----

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**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

**September 30, 2007**

**Commission      File Number: 000-49670**

**ULURU      Inc.**

| **Nevada**                                     | **41-2118656**                                      |
|------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer Identification No.) |
| incorporation                or organization)  |                                                |

**4452      Beltway Drive**

**Addison,      Texas  75001**

**(214)      905-5145**

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*Table          of Contents*

**ULURU      Inc.**

**FORM      10-QSB**

**For      the Three Months Ended SEPTEMBER 30, 2007**

**TABLE      OF CONTENTS**

|                          |                                                                                                                                                                                           | Page   |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| **PART                I**     | **FINANCIAL                INFORMATION**                                                                                                                                                       |   |
|                          |                                                                                                                                                                                           |   |
|                  Item 1. |                  Financial Statements                                                                                                                                                     | 3      |
|                          |                                                                                                                                                                                           |   |
|                          |                  Condensed Consolidated Balance Sheets as of September                30, 2007 (unaudited) and December 31, 2006                                                          | 3      |
|                          |                  Condensed Consolidated Statements of Operations                (unaudited) for the three and nine months ended September 30, 2007                and                2006 | 4      |
|                          |                  Condensed Consolidated Statements of Cash Flows                (unaudited) for the nine months ended September 30, 2007 and                2006                          | 5      |
|                          |                  Notes to Condensed Consolidated Financial Statements                (unaudited)                                                                                          | 6      |
|                          |                                                                                                                                                                                           |   |
|                  Item 2. |                  Management's Discussion and Analysis of Financial                Condition                and Results of Operations                                                      | 15     |
|                          |                                                                                                                                                                                           |   |
|                  Item 3. |                  Controls and Procedures                                                                                                                                                  | 19     |
|                          |                                                                                                                                                                                           |   |
| **PART                II**    | **OTHER                INFORMATION**                                                                                                                                                           |   |
|                          |                                                                                                                                                                                           |   |
|                  Item 1. |                  Legal Proceedings                                                                                                                                                        | 20     |
|                          |                                                                                                                                                                                           |   |
|                  Item 2. |                  Unregistered Sales of Equity Securities                and Use                of Proceeds                                                                                | 20     |
|                          |                                                                                                                                                                                           |   |
|                  Item 3. |                  Defaults Upon Senior Securities                                                                                                                                          | 20     |
|                          |                                                                                                                                                                                           |   |
|                  Item 4. |                  Submission of Matters to a Vote of Security                Holders                                                                                                       | 20     |
|                          |                                                                                                                                                                                           |   |
|                  Item 5. |                  Other Information                                                                                                                                                        | 20     |
|                          |                                                                                                                                                                                           |   |
|                  Item 6. |                  Exhibits                                                                                                                                                                 | 21     |
|                          |                                                                                                                                                                                           |   |
|                          |                  Signatures                                                                                                                                                               | 21     |
|                          |                                                                                                                                                                                           |   |

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*Table          of Contents*

**PART      1 – FINANCIAL INFORMATION**

**ITEM      1.  FINANCIAL STATEMENTS**

**ULURU      Inc.**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                       |   | **September                30, 2007** |        |   | **December                31, 2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-------------|--------|--------------------------------------|--------|
|                                                                                                                                       |   | **(Unaudited)**                       |        |   | **(Audited)**                        |   |
| **ASSETS**                                                                                                                                 |   |                                  |        |   |                                 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |
| **Current                Assets**                                                                                                          |   |                                  |        |   |                                 |   |
| Cash                and cash equivalents                                                                                                   |   | $                                     | 15,261,750  |   |                                 | $      | 16,918,007 |   |
| Accounts                receivable                                                                                                         |   |                                  | 104,438     |   |                                 |   | 672,534 |   |
| Inventory                                                                                                                                  |   |                                  | 319,413     |   |                                 |   | -0- |   |
| Prepaid                expenses and deferred charges                                                                                       |   |                                  | 202,000     |   |                                 |   | 265,935 |   |
| Total                Current Assets                                                                                                        |   |                                  | 15,887,601  |   |                                 |   | 17,856,476 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **Property                and Equipment, net**                                                                                             |   |                                  | 1,166,038   |   |                                 |   | 691,132 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **Other                Assets**                                                                                                            |   |                                  |        |   |                                 |   |   |   |
| Patents,                net                                                                                                                |   |                                  | 11,302,013  |   |                                 |   | 12,098,869 |   |
| Deposits                                                                                                                                   |   |                                  | 20,499      |   |                                 |   | 20,749 |   |
| Total                Other Assets                                                                                                          |   |                                  | 11,322,512  |   |                                 |   | 12,119,618 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **TOTAL                ASSETS**                                                                                                            |   | $                                     | 28,376,151  |   |                                 | $      | 30,667,226 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                    |   |                                  |        |   |                                 |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **Current                Liabilities**                                                                                                     |   |                                  |        |   |                                 |   |   |   |
| Accounts                payable                                                                                                            |   | $                                     | 545,302     |   |                                 | $      | 273,534 |   |
| Accrued                liabilities                                                                                                         |   |                                  | 377,025     |   |                                 |   | 475,218 |   |
| Accrued                liabilities – related party                                                                                   |   |                                  | 1,484       |   |                                 |   | 63,984 |   |
| Deferred                revenue – current portion                                                                                    |   |                                  | 55,147      |   |                                 |   | -0- |   |
| Royalty                advance                                                                                                             |   |                                  | 146,911     |   |                                 |   | 219,268 |   |
| Asset                purchase obligation                                                                                                   |   |                                  | -0-         |   |                                 |   | 350,000 |   |
| Total                Current Liabilities                                                                                                   |   |                                  | 1,125,869   |   |                                 |   | 1,382,004 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **Long                Term Liabilities**                                                                                                   |   |                                  |        |   |                                 |   |   |   |
| Deferred                revenue, net – less current portion                                                                          |   |                                  | 509,143     |   |                                 |   | -0- |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **TOTAL                LIABILITIES**                                                                                                       |   |                                  | 1,635,012   |   |                                 |   | 1,382,004 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                                           |   |                                  | ---         |   |                                 |   | --- |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **STOCKHOLDERS'                EQUITY**                                                                                                    |   |                                  |        |   |                                 |   |   |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| Preferred                stock, $.001 par value, 20,000 shares                                                                             |   |                                  |        |   |                                 |   |   |   |
| authorized,                none issued                                                                                                     |   |                                  | ---         |   |                                 |   | --- |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| Common                Stock: $ 0.001 par value, 200,000,000 shares authorized;                                                             |   |                                  |        |   |                                 |   |   |   |
| Issued                and outstanding : 62,277,028 at September 30, 2007 and 59,896,939                at                December 31, 2006 |   |                                  | 62,277      |   |                                 |   | 59,897 |   |
| Additional                paid-in capital                                                                                                  |   |                                  | 42,635,954  |   |                                 |   | 41,886,896 |   |
| Accumulated  (deficit)                                                                                                           |   |                                  | (15,957,092 | )      |                                 |   | (12,661,571 | ) |
| **TOTAL                STOCKHOLDERS’ EQUITY**                                                                                        |   |                                  | 26,741,139  |   |                                 |   | 29,285,222 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| **TOTAL                LIABILITIES AND STOCKHOLDERS' EQUITY**                                                                              |   | $                                     | 28,376,151  |   |                                 | $      | 30,667,226 |   |
|                                                                                                                                       |   |                                  |        |   |                                 |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements.                      |   |

