---

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**Washington, DC 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 September 30, 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)

736 Center Street,Lewiston, NY
14092(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.
  YES x NO  ̈

As of October 31, 2005, we had 115,499,579 issued and
outstanding shares of common stock.

1

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INDEX

|PART I  | FINANCIAL INFORMATION |                                                                                                                                
|------- | --------------------- | -------------------------------------------------------------------------------------------------------------------------------
|        |                       |                                                                                                                                
|        |                       |                                                                                                                                
|        | Item 1                | Financial Statements                                                                                                           
|        |                       |                                                                                                                                
|        |                       | Balance Sheets at September 30,
      2005 (Unaudited) and December 31, 2004                                                   
|        |                       |                                                                                                                                
|        |                       | Statements of Changes in Stockholders'
      Equity (Deficit) for the Nine Months Ended September 30, 2005 and 2004 (Unaudited)
|        |                       |                                                                                                                                
|        |                       | Statements of Operations for
      the Three Months Ended September 30, 2005 and 2004 (Unaudited)                              
|        |                       |                                                                                                                                
|        |                       | Statements of Operations for
      the Nine Months Ended September 30, 2005 and 2004 (Unaudited)                               
|        |                       |                                                                                                                                
|        |                       | Statements of Cash Flows for
      the Nine Months Ended September 30, 2005 and 2004 (Unaudited)                               
|        |                       |                                                                                                                                
|        |                       | Notes to Financial Statements                                                                                                  
|        |                       |                                                                                                                                
|        | Item 2                | Management's Discussion and
      Analysis of Financial Condition or Plan of Operation                                         
|        |                       |                                                                                                                                
|        | Item 3                | Controls and Procedures                                                                                                        
|        |                       |                                                                                                                                
|PART II | OTHER INFORMATION     |                                                                                                                                
|        |                       |                                                                                                                                
|        | Item 1                | Legal Proceedings                                                                                                              
|        |                       |                                                                                                                                
|        | Item 2                | Changes in Securities                                                                                                          
|        |                       |                                                                                                                                
|        | Item 6                | Exhibits                                                                                                                       

2

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PART IFINANCIAL INFORMATION

Item 1.      Financial
Statements



L.A.M. PHARMACEUTICAL, CORP.

