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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

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**FORM      10-QSB**

**PACIFICHEALTH      LABORATORIES, INC.**

| **DELAWARE**                                                                 |   | **22-3367588**                                        |
|------------------------------------------------------------------------------|--------|-------------------------------------------------------|
| (State                or other jurisdiction ofincorporation or organization) |   | (I.R.S.                EmployerIdentification Number) |

| **100                Matawan Road, Suite 420****Matawan,                NJ** |   | **07747**                 |
|------------------------------------------------------------------------------|--------|---------------------------|
| (Address                of principal executive offices)                      |   | (Zip                Code) |

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**PACIFICHEALTH      LABORATORIES, INC.**

**TABLE      OF CONTENTS**

| CAUTIONARY                NOTE REGARDING FORWARD-LOOKING                STATEMENTS |                   | 3                                                                                                                                        |
|------------------------------------------------------------------------------------|------------------------|------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                               |                   |                                                                                                                                     |   |   |
| PART                I. FINANCIAL INFORMATION                                       |                   |                                                                                                                                     |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                1. | FINANCIAL                STATEMENTS                                                                                                      |   |   |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               |                   | Balance                Sheets as of June 30, 2007 (Unaudited) and                December 31, 2006                             |   | 4 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               |                   | Statements                of Operations (Unaudited) for the three and six                months ended June 30, 2007 and 2006        |   | 5 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               |                   | Statements                of Cash Flows (Unaudited) for the six months                ended June 30, 2007 and 2006             |   | 6 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               |                   | Notes                to Financial Statements                                                                                             |   | 7 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                2. | MANAGEMENT’S                DISCUSSION                AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF                OPERATIONS |   | 11 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                3. | CONTROLS                AND PROCEDURES                                                                                                   |   | 14 |
|                                                                               |                   |                                                                                                                                     |   |   |
|  PART              II. OTHER              INFORMATION                         |                   |                                                                                                                                     |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                1. | LEGAL                PROCEEDINGS                                                                                                         |   | 14 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                2. | UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS                                                |   | 15 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                3. | DEFAULTS                UPON SENIOR SECURITIES                                                                                           |   | 15 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                4. | SUBMISSION                OF MATTERS TO A VOTE OF SECURITY                HOLDERS                                                        |   | 15 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                5. | OTHER                INFORMATION                                                                                                         |   | 15 |
|                                                                               |                   |                                                                                                                                     |   |   |
|                                                                               | ITEM                6. | EXHIBITS                                                                                                                                 |   | 15 |
|                                                                               |                   |                                                                                                                                     |   |   |
| SIGNATURES                                                                         |                   | 18                                                                                                                                       |

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**Cautionary        Note Regarding Forward-Looking        Statements**

*As        used herein, unless we otherwise specify, the terms the “Company,” "we," "us,"        and "our" means PacificHealth Laboratories, Inc.*

*This        Report contains forward-looking statements concerning our financial condition,        results of operations and business, including, without limitation, statements        pertaining to: *

| *·  * | *The                development, testing, and commercialization of new products and the                expansion of the market for our current                products;* |
|----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *·  * | *The                receipt of royalty payments from our agreements with business                partners;* |
|----------------------|-------------------------------------------------------------------------------------------------------------|
| *·  * | *Implementing                aspects of our business plans;* |
|----------------------|--------------------------------------------------------------|
| *·  * | *Financing                goals and plans;* |
|----------------------|---------------------------------------------|
| *·  * | *Our                existing cash and whether and how long these funds will be sufficient                to                fund our operations; and* |
|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| *·  * | *Our                raising of additional capital through future equity financings.* |
|----------------------|--------------------------------------------------------------------------------------|

*These        and other forward-looking statements are primarily in the section entitled        "Management's Discussion and Analysis of Financial Conditions and Results        of        Operations". Generally, you can identify these statements because they include        phrases such as "anticipates," "believes," "expects," "future," "intends,"        "plans," and similar terms. These statements are only predictions. Although        we        do not make forward-looking statements unless we believe we have a reasonable        basis for doing so, we cannot guarantee their accuracy, and actual results        may        differ materially from those we anticipated due to a number of uncertainties,        many of which are unforeseen. You should not place undue reliance on these        forward-looking statements, which apply only as of the date of this Report        on        Form 10-QSB. Our actual results could differ materially from those anticipated        in these forward-looking statements for many reasons, including those stated        in        this Report. We undertake no obligation to update publicly any forward-looking        statements, whether as a result of new information, future events or otherwise.        We cannot be sure when or if we will be permitted by regulatory agencies        to        undertake clinical trials or to commence any particular phase of clinical        trials. Because of this, statements regarding the expected timing of clinical        trials cannot be regarded as actual predictions of when we will obtain        regulatory approval for any “phase” of clinical trials. *

*We        believe it is important to communicate our expectations to our investors.        There        may be events in the future, however, that we are unable to predict accurately        or over which we have no control. Cautionary language in this Report provides        examples of risks, uncertainties and events that may cause our actual results        to        differ materially from the expectations we describe in our forward-looking        statements. *

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**PART        I. FINANCIAL INFORMATION**