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*Table          of Contents*

**ULURU      Inc.**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

|                                                                                                                  |   | **Three                Months Ended September 30,** |       |   | **Nine                Months Ended September 30,** |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|------------|--------|----------------------------------------------------|--------|
|                                                                                                                  |   | **2007**                                            |       |   | **2006**                                           |   |   | **2007** |   |   | **2006** |   |
| **REVENUES**                                                                                                          |   |                                                |       |   |                                               |   |   |   |   |   |   |   |
| License                fees                                                                                           |   | $                                                   | 13,862     |   |                                               | $      | -0- |   |   | $ | 168,742 |   |   | $ | 155,037 |   |
| Royalty                income                                                                                         |   |                                                | 83,044     |   |                                               |   | 101,258 |   |   |   | 219,962 |   |   |   | 353,373 |   |
| Product                sales                                                                                          |   |                                                | -0-        |   |                                               |   | -0- |   |   |   | -0- |   |   |   | 75,578 |   |
| Other                                                                                                                 |   |                                                | 33,000     |   |                                               |   | 11,668 |   |   |   | 243,501 |   |   |   | 108,324 |   |
| Total                Revenues                                                                                         |   |                                                | 129,906    |   |                                               |   | 112,926 |   |   |   | 632,205 |   |   |   | 692,312 |   |
|                                                                                                                  |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **COSTS                AND EXPENSES**                                                                                 |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of goods sold                                                                                     |   |                                                | -0-        |   |                                               |   | -0- |   |   |   | -0- |   |   |   | 96,520 |   |
| Research                and development                                                                               |   |                                                | 454,985    |   |                                               |   | 388,662 |   |   |   | 1,574,148 |   |   |   | 1,342,783 |   |
| General                and administrative                                                                             |   |                                                | 820,763    |   |                                               |   | 350,579 |   |   |   | 2,109,589 |   |   |   | 1,096,486 |   |
| Amortization                                                                                                          |   |                                                | 272,083    |   |                                               |   | 265,578 |   |   |   | 806,256 |   |   |   | 785,302 |   |
| Depreciation                                                                                                          |   |                                                | 19,015     |   |                                               |   | 15,872 |   |   |   | 52,892 |   |   |   | 47,770 |   |
| Total                Costs and Expenses                                                                               |   |                                                | 1,566,846  |   |                                               |   | 1,020,691 |   |   |   | 4,542,885 |   |   |   | 3,368,861 |   |
|                                                                                                                  |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **OPERATING                (LOSS)**                                                                                   |   |                                                | (1,436,940 | )      |                                               |   | (907,765 | ) |   |   | (3,910,680 | ) |   |   | (2,676,549 | ) |
|                                                                                                                  |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **Other                Income (Expense)**                                                                             |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Interest                and miscellaneous income                                                                      |   |                                                | 197,104    |   |                                               |   | 3,418 |   |   |   | 616,733 |   |   |   | 14,628 |   |
| Interest                expense                                                                                       |   |                                                | -0-        |   |                                               |   | (616,751 | ) |   |   | (1,574 | ) |   |   | (1,601,215 | ) |
| Commitment                fee – Standby Equity Agreement                                                        |   |                                                | -0-        |   |                                               |   | -0- |   |   |   | -0- |   |   |   | (1,787,940 | ) |
| Liquidated                damages                                                                                     |   |                                                | -0-        |   |                                               |   | (1,885,000 | ) |   |   | -0- |   |   |   | (1,885,000 | ) |
| Loss                from early extinguishment of debenture                                                            |   |                                                | -0-        |   |                                               |   | (557,534 | ) |   |   | -0- |   |   |   | (557,534 | ) |
| Loss                on sale of equipment                                                                              |   |                                                | -0-        |   |                                               |   | (30,143 | ) |   |   | -0- |   |   |   | (30,143 | ) |
|                                                                                                                  |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| **NET                (LOSS)**                                                                                         |   | $                                                   | (1,239,836 | )      |                                               | $      | (3,993,775 | ) |   | $ | (3,295,521 | ) |   | $ | (8,523,753 | ) |
|                                                                                                                  |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Basic                and diluted net (loss) per common share                                                          |   | $                                                   | (0.02      | )      |                                               | $      | (0.31 | ) |   | $ | (0.05 | ) |   | $ | (0.70 | ) |
|                                                                                                                  |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED                AVERAGE NUMBER OF COMMON SHARES OUTSTANDING                                                   |   |                                                | 62,164,868 |   |                                               |   | 12,844,311 |   |   |   | 61,609,244 |   |   |   | 12,243,052 |   |
|                                                                                                                  |   |                                                |       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements. |   |