(A DELAWARE CORPORATION)Lewiston, New York



FINANCIAL REPORTSATSEPTEMBER 30,
      2005


3

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

|                                                                |   | (Unaudited)   |   |   |              |  
|--------------------------------------------------------------- | - | ------------- | - | - | ------------ | -
|                                                                |   | September 30, |   |   | December 31, |  
|                                                                |   | 2005          |   |   | 2004         |  
|                                                                |   |               |   |   |              |  
|ASSETS                                                          |   |               |   |   |              |  
|                                                                |   |               |   |   |              |  
|Current Assets                                                  |   |               |   |   |              |  
|Cash and Cash Equivalents                                       | $ | 28,362        |   | $ | 65,866       |  
|Accounts Receivable, net                                        |   | 134,066       |   |   | 4,795        |  
|Inventory                                                       |   |              |   |   | 440,746      |  
|Prepaid Expenses                                                |   | 64,945        |   |   | 75,879       |  
|                                                                |   |               |   |   |              |  
|Total Current Assets                                            |   | 227,373       |   |   | 587,286      |  
|                                                                |   |               |   |   |              |  
|Property and Equipment - Net of
      Accumulated Depreciation  |   | 26,773        |   |   | 73,587       |  
|                                                                |   |               |   |   |              |  
|Other Assets                                                    |   |               |   |   |              |  
|Patents and
      Trademarks - Net of Accumulated Amortization  |   | 617,135       |   |   | 634,629      |  
|                                                                |   |               |   |   |              |  
|Total
      Assets                                              | $ | 871,281       |   | $ | 1,295,502    |  
|                                                                |   |               |   |   |              |  
|LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                  |   |               |   |   |              |  
|                                                                |   |               |   |   |              |  
|Current Liabilities                                             |   |               |   |   |              |  
|Accounts Payable and Accrued Expenses                           | $ | 886,958       |   | $ | 864,525      |  
|Current Portion of
      Deferred Licensing Revenue             |   |              |   |   | 131,250      |  
|                                                                |   |               |   |   |              |  
|Total Current Liabilities                                       |   | 886,958       |   |   | 995,775      |  
|                                                                |   |               |   |   |              |  
|Other Liabilities                                               |   |               |   |   |              |  
|Due to Stockholders                                             |   | 169,545       |   |   | 149,545      |  
|Deferred Licensing
      Revenue                                |   |              |   |   | 19,860       |  
|                                                                |   |               |   |   |              |  
|Total
      Liabilities                                         |   | 1,056,503     |   |   | 1,165,180    |  
|                                                                |   |               |   |   |              |  
|Stockholders' Equity (Deficit)                                  |   |               |   |   |              |  
|Common Stock - $.0001 Par; 150,000,000
      Shares Authorized; |   |               |   |   |              |  
|112,279,579
      and 66,115,713 Shares                         |   |               |   |   |              |  
|Issued
      and Outstanding, Respectively                      |   | 11,228        |   |   | 6,611        |  
|Additional Paid-In Capital                                      |   | 35,014,105    |   |   | 33,234,036   |  
|Accumulated Deficit                                             |   | (35,210,555   | ) |   | (33,110,325  | )
|                                                                |   |               |   |   |              |  
|Total Stockholders' Equity (Deficit)                            |   | (185,222      | ) |   | 130,322      |  
|                                                                |   |               |   |   |              |  
|Total Liabilities and Stockholders' Equity
      (Deficit)      | $ | 871,281       |   | $ | 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                                           
|                                                             
|STATEMENTS OF
      CHANGES IN STOCKHOLDERS' 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                                 |  |                |  |   |       |  |   | 5,764      |  |   |            |   |   | 5,764            |  
|Stock Options Granted -                                                 |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services Rendered                                      |  |                |  |   |       |  |   | 752,564    |  |   |            |   |   | 752,564          |  
|Common Shares Issued -                                                  |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services Rendered                                      |  | 481,560         |  |   | 48     |  |   | 416,189    |  |   |            |   |   | 416,237          |  
|Sale of Shares Under the Stock Subscription Agreements                  |  | 300,000         |  |   | 30     |  |   | 1,239,480  |  |   |            |   |   | 1,239,510        |  
|Proceeds from Warrant Exercise                                          |  | 2,133,549       |  |   | 213    |  |   | 259,160    |  |   |            |   |   | 259,373          |  
|Premium on the Issuance of Warrants                                     |  |                |  |   |       |  |   | 627,635    |  |   |            |   |   | 627,635          |  
|Common Stock Issued in Settlement of
      Lawsuit                      |  | 2,000,000       |  |   | 200    |  |   | 559,800    |  |   |            |   |   | 560,000          |  
|Collection of Receivable on Option Exercise                             |  |                |  |   |       |  |   | 580        |  |   |            |   |   | 580              |  
|Collection of Receivable on Sale of Stock
      Subscription Agreements |  |                |  |   |       |  |   | 94,000     |  |   |            |   |   | 94,000           |  
|Net Loss for the
      Period (Unaudited)                               |  |                |  |   |       |  |   |           |  |   | (3,525,867  | ) |   | (3,525,867       | )
|                                                                        |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Balance 
      September 30, 2004 (Unaudited)                          |  | 50,724,473      |  | $ | 5,072  |  | $ | 32,978,076 |  | $ | (32,655,960 | ) | $ | 327,188          |  
|                                                                        |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Balance - December 31, 2004                                             |  | 66,115,713      |  | $ | 6,611  |  | $ | 33,234,036 |  | $ | (33,110,325 | ) | $ | 130,322          |  
|                                                                        |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Capital Contribution  Interest Expense                                 |  |                |  |   |       |  |   | 8,315      |  |   |            |   |   | 8,315            |  
|Stock Options Granted -                                                 |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services Rendered                                      |  |                |  |   |       |  |   | 5,433      |  |   |            |   |   | 5,433            |  
|Common Shares Issued -                                                  |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Compensation for Services Rendered                                      |  | 34,863,000      |  |   | 3,487  |  |   | 1,450,549  |  |   |            |   |   | 1,454,036        |  
|Sale of Shares Under the Stock Subscription
      Agreements            |  | 11,300,866      |  |   | 1,130  |  |   | 315,772    |  |   |            |   |   | 316,902          |  
|Net Loss for the
      Period (Unaudited)                               |  |                |  |   |       |  |   |           |  |   | (2,100,230  | ) |   | (2,100,230       | )
|                                                                        |  |                 |  |   |        |  |   |            |  |   |             |   |   |                  |  
|Balance 
      September 30, 2005 (Unaudited)                          |  | 112,279,579     |  | $ | 11,228 |  | $ | 35,014,105 |  | $ | (35,210,555 | ) | $ | (185,222         | )

