  provision. Net loss for the three months decreased to $1,253,000 in 2005
  compared to $1,584,000 in 2004.

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Selected Financial Data

The
  summary financial data set forth below with respect to the statements of operations
  for the three months ended March 31, 2005 and 2004 and with respect to the balance
  sheets as at March 31, 2005 and December 31, 2004, are derived from, and should
  be read in conjunction with the financial statements and the related notes.

Income Statement Data:

|                   |   | For the Three Months Ended |   |           
|------------------ | - | -------------------------- | - | ----------
|                   |   | March 31,                  |   | Percentage
|                   |   | 2005                       |   |           
|Revenue            | $ | 212,720                    |   |           
|Operating Expenses |   | 1,463,353                  |   |           
|Other Expenses     |   | 2,430                      |   |           
|Net Loss           | $ | (1,253,063                 | ) | $         

Balance Sheet Data:

|                               |   | As at          |   |  
|------------------------------ | - | -------------- | - | -
|                               |   | March 31, 2005 |   |  
|Current Assets                 | $ | 343,080        |   | $
|Total Assets                   |   | 1,044,096      |   |  
|Current Liabilities            |   | 898,753        |   |  
|Total Liabilities              |   | 1,048,298      |   |  
|Working Capital (Deficiency)   |   | (555,673       | ) |  
|Stockholders' Equity (Deficit) |   | (4,202         | ) |  

Results of Operations

Three months Ended March 31, 2005 compared with Three
  Months Ended March 31, 2004

Revenues

In
  May 2004 Ixora Bio-Medical Co. (“Ixora”) announced that it had commenced
  commercial sales of IxoraTM for Women. Upon commencement of commercial sales
  of this OTC product, Ixora is required to pay us royalties of 6.5% of all net
  sales with a minimum royalty payment of $75,000 for the first year and $150,000
  for the second year of sales. During the three months ended March 31, 2005 we
  received royalty payments of $18,750 and have taken into income a portion
  of the deferred licensing revenue equal to the royalty payments received.

Sales
  of our IPM Wound GelTM during the first quarter of 2005 increased by $156,000
  to $175,000 from sales in the same quarter of 2004 of $19,000. The increase
  in sales resulted from our efforts in distributing our product in China.

Cost of Goods Sold

Cost
  of Goods Sold for the three months ended March 31, 2005 were $364,000, representing
  an increase of $360,000 from $4,000 in 2004. The increase includes an
  overall increase in sales and a charge for obsolete inventory. The gross profit
  percentage on sales of 39% for the first quarter of 2005 decreased when compared
  to 78% for the first quarter of 2004. The decrease in the gross profit percentage
  resulted from lower margin sales to our distributor in China.

General and Administrative Expenses

General
  and administrative expenses for the three months ended March 31, 2005 increased
  $5,000 to $203,000 from $198,000 for the three months ended March
  31, 2004. The increase includes non-cash compensation

12

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paid to consultants for the introduction of different sources
  of financing. The increase was offset by the company’s continuing efforts
  to reduce ongoing operating costs

The
  primary components of general and administrative expenses for the three months
  ended March 31, 2005 and 2004 were as follows:

|                                           | Three months ended
|------------------------------------------ | ------------------
|                                           | March 31,         
|                                           | 2005              
|Officers’ salaries                         | $9,625            
|Employee salaries and benefits             | 21,554            
|Investor relations                         | 8,401             
|Financial consulting                       | 13,527            
|Legal and auditing (including SEC filings) | 12,628            
|Insurance                                  | 8,895             
|Shares and options issued to consultants   | 72,386            
|Other expenses                             | 55,756            
|Total                                      | 202,772           

Marketing and Business Development Expense

Marketing
  and business development expense for the three months ended March 31, 2005 increased
  $697,000 to $862,000 from $165,000 for the three months ended March
  31, 2004. The increase included non-cash expenditures of $756,000 relating
  to sourcing and due diligence activities regarding potential acquisitions and
  partnering opportunities in China as well as the United States. The increase
  was offset by decreased costs relating to product approvals in China and Central
  America and a reduction in personnel which occurred in the second quarter of
  2004.

Research and Development Expense

Research
  and development expenses for the three months ended March 31, 2005 decreased
  $15,000 to $16,000 from $31,000 for the three months ended March
  31, 2004. We have chosen to reduce our research and development expenditures
  in order to focus on establishing our existing products in the market place.
  Costs incurred during the quarter represent fixed costs of running our R&D
  department. As our products obtain acceptance and adequate cash resources become
  available we will increase our research and development expenditures and accelerate
  the development of additional products.

Liquidity and Sources of Capital

Three Months ended March 31, 2005

Our
  cash and cash equivalents as of March 31, 2005 was $29,722. Our working
  capital decreased by $148,000 from a deficiency of $408,000 as of December
  31, 2004 to a deficiency of $556,000 as of March 31, 2005.

Our
  operations used approximately $209,000 in cash during the three months ended
  March 31, 2005 compared to $458,000 used in the same period in the prior
  year. This was primarily due to the Company’s continuing efforts to reduce
  operating costs and the reduction of inventory. This was offset by an increase
  in accounts receivable of $159,000.

During
  this period we also invested $11,000 in patents and trademarks.

During
  the three months ended March 31, 2005, funds were raised principally from subscription
  agreements for the issuance of our common stock in the amount of $184,000.