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*Table          of Contents*

**ULURU      Inc.**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

|                                                                                                                                                                   |   | **Nine                Months Ended September 30,** |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|------------|
|                                                                                                                                                                   |   | **2007**                                           |       |   | **2006** |   |
| **OPERATING                ACTIVITIES :**                                                                                                                              |   |                                               |       |   |   |   |
| Net                (loss)                                                                                                                                              |   | $                                                  | (3,295,521 | ) |   | $ | (8,523,753 | ) |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| **Adjustments                to reconcile net (loss) to net cash used in operating                activities:**                                                        |   |                                               |       |   |   |   |   |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| Amortization                                                                                                                                                           |   |                                               | 806,256    |   |   |   | 785,302 |   |
| Depreciation                                                                                                                                                           |   |                                               | 52,892     |   |   |   | 47,770 |   |
| Commitment                fee – Standby Equity Agreement                                                                                                         |   |                                               | -0-        |   |   |   | 1,787,940 |   |
| Liquidated                damages                                                                                                                                      |   |                                               | -0-        |   |   |   | 1,885,000 |   |
| Loss                on early extinguishment of debenture                                                                                                               |   |                                               | -0-        |   |   |   | 557,534 |   |
| Loss                on sale of equipment                                                                                                                               |   |                                               | -0-        |   |   |   | 30,143 |   |
| Interest                expense – financing costs                                                                                                                |   |                                               | -0-        |   |   |   | 306,705 |   |
| Interest                expense – imputed                                                                                                                        |   |                                               | -0-        |   |   |   | 314,439 |   |
| Share-based                compensation for stock and options issued to employees                                                                                      |   |                                               | 90,139     |   |   |   | -0- |   |
| Share-based                compensation for options issued to non-employees                                                                                            |   |                                               | 271,359    |   |   |   | -0- |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| **Change                in operating assets and liabilities:**                                                                                                         |   |                                               |       |   |   |   |   |   |
| Accounts                receivable                                                                                                                                     |   |                                               | 568,096    |   |   |   | 56,378 |   |
| Inventory                                                                                                                                                              |   |                                               | (319,413   | ) |   |   | 9,671 |   |
| Prepaid                expenses and deferred charges                                                                                                                   |   |                                               | 63,935     |   |   |   | (32,446 | ) |
| Deposits                                                                                                                                                               |   |                                               | 250        |   |   |   | (18,876 | ) |
| Accounts                payable                                                                                                                                        |   |                                               | 271,768    |   |   |   | 248,545 |   |
| Accrued                liabilities                                                                                                                                     |   |                                               | (160,693   | ) |   |   | (166,965 | ) |
| Deferred                revenue                                                                                                                                        |   |                                               | 564,290    |   |   |   | -0- |   |
| Royalty                advance                                                                                                                                         |   |                                               | (72,357    | ) |   |   | (233,522 | ) |
| Accrued                interest                                                                                                                                        |   |                                               | -0-        |   |   |   | (322,573 | ) |
| Total                                                                                                                                                                  |   |                                               | 2,136,522  |   |   |   | 5,255,045 |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| Net                Cash (Used in) Operating Activities                                                                                                                 |   |                                               | (1,158,999 | ) |   |   | (3,268,708 | ) |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| **INVESTING                ACTIVITIES :**                                                                                                                              |   |                                               |       |   |   |   |   |   |
| Purchase                of property and equipment                                                                                                                      |   |                                               | (537,198   | ) |   |   | (150,952 | ) |
| Proceeds                from sale of equipment                                                                                                                         |   |                                               | -0-        |   |   |   | 14,500 |   |
| Recapitalization                of the Company                                                                                                                         |   |                                               | -0-        |   |   |   | 128,045 |   |
| Net                Cash (Used in) Investing Activities                                                                                                                 |   |                                               | (537,198   | ) |   |   | (8,407 | ) |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| **FINANCING                ACTIVITIES :**                                                                                                                              |   |                                               |       |   |   |   |   |   |
| Repayment                of capital lease obligation                                                                                                                   |   |                                               | -0-        |   |   |   | (22,242 | ) |
| Payment                of asset purchase obligation                                                                                                                    |   |                                               | (350,000   | ) |   |   | -0- |   |
| Proceeds                from warrant exercises                                                                                                                         |   |                                               | 369,940    |   |   |   | -0- |   |
| Proceeds                from stock option exercises                                                                                                                    |   |                                               | 20,000     |   |   |   | -0- |   |
| Proceeds                from exchange of convertible debentures, net                                                                                                   |   |                                               | -0-        |   |   |   | 2,699,975 |   |
| Receipt                of stock subscription receivable                                                                                                                |   |                                               | -0-        |   |   |   | 22 |   |
| Net                Cash Provided by Financing Activities                                                                                                               |   |                                               | 39,940     |   |   |   | 2,677,755 |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| **Net                (Decrease) in Cash**                                                                                                                              |   |                                               | (1,656,257 | ) |   |   | (599,360 | ) |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| Cash,  beginning                of period                                                                                                                    |   |                                               | 16,918,007 |   |   |   | 1,610,357 |   |
| Cash,  end                of period                                                                                                                          |   | $                                                  | 15,261,750 |   |   | $ | 1,010,997 |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| **Supplemental                Schedule of Noncash Investing and Financing Activities                :**                                                                |   |                                               |       |   |   |   |   |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| Issuance                of 1,571,073 shares of common stock pursuant to cashless exercise of                warrants to purchase 1,589,400 shares of common stock |   | $                                                  | -0-        |   |   |   |   |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| Net                proceeds from exchange of convertible debenture on August 30,                2006                                                                   |   |                                               |       |   |   |   |   |   |
| Convertible                debenture issued                                                                                                                            |   |                                               |       |   |   | $ | 13,000,000 |   |
| Less                : redemption of convertible debenture                                                                                                              |   |                                               |       |   |   |   | (10,000,025 | ) |
| Less                : debenture issuance costs                                                                                                                         |   |                                               |       |   |   |   | (300,000 | ) |
|   Proceeds                from debenture exchange, net                                                                                                       |   |                                               |       |   |   | $ | 2,699,975 |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| Non-monetary                net liabilities assumed in a recapitalization of the Company on March                31,                2006                               |   |                                               |       |   |   |   |   |   |
| Liabilities                assumed                                                                                                                                     |   |                                               |       |   |   | $ | 13,694,962 |   |
| Less                : Non-cash assets                                                                                                                                  |   |                                               |       |   |   |   | (12,006,690 | ) |
| Less                : Cash received in recapitalization                                                                                                                |   |                                               |       |   |   |   | (128,045 | ) |
|   Total                non-monetary net liabilities assumed                                                                                                  |   |                                               |       |   |   | $ | 1,560,227 |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| *OTHER                SUPPLEMENTAL INFORMATION *                                                                                                                  |   |                                               |       |   |   |   |   |   |
| Cash                paid for interest                                                                                                                                  |   | $                                                  | 1,574      |   |   | $ | 1,306,943 |   |
|                                                                                                                                                                   |   |                                               |       |   |   |   |   |   |
| The                accompanying notes are an integral part of these consolidated financial                statements.                                                  |   |