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

5

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

|                                               |   | Three Months Ended |  
|---------------------------------------------- | - | ------------------ | -
|                                               |   | September 30,      |  
|                                               |   | 2005               |  
|                                               |   |                    |  
|Revenues                                       |   |                    |  
|Licensing and Royalty Revenue                  | $ | 94,860             |  
|Net
      Sales                                |   |                   |  
|                                               |   |                    |  
|Total Revenue                                  |   | 94,860             |  
|                                               |   |                    |  
|Expenses                                       |   |                    |  
|Cost of Sales                                  |   |                   |  
|General and Administrative                     |   | 189,713            |  
|Marketing and Business
      Development       |   | 246,106            |  
|Research and Development                       |   |                   |  
|Depreciation and Amortization                  |   | 18,523             |  
|                                               |   |                    |  
|Total Expenses                                 |   | 454,342            |  
|                                               |   |                    |  
|Loss Before Other Expenses                     |   | (359,482           | )
|                                               |   |                    |  
|Other Expenses                                 |   |                    |  
|Loss on Disposal of Leasehold Improvements     |   |                   |  
|Premium on Issuance of
      Warrants          |   |                   |  
|Interest Expense                               |   | 3,179              |  
|Lawsuit Settlement                             |   |                   |  
|                                               |   |                    |  
|Total Other Expenses                           |   | 3,179              |  
|                                               |   |                    |  
|Net Loss for the Period                        | $ | (362,661           | )
|                                               |   |                    |  
|Net Loss per Common Share - Basic and Diluted  | $ | (0.00              | )
|                                               |   |                    |  
|                                               |   |                    |  
|Weighted Average Number of Common
      Shares |   |                    |  
|Outstanding  Basic and Diluted                |   | 98,091,765         |  

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
      OPERATIONS (UNAUDITED)

|                                              |   | Nine Months Ended |  
|--------------------------------------------- | - | ----------------- | -
|                                              |   | September 30,     |  
|                                              |   | 2005              |  
|                                              |   |                   |  
|Revenues                                      |   |                   |  
|Licensing and Royalty Revenue                 | $ | 169,860           |  
|Net Sales                                     |   | 181,487           |  
|                                              |   |                   |  
|Total
      Revenue                           |   | 351,347           |  
|                                              |   |                   |  
|Expenses                                      |   |                   |  
|Cost of Sales                                 |   | 434,437           |  
|General and Administrative                    |   | 504,047           |  
|Marketing and Business Development            |   | 1,400,188         |  
|Research and Development                      |   | 21,448            |  
|Depreciation and Amortization                 |   | 55,509            |  
|                                              |   |                   |  
|Total Expenses                                |   | 2,415,629         |  
|                                              |   |                   |  
|Loss Before Other Expenses                    |   | (2,064,282        | )
|                                              |   |                   |  
|Other Expenses                                |   |                   |  
|Loss on Disposal of Leasehold Improvements    |   | 27,633            |  
|Premium on Issuance of Warrants               |   |                  |  
|Interest Expense                              |   | 8,315             |  
|Lawsuit Settlement                            |   |                  |  
|                                              |   |                   |  
|Total Other Expenses                          |   | 35,948            |  
|                                              |   |                   |  
|Net Loss for the Period                       | $ | (2,100,230        | )
|                                              |   |                   |  
|Net Loss per Common Share - Basic and Diluted | $ | (0.03             | )
|                                              |   |                   |  
|                                              |   |                   |  
|Weighted Average Number of Common Shares      |   |                   |  
|Outstanding  Basic and Diluted               |   | 83,749,936        |  