During
  the three months ended March 31, 2005 we sold units of our common stock in which
  each unit consists of 1,000 shares of our common stock plus 750 warrants. Through
  private placements we sold 1,671,676 shares of our common stock, plus warrants
  for the purchase of an additional 1,253,756 shares to 11 investors for proceeds
  totaling $183,725. Full proceeds were received prior to March 31, 2005.
  As of March 31, 2005 we have

13

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not issued the common stock in relation to the private placement.
  Each warrant will entitle the holder to purchase one share of common stock as
  follows:

| | • | One third of warrants may be exercised at varying
        dates prior to January 31, 2006 at a price of $0.30 per share; 
| | - | -------------------------------------------------------------------------------------------------------------------------
| | • | One third of warrants may be exercised at varying
        dates prior to July 31, 2006 at a price of $0.50 per share; and
| | • | One third of warrants may be exercised at varying
        dates prior to January 31, 2007 at a price of $0.75 per share  

Application of Critical Accounting Policies

Our
  financial statements and accompanying notes are prepared in accordance with
  generally accepted accounting principles in the United States. Preparing financial
  statements requires management to make estimates and assumptions that affect
  the reported amounts of assets, liabilities, revenue, and expenses. These estimates
  and assumptions are affected by management's application of accounting policies.
  Critical accounting policies include revenue recognition, inventory valuation
  and accounting for income taxes.

We
  recognize revenue in accordance with Staff Accounting Bulletin No. 101, "Revenue
  Recognition in Financial Statements”. We recognize revenue when it is
  realized or realizable and earned. We consider revenue realized or realizable
  when the product has been shipped to the customer, the sales price is fixed
  or determinable and collectibility is reasonably assured. We reduce our revenue
  for estimated customer returns. We recognize royalty revenue based on royalty
  reports or related information received from the licensee and when collectibility
  is reasonably assured.

Inventory
  is comprised of finished goods and raw materials and is stated at the lower
  of cost or market. Cost is determined by the first-in, first-out method and
  market is based on the lower of replacement cost or net realizable value. If
  the cost of the inventories exceeds their expected market value, provisions
  are recorded currently for the difference between the cost and the market value.
  These provisions are determined based on estimates. The valuation of inventories
  also requires us to estimate excess inventories and inventories that are not
  saleable. The determination of excess or non-saleable inventories requires us
  to estimate the future demand for our product and consider the shelf life of
  the inventory. If actual demand is less than our estimated demand, we could
  be required to record inventory reserves, which would have an adverse impact
  on our results of operations. The Company has currently recorded an inventory
  obsolescence reserve of $257,000.

Statement
  of Financial Accounting Standards No. 109, "Accounting for Income Taxes," establishes
  financial accounting and reporting standards for the effect of income taxes.
  The objectives of accounting for income taxes are to recognize the amount of
  taxes payable or refundable for the current year and deferred tax liabilities
  and assets for the future tax consequences of events that have been recognized
  in an entity's financial statements or tax returns. All deferred tax assets
  have been fully reserved against due to the uncertainty as to when or whether
  the tax benefit will be realized.

Item 3             Controls
  and Procedures

Joseph
  T. Slechta, our President, Chief Executive Officer, Principal Financial Officer
  and Chief Accounting Officer, has evaluated the effectiveness of our disclosure
  controls and procedures as of a date within 90 days prior to the filing date
  of this report; and in his opinion our disclosure controls and procedures ensure
  that material information relating to us, is made known to him by others within
  our entity, particularly during the period in which this report is being prepared,
  so as to allow timely decisions regarding required disclosure. To the knowledge
  of Mr. Slechta there have been no significant changes in our internal controls
  or in other factors that could significantly affect our internal controls subsequent
  to the date of their evaluation. As a result, no corrective actions with regard
  to significant deficiencies or material weakness in our internal controls were
  required.

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PART II 
  OTHER INFORMATION

Item 2             Changes
  in Securities

During
  the three months ended March 31, 2005 we sold 1,671,676 shares of our common
  stock, plus warrants for the purchase of an additional 1,253,756 shares to 11
  investors for proceeds totaling $183,725. Each warrant will entitle the
  holder to purchase one share of common stock as follows:

| | • | One third of warrants may be exercised at varying
        dates prior to January 31, 2006 at a price of $0.30 per share; 
| | - | -------------------------------------------------------------------------------------------------------------------------
| | • | One third of warrants may be exercised at varying
        dates prior to July 31, 2006 at a price of $0.50 per share; and
| | • | One third of warrants may be exercised at varying
        dates prior to January 31, 2007 at a price of $0.75 per share  

The
  Company will file a registration statement to register the common shares issued
  to the investors as a result of the private placement with the United States
  Securities and Exchange Commission.

Item 6             Exhibits

|Number | Title                                                                                                                                                                                                                                                             
|------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                   
|31.1   | Certification
        by Joseph T. Slectha, President, Chief Executive Officer, Principal Financial
        Officer and Chief Accounting Officer, Pursuant to Section 302 of the Sarbanes-Oxley
        Act of 2002                                               
|       |                                                                                                                                                                                                                                                                   
|32.1   | Certification
        by Joseph T. Slectha, President, Chief Executive Officer, Principal Financial
        Officer and Chief Accounting Officer, Pursuant to 18 U.S.C. Section 1350,
        as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

15

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SIGNATURES

In accordance with the requirements of the Securities Exchange
  Act, the registrant has duly caused this report to be signed on its behalf by
  the undersigned, thereunto duly authorized

|             | L.A.M. PHARMACEUTICAL, CORP.
|------------ | ----------------------------
|             |                             
|             |                             
|             |                             
|May 16, 2005 | By:                         
|             |                             
|             |                             

16

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