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*Table          of Contents*

**ULURU      Inc.**

**NOTES      TO**

**CONDENSED      CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE      1.                      BASIS      OF PRESENTATION AND COMPANY OVERVIEW**

**NOTE      2.                      SUMMARY      OF SIGNIFICANT ACCOUNTING POLICIES**

*Earnings per Share*

|                                                          |   | **Three                Months Ended****September                30,** |      |
|---------------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|
|                                                          |   | **2007**                                                              |      |   | **2006** |   |
| Antidilutive                warrants to purchase common stock |   |                                                                  | 6,001,667 |   |   |   | 6,125,000 |   |
| Antidilutive                options to purchase common stock  |   |                                                                  | 2,185,000 |   |   |   | -0- |   |
| Restricted                vesting common stock                |   |                                                                  | 56,035    |   |   |   | -0- |   |
|                  Total                                   |   |                                                                  | 8,242,702 |   |   |   | 6,125,000 |   |

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*Table          of Contents*

*Accounting for Research and Development Costs*

| Furniture,                fixtures, and laboratory equipment | 7                years    |
|--------------------------------------------------------------|---------------------------|
| Computer                and office equipment                 | 5                years    |
| Computer                software                             | 3                years    |
| Leasehold                improvements                        | Lease                term |

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*Table          of Contents*

*Accounting for the Impairment or Disposal of Long-Lived      Assets*

**NOTE      3.                      THE      EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS**

*Recently      Adopted Accounting Standards*

*Accounting Changes and Error      Corrections *

*Share-Based Payments*

*Accounting for Certain Hybrid Financial Instruments — an      amendment of FASB Statements No. 133 and 140*

*Accounting for Uncertainty in      Income Taxes — An Interpretation of FASB Statement No. 109*

*Employers’ Accounting for Defined      Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements      No. 87, 88, 106, and 132(R)*

*New      Accounting Standards Not Yet Adopted*

*Fair Value Measurements*

*The Fair Value Option for      Financial Assets and Financial Liabilities - Including an Amendment of FASB      Statement No. 115*

**NOTE      4.                      SEGMENT      INFORMATION**

|                                |   | **Three                Months Ended****September                30,** |    |   | **Nine                Months Ended****September                30,** |   |
|-------------------------------------|--------|-----------------------------------------------------------------------|---------|--------|----------------------------------------------------------------------|--------|
| **Revenues**                        |   | **2007**                                                              |    |   | **2006**                                                             |   |   | **2007** |   |   | **2006** |   |
|                  Domestic      |   | $                                                                     | 59,309  |   |                                                                 | $      | 33,513 |   |   | $ | 315,858 |   |   | $ | 417,424 |   |
|                  International |   |                                                                  | 70,597  |   |                                                                 |   | 79,413 |   |   |   | 316,347 |   |   |   | 274,888 |   |
|                  Total         |   | $                                                                     | 129,906 |   |                                                                 | $      | 112,926 |   |   | $ | 632,205 |   |   | $ | 692,312 |   |

**NOTE      5.                      INVENTORY**

| **Inventory**                                                              |   | **September                30, 2007** |    |   | **December                31, 2006** |   |
|----------------------------------------------------------------------------|--------|---------------------------------------|---------|--------|--------------------------------------|--------|
|                  Inventory – Amlexanox (raw material)           |   | $                                     | 137,311 |   |                                 | $      | -0- |   |
|                  Inventory – Work in Progress (Aphthasol®) |   |                                  | 182,102 |   |                                 |   | -0- |   |
|                  Total                                                |   | $                                     | 319,413 |   |                                 | $      | -0- |   |

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*Table          of Contents*