7

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

|                                                       |   | Nine Months Ended |  
|------------------------------------------------------ | - | ----------------- | -
|                                                       |   | September 30,     |  
|                                                       |   | 2005              |  
|Cash Flows from Operating Activities                   |   |                   |  
|                                                       |   |                   |  
|Net Loss for the Period                                | $ | (2,100,230        | )
|                                                       |   |                   |  
|Adjustments to Reconcile Net Loss for
      the Period |   |                   |  
|to Net Cash Flows from
      Operating Activities:     |   |                   |  
|Depreciation and Amortization                          |   | 55,509            |  
|Capital Contributions:                                 |   |                   |  
|Premium on the Issuance of Warrants                    |   |                  |  
|Deemed Interest Expense on                             |   |                   |  
|Loans from
      Stockholders                          |   | 8,315             |  
|Deferred Licensing Revenue                             |   | (151,110          | )
|Share and Option Grants to Consultants                 |   | 1,357,469         |  
|Shares Issued for Lawsuit Settlement                   |   |                  |  
|Inventory Obsolescence Reserve                         |   | 326,682           |  
|Loss on Disposal of Leasehold Improvements             |   | 27,633            |  
|                                                       |   |                   |  
|Changes in Assets and Liabilities:                     |   |                   |  
|Accounts Receivable                                    |   | (129,271          | )
|Inventory                                              |   | 114,064           |  
|Prepaid Expenses                                       |   | 10,934            |  
|Accounts Payable
      and Accrued Expenses            |   | 124,433           |  
|Net Cash Flows from Operating Activities               |   | (355,572          | )
|                                                       |   |                   |  
|Cash Flows from Investing Activities                   |   |                   |  
|Purchases of Property and Equipment                    |   | (645              | )
|Investment in Patents and Trademarks  Net             |   | (18,189           | )
|Net Cash Flows
      from Investing Activities         |   | (18,834           | )
|                                                       |   |                   |  
|Cash Flows from Financing Activities                   |   |                   |  
|Proceeds from Exercise of Stock Options                |   |                  |  
|Proceeds from the Sale of Shares Under                 |   |                   |  
|Share Subscription
      Agreements                    |   | 316,902           |  
|Advances from Stockholders                             |   | 20,000            |  
|Proceeds from Exercise of Warrants                     |   |                  |  
|Net Cash Flows from Financing Activities               |   | 336,902           |  
|                                                       |   |                   |  
|Net Change in Cash and Cash Equivalents                |   | (37,504           | )
|Cash and Cash Equivalents - Beginning of Period        |   | 65,866            |  
|Cash and Cash
      Equivalents - End of Period        | $ | 28,362            |  

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

-continued-

8

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

|                                                  |   | Nine Months Ended | 
|------------------------------------------------- | - | ----------------- | 
|                                                  |   | September 30,     | 
|                                                  |   | 2005              | 
|                                                  |   |                   | 
|Non-Cash Investing and Financing
      Activities |   |                   | 
|Common Stock Issued in Lieu of Cash Payment of    |   |                   | 
|Accounts Payable and Accrued Expenses             | $ | 102,000           | 
|                                                  |   |                   | 
|                                                  |   |                   | 
|SUPPLEMENTAL DISCLOSURE                           |   |                   | 
|Interest Paid                                     | $ |                  | 
|Income Taxes Paid                                 | $ |                  | 

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

9

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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 the shelf life of the inventory.                                  
|
|
|
|
|
|