**    ITEM        1.        FINANCIAL STATEMENTS**

| **PACIFICHEALTH                  LABORATORIES, INC.**            |   |
|------------------------------------------------------------------|--------|
| **BALANCE                  SHEETS**                              |   |
|                                                             |   |   |   |   |   |
| **ASSETS**                                                       |   |
|                                                             |   | June                  30, |   | December                  31, |   |
|                                                             |   | 2007 |   | 2006 |   |
|                                                             |   | (Unaudited) |   |   |   |
| Current                  assets:                                 |   |   |   |   |   |
| Cash                  and cash equivalents                       |   | $ | 1,500,446 |   | $ | 2,564,038 |   |
| Accounts                  receivable, net                        |   |   | 1,170,724 |   |   | 502,234 |   |
| Inventories                                                      |   |   | 2,782,219 |   |   | 1,913,275 |   |
| Prepaid                  expenses                                |   |   | 172,155 |   |   | 144,059 |   |
| Total                  current assets                            |   |   | 5,625,544 |   |   | 5,123,606 |   |
|                                                             |   |   |   |   |   |   |   |
| Property                  and equipment, net                     |   |   | 150,405 |   |   | 74,163 |   |
|                                                             |   |   |   |   |   |   |   |
| Deposits                                                         |   |   | 10,895 |   |   | 10,895 |   |
|                                                             |   |   |   |   |   |   |   |
| Total                  assets                                    |   | $ | 5,786,844 |   | $ | 5,208,664 |   |
|                                                             |   |   |   |   |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**        |   |
|                                                             |   |   |   |   |   |   |   |
| Current                  liabilities:                            |   |   |   |   |   |   |   |
| Notes                  payable                                   |   | $ | 78,442 |   | $ | 44,327 |   |
| Accounts                  payable and accrued expenses           |   |   | 986,947 |   |   | 960,757 |   |
| Deferred                  revenue                                |   |   | 332,118 |   |   | 244,197 |   |
| Total                  current liabilities                       |   |   | 1,397,507 |   |   | 1,249,281 |   |
|                                                             |   |   |   |   |   |   |   |
| Stockholders'                  equity:                           |   |   |   |   |   |   |   |
| Common                  stock, $.0025 par value; authorized      |   |   |   |   |   |   |   |
| 50,000,000                  shares; issued and outstanding:      |   |   |   |   |   |   |   |
|  13,352,346                  shares at June 30, 2007 and    |   |   |   |   |   |   |   |
| 12,776,690                  shares at December 31, 2006          |   |   | 33,381 |   |   | 31,942 |   |
| Additional                  paid-in capital                      |   |   | 18,648,152 |   |   | 17,867,945 |   |
| Accumulated                  deficit                             |   |   | (14,292,196 | ) |   | (13,940,504 | ) |
|                                                             |   |   | 4,389,337 |   |   | 3,959,383 |   |
|                                                             |   |   |   |   |   |   |   |
| Total                  liabilities and stockholders' equity      |   | $ | 5,786,844 |   | $ | 5,208,664 |   |
|                                                             |   |   |   |   |   |   |   |
| See                  accompanying notes to financial statements. |   |

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|                                                                                            |   |                            |       |                            |   |       |   |   |       |
|-------------------------------------------------------------------------------------------------|--------|---------------------------------|------------|---------------------------------|--------|------------|--------|--------|------------|
| **PACIFICHEALTH                  LABORATORIES, INC.**                                           |   |
| **STATEMENTS                  OF OPERATIONS**                                                   |   |
| **FOR                  THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND                  2006** |   |
| **(UNAUDITED)**                                                                                 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |
|                                                                                            |   | Three                  Months   |       | Six                  Months     |   |
|                                                                                            |   | Ended                  June 30, |       | Ended                  June 30, |   |
|                                                                                            |   | 2007                            |       | 2006                            |   | 2007       |   | 2006   |       |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |
| Revenues:                                                                                       |   |                            |       |                            |   |       |   |   |       |
| Net                  product sales                                                              |   | $                               | 2,069,889  |                            | $      | 1,747,206  |   | $      | 3,888,783  |   | $ | 3,322,602 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Cost                  of goods sold                                                             |   |                            | 1,304,359  |                            |   | 952,691    |   |   | 2,437,246  |   |   | 1,711,086 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Gross                  profit                                                                   |   |                            | 765,530    |                            |   | 794,515    |   |   | 1,451,537  |   |   | 1,611,516 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Selling,                  general and administrative expenses                                   |   |                            | 830,663    |                            |   | 782,430    |   |   | 1,679,829  |   |   | 1,530,763 |   |
| Research                  and development expenses                                              |   |                            | 51,793     |                            |   | 46,233     |   |   | 127,163    |   |   | 87,484 |   |
| Depreciation                  expense                                                           |   |                            | 24,519     |                            |   | 14,858     |   |   | 40,331     |   |   | 28,952 |   |
|                                                                                            |   |                            | 906,975    |                            |   | 843,521    |   |   | 1,847,323  |   |   | 1,647,199 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Net                  operating loss                                                             |   |                            | (141,445   | )                               |   | (49,006    | )      |   | (395,786   | ) |   | (35,683 | ) |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Other                  income (expense):                                                        |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Gain                  on sale of patents/technology, net of expenses of $90,795                 |   |                            | -          |                            |   | -          |   |   | -          |   |   | 3,909,205 |   |
| Other                  income                                                                   |   |                            | -          |                            |   | -          |   |   | 10,000     |   |   | - |   |
| Interest                  income                                                                |   |                            | 15,395     |                            |   | 24,319     |   |   | 35,931     |   |   | 32,733 |   |
| Interest                  expense                                                               |   |                            | (1,226     | )                               |   | (1,487     | )      |   | (1,837     | ) |   | (30,136 | ) |
|                                                                                            |   |                            | 14,169     |                            |   | 22,832     |   |   | 44,094     |   |   | 3,911,802 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| (Loss)                  income before income taxes                                              |   |                            | (127,276   | )                               |   | (26,174    | )      |   | (351,692   | ) |   | 3,876,119 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Provision                  for income taxes                                                     |   |                            | -          |                            |   | -          |   |   | -          |   |   | 1,278,000 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Net                  (loss) income                                                              |   |                            | (127,276   | )                               |   | (26,174    | )      |   | (351,692   | ) |   | 2,598,119 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Less                  preferred dividends                                                       |   |                            | -          |                            |   | (5,000     | )      |   | -          |   |   | (10,425 | ) |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Net                  (loss) income applicable to common stockholders                            |   | $                               | (127,276   | )                               | $      | (31,174    | )      | $      | (351,692   | ) | $ | 2,587,694 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Basic                  (loss) income per share                                                  |   | $                               | (0.01      | )                               | $      | 0.00       |   | $      | (0.03      | ) | $ | 0.23 |   |
|                                                                                            |   |                            |            |                            |   |            |   |   |            |   |   |  |   |
| Diluted                  (loss) income per share                                                |   | $                               | (0.01      | )                               | $      | 0.00       |   | $      | (0.03      | ) | $ | 0.20 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Weighted                  average common shares - Basic                                         |   |                            | 13,319,685 |                            |   | 11,368,088 |   |   | 13,152,745 |   |   | 11,070,122 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| Weighted                  average common shares - Diluted                                       |   |                            | 13,319,685 |                            |   | 11,368,088 |   |   | 13,152,745 |   |   | 13,167,853 |   |
|                                                                                            |   |                            |       |                            |   |       |   |   |       |   |   |   |   |
| See                  accompanying notes to financial statements.                                |   |