**NOTE      6.                      PROPERTY      AND EQUIPMENT**

| **Property                and equipment**                             |   | **September                30, 2007** |      |   | **December                31, 2006** |   |
|-----------------------------------------------------------------------|--------|---------------------------------------|-----------|--------|--------------------------------------|--------|
|                  Laboratory equipment                            |   | $                                     | 401,242   |   |                                 | $      | 316,853 |   |
|                  Manufacturing equipment                         |   |                                  | 700,769   |   |                                 |   | 269,000 |   |
|                  Computers, office equipment, and furniture      |   |                                  | 107,746   |   |                                 |   | 103,902 |   |
|                  Computer software                               |   |                                  | 4,108     |   |                                 |   | 4,108 |   |
|                  Leasehold improvements                          |   |                                  | 95,441    |   |                                 |   | 78,244 |   |
|                                                                  |   |                                  | 1,309,306 |   |                                 |   | 772,107 |   |
|                  Less: accumulated depreciation and amortization |   |                                  | 143,268   |   |                                 |   | 80,975 |   |
|                  Property and equipment, net                     |   | $                                     | 1,166,038 |   |                                 | $      | 691,132 |   |

**NOTE      7.                      PATENTS**

| **Patents**                                           |   | **September                30, 2007** |       |   | **December                31, 2006** |   |
|-------------------------------------------------------|--------|---------------------------------------|------------|--------|--------------------------------------|--------|
|                  Zindaclin®                 |   | $                                     | 3,729,000  |   |                                 | $      | 3,729,000 |   |
|                  Amlexanox (Aphthasol®)     |   |                                  | 2,090,000  |   |                                 |   | 2,090,000 |   |
|                  Amlexanox (OraDiscTM A)    |   |                                  | 6,873,080  |   |                                 |   | 6,873,080 |   |
|                  OraDiscTM                  |   |                                  | 73,000     |   |                                 |   | 73,000 |   |
|                  Hydrogel nanoparticle aggregate |   |                                  | 589,858    |   |                                 |   | 589,858 |   |
|                                                  |   |                                  | 13,354,938 |   |                                 |   | 13,354,938 |   |
|                  Less: accumulated amortization  |   |                                  | 2,052,925  |   |                                 |   | 1,256,069 |   |
|                  Patents, net                    |   | $                                     | 11,302,013 |   |                                 | $      | 12,098,869 |   |

**NOTE      8.                      ACCRUED      LIABILITIES**

| **Accrued                Liabilities**              |   | **September                30, 2007** |    |   | **December                31, 2006** |   |
|-----------------------------------------------------|--------|---------------------------------------|---------|--------|--------------------------------------|--------|
|                  Accrued taxes – payroll |   | $                                     | 106,299 |   |                                 | $      | 106,302 |   |
|                  Accrued compensation/benefits |   |                                  | 237,481 |   |                                 |   | 298,040 |   |
|                  Accrued insurance payable     |   |                                  | -0-     |   |                                 |   | 70,876 |   |
|                  Contract research payable     |   |                                  | 33,245  |   |                                 |   | -0- |   |
|                  Total accrued liabilities     |   | $                                     | 377,025 |   |                                 | $      | 475,218 |   |

**NOTE      9.                      STOCKHOLDERS’EQUITY**

|                                              |   | **Number                of Shares of Common Stock Subject to Exercise** |      |   | **Weighted                – Average****Exercise                Price** |   |
|---------------------------------------------------|--------|-------------------------------------------------------------------------|-----------|--------|------------------------------------------------------------------------------|--------|
| Balance                – September 30, 2006 |   |                                                                    | 6,125,000 |   |                                                                         | $      | 0.24 |   |
|                                              |   |                                                                    |      |   |                                                                         |   |   |   |
| Warrants                issued                    |   |                                                                    | 2,270,000 |   |                                                                         |   | 0.95 |   |
| Warrants                exercised                 |   |                                                                    | -0-       |   |                                                                         |   | --- |   |
| Warrants                cancelled                 |   |                                                                    | -0-       |   |                                                                         |   | -- |   |
| Balance                – December 31, 2006  |   |                                                                    | 8,395,000 |   |                                                                         | $      | 0.43 |   |
|                                              |   |                                                                    |      |   |                                                                         |   |   |   |
| Warrants                issued                    |   |                                                                    | -0-       |   |                                                                         |   | -- |   |
| Warrants                exercised                 |   |                                                                    | 2,393,333 |   |                                                                         |   | 0.19 |   |
| Warrants                cancelled                 |   |                                                                    | -0-       |   |                                                                         |   | -- |   |
| Balance                – September 30, 2007 |   |                                                                    | 6,001,667 |   |                                                                         | $      | 0.53 |   |

| **Date                of expiration**       |   | **Number                of Warrant Shares of Common Stock Subject to                Expiration** |      |
|---------------------------------------------|--------|--------------------------------------------------------------------------------------------------|-----------|
|   October                12, 2010 |   |                                                                                             | 3,066,667 |   |
|                  August 30, 2011       |   |                                                                                             | 1,125,000 |   |
|                  December 6, 2011      |   |                                                                                             | 1,810,000 |   |
|                  Total                 |   |                                                                                             | 6,001,667 |   |

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*Table          of Contents*

**NOTE      10.                      SHARE      BASED COMPENSATION**

*Share-Based Payments*

*Incentive      Stock Options*

|                                    |   | **Three                Months Ended****September                30, 2007** |   |
|-----------------------------------------|--------|----------------------------------------------------------------------------|--------|
| Expected                volatility      |   |                                                                       | 52.2   | % |
| Risk-fee                interest rate   |   |                                                                       | 4.26   | % |
| Expected                dividends       |   |                                                                       | 0.0    | % |
| Expected                forfeitures     |   |                                                                       | 0.0    | % |
| Expected                term (in years) |   |                                                                       | 5.0    |   |

|                                            |   | **Quantity** |    |   | **Weighted                Average Fair Value Per Share** |   |   | **Fair                Value** |   |
|-------------------------------------------------|--------|--------------|---------|--------|----------------------------------------------------------|--------|--------|-------------------------------|--------|
| Options                to Purchase Common Stock |   |         | 600,000 |   |                                                     | $      | 2.25   |                          |   | $ | 1,347,275 |   |