-continued-

10

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

|Note C - | Inventory - continued                                                                                                                                                                                                                                                                     
|-------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         | 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 September 30, 2005 in the amount
        of $326,682, due to the product expiration in August 2005.
|
|

| |                              |   | September 30, |   |   | December
      31, | 
| | ---------------------------- | - | ------------- | - | - | ------------------ | 
| |                              |   | 2005          |   |   | 2004               | 
| |                              |   |               |   |   |                    | 
| | IPM Wound Gel               | $ | 326,682       |   | $ | 438,621            | 
| | Raw Materials                |   |              |   |   | 2,125              | 
| |                              |   | 326,682       |   |   | 440,746            | 
| | Inventory
      Obsolescence |   | (326,682      | ) |   |                   | 
| |                              |   |               |   |   |                    | 
| | Inventories                  | $ |              |   | $ | 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.
|
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|
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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|         | 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
    
    
    For the Nine Months EndedEndedSeptember
    
    
    September
    
    
    September
    
    
    September30, 2005
    
    
    30, 2004
    
    
    30, 2005
    
    
    30, 2004Net lossAs reported
    $
    362,661
    
    $
    350,099
    
    $
    2,100,230
    
    $
    3,525,867Pro forma
    $
    362,661
    
    $
    350,099
    
    $
    2,100,230
    
    $
    3,525,867Net Loss per shareAs reported
    $
      0.00
    
    $
      0.01
    
    $
    0.03
    
    $
    0.07Pro forma
    $
      0.00
    
    $
      0.01
    
    $
    0.03
    
    $
    0.07


11

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

|Note E - | Licensing Agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | The Company has an exclusive license agreement (the "License
        Agreement") with Ixora Bio-Medical Company, Inc. ("Ixora").
        Under the License Agreement, Ixora paid the Company $500,000 cash and
        2,025,000 common stock of Ixora for the exclusive rights of the Companys
        male and female sexual dysfunction product technology. Ixora has also
        agreed to pay all costs for the development, registration and protection
        of intellectual property, including but not limited to patent costs, raw
        material costs, clinical development costs and compensation of all Company
        personnel involved in the sexual dysfunction product technology. The Company
        must obtain written consent from Ixora on the reimbursement of costs in
        excess of $10,000 per quarter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
|
|
|
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|
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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | The initial receipt of 2,025,000 common stock of Ixora
      represented a 45% ownership interest in Ixora. The Company accounted for
      the investment in Ixora on the equity method, which was written down to
      zero when the Companys share of Ixoras losses were subsequently
      recorded. During 2000 and 2001, Ixora received additional equity financing
      which decreased the Companys ownership in Ixora to 18%. As a result the
      Company currently accounts for their investment in Ixora on the cost
      basis, which remains at zero.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
|
|
|
|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | The Company determined that the share portion of the
      licensing fee should not be recorded as revenue until royalty revenue is
      earned from Ixora. During the third quarter of 2005, the Company
      determined that it would be forced to cancel the Licensing Agreement for
      non-payment. At the same time, all receivables from Ixora were written off
      to bad debt.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
|
|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | Subsequent to September 30, 2005, the Company entered into
        a new agreement with Exoris Inc. ("Exoris"). Under the License
        agreement, Exoris paid the Company $100,000 cash.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Note F - | Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | The Companys financial statements have been presented on
      the basis that it is a going concern, which contemplates the realization
      of assets and the satisfaction of liabilities in the normal course of
      business. The Company has reported recurring negative cash flows from
      operations and recurring net losses, which has resulted in an accumulated
      deficit of $35,210,555 at September 30, 2005. These conditions raise
      substantial doubt about the Companys ability to continue as a going
      concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
|
|
|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | The Companys continued existence is dependent upon its
      ability to raise capital or to successfully market and sell its products.
      As at the date of filing, the Company has received the initial upfront
      payment from Exoris of $100,000 cash. The financial statements do not
      include any adjustments that might be necessary should the Company be
      unable to continue as a going concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
|
|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|Note G - | Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|         | A complaint was filed against the Company on August 3,
      2005, in the 11thjudicial circuit court in and for Miami-Dade
      County, Florida, which complaint was subsequently amended on October 31,
      2005 (as amended, the CRG Complaint), by Capital Research Group, Inc.
      (CRG). The CRG Complaint alleged that the Company breached the terms of
      a Satisfaction Agreement previously entered into between CRG and the
      Company relating to a contractual dispute, whereby the Company agreed to
      deliver shares of its common stock and warrants to CRG. CRG alleges that
      the number of shares delivered was insufficient and is seeking damages in
      the principal amount of $132,000. The Company does not believe CRGs claim
      has merit and intends to vigorously defend the CRG Complaint. CRG has also
      filed a demand for arbitration with the American Arbitration Association
      (the Arbitration Action) seeking $288,902, together with prejudgment
      interest, in connection with a Consulting Agreement between the Company
      and CRG dated April 19, 2004 (the Consulting Agreement). The Company has
      not been formally served with the Arbitration Action, but intends to
      oppose CRGs demands in the Arbitration Action and believes that no
      amounts are due to CRG under the Consulting Agreement.
|
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|