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|                                                                      |   |   |       |   |   |
|---------------------------------------------------------------------------|--------|--------|------------|--------|--------|
| **PACIFICHEALTH                  LABORATORIES, INC.**                     |   |
| **STATEMENTS                  OF CASH FLOWS**                             |   |
| **FOR                  THE SIX MONTHS ENDED JUNE 30, 2007 AND 2006**      |   |
| **(UNAUDITED)**                                                           |   |
|                                                                      |   |   |       |   |   |
|                                                                      |   | 2007   |       | 2006   |   |
| Cash                  flows from operating activities:                    |   |   |       |   |   |
| Net                  (loss) income                                        |   | $      | (351,692   | )      | $      | 2,598,119 |   |
| Adjustments                  to reconcile net (loss) income to net        |   |   |       |   |   |   |   |
| cash                  used in operating activities:                       |   |   |       |   |   |   |   |
| Depreciation                                                              |   |   | 40,331     |   |   | 28,952 |   |
| Allowance                  for doubtful accounts                          |   |   | 6,000      |   |   | 6,000 |   |
| Writedown                  of packaging inventory                         |   |   | 49,135     |   |   | - |   |
| Equity                  instrument based consulting expense               |   |   | 124,867    |   |   | 109,639 |   |
| Gain                  on sale of patents and technology,                  |   |   |       |   |   |   |   |
| net                  of expenses of $90,795                               |   |   | -          |   |   | (3,909,205 | ) |
| Provision                  for income taxes                               |   |   | -          |   |   | 1,278,000 |   |
| Changes                  in operating assets and liabilities:             |   |   |       |   |   |   |   |
| Increase                  in accounts receivable                          |   |   | (674,490   | )      |   | (685,578 | ) |
| (Increase)                  decrease in inventories                       |   |   | (918,079   | )      |   | 163,667 |   |
| Increase                  in prepaid expenses                             |   |   | (28,096    | )      |   | (58,570 | ) |
| Increase                  in deposits                                     |   |   | -          |   |   | (20,472 | ) |
| Increase                  (decrease) in accounts payable/accrued expenses |   |   | 26,190     |   |   | (1,040,432 | ) |
| Increase                  (decrease) in deferred revenue                  |   |   | 87,921     |   |   | (29,835 | ) |
| Net                  cash used in operating activities                    |   |   | (1,637,913 | )      |   | (1,559,715 | ) |
|                                                                      |   |   |       |   |   |   |   |
| Cash                  flows from investing activities:                    |   |   |       |   |   |   |   |
| Purchase                  of property and equipment                       |   |   | (116,573   | )      |   | (52,145 | ) |
| Proceeds                  from sale of patents and technology,            |   |   |       |   |   |   |   |
| net                  of expenses of $90,795                               |   |   | -          |   |   | 3,909,205 |   |
| Net                  cash (used in) provided by investing activities      |   |   | (116,573   | )      |   | 3,857,060 |   |
|                                                                      |   |   |       |   |   |   |   |
| Cash                  flows from financing activities:                    |   |   |       |   |   |   |   |
| Issuance                  of notes payable                                |   |   | 79,305     |   |   | 763,443 |   |
| Repayments                  of notes payable                              |   |   | (45,190    | )      |   | (825,326 | ) |
| Repayments                  of convertible notes payable                  |   |   | -          |   |   | (500,000 | ) |
| Common                  stock issued                                      |   |   | 450,000    |   |   | - |   |
| Proceeds                  from common stock options/warrants exercised    |   |   | 206,779    |   |   | 869,884 |   |
| Net                  cash provided by financing activities                |   |   | 690,894    |   |   | 308,001 |   |
|                                                                      |   |   |       |   |   |   |   |
| Net                  (decrease) increase in cash                          |   |   | (1,063,592 | )      |   | 2,605,346 |   |
|                                                                      |   |   |       |   |   |   |   |
| Cash,                  beginning balance                                  |   |   | 2,564,038  |   |   | 138,487 |   |
|                                                                      |   |   |       |   |   |   |   |
| Cash,                  ending balance                                     |   | $      | 1,500,446  |   | $      | 2,743,833 |   |
|                                                                      |   |   |       |   |   |   |   |
|                                                                      |   |   |       |   |   |   |   |
| Supplemental                  disclosures of cash flow information:       |   |   |       |   |   |   |   |
| Cash                  paid for interest                                   |   | $      | 1,837      |   | $      | 30,136 |   |
|                                                                      |   |   |       |   |   |   |   |
| Schedule                  of non-cash financing activity:                 |   |   |       |   |   |   |   |
| Conversion                  of 90,909 shares of Series A Preferred Stock  |   |   |       |   |   |   |   |
| into                  909,091 shares of common stock                      |   | $      | -          |   | $      | 966,387 |   |
|                                                                      |   |   |       |   |   |   |   |
| See                  accompanying notes to financial statements.          |   |

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**PACIFICHEALTH        LABORATORIES, INC.**