|                                                               |   | **Three                Months Ended****September                30,** |   |   | **Nine                Months Ended****September                30,** |   |
|--------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                                               |   | **2007**                                                              |   |   | **2006**                                                             |   |   | **2007** |   |   | **2006** |   |
| Research                and development                            |   | $                                                                     | 14,704 |   |                                                                 | $      | -0- |   |   | $ | 38,175 |   |   | $ | -0- |   |
| General                and administrative                          |   |                                                                  | 8,663  |   |                                                                 |   | -0- |   |   |   | 18,435 |   |   |   | -0- |   |
| Total                stock-based compensation expense              |   |                                                                  | 23,367 |   |                                                                 |   | -0- |   |   |   | 56,610 |   |   |   | -0- |   |
| Tax                benefit                                         |   |                                                                  | ---    |   |                                                                 |   | --- |   |   |   | --- |   |   |   | --- |   |
|                  Stock-based compensation expense, net of tax |   | $                                                                     | 23,367 |   |                                                                 | $      | -0- |   |   | $ | 56,610 |   |   | $ | -0- |   |

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*Table          of Contents*

*Nonstatutory      Stock Options*

|                                    |   | **Three                Months****Ended****September                30, 2007** |   |
|-----------------------------------------|--------|-------------------------------------------------------------------------------|--------|
| Expected                volatility      |   |                                                                          | 50.4   | % |
| Risk-fee                interest rate   |   |                                                                          | 4.59   | % |
| Expected                dividends       |   |                                                                          | 0.0    | % |
| Expected                forfeitures     |   |                                                                          | 0.0    | % |
| Expected                term (in years) |   |                                                                          | 1.0    |   |

|                                            |   | **Quantity** |   |   | **Weighted                Average Fair Value Per Share** |   |   | **Fair                Value** |   |
|-------------------------------------------------|--------|--------------|--------|--------|----------------------------------------------------------|--------|--------|-------------------------------|--------|
| Options                to Purchase Common Stock |   |         | 50,000 |   |                                                     | $      | 0.93   |                          |   | $ | 46,714 |   |

|                                                         |   | **Three                Months Ended****September                30,** |    |   | **Nine                Months Ended****September                30,** |   |
|--------------------------------------------------------------|--------|-----------------------------------------------------------------------|---------|--------|----------------------------------------------------------------------|--------|
|                                                         |   | **2007**                                                              |    |   | **2006**                                                             |   |   | **2007** |   |   | **2006** |   |
| Research                and development                      |   | $                                                                     | 16,443  |   |                                                                 | $      | -0- |   |   | $ | 48,792 |   |   | $ | -0- |   |
| General                and administrative                    |   |                                                                  | 89,079  |   |                                                                 |   | -0- |   |   |   | 222,567 |   |   |   | -0- |   |
|                  Total stock-based compensation expense |   | $                                                                     | 105,522 |   |                                                                 | $      | -0- |   |   | $ | 271,359 |   |   | $ | -0- |   |

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*Table          of Contents*

*Stock      Options (Incentive and Nonstatutory)*

|                                           |   | **Stock                Options** |      |   | **Weighted                Average Exercise Price per Share** |   |
|------------------------------------------------|--------|----------------------------------|-----------|--------|--------------------------------------------------------------|--------|
| Outstanding,                September 30, 2006 |   |                             | -0-       |   |                                                         | $      | -0- |   |
| Granted                                        |   |                             | 1,350,000 |   |                                                         |   | 1.29 |   |
| Forfeited/cancelled                            |   |                             | -0-       |   |                                                         |   | --- |   |
| Exercised                                      |   |                             | -0-       |   |                                                         |   | --- |   |
| Outstanding,                December 31, 2006  |   |                             | 1,350,000 |   |                                                         |   | 1.29 |   |
| Granted                                        |   |                             | 840,000   |   |                                                         |   | 4.46 |   |
| Forfeited/cancelled                            |   |                             | -0-       |   |                                                         |   | --- |   |
| Exercised                                      |   |                             | 5,000     |   |                                                         |   | 4.00 |   |
| Outstanding,                September 30, 2007 |   |                             | 2,185,000 |   |                                                         | $      | 2.50 |   |

|                               |   |   | **Options                Outstanding**       |      |    | **Options                Exercisable**                                  |   |
|------------------------------------|--------|--------|----------------------------------------------|-----------|---------|-------------------------------------------------------------------------|--------|
| **Exercise                Prices** |   |   | **Stock                Options Outstanding** |      |    | **Weighted                Average Remaining Contractual Life in Years** |   |   | **Weighted                Average Exercise Price per Share** |   |   | **Stock                Options Exercisable** |   |   | **Weighted                Average Exercise Price per Share** |   |
| $                                  | 0.95   |   |                                         |      | 700,000 |                                                                    |   |   | 9.2 |   |   | $ | 0.95 |   |   |   | -0- |   |   | $ | -0- |   |
| $                                  | 1.65   |   |                                         |      | 650,000 |                                                                    |   |   | 9.2 |   |   |   | 1.65 |   |   |   | -0- |   |   |   | -0- |   |
| $                                  | 4.00   |   |                                         |      | 105,000 |                                                                    |   |   | 9.2 |   |   |   | 4.00 |   |   |   | 417 |   |   |   | 4.00 |   |
| $                                  | 4.29   |   |                                         |      | 50,000  |                                                                    |   |   | 9.9 |   |   |   | 4.29 |   |   |   | -0- |   |   |   | -0- |   |
| $                                  | 4.50   |   |                                         |      | 600,000 |                                                                    |   |   | 10.0 |   |   |   | 4.50 |   |   |   | -0- |   |   |   | -0- |   |
| $                                  | 4.95   |   |                                         |      | 80,000  |                                                                    |   |   | 9.6 |   |   |   | 4.95 |   |   |   | -0- |   |   |   | -0- |   |
| Total                              |   |   |                                         | 2,185,000 |    |                                                                    |   | 9.5 |   |   | $ | 2.50 |   |   |   | 417 |   |   | $ | 4.00 |   |