12

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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 Matrix 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 Matrix
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. IPM 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 Gel 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 Gel 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 Gel in China. We
also entered into an agreement with a distributor in the Chinese market.
Subsequent to the agreement entered into in December 2003 with a distributor in
the Latin America market, application for our regulatory approval to market our
product in a number of Latin American countries have been filed by our
distributor.

In May 2004, Ixora Bio-Medical
Co. (Ixora) announced that it had commenced commercial sales of Ixora 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 September 30, 2005 we have cancelled their licensing agreement due to
non-payment.

In January 2004, we announced the
veterinary application of our L.A.M. IPM Wound Gel 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 nine
months of 2005 increased to $351,000 compared to $129,000 in the same period in
the prior year. This increase in revenue is primarily attributable to increased
sales of our IPM Wound Gel to our distributor in China, licensing and royalty
revenue that did not occur until the second quarter of 2004. and the write off
of the remaining deferred licensing revenue. Our operating expenses decreased
from $2,461,000 in 2004 to $2,416,000 in 2005 primarily as a result of an
overall decrease in general and administrative (specifically salaries and rent
expense), marketing and business development expenses, and research and
development, offset by the addition of an inventory obsolescence reserve. Net
loss for the nine months decreased to $2,100,000 in 2005 compared to $3,526,000
in 2004.

13

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Selected Financial Data

The summary financial data set
forth below with respect to the statements of operations for the nine months
ended September 30, 2005 and 2004 and with respect to the balance sheets as at
September 30, 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 Nine Months EndedSeptember 30,
    
    
    Percentage2005
    
    
    2004
    
    
    ChangeRevenue
    $
    351,347
    
    
    128,959
    
    
    272%Operating Expenses
    
    2,415,629
    
    
    2,461,427
    
    
    (2%
    )Other Expenses
    
    35,948
    
    
    1,193,399Net Loss
    $
    (2,100,230
    )
    $
    (3,525,867
    )


Balance Sheet Data:

As atSeptember 30, 2005
    
    
    December 31, 2004Current Assets
    $
    227,373
    
    $
    587,286Total Assets
    
    871,281
    
    
    1,295,502Current Liabilities
    
    886,958
    
    
    995,775Total Liabilities
    
    1,056,503
    
    
    1,165,180Working Capital (Deficiency)
    
    (659,585
    )
    
    (408,489
    )Stockholders' Equity (Deficit)
    
    (185,222
    )
    
    130,322


Results of Operations

Three months Ended September 30, 2005 compared with Three
Months Ended September 30, 2004

Revenues

In May 2004 Ixora announced that
  it had commenced commercial sales of Ixora 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
  September 30, 2005 we recorded royalty revenue of $0 and recognized the remaining
  balance of the deferred licensing revenue as part of the cancellation of the
  Ixora agreement.

Sales of our IPM Wound Gel
during the third quarter of 2005 decreased by $6,000 to $0 from sales in the
same quarter of 2004 of $18,000. The decrease in sales resulted from the
products expiry date in the third quarter of 2005. Subsequent to the end of the
third quarter, Company is arranging for the production of a new batch of IPM
Wound Gel which is expected to be available for sale by the first quarter of
2006.