**NOTES        TO FINANCIAL STATEMENTS**

**FOR        THE THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006**

**(UNAUDITED)**

**1.        Basis of Presentation**

|   | The                  accompanying unaudited financial statements have been prepared                  in                  accordance with accounting principles generally accepted in the                  United                  States of America for interim financial information and with the                  instructions for Form 10-QSB and Item 310 of Regulation S-B. Accordingly,                  they do not include all of the information and footnotes required                  by                  generally accepted accounting principles for complete financial                  statements. In the opinion of management, all adjustments (consisting                  of                  normal recurring accruals) considered necessary for a fair presentation                  have been included. Operating results for the three and six months                  ended                  June 30, 2007 are not necessarily indicative of the results that                  may be                  expected for the year ending December 31, 2007. The unaudited financial                  statements should be read in conjunction with the financial statements                  and                  footnotes thereto included in the Company's annual report on Form                  10-KSB                  for the year ended December 31,                  2006. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | On                  February 22, 2006, pursuant to an Asset Purchase Agreement of the                  same                  date, the Company sold to Mott’s LLP, a division of Cadbury Schweppes                  Americas Beverages (“CSAB”) the patents, trademarks, web sites, and other                  intellectual property related to its ACCELERADE and ENDUROX sports                  nutrition product lines for $4,000,000 in cash and potential future                  royalty payments. Simultaneously, the Company entered into a License                  Agreement with CSAB giving it the exclusive, royalty free right                  to                  continue to sell its sports nutrition products in powder, gel and                  pill                  form. Consequently, the Company will continue to sell its current                  sports                  nutrition products in the same manner as prior to the sale of the                  intellectual property assets. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  Company will receive royalty payments for a finite period following                  the                  launch of a product using the purchased assets, subject to an annual                  limitation on the amount of the royalty. There are no minimum royalties.                  CSAB launched a ready-to-drink (“RTD”) product in late June 2007. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  preparation of financial statements in conformity with accounting                  principles generally accepted in the United States of America requires                  management to make certain estimates and assumptions that affect                  the                  reported amounts of assets and liabilities and disclosure of contingent                  assets and liabilities at the date of the financial statements                  and the                  reported amount of revenue and expenses during the reporting period.                  Actual results may differ from these estimates. The significant                  estimates                  and assumptions made by the Company are in the area of revenue                  recognition                  as it relates to customer returns, inventory obsolescence, allowance                  for                  doubtful accounts, and valuation allowances for deferred tax assets,                  and                  valuation of equity instruments issued under Statement of Financial                  Accounting Standards ("SFAS") No. 123R, "Share-Based Payment" ("SFAS                  123R"). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**2.        Revenue Recognition**

|  | Sales                  are recognized when all of the following criteria are met: (1)                  persuasive                  evidence that an arrangement exists; (2) delivery has occurred                  or services                  have been rendered; (3) the seller’s price to the buyer is fixed and                  determinable; and, (4) collectibility is reasonably assured. Sales                  are                  recorded net of incentives paid to                  customers. |
|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  Company has a sales agreement with a significant customer for all                  products                  sold to this customer whereby all unsold product is subject to                  return                  provisions. The Company recognizes revenue when this major customer                  sells                  through its products to its consumers. At June 30, 2007, the Company                  has                  deferred $332,118 in revenues related to this customer. At December                  31,                  2006, the Company had deferred $244,197 in revenues related to                  this                  customer. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**3.        Inventories**

|  | As                  of June 30, 2007 and December 31, 2006, inventories consisted of                  the                  following: |
|--|---------------------------------------------------------------------------------------------------------------------------------------|

|   |                                             |   |                             |      |                                 |   |
|--------|--------------------------------------------------|--------|----------------------------------|-----------|--------------------------------------|--------|
|   |                                             |   | June                    30, 2007 |      |                                 |   |
|   |                                             |   | (Unaudited)                      |      | December                    31, 2006 |   |
|   | Raw                    materials                 |   | $                                | 367,839   |                                 | $      | 531,995 |   |
|   | Work                    in process               |   |                             | -         |                                 |   | 77,771 |   |
|   | Packaging                    supplies            |   |                             | 73,172    |                                 |   | 41,378 |   |
|   | Finished                    goods                |   |                             | 2,184,435 |                                 |   | 1,165,188 |   |
|   | Finished                    goods on consignment |   |                             | 156,773   |                                 |   | 96,943 |   |
|   |                                             |   | $                                | 2,782,219 |                                 | $      | 1,913,275 |   |

----

**4.        Stock Based Compensation**

|   | Effective                  January 1, 2006, the Company adopted SFAS 123R which establishes                  standards                  for transactions in which an entity exchanges its equity instruments                  for                  goods or services. SFAS 123R focuses primarily on accounting for                  transactions in which an entity obtains employee services in share-based                  payment transactions, including issuances of stock options to employees.                  Utilizing the Modified Prospective method, the Company recorded                  charges of                  $64,023 and $123,357, respectively, in the three- and six- months                  ended                  June 30, 2007, representing the effect on loss from continuing                  operations,                  loss before income taxes, and net loss. The impact of the adoption                  of 123R                  was to reduce basic earnings per share by $0.00 and $0.01, respectively,                  in the three- and six- months ended June 30, 2007. The Company                  recorded                  charges of $49,254 and $98,880, respectively in the three- and                  six- months                  ended June 30, 2006, representing the effect on (loss) income from                  continuing operations, (loss) income before income taxes, and net                  (loss)                  income. The impact of the adoption of 123R was to reduce basic                  earnings                  per share by $0.00 and $0.01, respectively, in the three- and six-                  months                  ended June 30, 2006. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  Company granted 6,000 stock options to employees and directors                  during the                  three months ended June 30, 2007 with an exercise price of $2.05                  per                  share. These options vest ratably through the second quarter of                  2009.                  These options were determined to have a total fair value of $10,254.                  The                  Company granted 26,000 stock options to employees and directors                  during the                  six months ended June 30, 2007 with exercise prices ranging from                  $2.05 to                  $2.14 per share. These options were determined to have a total                  fair value                  of $46,054. Compensation expense recognized during the three months                  ended                  June 30, 2007 amounted to $64,023. Compensation expense recognized                  during                  the six months ended June 30, 2007 amounted to $124,867. These                  amounts                  were charged to operations and added to paid-in capital in accordance                  with                  SFAS 123R. The Company granted no options to employees and directors                  during the three months ended June 30, 2006. The Company granted                  508,000                  options to employees and directors during the six months ended                  June 30,                  2006. These options were determined to have a total fair value                  of                  $230,540. Compensation expense recognized during the three months                  ended                  June 30, 2006 amounted to $25,302. Compensation expense recognized                  during                  the six months ended June 30, 2006 amounted to $98,880. These amounts                  were                  charged to operations and added to paid-in capital in accordance                  with SFAS                  123R. The total intrinsic value of options exercised during the                  three and                  six months ended June 30, 2007 was                  $0. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  Company granted no stock options to consultants during the three                  months                  ended June 30, 2007. The Company granted 1,000 stock options to                  a                  consultant during the six months ended June 30, 2007 that vested                  upon                  grant with an exercise price of $2.10 per share. These options                  were                  determined to have a fair value of $1,510 that was charged to operations                  and added to paid-in capital in the six month period ended June                  30, 2007.                  In addition, 1,000 options previously issued to consultants expired                  during                  the first six months of 2007. The Company granted no stock options                  to                  consultants during the three months ended June 30, 2006. The Company                  granted 89,000 stock options to consultants during the six months                  ended                  June 30, 2006 that vested upon grant with an exercise price of                  $0.20 per                  share. These options were determined to have a fair value of $10,759                  that                  was charged to operations and added to paid-in capital in the six-month                  period ended June 30, 2006.  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | A                  summary of employee options activity under our plans as of June                  30, 2007                  and changes during the six-month period then ended is presented                  below: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            |   |       |      |          |   | **Weighted-**                     |   |          |   |
|-------------------------------------------------|--------|------------|-----------|---------------|--------|-----------------------------------|--------|---------------|--------|
|                                            |   |       |      | **Weighted-** |   | **Average**                       |   |          |   |
|                                            |   |       |      | **Average**   |   | **Remaining**                     |   | **Aggregate** |   |
|                                            |   |       |      | **Exercise**  |   | **Contractual**                   |   | **Intrinsic** |   |
| **Options**                                     |   | **Shares** |      | **Price**     |   | **Term                  (Years)** |   | **Value**     |   |
| **Balance,                  January 1, 2007**   |   |       | 2,011,500 |          | $      | 1.12                              |   |          |   |   |   |   |   |
| Granted                  during the period      |   |       | 26,000    |          | $      | 2.12                              |   |          |   |   |   |   |   |
| Exercised                  during the period    |   |       | (17,000   | )             | $      | 0.72                              |   |          |   |   |   |   |   |
| Expired                  during the period      |   |       | (33,000   | )             | $      | 3.80                              |   |          |   |   |   |   |   |
| **Outstanding,                  June 30, 2007** |   |       | 1,987,500 |          | $      | 1.10                              |   |          | 2.73   |   | $ | 2,658,495 |   |
| **Exercisable,                  June 30, 2007** |   |       | 1,259,834 |          | $      | 1.18                              |   |          | 1.96   |   | $ | 1,627,676 |   |