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*Table          of Contents*

*Restricted      Stock Awards*

|                                                         |   | **Three                Months Ended****September                30,** |   |   | **Nine                Months Ended****September                30,** |   |
|--------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                                         |   | **2007**                                                              |   |   | **2006**                                                             |   |   | **2007** |   |   | **2006** |   |
| Research                and development                      |   | $                                                                     | 3,237  |   |                                                                 | $      | -0- |   |   | $ | 9,605 |   |   | $ | -0- |   |
| General                and administrative                    |   |                                                                  | 8,062  |   |                                                                 |   | -0- |   |   |   | 23,924 |   |   |   | -0- |   |
|                  Total stock-based compensation expense |   | $                                                                     | 11,299 |   |                                                                 | $      | -0- |   |   | $ | 33,529 |   |   | $ | -0- |   |

|                                           |   | **Restricted                stock** |   |   | **Weighted                Average Grant Date Fair Value** |   |
|------------------------------------------------|--------|-------------------------------------|--------|--------|-----------------------------------------------------------|--------|
| Outstanding,                September 30, 2006 |   |                                | -0-    |   |                                                      | $      | -0- |   |
| Granted                                        |   |                                | -0-    |   |                                                      |   | --- |   |
| Forfeited/cancelled                            |   |                                | -0-    |   |                                                      |   | --- |   |
| Exercised                                      |   |                                | -0-    |   |                                                      |   | --- |   |
| Outstanding,                December 31, 2006  |   |                                | -0-    |   |                                                      |   | -0- |   |
| Granted                                        |   |                                | 56,035 |   |                                                      |   | 4.00 |   |
| Forfeited/cancelled                            |   |                                | -0-    |   |                                                      |   | --- |   |
| Exercised                                      |   |                                | -0-    |   |                                                      |   | --- |   |
| Outstanding,                September 30, 2007 |   |                                | 56,035 |   |                                                      | $      | 4.00 |   |

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*Table          of Contents*

*2006      Equity Incentive Plan*

**NOTE      11.                      INCOME      TAXES**

**NOTE      12.                      COMMITMENTS      AND CONTINGENCIES**

**NOTE      13.                      LEASE      OBLIGATION**

| **Calendar                Years**       |   | **Future                Lease Expense** |    |
|-----------------------------------------|--------|-----------------------------------------|---------|
|                  2007              |   | $                                       | 27,924  |   |
|                  2008              |   |                                    | 111,695 |   |
|                  2009              |   |                                    | 111,695 |   |
|                  2010              |   |                                    | 111,695 |   |
|                  2011 & Beyond |   |                                    | 262,022 |   |
|                  Total             |   | $                                       | 625,031 |   |

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*Table          of Contents*

**ITEM      2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND      RESULTS OF OPERATION**

*This      Quarterly Report on Form 10-QSB contains certain statements that are      forward-looking within the meaning of Section 27a of the Securities Act of      1933,      as amended, and Section 21E of the Securities and Exchange Act of 1934, as      amended, and that involve risks and uncertainties, including, but not limited,      to the uncertainties associated with research and development activities,      clinical trials, our ability to raise capital, the timing of and our ability      to      achieve regulatory approvals, dependence on others to market our licensed      products, collaborations, future cash flow, the timing and receipt of licensing      and milestone revenues, our ability to achieve licensing and milestone revenues,      the future success of our marketed products and products in development, our      ability to commercialize additional products, and other risks described below      as      well as those discussed elsewhere in this Form 10-QSB, documents incorporated      by      reference and other documents and reports that we file periodically with the      Securities and Exchange Commission including our Form 10-KSB for the period      ended December 31, 2006. Forward-looking statements contained in this Form      10-QSB include, but are not limited to those relating to our business strategy,      future revenues, anticipated product approvals and timing thereof, the terms      of      future licensing arrangements, and our expected capital      expenditures.*

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*Table          of Contents*

**LIQUIDITY      AND CAPITAL RESOURCES**

| §   | The                ability to successfully commercialize our wound management and burn                care                products and the market acceptance of these products                                                            |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §   | The                ability to establish and maintain collaborative arrangements with                corporate partners for the research, development and commercialization                of                certain product opportunities |
| §   | Continued                scientific progress in our development programs                                                                                                                                                                  |
| §   | The                costs involved in filing, prosecuting and enforcing patent                claims                                                                                                                                       |
| §   | Competing                technological developments                                                                                                                                                                                       |
| §   | The                cost of manufacturing and production scale-up                                                                                                                                                                          |
| §   | Successful                regulatory filings                                                                                                                                                                                              |

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*Table          of Contents*

**RESULTS      OF OPERATIONS**

***Fluctuations      in Operating Results***

***Comparison      of the three months ended September 30, 2007 and      2006***

**Total      Revenues**

**Costs      and Expenses**

|                                                           |       | **Three                Months Ended****September                30,** | ** ** |
|----------------------------------------------------------------|------------|-----------------------------------------------------------------------|------------|
| **Technology**                                                 | ** ** | **2007**                                                              | ** ** | ** ** | **2006** |   |
|                  OraDiscTM                           |       | $                                                                     | 62,299     |   |   | $ | 74,540 |   |
|                  Wound care & nanoparticle            |       |                                                                  | 15,628     |   |   |   | 76,720 |   |
|                  Aphthasol® & other technologies |       |                                                                  | 9,150      |   |   |   | 7,227 |   |
|                  Total                                    |       | $                                                                     | 87,077     |   |   | $ | 158,487 |   |