Cost of Goods Sold

Cost of Goods Sold for the three
months ended September 30, 2005 were $0, representing a decrease of $4,750 from
$4,750 in 2004. The decrease includes an overall decrease in sales.

General and Administrative Expenses

General and administrative
expenses for the three months ended September 30, 2005 increased $15,000 to
$190,000 from $175,000 for the three months ended September 30, 2004. The
increase resulted from issuance of stock for services rendered to
consultants.

14

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The primary components of general
and administrative expenses for the three months ended September 30, 2005 and
2004 were as follows:

Three months endedSeptember 30,2005
      
      2004Officers salaries
      $ 15,000
      
      $ 11,875Employee salaries and benefits
      11,020
      
      26,088Investor relations
      1,857
      
      9,960Legal and auditing (including SEC filings)
      43,341
      
      46,207Insurance
      
      
      19,048Shares and options issued to consultants
      89,311
      
      12,188Other expenses
      29,184
      
      49,438Total
      189,713
      
      174,804


Marketing and Business Development Expense

Marketing and business
development expense for the three months ended September 30, 2005 increased
$56,000 to $246,000 from $190,000 for the three months ended September 30, 2004.
The increase resulted from services performed in connection with obtaining
distribution agreements in Central and South America.

Research and Development Expense

Research and development expenses
for the three months ended September 30, 2005 decreased $16,000 to $0 from
$16,000 for the three months ended September 30, 2004. We have chosen to reduce
our research and development expenditures in order to focus on establishing our
existing products in the market place. 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.

Nine months Ended September 30, 2005 compared with Nine
Months Ended September 30, 2004

Revenues

In May 2004 Ixora announced that
  it had commenced commercial sales of Ixora 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 quarter ended September
  30, 2005 we wrote off all accrued royalty revenue for the year of $56,250 and
  have taken into income a portion of the deferred royalty revenue equal to the
  royalty payments received of $18,750.

Sales of our IPM Wound Gel
during the nine months ended September 30, 2005 increased by $127,000 to
$181,000 from sales in the same period of 2004 of $54,000. The increase in sales
resulted from our efforts in distributing our product in China.

Cost of Goods Sold

Cost of Goods Sold for the nine
months ended September 30, 2005 were $434,000, representing an increase of
$421,000 from $13,000 in 2004. The increase includes an overall increase in
sales and a charge for obsolete inventory of $327,000. The gross profit
percentage of (69%) for the nine months ended September 30, 2005 decreased when
compared to 90% for the same period of 2004. The decrease in the gross profit
percentage resulted from lower margin sales to our distributor in China and lack
of sales in Q3.

15

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General and Administrative Expenses

General and administrative
expenses for the nine months ended September 30, 2005 decreased $317,000 to
$504,000 from $821,000 for the nine months ended September 30, 2004. The
decrease resulted from investor relations expenses incurred in 2004 that did not
incur in the current year, an increase in 2004 officers salaries as a result of
a bonus related to regulatory approval in China and the companys continuing its
efforts to reduce ongoing operating costs.

The primary components of general
and administrative expenses for the nine months ended September 30, 2005 and
2004 were as follows:

Nine months endedSeptember 30,2005
      
      2004Officers salaries
      $ 40,825
      
      $ 51,000Employee salaries and benefits
      49,096
      
      73,742Investor relations
      15,496
      
      277,505Financial consulting
      13,527
      
      Legal and auditing (including SEC filings)
      85,632
      
      126,741Insurance
      10,100
      
      34,051Shareholder special meeting expenses
      
      
      7,496Shares and options issued to consultants
      185,333
      
      101,355Other expenses
      104,038
      
      149,030Total
      504,047
      
      821,420


Marketing and Business Development Expense

Marketing and business
development expense for the nine months ended September 30, 2005 decreased
$93,000 to $1,400,000 from $1,493,000 for the nine months ended September 30,
2004. The decrease resulted from a reduction of costs related to promotional
marketing activities.