|   | The                  market value of the Company’s common stock as of June 30, 2007 was $2.37                  per share. |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

----

|                                            |   |       |     |   **Weighted-**       |   |
|-------------------------------------------------|--------|------------|----------|---------------------------------|--------|
|                                            |   |       |     | **Average**                     |   |
|                                            |   |       |     | **Grant-Date**                  |   |
| **Nonvested                  Shares**           |   | **Shares** |     | **Fair                  Value** |   |
| **Nonvested,                  January 1, 2007** |   |       | 942,000  |                            | $      | 0.81 |   |
| Granted                  during the period      |   |       | 26,000   |                            | $      | 2.12 |   |
| Vested                  during the period       |   |       | (240,334 | )                               | $      | 0.52 |   |
| Forfeited                  during the period    |   |       | -        |                            | $      | - |   |
| **Nonvested,                  June 30, 2007**   |   |       | 727,666  |                            | $      | 0.95 |   |

|   | As                  of June 30, 2007, the total fair value of non-vested awards amounted                  to                  $509,820. The weighted average remaining period over which such                  options                  are expected to be recognized is 1.97                  years. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                  fair value of each option award during the three months ended June                  30,                  2007 is estimated on the date of grant using the Black-Scholes                  option                  valuation model that uses the assumptions noted in the following                  table: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                         | **June                  30,****2007** |
|--------|----------------------------------------------|---------------------------------------|
|   | Expected                  volatility         | 106-119%                              |
|   | Weighted-average                  volatility | 113%                                  |
|   | Expected                  dividends          | 0.0%                                  |
|   | Expected                  term (in years)    | 5                                     |
|   | Risk-free                  rate              | 3.35-4.75%                            |

**5.        Income Taxes**

|   | The                  Company** **has                  approximately $12,398,000 in federal and $671,000 in state net                  operating                  loss carryovers generated through December 31, 2006 that can be                  used to                  offset future taxable income in calendar years 2007 through 2026.                  The net                  operating loss carryovers will expire in the year 2015 through                  the year                  2026. As of June 30, 2007, the Company has fully reserved for these                  net                  operating loss carryovers.  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In                  July 2006, the FASB issued FASB Interpretation No. 48, “Accounting for                  Uncertainty in Income Taxes” - an interpretation of FASB Statement No. 109                  (“FIN 48”), which clarifies the accounting and disclosure for uncertain                  tax positions, as defined. FIN 48 seeks to reduce the diversity                  in                  practice associated with certain aspects of the recognition and                  measurement related to accounting for income taxes. The Company                  adopted                  the provision of FIN 48 effective January 1, 2007. The adoption                  of FIN 48                  had no material effect on the Company’s results of operations or financial                  position. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**6.        Concentration**

|   | The                  Company’s two largest customers accounted for approximately 17% and 17%,                  respectively, of net sales for the three months ended June 30,                  2007 and                  the Company’s two largest customers accounted for approximately 17% and                  17%, respectively, of net sales for the three months ended June                  30, 2006.                  The Company’s two largest customers accounted for approximately 18% and                  14%, respectively, of net sales for the six months ended June 30,                  2007 and                  the Company’s two largest customers accounted for approximately 21% and                  18%, respectively, of net sales for the six months ended June 30,                  2006. At                  June 30, 2007, amounts due from these two customers represented                  approximately 31% and 17%, respectively, of accounts receivable.                  At                  December 31, 2006, amounts due from these two customers represented                  approximately 27% and 14%, respectively, of accounts                  receivable. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Two                  suppliers accounted for approximately 70% and 25%, respectively,                  of total                  inventory purchases for the three months ended June 30, 2007 and                  two                  suppliers accounted for approximately 74% and 17%, respectively,                  of total                  inventory purchases for the three months ended June 30, 2006. Two                  suppliers accounted for approximately 64% and 20%, respectively,                  of total                  inventory purchases for the six months ended June 30, 2007 and                  two                  suppliers accounted for approximately 58% and 30%, respectively,                  of total                  inventory purchases for the six months ended June 30, 2006. At                  June 30,                  2007, amounts due to these two vendors represented approximately                  57% and                  8%, respectively, of accounts payable and accrued expenses. At                  December                  31, 2006, amounts due to these two vendors represented approximately                  3%                  and 2%, respectively, of accounts payable and accrued                  expenses. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**7.        Equity Instruments**