| §   | Increased                salary and benefit expenses of approximately $184,000 due to recognition                of share-based compensation, initial compensation associated with                the                hiring of our new executive vice president, incentive accruals, and                associated employer costs therein.  We did not incur any                share-based compensation or incentive accruals in 2006; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §   | Director                fee expense increase of $87,000 as we did not incur any director                fee                expense in 2006;                                                                                                                                                                                                                                                                                                       |
| §   | Expenses                of $73,000 associated with our new listing on the American Stock                Exchange;                                                                                                                                                                                                                                                                                                                                 |
| §   | Increased                legal expense associated with patent applications of                $48,000;                                                                                                                                                                                                                                                                                                                                             |
| §   | Increased                shareholder expenses of $33,000 for costs associated with investors                and                public relations;                                                                                                                                                                                                                                                                                                  |
| §   | Increased                costs associated with our insurance programs of                $29,000;                                                                                                                                                                                                                                                                                                                                                  |
| §   | Increased                expenses for consulting of $20,000; and                                                                                                                                                                                                                                                                                                                                                                                  |
| §   | Increased                corporate travel costs of $5,000.                                                                                                                                                                                                                                                                                                                                                                                        |

| §   | Lower                legal expenses of $12,000. |
|--------------------|-------------------------------------------------|

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*Table          of Contents*

***Comparison      of the nine months ended September 30, 2007 and      2006***

**Total      Revenues**

**Costs      and Expenses**

|                                                           | ** ** | **Nine                months Ended September 30,** | ** ** |
|----------------------------------------------------------------|------------|----------------------------------------------------|------------|
| **Technology**                                                 | ** ** | **2007**                                           | ** ** | ** ** | **2006** |   |
|                  OraDiscTM                           |       | $                                                  | 252,242    |   |   | $ | 360,125 |   |
|                  Wound care & nanoparticle            |       |                                               | 274,487    |   |   |   | 254,792 |   |
|                  Aphthasol® & other technologies |       |                                               | 40,223     |   |   |   | 36,152 |   |
|                  Total                                    |       | $                                                  | 566,952    |   |   | $ | 651,069 |   |

| §   | Increased                salary and benefit expenses of approximately $299,000 due to recognition                of share-based compensation, initial compensation associated with                the                hiring of our new executive vice president, incentive accruals and                associated employer costs therein, and inflationary increases for                medical                insurance costs.  We did not incur any share-based compensation                or incentive accruals in 2006; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §   | Director                fee expense increase of $217,000 as we did not incur any director                fee                expense in 2006;                                                                                                                                                                                                                                                                                                                                                                                           |
| §   | Increased                legal expense associated with patent applications of                $151,000;                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| §   | Increased                costs associated with our insurance programs of                $80,000;                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| §   | Increased                legal expenses of $77,000 in part due to legal work associated with                the                filing of registration statements;                                                                                                                                                                                                                                                                                                                                                                      |
| §   | Expenses                of $73,000 associated with our new listing on the American Stock                Exchange;                                                                                                                                                                                                                                                                                                                                                                                                                      |
| §   | Increased                shareholder expenses of $76,000 for costs associated with our annual                report, the annual meeting of shareholders, and for investor and                public                relations;                                                                                                                                                                                                                                                                                                          |
| §   | Increased                expenses for consulting of $50,000; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| §   | Increased                corporate travel costs of $31,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

| §   | Lower                accounting and audit fees of $45,000 in 2007 as the prior year included                additional audit work for our subsidiary to comply with SEC                requirements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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*Table          of Contents*

**ITEM      3: CONTROLS AND PROCEDURES**

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*Table          of Contents*

**PART      II: OTHER INFORMATION**

**ITEM      1 - LEGAL PROCEEDINGS**

**ITEM      2 - UNREGISTERED SALE OF EQUITY      SECURITIES**

**ITEM      3 - DEFAULTS UPON SENIOR      SECURITIES**

**ITEM      4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY      HOLDERS**

**ITEM      5: OTHER INFORMATION**

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*Table          of Contents*

**ITEM      6: EXHIBITS**

| **Exhibit                Number** | **Description**                                                                                                                                                                                                            |
|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |                                                                                                                                                                                                                       |
| 10.44                             | Employment                Agreement dated September 25, 2007 by and                between ULURU Delaware Inc. and Renaat Van den                Hooff                                                                     |
|                              |                                                                                                                                                                                                                       |
| 31.1                              | Certification                of Principal Executive Officer of ULURU                Inc. Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities                Exchange Act of 1934, as Amended                     |
|                              |                                                                                                                                                                                                                       |
| 31.2                              | Certification                of Principal Accounting Officer of ULURU                Inc. Pursuant to Rule 13a-14(a) and 15d-14(a) under the Securities                Exchange Act of 1934, as Amended                    |
|                              |                                                                                                                                                                                                                       |
| 32.1*                             | Certification                of Chief Executive Officer of ULURU Inc.                pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 |
|                              |                                                                                                                                                                                                                       |
| 32.2*                             | Certification                of Chief Financial Officer of ULURU Inc.                pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002 |
|                              |                                                                                                                                                                                                                       |   |
|                              | *                                                                                                                                                                                                                          | This                exhibit shall not be deemed “filed” for purposes of Section 18 of the                Securities Exchange Act of 1934 or otherwise subject to the liabilities                of                that Section nor shall it be deemed incorporated by reference in                any                filings under the Securities Act of 1933 or the Securities and Exchange                Act of 1934. |

**SIGNATURES:**

|                                                    | **ULURU                Inc.** |
|---------------------------------------------------------|-------------------------------|
|                                                    |                          |
|  Date:  November                13, 2007 |                          | By: |  /s/                Kerry P. Gray |   |
|                                                    |                          | Kerry                P. Gray |
|                                                    |                          | Chief                Executive Officer and President |
|                                                    |                          | (Principal                Executive Officer) |
|                                                    |                          |
|                                                    |                          |
|  Date:  November                13, 2007 |                          | By: |  /s/                Terrance K. Wallberg |   |
|                                                    |                          | Terrance                K. Wallberg |
|                                                    |                          | Chief                Financial Officer and Vice President |
|                                                    |                          | (Principal                Financial and Accounting Officer) |

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