Research and Development Expense

Research and development expenses
for the nine months ended September 30, 2005 decreased $59,000 to $21,000 from
$80,000 for the nine months ended September 30, 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 current year
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

Nine Months ended September 30, 2005

Our cash and cash equivalents as
of September 30, 2005 was $28,000. Our working capital decreased by $252,000
from a deficiency of $408,000 as of December 31, 2004 to a deficiency of
$660,000 as of September 30, 2005.

Our operations used approximately
$356,000 in cash during the nine months ended September 30, 2005 compared to
$1,451,000 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
$129,000.

During this period we also
invested $18,000 in patents and trademarks and $600 in property and
equipment.

During the nine months ended
September 30, 2005, funds were raised principally from subscription agreements
for the issuance of our common stock in the amount of $317,000.

16

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During the nine months ended
September 30, 2005 we sold units of our common stock in which each unit consists
of shares of our common stock plus warrants. Through private placements we sold
5,639,676 shares of our common stock, plus warrants for the purchase of an
additional 4,979,756 shares to 15 investors for proceeds totaling $293,745. Full
proceeds were received prior to September 30, 2005. Each warrant will entitle
the holder to purchase one share of common stock at varying dates prior to July
1, 2008 at exercise prices varying from $0.04 per share to $0.75 per share.

Historically, we have relied on
the proceeds from the capital raised from the issuance of debt and equity
securities to individual investors and related parties to sustain our
operations. While we are currently seeking capital, there can be no assurance
that we will be able to obtain financing or sell assets on commercially
acceptable terms to meet our capital requirements. Our inability to raise
capital will have a material adverse effect on our financial condition, ability
to meet our obligations and operating needs, and results of operations.

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.

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 1       Legal
Proceedings

A complaint was filed against the
Company on August 3, 2005, in the 11th judicial circuit court in and
for Miami-Dade County, Florida, which complaint was subsequently amended on
October 31, 2005 (as amended, the CRG Complaint), by Capital Research Group,
Inc. (CRG). The CRG Complaint alleged that the Company breached the terms of a
Satisfaction Agreement previously entered into between CRG and the Company
relating to a contractual dispute, whereby the Company agreed to deliver shares
of its common stock and warrants to CRG. CRG alleges that the number of shares
delivered was insufficient and is seeking damages in the principal amount of
$132,000. The Company does not believe CRGs claim has merit and intends to
vigorously defend the CRG Complaint. CRG has also filed a demand for arbitration
with the American Arbitration Association (the Arbitration Action) seeking
$288,902, together with prejudgment interest, in connection with a Consulting
Agreement between the Company and CRG dated April 19, 2004 (the Consulting
Agreement). The Company has not been formally served with the Arbitration
Action, but intends to oppose CRGs demands in the Arbitration Action and
believes that no amounts are due to CRG under the Consulting Agreement.

Item 2      Changes in
Securities

During the nine months ended
September 30, 2005 we sold units of our common stock in which each unit consists
of shares of our common stock plus warrants. Through private placements we sold
5,639,676 shares of our common stock, plus warrants for the purchase of an
additional 4,979,756 shares to 15 investors for proceeds totaling $293,745. Full
proceeds were received prior to September 30, 2005. Each warrant will entitle
the holder to purchase one share of common stock at varying dates prior to July
1, 2008 at exercise prices varying from $0.04 per share to $0.75 per share.

On June 6, 2005 we filed a
registration statement with the United States Securities and Exchange Commission
(Commission File No. 333-125554) to register the common shares issued as a
result of this private placement. On June 27, 2005 we filed Amendment No. 1 to
this registration statement. The registration statement was declared effective
by the SEC on June 29, 2005.

Item 6      Exhibits

| | Number | Title                                                                                                                                                                                                                                                             
| | ------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |        |                                                                                                                                                                                                                                                                   
| | 31.1   | Certification
        by Joseph T. Slechta, 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. Slechta, 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
|
|

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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.
|----------------- | ----------------------------------
|                  |                                   
|                  |                                   
|                  |                                   
|November 21, 2005 | By:                               
|                  |                                   
|                  |                                   

19

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