**8.        Subsequent Event**

|   | Between                  July 1, 2007 and August 8, 2007, the Company has issued an additional                  97,894 shares of its common stock as a result of the exercise of                  options                  and warrants, resulting in proceeds of $51,259. Of these shares,                  21,418                  were issued pursuant to a cashless exercise                  feature. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Item        2.** **MANAGEMENT’S        DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS**

**(a)                   **
**Introduction        **

**ACTIVATION        OF MUSCLE GROWTH, ENERGY AND TRANSPORT PATHWAYS**

**Exercise        Performance**

*ACCELERADE*
*®*

----

**Post-Surgical        Muscle Recovery**

**Oral        Rehydration**

**ACTIVATION        OF SATIETY PEPTIDES**

**Weight        Loss**

**Type        II Diabetes**

**(b)    **
**Results        of Operations - Three and Six Months Ended June 30, 2007 and        2006**

----

----

**(c)    Liquidity        and        Capital Resources**

**(d)    **
**Off-Balance        Sheet Arrangements**

**ITEM        3. CONTROLS AND PROCEDURES**

**Evaluation        of disclosure controls and procedures.**

**Changes        in internal control over financial reporting.**

**II.        OTHER INFORMATION**

**ITEM        1. LEGAL PROCEEDINGS**

----

**ITEM        2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF        PROCEEDS**

**ITEM        3. DEFAULTS UPON SENIOR        SECURITIES**

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

|   | Nominee                              | For        | Against | Abstain |
|--------|--------------------------------------|------------|---------|---------|
|   | Robert                    Portman    | 10,709,593 | -0-     | 308,787 |
|   | Stephen                    P. Kuchen | 10,709,593 | -0-     | 308,787 |
|   | David                    Portman     | 10,709,593 | -0-     | 308,787 |
|   | Michael                    Cahr      | 10,710,193 | -0-     | 308,187 |
|   | Adam                    Mizel        | 10,713,193 | -0-     | 305,187 |
|   | Marc                    Particelli   | 10,710,193 | -0      | 308,187 |

|   | Matter                                     | For        | Against | Abstain |
|--------|--------------------------------------------|------------|---------|---------|
|   | Appointment                    of auditors | 10,987,322 | 25,975  | 5,083   |

**ITEM        5. OTHER INFORMATION**

**ITEM        6. **
**EXHIBITS**

| **Exhibit****Number** |   | **Description                of Exhibit****(1)**                                                                                                                                                                                                                                                                                            |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                        |
| 3(i)(a)               |   | Certificate                of Incorporation of PacificHealth Laboratories, Inc. and all amendments                thereto (incorporated by reference to Exhibit 3.1 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 (Registration No.                333-36379) filed on September 25, 1997) |
|                  |   |                                                                                                                                                                                                                                                                                                                                        |
| 3(i)(b)               |   | Certificate                of Amendment of Certificate of Incorporation of PacificHealth                Laboratories, Inc. (incorporated by reference to Exhibit 3.3 to                PacificHealth Laboratories, Inc.’s Annual Report on Form 10-KSB filed on                March 31, 2003)                                        |
|                  |   |                                                                                                                                                                                                                                                                                                                                        |

----

| **Exhibit****Number** |   | **Description                of Exhibit****(1)** |
|-----------------------|--------|--------------------------------------------------|
|                  |

| 3(i)(c) |   | Certificate                of Designations for Series A Preferred Stock (incorporated by reference                to                Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                8-K filed on January 28, 2005)                                                                                                                                         |
|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(d) |   | Certificate                of Designations for Series B Preferred Stock, filed with the Secretary                of                State of the State of Delaware on April 28, 2005 (incorporated by                reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed May 4, 2005)                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(ii)   |   | Amended                and Restated Bylaws of PacificHealth Laboratories, Inc. (incorporated                by                reference to Exhibit 3.2.1 to PacificHealth Laboratories, Inc.’s Amendment                No. 3 to Registration Statement on Form SB-2/A filed on December                17,                1997)                                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1     |   | Specimen                Common Stock Certificate (incorporated by reference to Exhibit 4.1                to                PacificHealth Laboratories, Inc.’s Amendment No. 3 to Registration                Statement on Form SB-2/A filed on December 17, 1997)                                                                                                                                 |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2.1   |   | Form                of Securities Purchase Agreement entered into among PacificHealth                Laboratories, Inc. and Certain of the Selling Stockholders dated                August                26, 2003 (incorporated by reference to Exhibit 4.4 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                September 29, 2003) |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2.2   |   | Form                of Registration Rights Agreement entered into among PacificHealth                Laboratories, Inc. and Certain of the Selling Stockholders dated                August                26, 2003 (incorporated by reference to Exhibit 4.5 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                September 29, 2003) |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2.3   |   | Form                of Warrant issued to Certain of the Selling Stockholders in connection                with Exhibit 4.2.1 on August 26, 2003 (incorporated by reference                to                Exhibit 4.6 to PacificHealth Laboratories, Inc.’s Registration Statement                on Form SB-2 filed on September 29, 2003)                                                      |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.3     |   | Stock                Purchase Agreement dated June 1, 2001, by and between PacificHealth                Laboratories, Inc. and Glaxo Wellcome International B.V. (incorporated                by                reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on June 14, 2001)                                                   |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4.1   |   | Series                A Preferred Stock Purchase Agreement dated January 28, 2005, by and                between PacificHealth Laboratories, Inc. and Hormel HealthLabs, LLC                (incorporated by reference to Exhibit 4.3 to PacificHealth Laboratories,                Inc.’s Annual Report on Form 10-KSB filed on April 15,                2005)                                    |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4.2   |   | Investors’                Rights Agreement dated January 28, 2005, by and between PacificHealth                Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by reference                to Exhibit 4.4 to PacificHealth Laboratories, Inc.’s Annual Report on Form                10-KSB filed on April 15, 2005)                                                             |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4.3   |   | Right                of First Refusal and Co-Sale Agreement dated January 28, 2005, by                and                between PacificHealth Laboratories, Inc., Robert Portman and Hormel                HealthLabs, LLC (incorporated by reference to Exhibit 4.5 to PacificHealth                Laboratories, Inc.’s Annual Report on Form 10-KSB filed on April 15,                2005)    |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4.4   |   | Certificate                of Designations for Series A Preferred Stock (incorporated by reference                to                Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                8-K filed on January 28, 2005)                                                                                                                                         |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                     |

----

| **Exhibit****Number** |   | **Description                of Exhibit****(1)**                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.5                   |   | Certificate                of Designations for Series B Preferred Stock, filed with the Secretary                of                State of the State of Delaware on April 28, 2005 (incorporated by                reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on May 4, 2005)                                                                                                                       |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.1                 |   | Securities                Purchase Agreement, dated August 24, 2005 by and between PacificHealth                Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by reference                to Exhibit 10.1 to PacificHealth Laboratories, Inc.’s Current Report on                Form 8-K filed on August 30, 2005)                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.2                 |   | Amended                and Restated Investors’ Rights Agreement dated August 24, 2005 between                PacificHealth Laboratories, Inc. and Hormel HealthLabs, LLC and any                additional investor that becomes a party thereto (incorporated by                reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on August 30, 2005)                                                 |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.3                 |   | Form                of Secured Convertible Promissory Note issued in connection with                Exhibit                4.6.1 (incorporated by reference to Exhibit 10.2 to PacificHealth                Laboratories, Inc.’s Current Report on Form 8-K filed on August 30,                2005)                                                                                                                                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.4                 |   | Security                Agreement dated August 24, 2005 by and between PacificHealth Laboratories,                Inc. and Hormel HealthLabs, LLC (incorporated by reference to Exhibit                10.3                to PacificHealth Laboratories, Inc.’s Current Report on Form 8-K filed on                August 30, 2005)                                                                                                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.1                  |   | Employment                Extension Agreement between PacificHealth Laboratories, Inc. and                Robert                Portman effective January 1, 2004, executed February 28, 2006                (incorporated by reference to Exhibit 10.6 to PacificHealth Laboratories,                Inc.’s Post-Effective Amendment to Registration Statement on Form SB-2/A                (File No. 333-109197) filed on May 2, 2006)                                 |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.1                |   | Asset                Purchase Agreement dated February 22, 2006, by and between PacificHealth                Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                confidential treatment) (incorporated by reference to Exhibit 10.8                to                PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                March 31, 2006)                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.2                |   | License                Agreement dated February 22, 2006, by and between PacificHealth                Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                confidential treatment) (incorporated by reference to Exhibit 10.9                to                PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                March 31, 2006)                                                                |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.3                |   | Consulting,                License and Noncompetition Agreement dated February 22, 2006, by                and                between PacificHealth Laboratories, Inc., Mott’s LLP and Robert Portman                (redacted, subject to request for confidential treatment) (incorporated                by                reference to Exhibit 10.10 to PacificHealth Laboratories, Inc.’s Annual                report on Form 10-KSB filed on March 31, 2006) |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.1                  |   | Rule                13a-14(a) Certification of Chief Executive Officer (filed                herewith)                                                                                                                                                                                                                                                                                                                                                                          |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.2                  |   | Rule                13a-14(a) Certification of Chief Financial Officer (filed                herewith)                                                                                                                                                                                                                                                                                                                                                                          |

|   |   |                                                                                                                                                                                                         |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32     |   | Certifications                of Chief Executive Officer and Chief Financial Officer pursuant to                Section                906 of the Sarbanes-Oxley Act of 2002 (filed                herewith) |

| (1) | In                the case of incorporation by reference to documents filed by the                Registrant under the Exchange Act, the Registrant’s file number under the                Exchange Act is 000-23495. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

|   |                                                                                                             |                               |
|--------|------------------------------------------------------------------------------------------------------------------|------------------------------------|
|   | **PACIFICHEALTH              LABORATORIES, INC.**                                                                |
|   |                                                                                                        |                          |
|   | By:                                                                                                    | /s/              STEPHEN P. KUCHEN |
|   | STEPHEN              P. KUCHEN                                                                                   |
|   | Chief              Financial Officer (Principal Financial Officer and Principal Accounting              Officer) |
|   |                                                                                                             |
|   | Date:              August 8, 2007                                                                                |

----

**EXHIBIT      INDEX**

| **Exhibit****Number** |   | **Description                of Exhibit****(1)**                                                                                                                                                                                                                                                                                                                                                         |
|-----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(a)               |   | Certificate                of Incorporation of PacificHealth Laboratories, Inc. and all amendments                thereto (incorporated by reference to Exhibit 3.1 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 (Registration No.                333-36379) filed on September 25, 1997)                                                              |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(b)               |   | Certificate                of Amendment of Certificate of Incorporation of PacificHealth                Laboratories, Inc. (incorporated by reference to Exhibit 3.3 to                PacificHealth Laboratories, Inc.’s Annual Report on Form 10-KSB filed on                March 31, 2003)                                                                                                     |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(c)               |   | Certificate                of Designations for Series A Preferred Stock (incorporated by reference                to                Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                8-K filed on January 28, 2005)                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(i)(d)               |   | Certificate                of Designations for Series B Preferred Stock, filed with the Secretary                of                State of the State of Delaware on April 28, 2005 (incorporated by                reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed May 4, 2005)                                                   |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3(ii)                 |   | Amended                and Restated Bylaws of PacificHealth Laboratories, Inc. (incorporated                by                reference to Exhibit 3.2.1 to PacificHealth Laboratories, Inc.’s Amendment                No. 3 to Registration Statement on Form SB-2/A filed on December                17,                1997)                                                                   |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1                   |   | Specimen                Common Stock Certificate (incorporated by reference to Exhibit 4.1                to                PacificHealth Laboratories, Inc.’s Amendment No. 3 to Registration                Statement on Form SB-2/A filed on December 17, 1997)                                                                                                                                 |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2.1                 |   | Form                of Securities Purchase Agreement entered into among PacificHealth                Laboratories, Inc. and Certain of the Selling Stockholders dated                August                26, 2003 (incorporated by reference to Exhibit 4.4 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                September 29, 2003) |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2.2                 |   | Form                of Registration Rights Agreement entered into among PacificHealth                Laboratories, Inc. and Certain of the Selling Stockholders dated                August                26, 2003 (incorporated by reference to Exhibit 4.5 to PacificHealth                Laboratories, Inc.’s Registration Statement on Form SB-2 filed on                September 29, 2003) |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2.3                 |   | Form                of Warrant issued to Certain of the Selling Stockholders in connection                with Exhibit 4.2.1 on August 26, 2003 (incorporated by reference                to                Exhibit 4.6 to PacificHealth Laboratories, Inc.’s Registration Statement                on Form SB-2 filed on September 29, 2003)                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.3                   |   | Stock                Purchase Agreement dated June 1, 2001, by and between PacificHealth                Laboratories, Inc. and Glaxo Wellcome International B.V. (incorporated                by                reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on June 14, 2001)                                                   |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4.1                 |   | Series                A Preferred Stock Purchase Agreement dated January 28, 2005, by and                between PacificHealth Laboratories, Inc. and Hormel HealthLabs, LLC                (incorporated by reference to Exhibit 4.3 to PacificHealth Laboratories,                Inc.’s Annual Report on Form 10-KSB filed on April 15,                2005)                                    |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.4.2                 |   | Investors’                Rights Agreement dated January 28, 2005, by and between PacificHealth                Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by reference                to Exhibit 4.4 to PacificHealth Laboratories, Inc.’s Annual Report on Form                10-KSB filed on April 15, 2005)                                                             |

----

| **Exhibit****Number** |   | **Description                of Exhibit****(1)**                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4.3                 |   | Right                of First Refusal and Co-Sale Agreement dated January 28, 2005, by                and                between PacificHealth Laboratories, Inc., Robert Portman and Hormel                HealthLabs, LLC (incorporated by reference to Exhibit 4.5 to PacificHealth                Laboratories, Inc.’s Annual Report on Form 10-KSB filed on April 15,                2005)                                                                           |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4.4                 |   | Certificate                of Designations for Series A Preferred Stock (incorporated by reference                to                Exhibit 3.1 to PacificHealth Laboratories, Inc.’s Current Report on Form                8-K filed on January 28, 2005)                                                                                                                                                                                                                |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.5                   |   | Certificate                of Designations for Series B Preferred Stock, filed with the Secretary                of                State of the State of Delaware on April 28, 2005 (incorporated by                reference to Exhibit 3(i) to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on May 4, 2005)                                                                                                                       |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.1                 |   | Securities                Purchase Agreement, dated August 24, 2005 by and between PacificHealth                Laboratories, Inc. and Hormel HealthLabs, LLC (incorporated by reference                to Exhibit 10.1 to PacificHealth Laboratories, Inc.’s Current Report on                Form 8-K filed on August 30, 2005)                                                                                                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.2                 |   | Amended                and Restated Investors’ Rights Agreement dated August 24, 2005 between                PacificHealth Laboratories, Inc. and Hormel HealthLabs, LLC and any                additional investor that becomes a party thereto (incorporated by                reference to Exhibit 4.1 to PacificHealth Laboratories, Inc.’s Current                Report on Form 8-K filed on August 30, 2005)                                                 |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.3                 |   | Form                of Secured Convertible Promissory Note issued in connection with                Exhibit                4.6.1 (incorporated by reference to Exhibit 10.2 to PacificHealth                Laboratories, Inc.’s Current Report on Form 8-K filed on August 30,                2005)                                                                                                                                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.6.4                 |   | Security                Agreement dated August 24, 2005 by and between PacificHealth Laboratories,                Inc. and Hormel HealthLabs, LLC (incorporated by reference to Exhibit                10.3                to PacificHealth Laboratories, Inc.’s Current Report on Form 8-K filed on                August 30, 2005)                                                                                                                                      |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.1                  |   | Employment                Extension Agreement between PacificHealth Laboratories, Inc. and                Robert                Portman effective January 1, 2004, executed February 28, 2006                (incorporated by reference to Exhibit 10.6 to PacificHealth Laboratories,                Inc.’s Post-Effective Amendment to Registration Statement on Form SB-2                (File No. 333-109197) filed on May 2, 2006)                                   |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.1                |   | Asset                Purchase Agreement dated February 22, 2006, by and between PacificHealth                Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                confidential treatment) (incorporated by reference to Exhibit 10.8                to                PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                March 31, 2006)                                                         |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.2                |   | License                Agreement dated February 22, 2006, by and between PacificHealth                Laboratories, Inc. and Mott’s LLP (redacted, subject to request for                confidential treatment) (incorporated by reference to Exhibit 10.9                to                PacificHealth Laboratories, Inc.’s Annual report on Form 10-KSB filed on                March 31, 2006)                                                                |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.2.3                |   | Consulting,                License and Noncompetition Agreement dated February 22, 2006, by                and                between PacificHealth Laboratories, Inc., Mott’s LLP and Robert Portman                (redacted, subject to request for confidential treatment) (incorporated                by                reference to Exhibit 10.10 to PacificHealth Laboratories, Inc.’s Annual                report on Form 10-KSB filed on March 31, 2006) |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.1                  |   | Rule                13a-14(a) Certification of Chief Executive Officer (filed                herewith)                                                                                                                                                                                                                                                                                                                                                                          |
|                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 31.2                  |   | Rule                13a-14(a) Certification of Chief Financial Officer (filed                herewith)                                                                                                                                                                                                                                                                                                                                                                          |

----

| **Exhibit****Number** |   | **Description                  of Exhibit****(1)**                                                                                                                                                                   |
|-----------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   |                                                                                                                                                                                                                 |
| 32                    |   | Certifications                  of Chief Executive Officer and Chief Financial Officer pursuant                  to Section                  906 of the Sarbanes-Oxley Act of 2002 (filed                  herewith) |

|     |
|-----|
| (1) | In                the case of incorporation by reference to documents filed by the                Registrant under the Exchange Act, the Registrant’s file number under the                Exchange Act is 000-23495. |